Chegg, Inc.
CHGG Consumer Defensive Education & Training Services
Chegg, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $376.9 million, down 39.0% from fiscal 2024. In the quarter to June 2026, revenue fell 50.7%, EPS grew 90.9% and free cash flow grew 153.0%, each against the same quarter a year earlier. Insiders bought in the last twelve months.
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Chegg, Inc. (CHGG) Altman Z-score
Chegg, Inc.'s Altman Z-score for fiscal 2025 is −4.74, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | −4.74 | (1.24) |
| FY2024 | −3.50 | (4.68) |
| FY2023 | 1.19 | (1.02) |
| FY2022 | 2.21 | (0.04) |
| FY2021 | 2.25 | (2.57) |
| FY2020 | 4.82 | 1.56 |
| FY2019 | 3.26 | (2.59) |
| FY2018 | 5.85 | (11.36) |
| FY2017 | 17.21 | 12.55 |
| FY2016 | 4.66 | (0.27) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.07) | — | −0.08 | |
| Retained earnings / total assets | (3.57) | — | −5.00 | |
| EBIT / total assets | (0.42) | — | −1.39 | |
| Market value of equity / total liabilities | 0.63 | — | 0.38 | |
| Sales / total assets | 1.36 | — | 1.36 | |
| Altman Z-score | Distress zone | −4.74 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −14.13 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| LGCY Legacy Education Inc. compare | 5.9× |
| FC Franklin Covey Company compare | 2.6× |
| JDZG JIADE Limited compare | 1.5× |
| KLC KinderCare Learning Companies, Inc. compare | 0.7× |
| RYET Ruanyun Edai Technology Inc compare | −1.1× |
| SKIL Skillsoft Corp. compare | −2.1× |
| CHGG Chegg, Inc. | −4.7× |
| COE 51Talk Online Education Group Sponsored ADR compare | −6.6× |
| NEW Puxin Limited compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets