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) Beneish M-score
Chegg, Inc.'s Beneish M-score for fiscal 2025 is −4.82; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −4.82 | 3.52 |
| FY2024 | −8.34 | (5.82) |
| FY2023 | −2.52 | (0.35) |
| FY2022 | −2.17 | 0.35 |
| FY2021 | −2.52 | 0.14 |
| FY2020 | −2.66 | 0.21 |
| FY2019 | −2.87 | 1.11 |
| FY2018 | −3.99 | (0.77) |
| FY2017 | −3.22 | 0.66 |
| FY2016 | −3.87 | (0.24) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.08 | — | 0.99 | |
| Gross margin index | 1.19 | — | 0.63 | |
| Asset quality index | 0.49 | — | 0.20 | |
| Sales growth index | 0.61 | — | 0.54 | |
| Depreciation index | 0.79 | — | 0.09 | |
| SG&A index | 1.24 | — | −0.21 | |
| Total accruals to total assets | (0.43) | — | −2.00 | |
| Leverage index | 0.67 | — | −0.22 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −4.82 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| CHGG Chegg, Inc. | −4.8× |
| JDZG JIADE Limited compare | −3.4× |
| SKIL Skillsoft Corp. compare | −3.3× |
| FC Franklin Covey Company compare | −3.1× |
| KLC KinderCare Learning Companies, Inc. compare | −2.7× |
| RYET Ruanyun Edai Technology Inc compare | −2.2× |
| LGCY Legacy Education Inc. compare | −1.9× |
| NEW Puxin Limited compare | — |
| COE 51Talk Online Education Group Sponsored ADR compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI