We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Chegg Quietly Pivoting From Students Toward Professionals?
Read MoreHide Full Article
Key Takeaways
Chegg is shifting focus toward adult learning and workplace readiness through its Busuu and Skills businesses.
Busuu's revenues rose 15% year over year in Q2 2025, led by strong B2B growth.
Partnership with Guild and initiatives like Learning Pathways expand CHGG's reach in professional education.
Chegg, Inc. (CHGG - Free Report) seems to be shifting its focus from a traditional student-focused business model to an advanced professional upskilling business model. The education market is increasingly leaning toward programs that cater to workplace readiness and adult learning through online platforms. In sync with this market shift, the company is readying itself in this genre and working out ways to incorporate AI into its system.
Chegg’s investments in the Busuu and Skills business highlight these growth areas, which include language learning, workplace readiness and upskilling. Busuu’s revenues grew 15% year over year in the second quarter of 2025, reflecting impressive contributions from the B2C (6% year-over-year revenue growth) and B2B (39% year-over-year revenue growth) segments. Busuu’s robust growth, particularly in corporate training and adult language learning, has given Chegg a foothold in the fast-growing global upskilling market, which is expected to drive its growth in the upcoming period.
During the second quarter of 2025 earnings call, CHGG highlighted that it is continuing to roll out Guild into the English language learning vertical and expanding its offering with Learning Pathways, which offers personalized courses focused on key language and professional skills for specific roles and industries. Chegg has partnered with Guild mainly to offer skills-based learning programs for frontline workers.
With the investments across modernizing and diversifying its product offerings across practical skills, certification readiness and real-world employability, CHGG is well-positioned to scale opportunities in this section. However, this pivot carries execution risk as expansion into professional education involves new content partnerships, brand repositioning and competitive agility.
Nonetheless, Chegg’s strategic pivot suggests ambition, but its long-term success hinges on convincing professionals that it is more than just a study aid.
CHGG’s Market Competition Position
Chegg operates in a highly competitive landscape, with renowned names like Coursera, Inc. (COUR - Free Report) and Duolingo, Inc. (DUOL - Free Report) operating beside it in the education market.
Coursera offers a massive library of university-backed courses and certifications, positioning itself as a leader in academic partnerships and professional development. For students seeking career-oriented learning, Coursera creates a formidable option. Duolingo, on the other hand, dominates the language-learning niche with its gamified app and AI-driven engagement. With a strong mobile presence and daily user engagement, Duolingo has built a brand synonymous with accessible, bite-sized learning.
While Coursera and Duolingo each carve out specialized markets, Chegg’s competitive advantage lies in its subscription-based ecosystem, which integrates study help, textbooks, skills and now AI-enabled support. This combination creates stickiness and convenience for students, making Chegg a one-stop platform for learning services in a fragmented edtech environment.
CHGG Stock’s Price Performance & Valuation Trend
Shares of this California-based education technology company have surged 119.7% in the past six months, significantly outperforming the Zacks Internet - Software industry, the Zacks Computer and Technology sector and the S&P 500 Index.
Image Source: Zacks Investment Research
CHGG stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 0.41, as evidenced by the chart below. The discounted valuation of the stock, compared with its peers, advocates for an attractive entry point for investors.
Image Source: Zacks Investment Research
Earnings Estimate Trend of CHGG
The Zacks Consensus Estimate for 2025 loss is pegged at 11 cents per share, while the same for 2026 stands at breakeven earnings. Both metrics have remained constant in the past 60 days.
Image Source: Zacks Investment Research
While the estimated figure for 2025 indicates a decline of 114.7% year over year, estimates for 2026 indicate 100% growth.
Image: Bigstock
Is Chegg Quietly Pivoting From Students Toward Professionals?
Key Takeaways
Chegg, Inc. (CHGG - Free Report) seems to be shifting its focus from a traditional student-focused business model to an advanced professional upskilling business model. The education market is increasingly leaning toward programs that cater to workplace readiness and adult learning through online platforms. In sync with this market shift, the company is readying itself in this genre and working out ways to incorporate AI into its system.
Chegg’s investments in the Busuu and Skills business highlight these growth areas, which include language learning, workplace readiness and upskilling. Busuu’s revenues grew 15% year over year in the second quarter of 2025, reflecting impressive contributions from the B2C (6% year-over-year revenue growth) and B2B (39% year-over-year revenue growth) segments. Busuu’s robust growth, particularly in corporate training and adult language learning, has given Chegg a foothold in the fast-growing global upskilling market, which is expected to drive its growth in the upcoming period.
During the second quarter of 2025 earnings call, CHGG highlighted that it is continuing to roll out Guild into the English language learning vertical and expanding its offering with Learning Pathways, which offers personalized courses focused on key language and professional skills for specific roles and industries. Chegg has partnered with Guild mainly to offer skills-based learning programs for frontline workers.
With the investments across modernizing and diversifying its product offerings across practical skills, certification readiness and real-world employability, CHGG is well-positioned to scale opportunities in this section. However, this pivot carries execution risk as expansion into professional education involves new content partnerships, brand repositioning and competitive agility.
Nonetheless, Chegg’s strategic pivot suggests ambition, but its long-term success hinges on convincing professionals that it is more than just a study aid.
CHGG’s Market Competition Position
Chegg operates in a highly competitive landscape, with renowned names like Coursera, Inc. (COUR - Free Report) and Duolingo, Inc. (DUOL - Free Report) operating beside it in the education market.
Coursera offers a massive library of university-backed courses and certifications, positioning itself as a leader in academic partnerships and professional development. For students seeking career-oriented learning, Coursera creates a formidable option. Duolingo, on the other hand, dominates the language-learning niche with its gamified app and AI-driven engagement. With a strong mobile presence and daily user engagement, Duolingo has built a brand synonymous with accessible, bite-sized learning.
While Coursera and Duolingo each carve out specialized markets, Chegg’s competitive advantage lies in its subscription-based ecosystem, which integrates study help, textbooks, skills and now AI-enabled support. This combination creates stickiness and convenience for students, making Chegg a one-stop platform for learning services in a fragmented edtech environment.
CHGG Stock’s Price Performance & Valuation Trend
Shares of this California-based education technology company have surged 119.7% in the past six months, significantly outperforming the Zacks Internet - Software industry, the Zacks Computer and Technology sector and the S&P 500 Index.
Image Source: Zacks Investment Research
CHGG stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 0.41, as evidenced by the chart below. The discounted valuation of the stock, compared with its peers, advocates for an attractive entry point for investors.
Image Source: Zacks Investment Research
Earnings Estimate Trend of CHGG
The Zacks Consensus Estimate for 2025 loss is pegged at 11 cents per share, while the same for 2026 stands at breakeven earnings. Both metrics have remained constant in the past 60 days.
Image Source: Zacks Investment Research
While the estimated figure for 2025 indicates a decline of 114.7% year over year, estimates for 2026 indicate 100% growth.
Chegg stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.