Slide 1: Q2-25 Investor Presentation
Q2-25 Investor Presentation August 5, 2025 © 2024 Chegg, Inc. / All Rights Reserved
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This press release contains forward-looking statements made pursuant to the safe harbor provisions of the other risks; competition in all aspects of our business, including with respect to AI and our expectation that Private Securities Litigation Refo
Slide 3: Who Are We?
We put learners first. Our mission is to improve learning and learning outcomes by putting students first, in school and beyond. Who Are We? We strive to improve the overall return on investment in education by helping learners learn more in less time and at a lower cost. Chegg’s services leverage m
Slide 4: Chegg has overwhelming value for students
Chegg has Real-time overwhelming Individualized Conversational value for students Affordable and unique Backed by Expert Human competitive Help advantages Satisfaction Guarantee © 2024 Chegg, Inc. / All Rights Reserved 4
Slide 5: Learners need a Platform to Support Them
Today’s Learners Face More Pressure Than Ever It’s Harder to Be a They’re Faced with They Aren’t Prepared for Student Mounting Costs the Workplace 26% 38% Over 25 years old(1) Don’t graduate (2) 52% Of graduates are underemployed, and even a ~38% $36K decade after graduation, 45% are underemployed (
Slide 6: Q2-25 Highlights
Q2-25 Highlights We delivered a good second quarter, surpassing our revenue and adjusted EBITDA guidance. We’re continuing our focus on disciplined expense management, having identified an additional $17 million in cost savings that we will realize in 2026. We remain firmly on track to achieve the t
Slide 7: Q2-25 Highlights – Metrics
Q2-25 Highlights – Metrics* Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Chegg Study/Pack Subscribers Subscription Services Revenue Global 3,419 2,913 2,718 2,295 1,783 Global 146,813 119,804 128,543 107,566 89,727 YoY -9% -13% -23% -37% -48% YoY -11% -14% -23% -30% -39% US 2,858 2,49
Slide 8: We Know Students and We Know Learning
We Know Students and We Know Learning Meeting students where they are and applying learning science to improve outcomes. 100 million+ Q&A pairs we know the Content designed for learning subjects and topics students need to learn Subject-specific LLMs and prompt design for learning to create on-dem
Slide 9: Chegg's Integrated Platform of Connected Services
Chegg’s Integrated Platform of Connected Services Subscription Services Skills & Other Chegg Study Skills Personalized step-by-step learning support High quality online skills-based courses in areas powered by artificial intelligence and subject- such as AI Prompt Engineering, Applying AI, matter ex
Slide 10: Chegg Skills: ~$40B market serving workplace readiness and upskilling
Chegg Skills : ~$40B market serving workplace readiness and upskilling We deliver a technology-driven and human-supported learning experience that enhances professional growth. Our programs combine industry-aligned curriculum, personalized coaching, and AI-enabled tools to help learners stay competi
Slide 11: New Chegg Study Products – Solution Scout
New Chegg Study Products – Solution Scout Students lack trust in generative AI. They spend too much time comparing and verifying solutions across multiple platforms. This results in an incredible amount of wasted time that could be spent learning! Solution Scout allows students to see side-by-side a
Slide 12: New Chegg Study Products – Practice and Exam Prep
New Chegg Study Products – Practice and Exam Prep, Personalized for Each Student We launched an updated feature set for practice and exam preparation, personalized for each student. 67% of students report that they do not have adequate practice resources when preparing for exams. Monthly, our platfo
Slide 13: Chegg Delivers Positive Learner Outcomes
Chegg Delivers Positive Learner Outcomes Learn & Better Grades More Efficient Help When You Build Confidence Understand Need It 90% 91% 90% 91% 85% Say that Chegg helps Say they get better Say that they work Say that Chegg helps Say that Chegg helps them learn their grades when they use more efficie
Slide 14: Chegg's Student Market is 15M US College Students
Chegg’s Student Market is 15M US College Students Satisfiers Achievers Knowledge Seekers Goal: pass their classes Goal: Get a high grade Goal: Gain a deep understanding 18% 39% 44% • Satisfiers’ main goal in school is just to • Achievers’ main gool in school is to get • Knowledge Seekers' main goal
Slide 15: Majority of U.S. College Students are taking STEM-B Courses
Majority of U.S. College Students are taking STEM-B Courses 21% Not STEM-B Major but taking STEM-B Courses 61% STEM-B Major 18% No STEM-B Source: Consumer Insights Oct 2023. Dynata Sample US College students n= 895. STEM-B = Science, Tech, Engineering, Math, or Business © 2024 Chegg, Inc. / All Righ
Slide 16: Chegg Serves Students of Diverse Backgrounds
Chegg Serves Students of Diverse Backgrounds 28% First generation 23% Family income <$20k 53% Minorities 61% Female 26% Over 25 years old 5% work Full-Time / 33% Part-Time Source: Chegg Consumer Insights, Oct 2023, Quarterly Marketing Tracker. Chegg Services users in the past 3 months (C
Slide 17: Financial Highlights: Q2 2025 Revenue and Subscribers
Financial Highlights: Q2 2025 Revenue and Subscribers Total revenue was $105 million, a decrease of 36% year-over-year. We had 2.6 million subscribers during the quarter, representing a year-over-year decline of 40%. Chegg Study monthly retention rate and ARPU increased year-over-year. Skills an
Slide 18: Financial Highlights: Q2 2025 Adj. EBITDA Margin, Free Cash Flow, and CapEx
Financial Highlights: Q2 2025 Adj. EBITDA Margin, Free Cash Flow, and CapEx Adjusted EBITDA Free Cash Flow CapEx 70% 50 $44 0 70% 42 70% Q2-24 Q2-25 60% 40 (2)60% 36 60% 50% (4)50% 30 50% 30 $23 40% ($4) 24 40% 40% (6) $18 30% 18 30% 20 (8) 30% 20% 12 $7 20% 10 27% (10) 20% 22% 10% 6 10% (12)0% 11%
Slide 19: Capital Expenditures
Capital Expenditures millions Graph does not include textbook liquidations of ($9.8) million in Q2-23. Capital expenditures for the quarter were $7 million, down 60% year-over-year, as we are now fully realizing the benefits of our investments in AI. We anticipate full-year 2025 CapEx of approxi
Slide 20: Balance Sheet
Balance Sheet Our 2025 convertible notes matured in March, and we repaid the full principal amount of $358.9 million. We ended the quarter with cash and investments of $114 million and a net cash balance of $52 million. © 2024 Chegg, Inc. / All Rights Reserved 20
Slide 21: Business Outlook
Business Outlook Q2 2025 Results Q3 2025 Guidance Total Net Revenue $105m $75m - $77m Subscription Services Revenue $90m $67m - $69m Gross Margin % 66% 56%-57% Adjusted EBTIDA1 $23m $7m - $8m CapEx $7m Free Cash Flow1 ($12m) (1) Non-GAAP financial measure. See appendix for reconciliation of a) Net I
Slide 22: Appendix
Appendix © 2024 Chegg, Inc. / All Rights Reserved
Slide 23: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA © 2024 Chegg, Inc. / All Rights Reserved 23
Slide 24: Reconciliation of Forward-Looking Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Forward-Looking Net Loss to EBITDA and Adjusted EBITDA © 2024 Chegg, Inc. / All Rights Reserved 24
Slide 25: Reconciliation of Net Cash (Used In) Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash (Used In) Provided by Operating Activities to Free Cash Flow © 2024 Chegg, Inc. / All Rights Reserved 25