The company's liquidity is under significant pressure, with cash reserves dwindling to $31.1 million while free cash flow margins have shifted into negative territory at -21.3% as of 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | -4.93M | 15.49M | 125.2M | 246.2M | 255.74M | 273.22M | 236.44M | 113.4M | 75.11M | 51.15M | 24.94M | -82K | 68.47M | 63.71M | 54.68M | 32.75M |
| Operating CF Margin % | - | 4.11% | 20.27% | 34.37% | 33.35% | 35.2% | 36.7% | 27.6% | 23.39% | 20.05% | 9.81% | -0.03% | 22.46% | 24.93% | 25.63% | 19.04% |
| Operating CF Growth % | -454.8% | -87.63% | -49.14% | -3.73% | -6.4% | 15.56% | 108.5% | 50.98% | 46.85% | 105.1% | 30512.2% | -100.12% | 7.49% | 16.5% | 66.94% | - |
| Net Income | -85.71M | -103.42M | -837.07M | 18.18M | 266.64M | -1.46M | -6.22M | -9.61M | -14.89M | -20.28M | -42.24M | -59.21M | -64.76M | -55.85M | -49.04M | -37.6M |
| Depreciation & Amortization | 60.49M | 78.64M | 78.34M | 129.72M | 91.61M | 74.13M | 62.41M | 30.25M | 22.8M | 19.34M | 23.79M | 55.06M | 81.31M | 74.84M | 67.97M | 61.99M |
| Stock-Based Compensation | 13.84M | 31.86M | 84.61M | 133.5M | 133.46M | 108.85M | 84.06M | 64.91M | 52.03M | 38.36M | 41.78M | 38.77M | 36.89M | 36.96M | 18.05M | 13.13M |
| Deferred Taxes | 901K | 1.01M | 143.32M | 26.57M | -168.68M | -1.1M | -109K | -39K | -323K | -3.02M | 467K | 1.86M | -1.29M | 5.52M | 3M | 6.54M |
| Other Non-Cash Items | 28.05M | 14.25M | 677.77M | -61.08M | -72.8M | 97.92M | 62.97M | 48.18M | 10.65M | -626K | 105K | 151K | 7.93M | 1.54M | 1.79M | 1.46M |
| Working Capital Changes | -22.5M | -6.85M | -21.77M | -701K | 5.52M | -5.12M | 33.34M | -20.29M | 4.84M | 17.38M | 1.04M | -36.72M | 8.4M | 700K | 12.92M | -12.76M |
| Change in Receivables | 10.79M | 8.44M | 7.77M | -7.8M | -3.75M | -5M | -400K | 1.83M | -1.54M | -175K | -127K | 712K | -1.71M | -1.47M | -4.95M | -698K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 19.7M | 0 | 1.5M | 16.3M | 2.17M | -23.58M | 3.41M | -568K | 7.67M | -12.73M |
| Change in Payables | -7.6M | -9.66M | -12.38M | 13.06M | -4.14M | 3.24M | 1.12M | -2.4M | 893K | 2.65M | -728K | -4.24M | 5.04M | -30K | 2.68M | -4.91M |
| Cash from Investing | 25.5M | 282.3M | 11.35M | 268.67M | 104.89M | -365.77M | -732.79M | -703.42M | -82.55M | -136.23M | -5.96M | 8.27M | -87.35M | -153.09M | -88.1M | -59.93M |
| Capital Expenditures | -20.5M | -28.12M | -74.95M | -83.05M | -103.09M | -94.18M | -81.32M | -42.33M | -31.22M | -26.14M | -24.69M | -8.25M | -5.08M | -7.37M | -15.15M | -2.71M |
| CapEx % of Revenue | 6.43% | 7.46% | 12.14% | 11.59% | 13.44% | 12.13% | 12.62% | 10.3% | 9.72% | 10.25% | 9.72% | 2.74% | 1.67% | 2.88% | 7.1% | 1.57% |
| Acquisitions | 0 | 0 | 0 | -11.85M | -407.13M | -7.89M | -94.8M | -79.15M | -44.65M | -14.93M | -28.07M | -2.02M | -53.87M | 0 | 0 | -14.01M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 752K | 0 | 9.79M | 2.19M | -2.22M | -51M | 0 | -16.68M | 6.94M | 24.76M | 5.96M | -54.75M | -84.3M | -72.95M | -43.21M |
| Cash from Financing | -31.57M | -428.48M | -109.14M | -852.77M | -744.8M | 466.72M | 588.63M | 603.51M | 256.42M | 134.21M | -8.68M | 2.72M | -1.87M | 145.22M | 19.84M | -8.75M |
| Debt Issued (Net) | -27.81M | -424.85M | -96.52M | -505.99M | -401.2M | -300.76M | 680.13M | 780.18M | 335.62M | 0 | 0 | 0 | 0 | -20M | -500K | -9.5M |
| Equity Issued (Net) | 590K | 590K | -2.57M | -334.81M | -323.53M | 791.47M | -80.68M | -20M | -69.09M | 147.61M | 2.1M | 11.43M | 2.11M | 162.88M | 19.79M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -102.56M | 0 | 0 |
| Share Repurchases | 0 | 0 | -2.57M | -334.81M | -323.53M | -300M | -80.68M | -20M | -20M | 0 | -10.78M | -2.26M | -604K | 0 | -5.19M | 0 |
| Other Financing | -4.35M | -4.22M | -10.05M | -11.98M | -20.07M | -23.98M | -10.82M | -156.67M | -10.11M | -13.39M | -10.78M | -8.71M | -3.98M | 104.89M | 552K | 750K |
| Net Change in Cash | -12.19M | -130.95M | 26.38M | -337.88M | -380.04M | 374.18M | 92.28M | 13.49M | 248.98M | 49.13M | 10.3M | 10.91M | -20.75M | 55.83M | -13.58M | -35.92M |
| Free Cash Flow | -25.43M | -12.63M | 50.25M | 163.15M | 152.64M | 179.04M | 155.13M | 71.08M | 43.89M | 25.01M | 249K | -8.34M | 63.39M | 56.34M | 39.53M | 30.05M |
| FCF Margin % | -7.98% | -3.35% | 8.14% | 22.78% | 19.9% | 23.06% | 24.08% | 17.3% | 13.67% | 9.8% | 0.1% | -2.77% | 20.8% | 22.04% | 18.53% | 17.47% |
| FCF Growth % | -162.31% | -125.14% | -69.2% | 6.88% | -14.74% | 15.42% | 118.25% | 61.94% | 75.52% | 9942.57% | 102.99% | -113.15% | 12.52% | 42.51% | 31.57% | - |
| FCF per Share | -0.23 | -0.12 | 0.49 | 1.27 | 1.02 | 1.27 | 1.24 | 0.60 | 0.39 | 0.25 | 0.00 | -0.10 | 0.76 | 0.69 | 0.59 | 0.45 |
| FCF Conversion (FCF/Net Income) | 0.30x | -0.15x | -0.15x | 13.54x | 0.96x | -187.40x | -38.01x | -11.81x | -5.05x | -2.52x | -0.59x | 0.00x | -1.06x | -1.14x | -1.11x | -0.87x |
| Interest Paid | 0 | 0 | 449K | 741K | 875K | 1.05M | 1.77M | 1.33M | 605K | 85K | 50K | 95K | 114K | 2.54M | 2.31M | 2.15M |
| Taxes Paid | 1.13M | 0 | 8.09M | 11.07M | 6.84M | 7.39M | 3.44M | 2.07M | 2.1M | 1.79M | 1.09M | 827K | 625K | 429K | 362K | 52K |
Liquidity and AI disruption
As reported in recent financial filings, the persistent gap between net income and operating cash flow suggests that Chegg's earnings quality is heavily distorted by non-cash charges, with the OCF/NI ratio exhibiting extreme volatility that complicates any assessment of true underlying cash-generating capability.
The frequent divergence between accounting losses and operating cash flow indicates that the company relies heavily on non-cash adjustments to maintain a semblance of operational stability. Investors should monitor whether this disconnect reflects genuine operational efficiency or merely the accounting treatment of legacy content assets that may no longer hold their carrying value.
Based on the provided quarterly data, Chegg's free cash flow trajectory has shifted from positive territory to a state of consistent burn, with FCF margins dropping significantly as the company struggles to align its cost structure with a rapidly shrinking revenue base.
The transition from positive FCF in early 2024 to the recent negative trends highlights a fundamental breakdown in the company's ability to self-fund operations. This trajectory suggests that the business model is currently unable to generate sufficient cash to cover both its operating expenses and necessary capital investments.
According to historical cash flow statements, Chegg's capital expenditure as a percentage of revenue has remained elevated, reaching as high as 16.1% in 2024Q1, which appears disproportionate given the ongoing contraction in the company's top-line performance and market relevance.
The continued investment in capital assets during a period of severe revenue decline may indicate an inability to quickly pivot away from a high-fixed-cost content model. This capital intensity warrants further investigation into whether these expenditures are truly growth-oriented or simply maintenance costs for a library facing obsolescence.
As documented in recent quarterly reports, working capital fluctuations have become a primary driver of cash flow volatility, with significant swings in accounts receivable and payables management suggesting a lack of predictability in the company's cash conversion cycle.
The erratic nature of working capital changes appears to reflect the company's struggle to manage its cash position amidst declining subscriber demand. This instability may indicate that the company is facing increasing pressure to manage its liquidity, potentially at the expense of long-term operational efficiency.
Based on the provided figures, Chegg's historical capital deployment toward share repurchases and acquisitions has ceased, reflecting a necessary shift toward preserving the company's dwindling cash reserves in the face of mounting competitive and operational headwinds.
The cessation of capital-intensive activities like buybacks suggests that management is prioritizing liquidity preservation over shareholder returns. Investors should monitor whether this defensive posture is sufficient to sustain the company through its current restructuring phase without requiring dilutive external financing.
Quick answers to the most common questions about buying CHGG stock.
Chegg, Inc. (CHGG) generated $15.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Chegg, Inc. (CHGG) reported negative free cash flow of $12.6M in 2025, indicating capital requirements exceeded cash from operations.
Chegg, Inc. (CHGG) spent $28.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.