Chegg, Inc. has restructured its operations into two units to improve efficiency and financial discipline. Non-GAAP operating expenses declined 46%, leading to better cost execution. The company plans to reduce total non-GAAP expenses from $536 million in 2024 to under $250 million by 2026. Despite operational headwinds, the restructuring aims to strengthen cost control and financial resilience.

Chegg operates in a competitive ed tech market alongside Duolingo and Udemy. Duolingo dominates language learning with its gamified app, while Udemy focuses on professional skill development. The restructuring may help Chegg navigate industry shifts and improve stability in the changing landscape.

CHGG stock has declined 6.1% in the past month, underperforming industry peers. The forward 12-month price-to-sales ratio is 0.33, indicating a discounted valuation compared to peers. Earnings estimates for 2026 have increased to 18 cents per share, with expected growth of 228.6%.

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Read more at Nasdaq: Can Chegg’s Restructure Help Drive Better Cost Control for 2026?