CHGG

Chegg is a melting ice cube. Revenue has collapsed from $776M in FY2021 to $377M in FY2025 — down 39% in a single year and 51% off the peak — as ChatGPT and free AI tools erase demand for the paid Academic Services (Chegg Study) that the 10-K concedes still represent 'the majority of our revenues.' Gross profit fell 48.5%, operating margin is -31%, and the company posted a $103M net loss with a -86.5% ROE. This is not a cyclical dip; it is structural demand destruction of the core product, and management's own Risk Factors warn that 'past financial performance should not be considered to be a reliable indicator of future performance.'

The balance sheet is thinning fast. Cash fell 80.7% to just $31.1M, total assets dropped 68% to $278M, and current liabilities ($141M) now exceed current assets ($122M) for a current ratio of 0.86. Operating cash flow, though still positive at $15.5M, collapsed 87.6% and is dwarfed by $28.1M of capex — meaning free cash flow is negative and the cash runway is genuinely finite. Accumulated deficit sits at -$993M. With liabilities/equity at 1.32x and equity itself down 38%, there is little cushion left if the decline continues at anything like this pace.