Chegg, Inc. (CHGG): Business Model Canvas [Dec-2025 Updated]

You're looking past the headlines to see exactly how Chegg, Inc. is engineering its survival and growth through this massive pivot into the skilling market, and honestly, it's a fascinating strategic shift. We've mapped out their entire operation using the Business Model Canvas, showing you how they are balancing a proprietary content library of nearly 120 million expert answers with aggressive cost discipline-they are aiming to cut non-GAAP expenses by $165 million to $175 million in 2025 alone. The real story is in the new revenue focus: Chegg Skilling is expected to hit about $70 million for the year, while Busuu targets $48 million; this isn't just academic support anymore. Dig into the nine blocks below to see the precise resources, activities, and customer segments driving this transformation.

Chegg, Inc. (CHGG) - Canvas Business Model: Key Partnerships

You're looking at the partnerships that are critical to Chegg, Inc.'s pivot toward a skilling-focused, B2B-oriented future as of late 2025. These relationships are key to diversifying revenue away from the pressure on the legacy direct-to-student subscription model.

Content licensing deals with major technology companies

Chegg, Inc. has actively pursued licensing its proprietary content to major technology companies, specifically language model providers. This is a direct monetization of its asset base outside of the core subscription offering.

The company executed two content licensing deals with two of the top 10 technology companies in the world as of Q1 2025. These agreements are non-exclusive and cover less than 5% of the total content library. The revenue generated from these deals was $4 million in Q1 2025, with an expectation of an additional $7 million in Q2 2025. By Q2 2025, the content licensing revenue stream contributed approximately $7 million to the Skills and Other revenue segment. Management sees this as a potential $100 million+ annual revenue stream at scale.

Partnerships with higher education institutions for Chegg Skills pilot programs

The institutional strategy involves selling access to Chegg's AI tools and content directly to schools, aiming for more predictable B2B revenue. This is a key component of the Chegg Skills growth engine.

The expansion of institutional pilots has been rapid. Chegg grew these programs from 5 pilots in Q4 2024 to 15 by Q1 2025. The target for the end of 2025 was 40 institutions. Earlier in 2024, there were 5 pilots underway with plans to add approximately 35 more by the end of that year.

The Chegg Skills business, which includes these institutional efforts, is expected to finish 2025 with full-year revenue of approximately $70 million, representing 14% year-over-year growth by the end of 2025.

Collaborations with enterprise providers like Guild for upskilling programs

Chegg is evolving into a skills-focused organization, and partnerships like the one with Guild are central to its workplace readiness and upskilling market expansion. The company is also pursuing ACE Credit recommendations for several Skills programs to bridge academic and career services.

The Busuu language learning arm, which is reported alongside Chegg Skills as the 'Chegg Skilling' unit, saw its B2B segment maintain strong growth, increasing revenue by 29% year-over-year in Q1 2025. Busuu was forecast to achieve $48 million in revenue for the full year 2025 and aimed to be adjusted EBITDA positive by Q1 2026. During H2 2025, Chegg planned to continue its rollout with Guild into the English language learning vertical and expand its offering with Learning Pathways.

• Chegg Skills is on a path to profitability and positive revenue growth in 2026.
• The Chegg Skilling unit is expected to generate approximately $70 million in revenue for the full year 2025.
• Busuu B2B revenue grew 29% year-over-year in Q1 2025.
• In Q1 2025, Chegg Skills entered a pilot program with EdifyOnline and Noodle for AI programs in India.

Strategic review process with advisor Goldman Sachs

Chegg, Inc. engaged in a comprehensive strategic review process throughout the year with its financial advisor, Goldman Sachs. This review explored a range of outcomes to maximize shareholder value.

The process began in Q1 2025, where the company had already held dozens of meetings with interested parties, including strategic tech/education companies and private equity firms. Early feedback from this process indicated positive valuations. The review concluded on October 27, 2025, when Chegg announced its decision to remain a standalone public company.

The options evaluated during the strategic review included:

• Being acquired.
• Undertaking a go-private transaction.
• Remaining a public standalone company.

Finance: draft 13-week cash view by Friday.

Chegg, Inc. (CHGG) - Canvas Business Model: Key Activities

You're looking at the core actions Chegg, Inc. is taking right now to manage headwinds and pivot toward future growth engines. Honestly, the key activities are heavily weighted toward cost control and shifting focus to the skills market, all while dealing with the fallout from search engine changes.

Developing AI-powered personalized learning products like Solution Scout.

Chegg, Inc. is pushing hard on making its core product, Chegg Study, an AI-powered Personalized Learning Assistant. They launched Solution Scout in April 2025, which lets students compare Chegg's solutions directly against models like ChatGPT and Google Gemini on one page, highlighting agreements and differences. This is a direct response to students spending too much time verifying information across different AI sources. This AI focus is also driving internal efficiency; the company noted that its implementation of machine learning and multiple AI models in 2024 reduced the cost of creating content by more than 70%.

Restructuring the organization to reduce non-GAAP expenses by $165 million to $175 million in 2025.

Aggressive cost management is a top priority. Chegg, Inc. remains firmly on track to achieve the combined non-GAAP expense savings objective of $165 million to $175 million for the full year 2025, stemming from restructurings announced in 2024 and the one executed in Q1 2025. This involved a restructuring in Q1 2025 that impacted 248 employees, or approximately 22% of the company, aiming for $45-$55 million in savings that year. Later in the year, in October 2025, a further restructuring was announced, reducing 388 roles globally, or approximately 45% of the workforce, to materially reduce 2026 non-GAAP expenses by approximately $100-110 million. The company anticipates full-year 2025 Capital Expenditures (CapEx) of approximately $30 million (based on Q2 data), a significant decrease from the prior year.

Curating and updating the proprietary academic content library.

The proprietary content library remains central, even as the business pivots. Students still have access to nearly 120 million archived expert answers within the core product. To monetize this asset outside the subscription base, Chegg, Inc. is actively pursuing content licensing agreements. In Q1 2025, two non-exclusive deals generated $4 million, with an additional $7 million expected in Q2 2025 from these deals. Skills and Other revenue, which includes this licensing, totaled $15 million in Q2 2025, with licensing accounting for approximately $7 million of that.

Expanding the B2B segment for Busuu and Chegg Skills.

Chegg, Inc. is evolving into a skills-focused organization, positioning Busuu and Chegg Skills as primary growth engines targeting the more than $40 billion workplace readiness and upskilling market. The company expects these combined businesses to generate approximately $70 million in revenue in 2025. Busuu, the language learning unit, is projected to achieve approximately $48 million in revenue for the full year 2025 and is targeted to be adjusted EBITDA positive by Q1 2026. The B2B component within this segment is showing strong traction.

The company is actively expanding Chegg Skills with new pilot programs, including in India.

Managing the ongoing litigation against Google.

A major activity involves managing the legal challenge against Google. Chegg, Inc. filed a complaint alleging that Google's AI Overviews unjustly retained traffic. The impact was severe: non-subscriber traffic plummeted by 49% in January 2025 compared to January 2024. To manage the legal front, Chegg retained Susman Godfrey to handle the complaint against Google. Concurrently, Goldman Sachs was retained to advise on the company's broader strategic review process.

The company's focus on key activities can be summarized by the areas receiving dedicated resources:

• Focusing AI investment on the reinvented Chegg Study platform.
• Driving growth in the Busuu and Chegg Skills units.
• Executing restructurings to achieve $165-$175 million in 2025 non-GAAP expense savings.
• Monetizing content via licensing agreements.
• Engaging legal counsel for the Google litigation.

Finance: finalize the 2026 non-GAAP expense projection based on the October restructuring by end-of-year.

Chegg, Inc. (CHGG) - Canvas Business Model: Key Resources

You're looking at the core assets Chegg, Inc. (CHGG) relies on to operate and pivot in this new AI-driven learning landscape. Honestly, these resources are what separate them from a pure-play software company; it's a mix of digital IP, user base scale, and a growing international brand.

The foundation remains the massive repository of knowledge. While the exact figure you mentioned is a benchmark, the actual scale being actively monetized through new channels is substantial. We saw two non-exclusive licensing deals in Q1 2025 generate $4 million, with an additional $7 million expected in Q2 2025 from these deals alone, which speaks directly to the value of their content asset base, which was referenced as 400 million question-answer pairs in Q1 2025 discussions.

The second critical resource is the technology layer. Chegg, Inc. is actively embedding AI to transform its core offering. The results from Q2 2025 showed that Chegg Study's AI-driven enhancements resulted in a 23% increase in student satisfaction and a 17% increase in students' intent to use the service. This shows the learning science and AI integration are becoming a tangible resource for product differentiation.

The global reach is anchored by the subscriber base, even as it contracts. As of Q2 2025, the company reported 2.6 million Subscription Services subscribers. That number represents a 40% year-over-year decline, but it's still a large, engaged pool of users who value the service enough to retain it, as management noted retention and ARPU increased year-over-year.

The Busuu platform and brand represent a key diversification resource, shielded somewhat from the direct impact of free AI overviews on the Q&A business. For Q2 2025, Busuu delivered a 15% year-over-year revenue increase, showing strength across both its B2C and B2B segments. This growth engine is targeted for significant investment.

Here's a quick look at the financial scale tied to these resources in Q2 2025:

The cash flow generated from the legacy academic services is best viewed through the Subscription Services revenue stream, which was $89.7 million in Q2 2025. While the overall Free Cash Flow for the quarter was negative $12 million (impacted by restructuring payments), the core business still generates significant top-line revenue. The company is aggressively managing costs to improve this, targeting non-GAAP expense savings between $165 million and $175 million for the full year 2025.

You can see the breakdown of the Q2 2025 financial context:

• Total Net Revenues: $105.1 million.
• Adjusted EBITDA: $23.1 million.
• Non-GAAP Gross Margin: 68%.
• Capital Expenditures (CapEx) for the quarter: $7 million.
• Anticipated full-year 2025 CapEx: approximately $30 million.

If onboarding takes 14+ days, churn risk rises, especially with the subscriber base already down 40% year-over-year.

Finance: draft 13-week cash view by Friday.

Chegg, Inc. (CHGG) - Canvas Business Model: Value Propositions

You're looking at Chegg, Inc. (CHGG) right now, and it's clear the value proposition is in a massive state of flux, moving away from the old model toward a skilling and AI-integrated future. The core value is now centered on providing trusted, education-specific AI support and professional upskilling, which is a direct response to market shifts.

AI-driven academic support for faster, personalized learning.

The market demand for AI is overwhelming; our 2025 Global Student Survey showed that 80% of undergraduates worldwide have used Generative AI tools to support their studies. This is a huge shift, as 29% of students now report turning to GenAI tools first when stuck on a concept, which is more than the 24% who turn to free online resources first. The primary motivation for using these tools is faster learning, cited by 55% of users, and understanding concepts, cited by 56% of users. However, the value Chegg, Inc. aims to capture is addressing the trust gap: 53% of GenAI users worry about inaccurate information, and 50% of students globally want GenAI tools built specifically for education. Chegg, Inc. is positioning its revamped Chegg Study as that trusted, education-focused AI assistant.

Verified, step-by-step solutions to complex problems (Chegg Study).

The traditional value proposition of Chegg Study, the step-by-step solutions, is facing direct competition from free AI, reflected in the financial results. For Q3 2025, Subscription Services revenue was down 43% year-over-year, landing at a figure below the prior quarter's $107.6 million in Subscription Services revenue from Q1 2025. Still, the remaining student base is paying more per user; Subscription Services Average Revenue Per User (ARPU) actually increased 2% year-over-year to $33.7 in Q1 2025. This suggests that the value of the verified content remains high for the loyal segment that hasn't churned, even as the total subscriber count shrinks. The company ended Q1 2025 with 3.2 million subscribers, a 31% drop year-over-year.

Professional language learning and workplace readiness (Busuu and Chegg Skills).

Chegg, Inc. is aggressively pivoting this value toward the skilling market, which management estimates is a $40 billion-plus opportunity. Busuu, the language learning unit, is a key asset here, forecasting $48 million in revenue for 2025 and showing resilience with 7% year-over-year revenue growth in Q1 2025. Its B2B revenue within Busuu grew 29% year-over-year in that same quarter. Chegg Skills is also targeted for growth, with management guiding for $18 million in Skilling business revenue for Q4 2025, representing an expected 14% year-over-year increase. Busuu alone boasts over 120 million registered users, showing scale in the language segment.

Here's a quick look at the numbers driving this strategic shift:

Time-saving tools like Solution Scout for comparing multiple AI answers.

The value here is in providing a curated, reliable alternative to general-purpose AI, which students report as untrustworthy. The push to integrate AI into Chegg Study is designed to offer a more efficient learning process, which 55% of students using GenAI cited as a motivation. The company is leveraging its proprietary content, which includes more than a hundred million pieces of content, to power its personalized learning assistant. This focus on human-validated content and AI integration directly addresses the student request for human expertise in generating answers, which 49% of surveyed students asked for.

The company is also focused on expense discipline to support this pivot; total non-GAAP expenses are on track to be reduced to under $250 million by 2026, down from $536 million in 2024. Finance: draft 13-week cash view by Friday.

Chegg, Inc. (CHGG) - Canvas Business Model: Customer Relationships

You're looking at how Chegg, Inc. (CHGG) keeps its users engaged in a market where generative AI is changing the game. The relationship is heavily anchored in recurring revenue and a pivot toward personalized digital assistance. Honestly, the numbers show a tough top-of-funnel environment, but the existing base is sticking around better than before.

The core relationship is built on a subscription-based model for continuous access to services. This structure aims to smooth out revenue volatility, though recent subscriber trends present a challenge. For the second quarter of 2025, Subscription Services revenue hit $90 million, supported by 2.6 million subscribers. By the third quarter of 2025, Subscription Services revenue was reported at $69.1 million, contributing to total net revenues of $77.7 million for that period.

Here's a quick look at what those subscription dollars buy, which is more than just Q&A now:

The company is heavily leaning into AI-driven personalization to improve learning outcomes. This isn't just a buzzword; they are actively integrating AI to make the service stickier and more effective than generic large language models. They are transforming Chegg Study into a Personalized Learning Assistant.

The early feedback on these AI enhancements is concrete:

• Students reported a 23% lift in the statement "Chegg helped me learn today".
• Students showed a 17% lift in those who "intend to use Chegg in the next 30 days".

To deliver this, Chegg Study launched new capabilities, including:

• Solution Scout.
• AI-powered practice and flashcard generators.

This focus on making the tool more helpful directly feeds into a high focus on retention. Despite the headwinds impacting new customer acquisition, when students find the service, they are sticking with it. The monthly retention rate saw a significant improvement, being up 117 basis points in Q2 2025. This suggests that the value proposition, especially with the AI integration, is resonating with the existing user base, even as the total subscriber count declined year-over-year by 40% in Q2 2025 to 2.6 million.

The final piece of the relationship puzzle is direct-to-learner self-service via the platform. The entire experience, from accessing the Study Pack to utilizing Busuu's self-paced lessons, is designed for the learner to manage independently. Busuu subscribers, for instance, get access to self-paced lessons alongside live classes with expert tutors and a community for practice. The platform is the primary touchpoint, meaning the customer relationship is managed through digital interaction, not high-touch sales or support, which aligns with the aggressive cost-cutting measures Chegg, Inc. has been executing.

Finance: draft 13-week cash view by Friday.

Chegg, Inc. (CHGG) - Canvas Business Model: Channels

You're looking at how Chegg, Inc. (CHGG) gets its offerings into the hands of customers as of late 2025. The channels reflect a clear pivot toward the skilling market while managing the legacy subscription base.

Direct-to-consumer (D2C) through the Chegg website and mobile apps

The core D2C channel remains the website and mobile applications, primarily for the Subscription Services, which includes Chegg Study Pack, Chegg Study, Chegg Writing, and Chegg Math. This channel has seen significant contraction due to industry headwinds, notably traffic impacts from AI overviews.

The subscriber base has been shrinking. Chegg, Inc. ended the first quarter of 2025 with 3.2 million Subscription Services subscribers, representing a 31% year-over-year decrease. By the second quarter of 2025, this figure dropped further to 2.6 million subscribers, marking a 40% year-over-year decline. Subscription Services revenue reflected this, coming in at $107.6 million in Q1 2025, and then $89.7 million in Q2 2025. For the third quarter of 2025, the projection for Subscription Services revenue was between $67 million and $69 million. Still, retention and Average Revenue Per User (ARPU) increased year-over-year in Q2 2025, suggesting that the remaining D2C users find significant value in the service.

Business-to-Business (B2B) sales for Busuu and Chegg Skills to enterprises

Chegg, Inc. is aggressively channeling growth through its B2B segment, consolidating Busuu and Chegg Skills into the 'Chegg Skilling' unit for external reporting. This represents a strategic shift toward the $40+ billion skilling market.

Busuu, the language learning unit, shows strong B2B momentum. Its B2B revenue increased 29% year-over-year in Q1 2025, accelerating to an even more impressive 39% year-over-year growth in Q2 2025. The company is targeting approximately $48 million in total Busuu revenue for the full year 2025.

Chegg Skills, focused on workplace readiness and upskilling, is also a key B2B channel, with plans for expansion through partnerships like the rollout with Guild into the English learning vertical. The company anticipates Chegg Skilling revenues for the full year 2025 to total approximately $70 million. For the third quarter of 2025 specifically, Chegg Skilling revenues were reported at $18 million.

Here's a quick look at the Skilling component's financial trajectory:

Content licensing agreements with large technology companies

A newer channel involves content licensing, primarily of high-quality question-and-answer pairs to large technology companies, likely for use in their AI models. These agreements are explicitly stated as non-exclusive and cover only a small percentage of Chegg, Inc.'s content library.

Financially, this stream contributes to the 'Skills and Other' revenue bucket. In Q1 2025, this channel generated $4 million in revenue from two executed deals with top-ten technology companies. For Q2 2025, the total Skills and Other revenue was $15 million, which included approximately $7 million specifically from content licensing.

Organic and paid digital marketing for subscriber acquisition

Digital marketing is the primary lever for organic and paid subscriber acquisition, though direct spend figures aren't explicitly broken out in the latest reports. The company has noted that reduced traffic has impacted the business in two key ways: fewer subscribers for subscription revenue and fewer sessions, which significantly reduced advertising revenue within the Skills and Other segment in Q3 2025.

To drive new D2C acquisition, promotional offers are used. For instance, an offer for 20% off the first month of a new Chegg Study or Chegg Study Pack monthly subscription is noted to expire on 12/31/2025. The focus on digital marketing skills like SEO, PPC advertising, and social media marketing is highlighted in Chegg, Inc.'s own educational content, suggesting an internal competency focus for driving traffic.

Key channel metrics related to acquisition and traffic include:

• Reduced traffic impacted advertising revenue within the Skills and Other segment in Q3 2025.
• A promotional offer provides 20% off the first month of a new subscription, expiring 12/31/2025.
• The company is actively using its platform to connect brands with Gen Z through various advertising solutions.

Finance: draft 13-week cash view by Friday.

Chegg, Inc. (CHGG) - Canvas Business Model: Customer Segments

You're looking at the core user bases Chegg, Inc. serves as of late 2025, following their strategic pivot toward skilling and away from sole reliance on the traditional student traffic model.

The customer segments are quite distinct now, with clear revenue contributions from the core academic support services, the growing language learning platform, and the enterprise upskilling initiatives. For instance, in the third quarter of 2025, Total Net Revenues for Chegg, Inc. were reported at $77.7 million.

Here is a breakdown of the key customer segments and their associated metrics based on the latest available 2025 data:

The traditional student segment, served primarily through Subscription Services, saw its subscriber base contract, ending Q1 2025 with 3.2 million subscribers, a 31.0% drop year-over-year. Subscription Services Revenue for that quarter was $107.6 million. By Q2 2025, Subscription Services Revenues were $89.7 million, marking a 39% decrease year-over-year. Still, the core product showed some stickiness, with the monthly retention rate for Chegg Study up 117 basis points in Q2 2025.

The focus on professional upskilling and institutional adoption is clear in the Skilling segment data. The Chegg Skilling business is projected to bring in approximately $70 million in revenue for the full year 2025. This segment generated $18 million in revenue in the third quarter of 2025 alone. Furthermore, the business-to-institution program saw expansion:

• Institutional pilots expanded from 5 to 15 pilots Quarter-over-Quarter (QoQ) in Q1 2025.
• The target for these institutional pilots by the end of 2025 is 40.
• Enrollments in Chegg Skills increased 16% quarter-over-quarter across new programs in Q2 2025.

Global learners, specifically through the Busuu platform, represent a distinct, high-growth customer base that Chegg, Inc. is positioning as a primary growth engine. The company expects Busuu to achieve $48 million in revenue for the full year 2025. This growth is supported by a large user base and strong B2B momentum:

• Busuu has 140 million registered users on its platform.
• The platform has approximately 500,000 active subscribers.
• In Q2 2025, Busuu revenue grew 15% year-over-year, fueled by B2B growth of 39% year-over-year.

The customer segments are being managed with a clear financial goal for the Busuu unit, aiming for adjusted EBITDA positivity by the first quarter of 2026. To be fair, the overall revenue decline for Chegg, Inc. in Q3 2025 was 43% year-over-year, showing the scale of the shift away from the legacy student model.

Chegg, Inc. (CHGG) - Canvas Business Model: Cost Structure

The Cost Structure for Chegg, Inc. reflects a significant pivot toward efficiency, driven by substantial restructuring efforts and a strategic focus on leveraging Artificial Intelligence to lower operational expenditure, particularly in content and development. The company is actively managing costs associated with its core academic services while investing in the growth engine of Chegg Skilling.

Significant cost of revenue for content creation and expert network remains a key component, though the company is working to make this more efficient. The Cost of Revenue for the second quarter of 2025 was reported at $35.5 million. This figure represented a low point over the preceding five years, down from $54.0 million in the first quarter of 2025. The platform's services leverage more than a hundred million pieces of proprietary content.

High investment in technology development, especially AI integration is evident through capital expenditure management. Full-year 2025 Capital Expenditures (CapEx) were anticipated to be approximately $27 million as of the third quarter update, down from the $30 million projected in the second quarter. Chegg, Inc. is on track to reduce content and software development CapEx by over $50 million in 2026 compared to 2024, directly attributable to innovative use of AI.

The cost base has been aggressively managed through workforce reductions. The company announced an October 2025 restructuring expected to impact approximately 388 employees (about 45% of the workforce) with estimated charges of $15-$19 million for severance payments. This follows a May 2025 plan that carried estimated charges of $34 million to $38 million. Severance payments related to restructuring impacted second quarter 2025 free cash flow by $12.5 million.

Overall operating expenses are being streamlined. Non-GAAP operating expenses in Q2 2025 were $64 million, marking a reduction of approximately $31 million, or 33%, year-over-year, driven by these restructurings. The company remains on target to realize total non-GAAP expense savings between $165 million and $175 million in 2025.

While specific Sales and Marketing expenses are not isolated in the latest reports, these costs are encompassed within the overall non-GAAP expense reduction drive. The company's focus is on driving traffic and conversion through its reinvention of Chegg Study into a Personalized Learning Assistant, which is getting less expensive to run thanks to AI.

Here's a quick look at some key cost-related figures from the second quarter of 2025:

The cost structure is being actively reshaped to support the new focus. Key areas driving cost management include:

• Achieving $165 - $175 million in non-GAAP expense savings for 2025.
• Targeting a further CapEx reduction of approximately 50% in 2026.
• Realizing annualized non-GAAP cost savings of $45 million to $55 million from the May 2025 restructuring in fiscal year 2025.
• Negotiated lease termination saving $5.3 million in contractual operating lease obligations through December 31, 2025.

Chegg, Inc. (CHGG) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Chegg, Inc. (CHGG) as the company finalizes its 2025 fiscal year, which has been defined by a major strategic pivot toward the skilling market. The revenue streams now reflect this split, with legacy subscription services facing headwinds while newer segments like Chegg Skilling are the focus for growth.

The core of the historical revenue, Subscription Services revenue, which includes Chegg Study Pack, Chegg Study, Chegg Writing, and Chegg Math, has seen significant contraction. For the third quarter of 2025, this segment brought in $69.1 million, a substantial drop from the $119.8 million reported in the third quarter of 2024. Back in the first quarter of 2025, the revenue was $107.6 million, supported by 3.2 million subscribers, which represented a 31% year-over-year decline in the subscriber base for that period.

The company's new growth engine is clearly Chegg Skilling revenue. Management expects this segment to finish the full year 2025 with revenue of approximately $70 million, reflecting a strong 14% year-over-year growth for the full year. Looking just at the final quarter, the guidance for Chegg Skilling revenue was set at $18 million, also projecting that same 14% year-over-year growth for Q4 2025.

A key part of the diversification strategy involves Content licensing revenue. This stream is showing early traction from deals with large language model companies. Chegg, Inc. generated $4 million from content licensing in the first quarter of 2025, having executed two deals with top-ten technology firms. Furthermore, they anticipated an additional $7 million to be recognized in the second quarter of 2025 from these initial agreements.

The Busuu revenue stream, which is now bundled into the Chegg Skilling segment, remains a bright spot. The target for Busuu revenue for the full year 2025 was set at approximately $48 million. This unit showed resilience, with Q1 2025 revenue growing 7% year-over-year, and it is targeted to become adjusted EBITDA positive by the first quarter of 2026.

The remaining components, Advertising services and sales of print/eTextbooks, are reported within the broader category of Skills and Other revenue. Here are the latest figures for the combined segment:

To put the overall revenue picture in context, here is a comparison of the two main reporting units based on the latest reported quarter:

• Subscription Services revenue (Q3 2025): $69.1 million
• Skills and Other revenue (Q3 2025): $8.6 million
• Total Net Revenues (Q3 2025): $77.7 million
• Total Net Revenues Guidance (Q4 2025): Range of $70 million to $72 million

The company is clearly managing its revenue mix to align with its future focus, so you'll want to track the growth rate of the Skilling segment against the continued decline in the legacy subscription base. Finance: draft 13-week cash view by Friday.