- Chegg's upcoming Q4 earnings are anticipated with an EPS of -$0.11 and revenue of $71 million, amidst declining subscribers and increased competition.

- The company previously exceeded expectations in the last quarter but is currently under revenue pressure with a 43% drop over the past year.

- Chegg's financial challenges include a negative P/E ratio of -0.97 and a debt-to-equity ratio of 0.57, indicating potential issues with profitability and debt management.

Chegg, Inc. (NYSE:CHGG) is a company known for providing educational services, primarily focusing on textbook rentals and online tutoring. As it prepares to release its fourth-quarter 2025 earnings on February 9, 2026, analysts are predicting an earnings per share (EPS) of -$0.11 and revenue of approximately $71 million. This comes amid challenges such as declining subscribers and competition from AI tools. In the previous quarter, Chegg managed to exceed expectations, with its adjusted EPS doubling the Zacks Consensus Estimate and net revenues surpassing estimates by 1.8%. However, the company is currently under revenue pressure, with a 43% drop in revenue over the past year. Despite efforts to control costs, Chegg's margins are expected to shrink due to restructuring expenses. Chegg's long-term strategy involves focusing on AI and Chegg Skilling, aiming to move beyond traditional study methods.

However, the company faces financial challenges, as highlighted by its negative price-to-earnings (P/E) ratio of -0.97, indicating a lack of profitability. The price-to-sales ratio of 0.17 suggests that investors are paying 17 cents for every dollar of sales. The enterprise value to sales ratio stands at 0.27, providing insight into Chegg's valuation relative to its revenue. Additionally, the enterprise value to operating cash flow ratio is 2.82, indicating how many times the operating cash flow can cover the enterprise value.

The earnings yield is negative at -1.03%, further highlighting the company's financial struggles. Chegg's debt-to-equity ratio is 0.57, suggesting a moderate level of debt relative to equity. However, the current ratio of 0.95 indicates that Chegg has slightly less current assets than current liabilities, which may impact its short-term financial health. As Chegg navigates these challenges, its upcoming earnings release will be closely watched by investors and analysts alike.