CHEGG, INCCHGG
CHEGG, INC Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets
Goodwill
The following table presents the changes in the carrying amount of our goodwill balance (in thousands):
| December 31, 2024 | |||||
| Beginning balance | $ | 631,995 | |||
| (635,391) | |||||
| Foreign currency translation adjustment | 3,396 | ||||
| Ending balance | $ | — | |||
As of December 31, 2024, the carrying amount of goodwill was fully impaired. In September 2024 and June 2024, in consideration of the sustained decline in our stock price, industry developments, and our financial performance, we evaluated our current operating performance. Accordingly, we determined that there were indicators of impairment and a quantitative assessment was necessary. In the quantitative assessment, we estimated the fair value of our reporting unit utilizing an income approach, based on the present value of future discounted cash flows, which is classified as Level 3 in the fair value hierarchy. Significant estimates used to determine fair value include the weighted average cost of capital, growth rates, and amount and timing of expected future cash flows. As a result of the quantitative assessment, we determined that goodwill was impaired as the fair value of our reporting unit was less than the carrying value. As such, during the year ended December 31, 2024, we recorded impairment expense of $635.4 million equal to the excess of the carrying value of our reporting unit over the estimated fair value, limited to the remaining balance of goodwill, which was classified as impairment expense on our consolidated statements of operations.
Intangible Assets
The following table presents our intangible assets balances (in thousands, except weighted-average amortization period):
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Weighted-Average Amortization Period (in months) | Gross Carrying Amount | Accumulated Amortization | Accumulated Impairment | Foreign Currency Translation Adjustment | Net Carrying Amount | ||||||||||||||||||||||||||||||
| Developed technologies | 80 | $ | 106,703 | $ | (67,335) | $ | (29,369) | $ | (3,958) | $ | 6,041 | ||||||||||||||||||||||||
| Content libraries | 60 | 12,230 | (12,230) | — | — | — | |||||||||||||||||||||||||||||
| Customer lists | 35 | 34,190 | (32,892) | — | (1,298) | — | |||||||||||||||||||||||||||||
| Trade and domain names | 52 | 16,213 | (13,343) | (2,493) | (377) | — | |||||||||||||||||||||||||||||
| Total intangible assets | 67 | $ | 169,336 | $ | (125,800) | $ | (31,862) | $ | (5,633) | $ | 6,041 | ||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Weighted-Average Amortization Period (in months) | Gross Carrying Amount | Accumulated Amortization | Accumulated Impairment | Foreign Currency Translation Adjustment | Net Carrying Amount | ||||||||||||||||||||||||||||||
| Developed technologies | 80 | $ | 106,703 | $ | (63,029) | $ | (29,369) | $ | (3,958) | $ | 10,347 | ||||||||||||||||||||||||
| Content libraries | 60 | 12,230 | (12,230) | — | — | — | |||||||||||||||||||||||||||||
| Customer lists | 35 | 34,190 | (32,892) | — | (1,298) | — | |||||||||||||||||||||||||||||
| Trade and domain names | 52 | 16,213 | (13,343) | (2,493) | (377) | — | |||||||||||||||||||||||||||||
| Total intangible assets | 67 | $ | 169,336 | $ | (121,494) | $ | (31,862) | $ | (5,633) | $ | 10,347 | ||||||||||||||||||||||||
During the years ended December 31, 2025, 2024 and 2023, intangible assets amortization expense was $4.3 million, $10.0 million and $24.4 million, respectively.
In conjunction with our goodwill impairment analysis in June 2024, we determined that there were indicators of impairment for our Busuu intangible assets and a recoverability test was necessary. In the recoverability test, we determined
that the expected future undiscounted cash flows for the asset group were not sufficient to recover the carrying value. We then proceeded in estimating the fair value of the asset group utilizing the income approach, based on a present value of future discounted cash flows, which is classified as Level 3 in the fair value hierarchy. Significant estimates used to determine fair value include the growth rates and amount and timing of expected future cash flows. As a result of the impairment test, we determined the asset group was impaired and recorded a $31.9 million related to the intangible assets during the year ended December 31, 2024, which was classified as impairment expense on our consolidated statements of operations.
The following table presents the estimated future intangible assets amortization expense (in thousands):
| December 31, 2025 | |||||
| 2026 | 3,831 | ||||
| 2027 | 1,776 | ||||
| 2028 | 407 | ||||
| 2029 | 27 | ||||
| Total | $ | 6,041 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Mar 4, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.