CHEGG, INCCHGG

CHEGG, INC Leases Disclosure

10-KFiled Mar 9, 20262 min read
Leases
Our operating lease commitments are related to our corporate offices. As of December 31, 2025 and 2024, we had operating lease ROU assets of $13.2 million and $22.3 million, respectively, and operating lease liabilities of $19.5 million and $24.1 million, respectively. As of December 31, 2025 and 2024, our weighted average remaining lease term in years was 5.9 and 6.3, respectively, and our weighted average discount rate was 6.0% and 5.6%, respectively.

In connection with the May 2025 and October 2025 restructuring plans, we announced the closure of our Santa Clara and Portland offices. As a result, during the year ended December 31, 2025, we recorded a full impairment of $7.3 million, consisting of $6.4 million impairment of ROU assets and $0.9 million impairment of leasehold improvements, which was classified as general and administrative expense on our consolidated statements of operations. Our intent and ability to sublease the offices as well as the local market conditions were factored in when measuring the amount of impairment. For further information on the May 2025 and October 2025 restructuring plans, see “Note 15. Restructuring Charges.”

During the year ended December 31, 2025, we obtained $1.6 million of ROU assets in exchange for lease liabilities primarily due to the commencement of a two year operating lease for a corporate office space in the United Kingdom.

During the years ended December 31, 2025, 2024 and 2023, operating lease expense, net of immaterial sublease income, was $4.9 million, $7.5 million and $7.6 million, respectively. During the years ended December 31, 2025, 2024 and 2023, variable lease cost and short-term lease cost were immaterial.
The following table presents the future minimum lease payments and reconciliation to total operating lease liabilities (in thousands):
December 31, 2025
2026$4,795 
20274,393 
20283,439 
20291,867 
20302,163 
Thereafter5,854 
Total future minimum lease payments22,511 
Less imputed interest(3,027)
Total operating lease liabilities$19,484 

Historical Timeline

Fiscal YearFiled
2025Mar 9, 2026Showing above
2024Feb 24, 2025
2023Feb 20, 2024
2022Feb 21, 2023
2021Feb 22, 2022
2020Feb 22, 2021
2019Feb 20, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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