CHEGG, INCCHGG

CHEGG, INC Revenue Disclosure

10-KFiled Mar 9, 20262 min read
Revenues
Revenue Recognition

We have changed our revenue disaggregation from Subscription Services and Skills and Other to Chegg Skilling and Academic Services to better reflect the nature of revenue and cash flows. The following table presents our total net revenues for the periods shown disaggregated for our Chegg Skilling and Academic Services product lines (in thousands, except percentages):

 Years Ended December 31,
Change in 2025
Change in 2024
 202520242023$%$%
Chegg Skilling$68,654 $73,959 $76,812 $(5,305)(7)%$(2,853)(4)%
Academic Services308,254 543,615 639,483 (235,361)(43)(95,868)(15)
Total net revenues$376,908 $617,574 $716,295 $(240,666)(39)$(98,721)(14)

During the years ended December 31, 2025, 2024, and 2023, we recognized revenues of $39.2 million, $53.5 million, and $54.5 million, respectively, that were included in our deferred revenue balance at the beginning of each respective fiscal year. During the years ended December 31, 2025, 2024, and 2023, we recognized revenues from performance obligations satisfied in previous periods of an immaterial amount, $2.8 million, and an immaterial amount, respectively. As of December 31, 2025 and 2024, the closing balance of deferred contract costs was $3.1 million and $2.8 million, respectively, and during the years ended December 31, 2025, 2024, and 2023, we recognized deferred contract cost amortization of $14.3 million, $16.1 million, and $15.8 million, respectively.

Contract Balances

The following table presents our accounts receivable, net, contract assets, and deferred revenue balances (in thousands, except percentages):
 December 31,Change
 20252024$%
Accounts receivable, net$15,604 $23,641 $(8,037)(34)%
Contract assets6,536 7,027 (491)(7)
Deferred revenue29,675 39,217 (9,542)(24)
During the year ended December 31, 2025, our accounts receivable, net balance decreased by $8.0 million, or 34%, primarily due to lower bookings and higher cash collections. During the year ended December 31, 2025, our contract assets balance decreased by $0.5 million or 7%, primarily due to cash collections. During the year ended December 31, 2025, our deferred revenue balance decreased by $9.5 million, or 24%, primarily due to lower bookings.

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
2018Feb 25, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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