Post-mortem. Chegg closed in July 2026. The account below was written after the end, with the outcome known. Separately, a blind test with the evidence cut off at January 2025, before the end, returned: not called safe. How the blind test works.

Chegg

Chegg: subscription homework help site pivoting to corporate skills training.

Blind testEvidence cut off January 2025 · Ended July 2026 · Result: not called safe

What happened

NYSE second non-compliance notice for sustained sub-$1.00 share price, signaling acute delisting/going-concern risk after AI-driven collapse of core business (July 2026)

Why it did not hold

Chegg's core subscription business has shrunk sharply as AI tools replaced its homework help function, leaving a small enterprise training unit to carry the company forward.

Chegg built a business helping students with homework by subscription, but Google now answers those same questions in search results for free, and ChatGPT does it even faster. The company tried to shift to selling job training courses to companies, but that business is tiny compared to the homework help it is losing, and bigger companies like Coursera already own that market. If the job training side grows fast enough by mid-2026, it could become a real business; if not, the company risks being delisted from the stock exchange, which would make everything worse.

AI pressure: ChatGPT and other free generative AI tools. Free ChatGPT and similar tools now answer homework questions directly, pulling students away from Chegg's paid subscription service.

Bigger players: Google (AI Overviews). Google's AI Overviews intercept search queries that once fed Chegg's site, cutting referral traffic and subscriptions sharply.

What protected it. Chegg Skilling's enterprise clients (DHL, L'Oreal, PPG) give a small non-search revenue stream, though far too small to offset losses.

Timeline

2026-07-24Chegg receives second NYSE non-compliance notice for stock price below $1, six month cure period begins
2026-05-24Chegg reports exploring AI data licensing deals to monetize proprietary content
2026-05-05Q1 2026 earnings: revenue $63.3M, down 48% YoY, first GAAP profit in two years
2026-05Coursera completes merger with Udemy, consolidating two of Chegg's stated Skilling rivals
2025-10-27Chegg lays off 45% of remaining workforce; Dan Rosensweig returns as CEO
2025-05Chegg lays off 22% of workforce
2025-02Chegg sues Google over AI Overviews, discloses considering sale or take-private
2024-06CEO Dan Rosensweig steps down after 14 years; Nathan Schultz becomes CEO
2023-04Chegg launches CheggMate AI tutor with OpenAI; stock falls 38-48% same day

Also gone

Course Hero closed 2026 One Hour Translation / Blend was absorbed 2026 Quartz closed 2025

All 62 post-mortems →

This page is a post-mortem, not a live assessment, and it carries no band. The blind-test result is the only part made without knowledge of the outcome.