Chegg, Inc.

Greetings and welcome to the Chegg, Inc. Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone has, if anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Tracy Ford, Vice President of Investor Relations. Thank you. You may begin.

Good afternoon. Thank you for joining Chegg's Fourth Quarter 2025 Conference Call. On today's call are Dan Rosenzweig, President and CEO, and David Longo, Chief Financial Officer. A copy of our earnings press release, along with our investor presentation, is available on our investor relations website, investor.chegg.com. A replay of this call will also be available on our website. We routinely post information on our website and intend to make important announcements on our media center website at chegg.com slash media center. We encourage you to make use of these resources. Before we begin, I would like to point out that during the course of this call, we will make forward looking statements regarding future events, including the future financial and operating performance of the company. These forward looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. We caution you to consider the important factors that could cause actual results to differ materially from those in the forward-looking statements. In particular, we refer you to the cautionary language included in today's earnings release and the risk factors described in Chegg's annual report on Form 10-K for the year ended December 31st, 2024, filed with the Securities and Exchange Commission, as well as our other filings with the SEC. Any forward-looking statements that we make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events. During this call, we will present both GAAP and non-GAAP financial measures. Our GAAP results and GAAP to non-GAAP reconciliations can be found in our earnings press release on the investor slide deck found on our IR website, investor.cheg.com. We also recommend you review the investor data sheet, which is also posted on our IR website. Now, I will turn the call over to Dan.

Thank you, Tracy, and thank you, everyone, for joining Chegg's fourth quarter 2025 earnings call. This is a period of reinvention at Chegg. We are rebuilding the company focused on the $40 billion scaling market, which we believe will be a double-digit revenue growth business for Chegg with strong margins and cash flow in the years ahead. To achieve this, we have reorganized Chegg around two focused business units, Chegg Skilling, which is now our growth engine, and our legacy academic learning services, which we are managing to generate free cash flow. Together, this structure gives us the financial flexibility to invest and grow opportunities within Skilling while creating long-term shareholder value. We are excited about our future and feel confident that this new structure sets us up for success. We are already seeing positive early signs. In Q4, Chegg Skilling delivered $18 million in revenue, positioning us for double-digit growth for 2026. Our legacy business, Chegg Study, continues to serve more than a million students, and with our new streamlined org structure, is providing meaningful cash flow to fund value creation. As we have expressed, changes in search interfaces continue to impact our traffic. Yet despite these changes, the quality and accuracy of our services continues to drive high retention rates. We are now focused on optimizing pricing and packaging and testing multiple strategies to extend our operational runway and drive more free cash flow. We have a clear objective to use that cash to fund new growth opportunities and increase the value for our shareholders. Given the global demand for workforce skilling has already reached 40 billion, We feel it's a huge opportunity for Chegg, and we are well positioned to serve this market, particularly in AI, language, technical fluency, and durable skills. Our brand is trusted by learners worldwide, and our skills courses are grounded in learning science and data-driven instructional design. Our platform tracks learner progress in real time, delivering predictive nudges and timely interventions that improve engagement, retention, and completion rates. This combination of brand credibility, evidence-based course design, and intelligent learner support consistently leads our channel partners to report stronger outcomes versus our competitors. To capture the growth opportunity we see ahead, we are expanding our course catalog with high-demand technical AI language and professional skills, while simultaneously broadening our global footprint across B2B distribution channels. As part of this strategy, we're excited to announce new partnerships with DHL, GI Group, and Wolf University. Wolf specifically expands how we can serve learners as they provide accredited degree pathways that allows for acquired skills to count towards recognized credentials. We've also extended a few key contracts from companies like L'Oreal and PPG. Our goal is to further extend our reach into global enterprise, institutional, and academic markets. Looking ahead to 2026, we plan to onboard additional employer and institutional partners, both directly and through leading marketplaces. We continue to expand the depth and breadth of our curriculum. To support this opportunity, I'm thrilled to announce that Corinne Alouche is joining our team to run our European language, learning, and skills operations. Kareem brings deep experience in building and scaling enterprise businesses across Microsoft, NetApp, Global English, and most recently at Coursera, where she led the transformation of their enterprise business. We are thrilled to have her leadership and expertise as we scale our scaling business around the world. We have made significant progress in the reinvention of Chegg. Our goal is to continue to grow our skilling business by double digits annually and over the next couple of years to achieve an adjusted EBITDA margin of at least 20%. To achieve that, our 26 priorities are straightforward. Accelerate the growth of our skilling business by expanding our offerings and network partners domestically and through Europe. Increase free cash flow to invest in the future growth of skilling. and strengthen our balance sheet by ending the year with zero debt and meaningful cash balance. We are encouraged by the results we are seeing in the skills business and are excited about the path ahead. We successfully transformed our business from a print textbook rental business to an online learning company, and now we are transitioning from a D to C business to a B to B skills learning platform. We are excited about the work we have done so far, and we look forward to updating you next quarter. And with that, I'll turn it over to David.