Chegg reported Q1 2025 revenue of $121.4 million, down 30% year over year, as Chegg Study and related subscription services faced ongoing enrollments and traffic headwinds. The quarter featured a notable gross-margin compression to 56% driven by a $16.2 million accelerated depreciation charge, which reduced gross margin by roughly 13 percentage points. Despite the top-line pressure, Chegg generated $19 million of adjusted EBITDA (16% margin) and $15.8 million of free cash flow, aided by ongoing cost discipline and capital-light investments in AI-enabled initiatives. Management signaled a fundamental strategic shift toward two growth vectors: (1) licensing Chegg's question-and-answer content to large language model (LLM) developers and (2) expanding institutional direct contracts (Chegg Study) with universities and other partners. In addition, Busuu continued to exhibit resilience (revenue up 7% YoY, with 29% YoY growth in the B2B segment), and Chegg Skills is positioned for a breakout year with pilots in India (EdifyOnline and Noodle) and anticipated profitability in 2026. The company reiterated a substantial restructuring program aimed at aligning cost structure with reduced revenue, including headcount reductions (about 22% or 248 employees) and real estate rationalization, with planned annualized savings of $165–$175 million in 2025–2026. Near-term guidance for Q2 2025 implies continued revenue pressure but improved gross margin and EBITDA, underscoring a transitional year as Chegg pivots toward licensing, enterprise partnerships, and higher-margin growth initiatives.