Chegg stock rises as company repays debt, achieves debt-free status

Chegg Inc (NYSE:CHGG) shares experienced a 3.4% increase in after-hours trading on Tuesday following the company's announcement that it had repaid the remaining $33.9 million of its convertible senior notes, thus eliminating all outstanding debt. The learning platform company paid off the final portion of its 0% convertible senior notes, which were due on September 1, 2026. With the 2026 Notes now fully retired, Chegg is debt-free, marking a significant milestone in strengthening its financial position.

David Longo, Chegg's Chief Financial Officer, stated that the company has taken meaningful actions to reduce costs and improve cash flow, allowing them to achieve a debt-free balance sheet. This development provides the company with enhanced financial flexibility to execute its strategy and generate long-term value for its shareholders.

As of June 30, 2026, Chegg reported a total of $72 million in cash, cash equivalents, and investments. Following the repayment of the 2026 Notes, the company's cash position is now estimated to be approximately $38 million on a pro forma basis. Chegg is a learning and employability platform that offers AI-powered educational services to students and lifelong learners, as well as workforce development solutions for businesses.

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