CheggCHGG -4.13%37 Gross Margin % is 59.89% as of Mar. 2026, which is 13% below its 10-year median of 68.52. GuruFocus rates CHGG with a GF Score™ of 37/100 and a GF Value™ of $0.81 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 242 Education companies, Chegg ranks better than 75.21% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Chegg's Gross Profit for the
three
months ended in Mar. 2026 was $37.9 Mil. Chegg's Revenue for the
three
months ended in Mar. 2026 was $63.3 Mil. Therefore, Chegg's Gross Margin % for the quarter that ended in Mar. 2026 was 59.89%.
Warning Sign:
Chegg Inc gross margin has been in long-term decline. The average rate of decline per year is -1.7%.
The historical rank and industry rank for Chegg's Gross Margin % or its related term are showing as below:
CHGG'
s Gross Margin % Range Over the Past 10 Years
Min: 52.93 Med: 68.52 Max: 77.57
Current: 61.24
During the past 13 years, the highestGross Margin % of Chegg was 77.57%. The lowest was 52.93%. And the median was 68.52%.
CHGG's Gross Margin % is ranked better than 75.21% of 242
companies
in the Education industry
Industry Median: 48.105
vs CHGG: 61.24
Chegg had a gross margin of 59.89% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Chegg was -1.70% per year.
Chegg (NYSE:CHGG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Chegg had a gross margin of 59.89% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Chegg Gross Margin % Related Terms
Chegg Gross Margin % Historical Data
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The historical data trend for Chegg's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Education & Training Services subindustry, Chegg's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Chegg Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Chegg's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chegg's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Chegg (CHGG) has a Gross Margin % of 59.89% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chegg and its competitors. This is 13% below median its historical median of 68.52. Over the past decade, Chegg's Gross Margin % has ranged from 52.93 to 77.57. According to the industry distribution chart, Chegg ranks #60 out of 242 companies in the Education industry, placing it in the top 24.8%.
Is Chegg's Gross Margin % too high?
Chegg's current Gross Margin % of 59.89% is 13% below median its 10-year median of 68.52. Over the past 10 years, this metric has ranged from a low of 52.93 to a high of 77.57. The Education industry median Gross Margin % is 48.11. Chegg's value of 59.89% is 24.5% above this industry median. Based on the distribution chart, Chegg ranks #60 out of 242 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Chegg has a GF Score™ of 37/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chegg's Gross Margin % compare to LGCY and COE?
According to the Education industry distribution chart, Chegg ranks #60 out of 242 companies for Gross Margin %. This places Chegg in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.11. Chegg's value of 59.89% is 24.5% above this benchmark. Historically, Chegg's own Gross Margin % has ranged from 52.93 to 77.57 over the past decade. While the company's 10-year median is 68.52 vs. the industry median of 48.11, Chegg has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Education company?
The median Gross Margin % among Education companies is 48.11, based on 242 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chegg's current Gross Margin % of 59.89% is 24.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Chegg and its competitors. For the Education industry, the median Gross Margin % is 48.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chegg's current Gross Margin % is 59.89%, which is 13% below median its own 10-year median of 68.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chegg stock overvalued right now?
Based on GuruFocus' analysis, Chegg (CHGG) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.81, compared to a current price of $0.90 — trading 11.1% above its estimated fair value. The current Gross Margin % is 59.89%, which is 13% below median its 10-year median of 68.52 and 24.5% above the Education industry median of 48.11. Chegg's overall GF Score™ is 37/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Chegg (CHGG), the current Gross Margin % is 59.89% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Chegg (CHGG) Overvalued in 2026?
Based on GuruFocus' analysis, Chegg stock appears to be overvalued.
The current stock price of $0.90 is trading 11.1% above its estimated GF Value™ of $0.81.
GuruFocus considers Chegg to be Modestly Overvalued.
Key valuation signals for CHGG:
Gross Margin %: 59.89% (13% below median its 10-year median of 68.52)
GF Value™: $0.81 vs. price of $0.90 (11.1% above fair value)
Industry Position: 24.5% above the Education median (#60 of 242)
No single metric tells the full story. See the CHGG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chegg Inc is an American educational services company. The Chegg platform provides products and services to support learners with their academic course materials, as well as their career and personal skills development. The company's service and product offerings fall into two categories: Chegg Skilling; and Academic Services, which derives maximum revenue. Geographically, it derives in United States and International.
37GF Score
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