---
title: "Chegg parked the reverse split that could save its NYSE listing; the stock is at $0.73"
description: "The board shelved a shareholder-approved reverse split in June, drew a fresh NYSE price notice in July, and lost its Google antitrust suit on October 1. Three month-end closes now stand between Chegg and the delisting queue."
publisher: "The Inference"
section: "Money"
published: 2026-10-10T23:17:40.536Z
modified: 2026-10-10T23:17:40.536Z
canonical: https://theinference.org/article/chegg-parked-the-reverse-split-that-could-save-its-nyse-listing-the-stock-is-at-0-73
language: en
keywords: "Stocks, EdTech, Artificial Intelligence, NYSE, Antitrust"
---

# Chegg parked the reverse split that could save its NYSE listing; the stock is at $0.73

> The board shelved a shareholder-approved reverse split in June, drew a fresh NYSE price notice in July, and lost its Google antitrust suit on October 1. Three month-end closes now stand between Chegg and the delisting queue.

## A 27-cent gap, first tested October 31

[Chegg](https://theinference.org/markets/companies/chegg) closed at $0.7275 on October 2, an $81.9 million company [1]. [Compliance takes a $1.00 close on a calendar month's last trading day plus a $1.00 average over the 30 trading days before it](https://finance.yahoo.com/markets/stocks/articles/chegg-receives-continued-listing-standard-200500465.html) [2]; the next test is October 31. From $0.7275 that is a rally of roughly 37 percent, and a one-day spike cures nothing, because the average has to arrive too [2].

## Cured in May, in trouble again by July

Flagged by the NYSE in December 2025, [Chegg](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001364954) cured by end-May 2026 [2]. Stockholders authorized a reverse split at the board's discretion on June 12; on June 17, [compliance restored, the board declined to use it](https://finance.yahoo.com/markets/stocks/articles/chegg-announces-annual-stockholder-meeting-130500228.html) "at this time" [3]. On July 24 the exchange was back: average close below $1 through July 23, a second notice in seven months, six months to cure [2]. The notice itself kept the option open, saying a cure "may include, if necessary, effecting a reverse stock split," subject to board approval [2]. On October 1, [Judge Amit Mehta dismissed Chegg's antitrust suit against Google's AI Overviews](https://arstechnica.com/google/2026/10/antitrust-lawsuits-targeting-google-ai-search-dismissed-by-federal-judge/): "an expectation is not an agreement" [4].

## The courtroom route to a re-rating closed

Chegg had argued Google harvested its content for AI answers and starved the site of traffic [4], and management blames AI for a revenue line that ran from $143.5 million in Q4 2024 to $51.9 million in Q2 2026, down 50.7 percent, with Q3 guided to $43–44 million [5][6][7]. A company worth $14.7 billion in February 2021 is now valued at $81.9 million [1][8]. Mehta wrote the court is not "unsympathetic" to publishers whose content Google repurposes "without compensation," but said he is bound to apply the law "only as it is written" [4].

*Chart: **Quarterly revenue guided to less than a third of its Q4 2024 peak** Line chart of Chegg quarterly revenue from Q3 2024 through a guided Q3 2026, peaking at $143.5 million and falling to a guided $43.5 million.*

*Quarterly revenue, US$ millions, from Chegg's SEC filings. Q3 2026 is company guidance of $43–44 million, midpoint shown. [5][6][7]*

## Split, buy back, or drift off the exchange

The balance sheet is clean: [the last $33.9 million of convertible notes went out September 1](https://finance.yahoo.com/markets/stocks/articles/chegg-announces-full-repayment-convertible-200500287.html), leaving no debt and about $38 million of cash and investments [9]. Against the $81.9 million market cap sits $120.7 million of unused buyback authorization [1][6]. Chief executive Dan Rosensweig [calls the stock "undervalued simply because of the amount of cash"](https://www.benzinga.com/news/26/10/62211641/chegg-reports-q2-2026-results-full-earnings-call-transcript) it will generate, and an employability platform past 10,000 beta users is rolling out across Chegg and Internships.com starting in the third quarter, through 2027 [6]. If no month-end cures the price by late January, NYSE suspension and delisting procedures start [2]. Suspension halts trading on the exchange, and delisting pushes the stock toward the over-the-counter market [10]. From July 1, 2027, [one close under 25 cents suspends a stock outright](https://www.jdsupra.com/legalnews/sec-approves-nyse-and-nyse-american-0-3621071/) [10].

*Chart: **Chegg's buyback authorization is half again bigger than the whole company** Bar chart comparing Chegg's $120.7 million remaining buyback authorization with its $81.9 million market cap and roughly $38 million pro forma cash.*

*US$ millions. Authorization remaining at June 30, 2026; market cap at the October 2, 2026, close; cash and investments pro forma for the September 1 note repayment. [1][6][9]*

## Three closes and one earnings print

October 31, November 30 and December 31 are the remaining tests [2]. The Q3 report, guided to $1–2 million of adjusted EBITDA against Q2's $9.1 million [6][7], should land between them on the usual cadence, and the split needs no new shareholder vote [3]. The board holds the tool, the cash and the calendar; what it does not have is a price.

## Takeaway

Chegg has a shareholder-approved reverse split it refuses to use, a debt-free balance sheet and $120.7 million of buyback authorization, but a $0.73 stock: three month-end closes above $1.00 by December 31 stand between it and the delisting queue.

## Sources

1. [AD HOC NEWS, Chegg stock faces legal setback after AI lawsuit dismissal, 10 October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/chegg-stock-faces-legal-setback-after-ai-lawsuit-dismissal/70230779)
2. [Business Wire via Yahoo Finance, Chegg Receives Continued Listing Standard Notice from NYSE, 24 July 2026](https://finance.yahoo.com/markets/stocks/articles/chegg-receives-continued-listing-standard-200500465.html)
3. [Business Wire via Yahoo Finance, Chegg Announces Annual Stockholder Meeting Results and Regains NYSE Compliance, 17 June 2026](https://finance.yahoo.com/markets/stocks/articles/chegg-announces-annual-stockholder-meeting-130500228.html)
4. [Ars Technica, Judge dismisses Chegg and Penske antitrust lawsuits targeting Google AI search, 1 October 2026](https://arstechnica.com/google/2026/10/antitrust-lawsuits-targeting-google-ai-search-dismissed-by-federal-judge/)
5. [Chegg, quarterly figures from its SEC filings, retrieved 10 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001364954)
6. [Benzinga, Chegg Reports Q2 2026 Results: Full Earnings Call Transcript, October 2026](https://www.benzinga.com/news/26/10/62211641/chegg-reports-q2-2026-results-full-earnings-call-transcript)
7. [StockStory via Yahoo Finance, CHGG Q2 Deep Dive: AI Transition and Employability Focus Drive Strategic Overhaul, 10 August 2026](https://finance.yahoo.com/technology/ai/articles/chgg-q2-deep-dive-ai-061322772.html)
8. [YourStory, Chegg collapse: How AI wiped out a $14B edtech giant, 27 April 2026](https://yourstory.com/ai-story/chegg-collapse-ai-edtech-disruption)
9. [Business Wire via Yahoo Finance, Chegg Announces Full Repayment of Convertible Notes, 1 September 2026](https://finance.yahoo.com/markets/stocks/articles/chegg-announces-full-repayment-convertible-200500287.html)
10. [Lowenstein Sandler via JD Supra, SEC Approves NYSE and NYSE American $0.25 Minimum Trading Price Continued Listing Requirement, 28 August 2026](https://www.jdsupra.com/legalnews/sec-approves-nyse-and-nyse-american-0-3621071/)


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Chegg parked the reverse split that could save its NYSE listing; the stock is at $0.73 — The Inference. Canonical: https://theinference.org/article/chegg-parked-the-reverse-split-that-could-save-its-nyse-listing-the-stock-is-at-0-73