Galloway Capital Partners Acquires 5.44% Stake in Chegg, Inc. and Advocates for Strategic Separation

On April 8, 2026, Galloway Capital Partners, LLC, along with Galloway Capital, LP and Bruce Galloway, filed a Schedule 13D disclosing a 5.44% beneficial ownership stake in Chegg, Inc. (CHGG). The reporting persons hold 3,128,000 shares of common stock acquired through open market purchases between July 2025 and April 2026, plus 2,965,000 shares underlying call options exercisable within 60 days. In an accompanying letter to Chegg's CEO, Bruce Galloway expressed that the company's share price is significantly undervalued and reflects a "disconnect from intrinsic value." The group advocates for a strategic separation of Chegg's business units, specifically highlighting the growth potential of the Skilling segment versus the cash-generating legacy Academic Services business. They intend to engage constructively with management and the Board to discuss capital allocation, governance, and strategies to improve investor awareness and unlock shareholder value. The filing follows recent purchases at prices ranging from approximately $0.54 to $0.75 per share.