Groupon, Inc. (GRPN) Earnings History

Groupon, Inc. - Q3 FY2025 Earnings

Filed at: Nov 6, 2025, 3:19 PM EST|Read from source

EXECUTIVE SUMMARY

Groupon reported a mixed third quarter with revenue and billings growth, driven by its core Local category and customer acquisition, but a significant net loss impacted by debt extinguishment costs.

POSITIVE HIGHLIGHTS

  • •

    Global revenue increased 7% to $122.8 million, with Local revenue up 9%.

    positive
  • •

    Global billings grew 11% to $416.1 million, with North America Local billings up 18%.

    positive
  • •

    Active customers increased 4% year-over-year to 16.1 million.

    positive
  • •

    Adjusted EBITDA increased to $17.5 million from $14.8 million in the prior year.

    positive

CONCERNS & RISKS

  • •

    Net loss from continuing operations was $117.8 million, a significant deterioration from a net income of $14.5 million in the prior year.

    negative
  • •

    A substantial loss on extinguishment of debt ($99.9 million) significantly impacted net income.

    negative
  • •

    International revenue declined 3% (8% FX-neutral), impacted by the divestiture of Giftcloud.

    attention
  • •

    Operating cash flow from continuing operations was negative $20.5 million, and free cash flow was negative $24.6 million.

    negative

FINANCIAL METRICS

Revenue
Quarterly
$122.83M
+7.3%
Prior year: $114.48M
Annual (YTD)
$365.71M
N/A
Prior year: $362.18M
Net Income
Quarterly
$-118.37M
N/A
Prior year: $13.93M
Annual (YTD)
$-90.86M
N/A
Prior year: $-8.38M
EPS (Diluted)
Quarterly
$-2.92
N/A
Prior year: $0.33
Annual (YTD)
$-2.26
N/A
Prior year: $-0.22
Operating Income
Quarterly
$2.19M
N/A
Prior year: $-5.59M
Annual (YTD)
$17.13M
N/A
Prior year: $6.14M
EPS (Basic)
Quarterly
$-2.92
N/A
Prior year: $0.35
Annual (YTD)
$-2.26
N/A
Prior year: $-0.22

MARGIN ANALYSIS

Gross Margin
Current Quarter
91.0%
Prior Year
89.9%
YoY Change
+117 bps
Operating Margin
Current Quarter
1.8%
Prior Year
-4.9%
YoY Change
+667 bps
Net Margin
Current Quarter
-96.4%
Prior Year
12.2%
YoY Change
N/A

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

SPECIAL ITEMS & ADJUSTMENTS

Q3 2025
Loss on extinguishment of debt
Significantly impacted net income.
+$99.925M
Q3 2025
Italy unrecognized tax benefit expense
+$25.368M
Total Impact
+$125.293M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Continued execution of marketplace transformation strategy.

— Groupon, Inc., Q3 FY2025 2025 Earnings Call

Added nearly 300,000 net new active customers in the quarter.

— Groupon, Inc., Q3 FY2025 2025 Earnings Call

Things To Do vertical outpaced industry growth during the summer season.

— Groupon, Inc., Q3 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Active Customers
16.1
+3.9% YoY
Prior year: 15.5
millions
Global Billings
416.1M
+11.4% YoY
Prior year: 373.4M
dollars
North America Active Customers
11
+7.8% YoY
Prior year: 10.2
millions
North America Local Billings
293.8M
+18.1% YoY
Prior year: 248.8M
dollars
Total Headcount
1.7K
-18.6% YoY
Prior year: 2.1K
employees
Total Units
9.1M
+5.2% YoY
Prior year: 8.7M
millions

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.