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Groupon Q4 Earnings Meet Estimates, Revenues Rise 2% Year Over Year
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Key Takeaways
Groupon reports Q4 EPS of 17 cents, matching estimates, while revenues rise 2% YoY to $132.7M.
GRPN sees North America Local strength lift results, though the Enterprise channel and owned marketing lag.
Groupon ends Q4 with 16.2M active customers, up 5% YoY, while adjusted EBITDA climbs 12% to $20.9M.
Groupon (GRPN - Free Report) posted earnings of 17 cents per share for the fourth quarter of 2025, in line with the Zacks Consensus Estimate. The company had reported a loss of $1.2 per share in the year-ago quarter.
Revenues of $132.71 million missed the Zacks Consensus Estimate by 3.25%. The figure increased 2% on a year-over-year basis (flat on an FX-neutral basis). The top-line growth was supported by continued momentum in North America Local, partially offset by Enterprise channel deceleration and underperformance in organic and owned marketing channels
Region-wise, North America’s revenues of $98.7 million missed the consensus mark by 6.58% and grew 2.1% year over year. International revenues of $34 million beat the consensus mark by 4.84% and increased 0.9% year over year (declined 6.3% on an FX-neutral basis)
Gross billings totaled $446.5 million in the fourth quarter of 2025, reflecting a 4% year-over-year increase (up 2% on an FX-neutral basis).
Local revenues of $124.5 million missed the Zacks Consensus Estimate by 3.14% and rose 4% year over year. North America Local revenues increased 4% year over year. International Local revenues grew 3.5% year over year (declined 3.7% on an FX-neutral basis). Excluding the Giftcloud divestiture and Italy, International Local revenues increased 9%.
Consolidated Travel revenues of $3.76 million missed the consensus mark by 10.26% and declined 13.2% year over year. North America Travel revenues decreased 17.5% year over year. International Travel revenues decreased 5% in the reported quarter (declined 13.1% on an FX-neutral basis).
On a consolidated basis, Goods revenues of $4.44 million beat the consensus mark by 4.01% and declined 27.3% year over year. North America Goods revenues declined 39.9%, and International Goods revenues decreased 17.8% year over year (24.7% excluding the foreign exchange effect).
GRPN’s Customer Metrics
At the end of the fourth quarter, Groupon had approximately 16.2 million active customers, up 5% from the same period of the year-ago quarter. The metric beat the Zacks Consensus Estimate by 2.73%.
The company had approximately 11.1 million active customers based in North America, beating the consensus mark by 3.74%. GRPN had 5.2 million active international customers, beating the consensus mark by 2.36%.
Operating Details of GRPN
In the fourth quarter, Groupon’s consolidated gross profit grew 1.5% from the year-ago period’s levels to $120 million. North America's gross profit increased 2.6%, and International gross profit declined 1.6%, declining 8.2%, excluding the foreign exchange effect, on a year-over-year basis.
Consolidated gross margin was 90% of revenues, consistent with the prior quarter. Selling, general and administrative expenses fell 10.3% year over year to $65 million. Marketing expenses increased 13.9% year over year to $48.6 million, representing 37% of revenues.
The company reported a GAAP operating income of $6.5 million compared with an operating income of $2.7 million in the year-ago quarter. Adjusted EBITDA increased 12% to $20.9 million.
GRPN's Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $296.1 million, up from $238.5 million as of Sept. 30, 2025.
In the fourth quarter, cash provided by operating activities from continuing operations was $56.6 million compared with cash used of $20.5 million in the prior quarter.
Groupon reported a free cash flow of positive $53 million in the reported quarter compared with negative $24.6 million in the prior quarter.
GRPN's Q1 & FY26 Guidance
For the first quarter of 2026, the company expects revenues in the band of $117 million to $120 million. Adjusted EBITDA is expected to be between $13 million and $15 million. Groupon expects a negative free cash flow for the first quarter.
For 2026, the company expects revenues between $513 million and $523 million, indicating year-over-year growth of 3% to 5%. Adjusted EBITDA is expected to be between $70 million and $75 million. Groupon expects a positive free cash flow of at least $60 million for 2026.
Shares of Etsy have declined 9.5% over the past six months. The Zacks Consensus Estimate for Etsy’s 2026 earnings is pegged at $3.51 per share, up by 37.1% over the past 30 days.
FIGS shares have surged 127.4% in the past six-months. The Zacks Consensus Estimate for FIGS’ 2026 earnings is pegged at 19 cents per share, up by 9 cents over the past 30 days.
Five Below shares have surged 58% in the past six-months. The Zacks Consensus Estimate for Five Below’s fiscal 2026 earnings is pegged at $6.30 per share, down by 4 cents over the past 30 days.
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Groupon Q4 Earnings Meet Estimates, Revenues Rise 2% Year Over Year
Key Takeaways
Groupon (GRPN - Free Report) posted earnings of 17 cents per share for the fourth quarter of 2025, in line with the Zacks Consensus Estimate. The company had reported a loss of $1.2 per share in the year-ago quarter.
Revenues of $132.71 million missed the Zacks Consensus Estimate by 3.25%. The figure increased 2% on a year-over-year basis (flat on an FX-neutral basis). The top-line growth was supported by continued momentum in North America Local, partially offset by Enterprise channel deceleration and underperformance in organic and owned marketing channels
Region-wise, North America’s revenues of $98.7 million missed the consensus mark by 6.58% and grew 2.1% year over year. International revenues of $34 million beat the consensus mark by 4.84% and increased 0.9% year over year (declined 6.3% on an FX-neutral basis)
Gross billings totaled $446.5 million in the fourth quarter of 2025, reflecting a 4% year-over-year increase (up 2% on an FX-neutral basis).
Groupon, Inc. Price, Consensus and EPS Surprise
Groupon, Inc. price-consensus-eps-surprise-chart | Groupon, Inc. Quote
GRPN’s Quarterly Details
Local revenues of $124.5 million missed the Zacks Consensus Estimate by 3.14% and rose 4% year over year. North America Local revenues increased 4% year over year. International Local revenues grew 3.5% year over year (declined 3.7% on an FX-neutral basis). Excluding the Giftcloud divestiture and Italy, International Local revenues increased 9%.
Consolidated Travel revenues of $3.76 million missed the consensus mark by 10.26% and declined 13.2% year over year. North America Travel revenues decreased 17.5% year over year. International Travel revenues decreased 5% in the reported quarter (declined 13.1% on an FX-neutral basis).
On a consolidated basis, Goods revenues of $4.44 million beat the consensus mark by 4.01% and declined 27.3% year over year. North America Goods revenues declined 39.9%, and International Goods revenues decreased 17.8% year over year (24.7% excluding the foreign exchange effect).
GRPN’s Customer Metrics
At the end of the fourth quarter, Groupon had approximately 16.2 million active customers, up 5% from the same period of the year-ago quarter. The metric beat the Zacks Consensus Estimate by 2.73%.
The company had approximately 11.1 million active customers based in North America, beating the consensus mark by 3.74%. GRPN had 5.2 million active international customers, beating the consensus mark by 2.36%.
Operating Details of GRPN
In the fourth quarter, Groupon’s consolidated gross profit grew 1.5% from the year-ago period’s levels to $120 million. North America's gross profit increased 2.6%, and International gross profit declined 1.6%, declining 8.2%, excluding the foreign exchange effect, on a year-over-year basis.
Consolidated gross margin was 90% of revenues, consistent with the prior quarter. Selling, general and administrative expenses fell 10.3% year over year to $65 million. Marketing expenses increased 13.9% year over year to $48.6 million, representing 37% of revenues.
The company reported a GAAP operating income of $6.5 million compared with an operating income of $2.7 million in the year-ago quarter. Adjusted EBITDA increased 12% to $20.9 million.
GRPN's Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $296.1 million, up from $238.5 million as of Sept. 30, 2025.
In the fourth quarter, cash provided by operating activities from continuing operations was $56.6 million compared with cash used of $20.5 million in the prior quarter.
Groupon reported a free cash flow of positive $53 million in the reported quarter compared with negative $24.6 million in the prior quarter.
GRPN's Q1 & FY26 Guidance
For the first quarter of 2026, the company expects revenues in the band of $117 million to $120 million. Adjusted EBITDA is expected to be between $13 million and $15 million. Groupon expects a negative free cash flow for the first quarter.
For 2026, the company expects revenues between $513 million and $523 million, indicating year-over-year growth of 3% to 5%. Adjusted EBITDA is expected to be between $70 million and $75 million. Groupon expects a positive free cash flow of at least $60 million for 2026.
Groupon’s Zacks Rank & Stocks to Consider
Currently, GRPN carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are Etsy (ETSY - Free Report) , FIGS (FIGS - Free Report) and Five Below (FIVE - Free Report) .
Etsy, FIGS and Five Below sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Etsy have declined 9.5% over the past six months. The Zacks Consensus Estimate for Etsy’s 2026 earnings is pegged at $3.51 per share, up by 37.1% over the past 30 days.
FIGS shares have surged 127.4% in the past six-months. The Zacks Consensus Estimate for FIGS’ 2026 earnings is pegged at 19 cents per share, up by 9 cents over the past 30 days.
Five Below shares have surged 58% in the past six-months. The Zacks Consensus Estimate for Five Below’s fiscal 2026 earnings is pegged at $6.30 per share, down by 4 cents over the past 30 days.