We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Groupon (GRPN) Up 8% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Groupon (GRPN - Free Report) . Shares have added about 8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Groupon due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Groupon, Inc. before we dive into how investors and analysts have reacted as of late.
Groupon Q4 Earnings Meet Estimates, Revenues Rise 2% Year Over Year
Groupon 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).
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -70% due to these changes.
VGM Scores
Currently, Groupon has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Groupon has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Groupon is part of the Zacks Internet - Commerce industry. Over the past month, MercadoLibre (MELI - Free Report) , a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended December 2025 more than a month ago.
MercadoLibre reported revenues of $8.76 billion in the last reported quarter, representing a year-over-year change of +44.6%. EPS of $11.03 for the same period compares with $12.61 a year ago.
MercadoLibre is expected to post earnings of $9.73 per share for the current quarter, representing a year-over-year change of -0.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -10.8%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for MercadoLibre. Also, the stock has a VGM Score of B.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Groupon (GRPN) Up 8% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Groupon (GRPN - Free Report) . Shares have added about 8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Groupon due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Groupon, Inc. before we dive into how investors and analysts have reacted as of late.
Groupon Q4 Earnings Meet Estimates, Revenues Rise 2% Year Over Year
Groupon 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).
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -70% due to these changes.
VGM Scores
Currently, Groupon has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Groupon has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Groupon is part of the Zacks Internet - Commerce industry. Over the past month, MercadoLibre (MELI - Free Report) , a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended December 2025 more than a month ago.
MercadoLibre reported revenues of $8.76 billion in the last reported quarter, representing a year-over-year change of +44.6%. EPS of $11.03 for the same period compares with $12.61 a year ago.
MercadoLibre is expected to post earnings of $9.73 per share for the current quarter, representing a year-over-year change of -0.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -10.8%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for MercadoLibre. Also, the stock has a VGM Score of B.