Groupon (GRPN) Company Report

Groupon's CFO, Rana Kashyap, provided a financial overview, noting $1.6 billion in billings, $500 million in revenue, $70 million in EBITDA, and $60 million in free cash flow, with 16 million active customers.
The company is undergoing a strategic transformation, reporting 18% local billings growth in Q3 (excluding Italy) and adding 1 million net new active customers over the past four quarters. Key strategic pillars include a focus on quality experiences, hyperlocal strategies, and leveraging AI across operations.
For Q4, the company observed mixed November results but experienced high single-digit positive billings growth from Black Friday through Cyber Monday, driven by the core local category. The period from Cyber Monday to year-end is crucial, historically accounting for almost 40% of the quarter.
Investment priorities for 2026 focus on achieving over 20% long-term growth through continued investment in technology (platform modernization, AI), supply-side expansion, and marketing, while maintaining flattish cash SG&A and evaluating an open buyback authorization. The most important metric for investors to track is billings growth rate.

Dec 8, 2025, 4:20 PM

Transcript

Groupon Discusses Strategic Transformation, Q3 Performance, and Q4 Outlook at Raymond James Conference

GRPN

Revenue Acceleration/Inflection

New Projects/Investments

Share Buyback

Groupon provided a financial snapshot, reporting $1.6 billion in billings, $500 million in revenue, $70 million in EBITDA, and $60 million in free cash flow, serving over 16 million active customers.
The company is undergoing a strategic transformation focused on quality orientation, hyperlocal strategies, and significant AI integration across its operations, with a long-term growth outlook of over 20%.
In Q3, Groupon achieved 18% local billings growth (excluding Italy) and added 300,000 net new active customers.
For Q4, after mixed November results, billings showed high single-digit positive growth from Black Friday through Cyber Monday, with the period from Cyber Monday to year-end historically representing almost 40% of the quarter.
Investment priorities include significant tech modernization (e.g., new app rollout in North America by early 2026), supply-side expansion, and marketing, while maintaining Cash SG&A flattish at $58-$60 million and evaluating an opportunistic share buyback. The most important metric for investors to track is billings growth rate.

Dec 8, 2025, 4:20 PM

Transcript

Groupon Provides Business Update and Strategic Priorities at Raymond James Conference

GRPN

Revenue Acceleration/Inflection

New Projects/Investments

Share Buyback

Groupon reported $1.6 billion in billings, $500 million in revenue, $70 million EBITDA, and $60 million in free cash flow. In Q3, local billings grew 18% (excluding Italy), and the company added 1 million new active customers over the last four quarters.
The company's strategic transformation focuses on quality orientation, hyperlocal strategies, and leveraging AI across operations, including merchant acquisition, deal launching, and future customer experience enhancements like AI overviews/summaries expected in 2026.
Following mixed November results, the business saw a pickup from Black Friday through Cyber Monday, with high single-digit positive billings growth. The period from Cyber Monday to the end of December is crucial, historically accounting for almost 40% of the quarter, driven by gifting experiences.
Groupon's primary investment priority is to achieve a long-term growth outlook of over 20%, supported by investments in technology, supply-side expansion, and marketing, while aiming for flattish cash SG&A at a run rate of $58-$60 million. The company generates free cash flow and evaluates opportunistic share buybacks.
Management emphasizes that the most important metric for investors to track is the billings growth rate, as it drives operating leverage and free cash flow growth per share.

Dec 8, 2025, 4:20 PM

Transcript

Groupon Highlights Strategic Transformation and Growth Initiatives at Raymond James Conference

GRPN

Revenue Acceleration/Inflection

New Projects/Investments

Share Buyback

Groupon reported a financial snapshot of $1.6 billion in billings, $1.05 billion in revenue, $70 million in EBITDA, and $60 million in free cash flow. The company is undergoing a strategic transformation, achieving 18% local billings growth in Q3 (excluding Italy) and adding 1 million net new active customers over the last four quarters.
The company's strategy focuses on quality orientation, a hyper-local approach, and a significant push into AI across its operations. Key growth opportunities are identified in food and drink, hotels, and live events , and international markets, with Q3 international local billings growing 15% (excluding exited businesses).
Significant investments are being made in platform modernization, including rolling out a new application to all North American customers by early 2026, a new customer data platform, and enhanced search and relevance using AI.
Groupon's number one investment priority is to achieve its long-term growth outlook of over 20%, funded by keeping cash SG&A flattish (around $58 million to $60 million run rate) and opportunistically utilizing an open buyback authorization.
Management emphasized that the most important metric for investors to track is the billings growth rate, as it is expected to drive operating leverage and free cash flow growth per share.

Dec 8, 2025, 4:20 PM

Transcript

Groupon Reports Strong Q3 2025 Results and Strategic Progress

GRPN

Earnings

Share Buyback

New Projects/Investments

Groupon reported Q3 2025 global billings growth of 11% year over year, with the core local category growing 18% and representing 89% of total billings.
The company achieved adjusted EBITDA of $18 million, surpassing expectations, and recorded $60 million in trailing 12 months free cash flow.
Customer acquisition showed momentum, with nearly 300K net new active customers added quarter over quarter and over 1 million in the last four quarters (excluding Italy).
Groupon is making progress on its Italian tax settlement, which has received several approvals, with approximately $15 million remaining to be owed.
Management stated they plan to be opportunistic with share buybacks, evaluating factors such as cash generation, investment priorities, and market conditions.

Nov 7, 2025, 1:00 PM

Transcript

Groupon Reports Third Quarter 2025 Results

GRPN

Earnings

Revenue Acceleration/Inflection

Profit Warning

Groupon reported global revenue of $122.8 million, an increase of 7% year-over-year, and global billings of $416.1 million, up 11% year-over-year for the third quarter ended September 30, 2025.
The company reported a net loss from continuing operations of $117.8 million for Q3 2025, a significant decline compared to a net income from continuing operations of $14.5 million in the prior year period.
Adjusted EBITDA increased to $17.5 million in Q3 2025, up from $14.8 million in the prior year period.
As of September 30, 2025, Groupon held $238.5 million in cash and cash equivalents.

Nov 6, 2025, 9:19 PM

8-K

Groupon Faces Securities Fraud Investigation

GRPN

Legal Proceedings

Accounting Changes

The Portnoy Law Firm has initiated an investigation into Groupon, Inc. for possible securities fraud, potentially leading to a class action lawsuit on behalf of investors.
This investigation follows a report published on June 9, 2025, by short-seller Captain's Log, which alleged that Groupon engaged in questionable accounting practices and misled investors about its turnaround success.
Following the report's publication, Groupon's stock price declined by $1.61 per share, or approximately 4.89%, closing at $31.33 per share on June 9, 2025.

Aug 14, 2025, 7:52 PM

Press Release

Groupon Reports Q2 2025 Results and Leadership Changes

GRPN

Earnings

Management Change

Debt Issuance

For the second quarter ended June 30, 2025, Groupon reported global revenue of $125.7 million, an increase of 1% year-over-year, and global billings of $416.7 million, up 12%.
The company achieved net income from continuing operations of $20.6 million and Adjusted EBITDA of $15.6 million in Q2 2025.
As of June 30, 2025, Groupon held $262.6 million in cash.
Groupon completed a $244 million financing transaction on July 2, 2025, issuing 2030 Notes in exchange for existing 2026 and 2027 Notes.
Effective September 1, 2025, Jiri Ponrt will assume the role of Chief Operating Officer (COO), and Rana Kashyap will become the Chief Financial Officer (CFO).

Aug 6, 2025, 12:00 AM

8-K

Groupon Issues New Convertible Senior Notes and Unwinds Capped Call Transactions

GRPN

Debt Issuance

On July 2, 2025, Groupon, Inc. issued $244,071,000 aggregate principal amount of its 4.875% Convertible Senior Notes due 2030.
These new notes were issued in exchange for $20,000,000 aggregate principal amount of its 1.125% Convertible Senior Notes due 2026 and $150,000,000 aggregate principal amount of its 6.25% Convertible Senior Secured Notes due 2027.
The 2030 Notes accrue interest at 4.875% per annum, payable semi-annually, will mature on June 30, 2030, and have an initial conversion price of approximately $54.04 per share.
The company also partially unwound certain capped call and call option transactions related to its 2026 Notes, with cash payments from dealers expected around July 2, 2025.

Jul 2, 2025, 12:00 AM

8-K

Groupon Announces $244 Million Financing Transaction

GRPN

Debt Issuance

Groupon, Inc. announced a financing transaction on June 18, 2025, involving the exchange of $170 million aggregate principal amount of its existing 2026 and 2027 Convertible Senior Notes for $244.071 million aggregate principal amount of newly issued 4.875% Convertible Senior Notes due 2030.
The new 2030 Notes will be senior unsecured obligations of Groupon, accruing interest at 4.875% per annum, and will mature on June 30, 2030.
As part of the exchange, holders of approximately 76% of the 2027 Notes agreed to amendments that will delete substantially all restrictive covenants and release all collateral securing the 2027 Notes.
The transaction is expected to close around July 2, 2025, and Groupon will not receive any cash proceeds from the exchange.