Groupon GRPN reported a loss of $2.92 per share for the third quarter of 2025, missing the Zacks Consensus Estimate, which was pegged at earnings of a cent per share. The company had reported earnings of 33 cents per share in the year-ago quarter.
Revenues of $122.8 million beat the consensus estimate by 0.77%. The figure increased 7.3% on a year-over-year basis (6.2% FX-neutral).
Region-wise, North America’s revenues of $96 million beat the consensus mark by 4% and grew 11% year over year. International revenues of $26.8 million missed the consensus mark by 2.89% and decreased 2.8% year over year (7.5% excluding the foreign exchange effect).
Gross billings totaled $416.1 million in the third quarter of 2025, reflecting a 11% year-over-year increase (up 10% 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 $114.7 million beat the Zacks Consensus Estimate by 3.71% and rose 9.3% year over year. North America Local revenues increased 12%, while International Local revenues declined 1.2% year over year (5.9% FX-neutral). Excluding Giftcloud divestiture, International Local revenue increased 8%.
Consolidated Travel revenues of $4.7 million missed the consensus mark by 2.26% and increased 8.8% year over year. North America Travel revenues increased 10.3% year over year. International Travel revenues increased 5.6% in the reported quarter (1% excluding the foreign exchange effect).
On a consolidated basis, Goods revenues of $3.4 million missed the consensus mark by 28.14% and declined 34.9% year over year. North America Goods revenues declined 50.9% and International Goods revenues decreased 20.4% year over year (25.2% excluding the foreign exchange effect).
GRPN’s Customer Metrics
At the end of the third quarter, Groupon had approximately 16.1 million active customers, up 4% from the same period of the year-ago quarter. However, the metric beat the Zacks Consensus Estimate by 4.34%.
The company had approximately 11 million active customers based in North America, beating the consensus mark by 7%. GRPN had 5.1 million active international customers, missing the consensus mark by 0.97%.
Operating Details of GRP
In the third quarter, Groupon’s consolidated gross profit grew 8.7% from the year-ago period’s levels to $111.8 million. North America's gross profit increased 12.8% and International gross profit declined 4.1%, excluding the foreign exchange effect, on a year-over-year basis.
Consolidated gross margin expanded to 91%, consistent with the prior quarter.
Selling, general and administrative expenses fell 4.3% year over year to $68.3 million. Marketing expenses increased 14.3% year over year to $41.4 million, representing 37% of gross profit.
The company reported a GAAP operating income of $2.2 million compared with an operating loss of $5.6 million in the year-ago quarter. Adjusted EBITDA increased 18.8% to $17.5 million.
GRPN’s Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $238.5 million, down from $262.6 million as of June 30, 2025.
In the third quarter, cash used in operating activities was $20.5 million compared with cash used of $16.3 million in the year-ago quarter.
Groupon reported a free cash flow of negative $24.6 million in the reported quarter compared with negative $25.2 million in the previous quarter.
GRPN’s Q4 & FY25 Guidance
For the fourth quarter of 2025, the company expects revenues in the band of $135-137 million, indicating 4-6% year-over-year growth. The Zacks Consensus Estimate for fourth-quarter 2025 revenues is pegged at $121.88 million, indicating a 6.47% year-over-year increase.
Adjusted EBITDA is expected to be between $21 million and $23 million.
Groupon expects a positive free cash flow for the fourth quarter.
For 2025, the company expects revenues between $500 million and $505 million, indicating year-over-year growth of 2-3%. The Zacks Consensus Estimate for 2025 revenues is pegged at $504.5 million, indicating 2.42% year-over-year growth.
Adjusted EBITDA is expected to be between $70 million and $72 million.
Groupon expects a positive free cash flow of $60 million for 2025.
Groupon’s Zacks Rank & Other Stocks to Consider
Currently, GRPN carries a Zacks Rank #4 (Sell).
Some other top-ranked stocks in the broader Zacks Retail-Wholesale sector are JD.com JD, Home Depot HD and FAT Brands FAT.
JD.com and Home Depot currently carry a Zacks Rank #2 (Buy) while FAT Brands carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of FAT Brands have declined 72.4% year to date. It is slated to report third-quarter 2025 results on Nov. 12.
Shares of JD.com have declined 22.5% year to date. It is slated to report third-quarter 2025 results on Nov. 13.
Shares of Home Depot have declined 15% year to date. It is slated to report third-quarter fiscal 2026 results on Nov. 18.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
