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{\"0\":\"GRPN earned $0.46 per share in Q2 2025, swinging from a $0.25 loss and beating estimates by $0.48.\",\"1\":\"GRPN\'s revenues grew 0.9% Y/Y to $125.7M, topping estimates; gross billings rose 12% to $416.7M.\",\"2\":\"Gross margin expanded to 91% as SG&A fell and travel and local revenues posted Y/Y gains.\"}
Groupon (GRPN - Free Report) reported earnings of 46 cents per share for the second quarter of 2025, which beat the Zacks Consensus Estimate by 48 cents. The company had incurred a loss of 25 cents per share in the year-ago quarter.
Revenues of $125.7 million beat the consensus estimate by 2.32%. The figure increased 0.9% on a year-over-year basis.
Region-wise, North America’s revenues of $100 million beat the consensus mark by 4.07% and grew 1.7% year over year. International revenues of $25.7 million missed the consensus mark by 3.96% and decreased 2.1% year over year (6.6% excluding the foreign exchange effect).
Gross billings totaled $416.7 million in the second quarter of 2025, reflecting a 12% year-over-year increase (up 10% on an FX-neutral basis).
GRPN’s Quarterly Details
Local revenues of $116.7 million beat the Zacks Consensus Estimate by 2.33% and rose 2.3% year over year. North America Local revenues increased 3%, while International Local revenues declined marginally by 0.9% year over year.
Consolidated Travel revenues of $5.6 million surpassed the consensus mark by 16.48% and increased 2.7% year over year. North America Travel revenues increased 12.5% year over year. International Travel revenues declined 21.3% in the reported quarter (24.8% excluding the foreign exchange effect).
On a consolidated basis, Goods revenues of $3.4 million missed the consensus mark by 13.6% and declined 32.2% year over year. North America Goods revenues declined 58.2% and International Goods revenues decreased 0.3% year over year (5.4% excluding the foreign exchange effect).
GRPN’s Customer Metrics
At the end of the second quarter, Groupon had approximately 15.8 million active customers, unchanged from the same period of the year-ago quarter. However, the metric beat the Zacks Consensus Estimate by 1.22%.
The company had approximately 10.8 million active customers based in North America, beating the consensus mark by 4.45%. GRPN had 5 million active international customers, missing the consensus mark by 5.30%.
Operating Details of GRPN
In the second quarter, Groupon’s consolidated gross profit grew 1.6% from the year-ago period’s levels to $114.4 million. North America's gross profit increased 2.9% and International gross profit declined 7.7%, excluding the foreign exchange effect, on a year-over-year basis.
Consolidated gross margin expanded 60 basis points to 91%.
Selling, general and administrative expenses fell 8.5% year over year to $70.7 million. Marketing expenses increased 13.4% year over year to $41.4 million.
The company reported a GAAP operating profit of $13.1 million compared with a profit of $4.4 million in the year-ago quarter. Also, adjusted EBITDA declined 5.6% to $15.6 million.
GRPN’s Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $262.6 million, up from $226.8 million as of March 31, 2025.
In the second quarter, cash generated from operating activities was $28.4 million, up 85.7% year over year.
Groupon reported a free cash flow of $25.2 million in the reported quarter, reversing a cash outflow of $3.8 million in the previous quarter.
GRPN’s Q3 & FY25 Guidance
For the third quarter of 2025, the company expects revenues in the band of $117-$120 million, indicating 2-5% year-over-year growth. The Zacks Consensus Estimate for third-quarter 2025 revenues is pegged at $121.43 million, indicating a 6.07% year-over-year increase.
Adjusted EBITDA is expected to be between $12 million and $16 million.
Groupon expects a negative free cash flow for the third quarter.
For 2025, the company expects revenues between $497 million and $505 million, indicating year-over-year growth of 1-3%. The Zacks Consensus Estimate for 2025 revenues is pegged at $500.25 million, indicating 1.56% year-over-year growth.
Adjusted EBITDA is expected to be between $70 million and $75 million.
Groupon expects a positive free cash flow of at least $50 million for 2025.
Groupon’s Zacks Rank & Other Stocks to Consider
Currently, GRPN carries a Zacks Rank #1 (Strong Buy).
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Groupon Q2 Earnings Surpass Estimates, Revenues Increase Y/Y
Key Takeaways
Groupon (GRPN - Free Report) reported earnings of 46 cents per share for the second quarter of 2025, which beat the Zacks Consensus Estimate by 48 cents. The company had incurred a loss of 25 cents per share in the year-ago quarter.
Revenues of $125.7 million beat the consensus estimate by 2.32%. The figure increased 0.9% on a year-over-year basis.
Region-wise, North America’s revenues of $100 million beat the consensus mark by 4.07% and grew 1.7% year over year. International revenues of $25.7 million missed the consensus mark by 3.96% and decreased 2.1% year over year (6.6% excluding the foreign exchange effect).
Gross billings totaled $416.7 million in the second quarter of 2025, reflecting a 12% year-over-year increase (up 10% on an FX-neutral basis).
GRPN’s Quarterly Details
Local revenues of $116.7 million beat the Zacks Consensus Estimate by 2.33% and rose 2.3% year over year. North America Local revenues increased 3%, while International Local revenues declined marginally by 0.9% year over year.
Groupon, Inc. Price, Consensus and EPS Surprise
Groupon, Inc. price-consensus-eps-surprise-chart | Groupon, Inc. Quote
Consolidated Travel revenues of $5.6 million surpassed the consensus mark by 16.48% and increased 2.7% year over year. North America Travel revenues increased 12.5% year over year. International Travel revenues declined 21.3% in the reported quarter (24.8% excluding the foreign exchange effect).
On a consolidated basis, Goods revenues of $3.4 million missed the consensus mark by 13.6% and declined 32.2% year over year. North America Goods revenues declined 58.2% and International Goods revenues decreased 0.3% year over year (5.4% excluding the foreign exchange effect).
GRPN’s Customer Metrics
At the end of the second quarter, Groupon had approximately 15.8 million active customers, unchanged from the same period of the year-ago quarter. However, the metric beat the Zacks Consensus Estimate by 1.22%.
The company had approximately 10.8 million active customers based in North America, beating the consensus mark by 4.45%. GRPN had 5 million active international customers, missing the consensus mark by 5.30%.
Operating Details of GRPN
In the second quarter, Groupon’s consolidated gross profit grew 1.6% from the year-ago period’s levels to $114.4 million. North America's gross profit increased 2.9% and International gross profit declined 7.7%, excluding the foreign exchange effect, on a year-over-year basis.
Consolidated gross margin expanded 60 basis points to 91%.
Selling, general and administrative expenses fell 8.5% year over year to $70.7 million. Marketing expenses increased 13.4% year over year to $41.4 million.
The company reported a GAAP operating profit of $13.1 million compared with a profit of $4.4 million in the year-ago quarter. Also, adjusted EBITDA declined 5.6% to $15.6 million.
GRPN’s Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $262.6 million, up from $226.8 million as of March 31, 2025.
In the second quarter, cash generated from operating activities was $28.4 million, up 85.7% year over year.
Groupon reported a free cash flow of $25.2 million in the reported quarter, reversing a cash outflow of $3.8 million in the previous quarter.
GRPN’s Q3 & FY25 Guidance
For the third quarter of 2025, the company expects revenues in the band of $117-$120 million, indicating 2-5% year-over-year growth. The Zacks Consensus Estimate for third-quarter 2025 revenues is pegged at $121.43 million, indicating a 6.07% year-over-year increase.
Adjusted EBITDA is expected to be between $12 million and $16 million.
Groupon expects a negative free cash flow for the third quarter.
For 2025, the company expects revenues between $497 million and $505 million, indicating year-over-year growth of 1-3%. The Zacks Consensus Estimate for 2025 revenues is pegged at $500.25 million, indicating 1.56% year-over-year growth.
Adjusted EBITDA is expected to be between $70 million and $75 million.
Groupon expects a positive free cash flow of at least $50 million for 2025.
Groupon’s Zacks Rank & Other Stocks to Consider
Currently, GRPN carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader Zacks Retail-Wholesale sector are The TJX Companies, Inc. (TJX - Free Report) , Worksport (WKSP - Free Report) and Performance Food Group (PFGC - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of TJX have gained 9.3% year to date. It is slated to report second-quarter fiscal 2026 results on Aug. 20.
Shares of WKSP have declined 61.4% year to date. It is set to report second-quarter 2025 results on Aug. 13.
Shares of PFGC have appreciated 16.1% year to date. It is set to report fourth-quarter fiscal 2025 results on Aug. 13.