Core Insights - The focus is on companies that prioritize value amidst rising prices and inflation concerns [1] - Observing megatrends can provide insights into societal advancements and investment opportunities [1] - Emphasis on the importance of fundamentals, leadership quality, and product pipelines in investment decisions [1] Group 1: Investment Strategy - Companies should leverage macrotrends and emerging technologies for competitive advantage [1] - The analysis includes a focus on marketing and business strategies for medium-sized companies and startups [1] - Evaluating startups and emerging industries is a key component of the investment approach [1] Group 2: Professional Background - The analyst has experience in international development and non-profit sectors, contributing to a well-rounded perspective [1] - Previous roles included evaluating startups and writing on technology and economic news [1] - The goal is to integrate various experiences to identify investment opportunities effectively [1]

Well, it's the end of an era on Wall Street, Legendary investor Warren Buffett says he is, quote, going quiet and speeding up the pace of donating some $1.3% billion to four of his family's foundations. Joining us now is Bloomberg's Alex Rossman, who follows Buffett closely and just wrote this story. Alex, I guess when it comes, of course, to Buffett going quiet when it comes to the annual letters.Not entirely unexpected given that he has handed over the reins. Right, Right. He's not going to write the annu ...

Core Insights - Groupon (GRPN) reported a loss of $2.92 per share for Q3 2025, missing the Zacks Consensus Estimate of earnings of $0.01 per share, compared to earnings of $0.33 per share in the same quarter last year [1][9] - Revenues reached $122.8 million, exceeding the consensus estimate by 0.77% and reflecting a year-over-year growth of 7.3% [1][9] Revenue Breakdown - North America revenues were $96 million, surpassing the consensus mark by 4% and growing 11% year-over-year [2] - International revenues totaled $26.8 million, falling short of the consensus by 2.89% and decreasing 2.8% year-over-year [2] - Gross billings amounted to $416.1 million, marking an 11% increase year-over-year [2] Segment Performance - Local revenues were $114.7 million, beating the Zacks Consensus Estimate by 3.71% and rising 9.3% year-over-year [3] - Consolidated Travel revenues were $4.7 million, missing the consensus by 2.26% but increasing 8.8% year-over-year [4] - Goods revenues were $3.4 million, missing the consensus by 28.14% and declining 34.9% year-over-year [5] Customer Metrics - Groupon had approximately 16.1 million active customers, a 4% increase from the previous year, exceeding the consensus estimate by 4.34% [6] - North America accounted for about 11 million active customers, beating the consensus by 7% [6] - International active customers were 5.1 million, slightly missing the consensus by 0.97% [6] Operating Performance - Consolidated gross profit grew 8.7% year-over-year to $111.8 million, with North America gross profit increasing 12.8% [7] - Consolidated gross margin expanded to 91%, consistent with the previous quarter [7] - Selling, general and administrative expenses decreased by 4.3% year-over-year to $68.3 million, while marketing expenses rose 14.3% to $41.4 million [8] Financial Position - Groupon ended the quarter with cash and cash equivalents of $238.5 million, down from $262.6 million at the end of Q2 2025 [10] - Cash used in operating activities was $20.5 million, compared to $16.3 million in the same quarter last year [10] - Free cash flow was negative $24.6 million, slightly improved from negative $25.2 million in the previous quarter [10] Guidance - For Q4 2025, Groupon expects revenues between $135 million and $137 million, indicating 4-6% year-over-year growth [11] - The company anticipates adjusted EBITDA of $21 million to $23 million for Q4 [11] - For the full year 2025, expected revenues are between $500 million and $505 million, reflecting 2-3% year-over-year growth [12]

Financial Data and Key Metrics Changes - Global billings grew 11% year over year, marking the second consecutive quarter of double-digit growth [3][4] - Adjusted EBITDA reached $18 million, exceeding expectations, while trailing 12 months free cash flow reached $60 million [4] - Marketing spend increased by 14% year over year, accounting for 37% of gross profit [46] Business Line Data and Key Metrics Changes - The core local category, which represents 89% of billings, grew 18% year over year, with North America local up 18% and international local (excluding Giftcloud) up 15% [4][5] - The "Things to do" segment experienced its seventh consecutive quarter of strong double-digit growth [5] Market Data and Key Metrics Changes - All four major international markets delivered a second consecutive quarter of double-digit growth [5] - Chicago has become the largest city for Groupon, growing at nearly double the rate of North America local overall [5] Company Strategy and Development Direction - The company aims to accelerate supply and growth towards a goal of over 20% billings growth while generating strong adjusted EBITDA and free cash flow [5][6] - There is a focus on building a hyperlocal experience marketplace that combines trust, curation, quality, and unbeatable value [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the foundation being built for becoming a trusted destination for quality local experiences [6] - The company is optimistic about the impact of AI on sales processes and customer interactions, expecting to enhance lead generation and customer service [39][42] Other Important Information - The company is implementing a Customer Data Platform (CDP) to improve personalization and customer journey optimization [24][51] - Progress is being made on the Italian tax settlement, with a proposed settlement receiving several approvals [63] Q&A Session Summary Question: Growth in Chicago - Management confirmed that Chicago local billings are growing in the high 30s due to focused sales resources and a better understanding of the market [9][10] Question: Purchase Frequency Among New Cohorts - Management noted improvements in repurchase rates among new customers compared to previous cohorts, attributing this to ongoing technology enhancements [22][23] Question: Marketing Strategy Balance - The company plans to balance direct response marketing with brand advertising, with a focus on measuring ROI and adjusting budgets based on performance [26][27] Question: Impact of AI Initiatives - Management discussed the integration of AI in sales processes and customer service, expecting it to enhance conversion rates and customer interactions [39][42] Question: Travel Business Performance - The travel segment has seen growth due to partnerships with large enterprise brands and better offerings aligned with customer needs [55] Question: Italian Tax Settlement Update - The company is making progress on the Italian tax settlement, with a remaining amount owed of approximately $15 million [63]

Core Insights - Groupon reported revenue of $122.83 million for Q3 2025, a year-over-year increase of 7.3%, but an EPS of -$2.92 compared to $0.33 a year ago, indicating significant losses [1] - The revenue exceeded the Zacks Consensus Estimate of $121.88 million by 0.77%, while the EPS fell short of the consensus estimate of $0.01 by 29300% [1] Financial Performance - The company’s stock has returned -7.5% over the past month, contrasting with the Zacks S&P 500 composite's +1.3% change, and currently holds a Zacks Rank 3 (Hold) [3] - North America revenue was $96.01 million, surpassing the two-analyst average estimate of $92.32 million, reflecting a year-over-year change of +10.5% [4] - International revenue was $26.82 million, slightly below the two-analyst average estimate of $27.62 million, showing a year-over-year decline of -2.8% [4] Geographic Revenue Breakdown - North America Local revenue reached $91.56 million, exceeding the average estimate of $87.82 million, with a year-over-year increase of +12.4% [4] - International Goods revenue was $2.18 million, below the average estimate of $2.84 million, marking a year-over-year decrease of -20.5% [4] - North America Goods revenue fell to $1.22 million, significantly lower than the estimated $1.63 million, representing a -50.9% change year over year [4] - International Local revenue was $23.18 million, slightly above the average estimate of $23.15 million, with a year-over-year change of -1.2% [4] - International Travel revenue was $1.46 million, below the average estimate of $1.63 million, but showing a year-over-year increase of +5.6% [4] - North America Travel revenue increased to $3.22 million, surpassing the estimated $2.87 million, reflecting a +10.4% change year over year [4]

Financial Performance - Global revenue for Q3 2025 was $122.8 million, up 7% year-over-year[5] - Global billings reached $416.1 million, an increase of 11% year-over-year[6] - North America revenue was $96.0 million, up 11% year-over-year, with Local revenue at $91.6 million, up 12%[10] - Adjusted EBITDA for Q3 2025 was $17.5 million, compared to $14.8 million in the prior year[10] - Revenue for Q3 2025 was $122.825 million, a 7.3% increase from $114.479 million in Q3 2024[36] - Gross profit for Q3 2025 reached $111.836 million, compared to $102.895 million in Q3 2024, reflecting an increase of 8.9%[36] - Operating expenses totaled $109.642 million in Q3 2025, slightly up from $108.481 million in Q3 2024[36] - Total gross billings for Q3 2025 reached $319,107 million, reflecting a year-over-year growth of 16.0%[1] - Contribution profit for Q3 2025 was $55,962 million, showing a year-over-year growth of 14.0%[1] - Total gross profit for Q3 2025 was $87,708 million, which is a 12.8% increase from the same quarter last year[1] Customer Metrics - Active customers increased to 16.1 million, up 4% year-over-year, with 300,000 net new active customers added in the quarter[2][6] - Active customers increased to 16.1 million in Q3 2025, up from 15.8 million in Q2 2025[2] - Total consolidated units sold in Q3 2025 were 9,136, a slight increase from 9,117 in Q2 2025[2] - The total headcount decreased to 1,739 in Q3 2025, down from 1,814 in Q2 2025[2] Loss and Expenses - Net loss from continuing operations was $117.8 million, a significant decline from a net income of $14.5 million in the prior year[6] - The net loss attributable to Groupon, Inc. for Q3 2025 was $118.373 million, compared to a net income of $13.928 million in Q3 2024[36] - Basic net loss per share for continuing operations was $2.92 in Q3 2025, compared to earnings of $0.35 per share in Q3 2024[36] - The company reported a loss from continuing operations before income taxes of $96.534 million for Q3 2025, compared to income of $16.843 million in Q3 2024[36] - Marketing expenses were $41.4 million, representing 37% of gross profit, compared to 35% in the prior year[6] - The company incurred restructuring and related charges of $896 million in Q3 2024[46] Cash Flow and Assets - Operating cash flow from continuing operations was negative $20.5 million, and free cash flow was negative $24.6 million[10] - Free cash flow for Q3 2025 was $(24,588) million, indicating a 25.0% improvement compared to the previous quarter[1] - Total current assets as of September 30, 2025, were $314.219 million, a slight decrease from $315.361 million at the end of 2024[34] - Total liabilities increased to $667.564 million as of September 30, 2025, up from $571.639 million at the end of 2024[34] - Cash and cash equivalents stood at $238.451 million as of September 30, 2025, compared to $228.843 million at the end of 2024[34] - The company reported a net cash used in financing activities of $(3,275) thousand for the three months ended September 30, 2025, compared to $(691) thousand for the same period in 2024[38] - The total cash decrease for the three months ended September 30, 2025, was $(28,888) thousand, compared to a decrease of $(18,238) thousand for the same period in 2024[39] International Performance - International revenue was $26.8 million, down 3% year-over-year, primarily due to the divestiture of Giftcloud[10] - International segment total gross billings decreased by 1.3% year-over-year to $97,005 million in Q3 2025[1] Depreciation and Other Expenses - The company reported a depreciation and amortization expense of $3,940 thousand for the three months ended September 30, 2025, down from $6,492 thousand in the same period of 2024[38] - The company reported a depreciation and amortization expense of $6,895 million in Q3 2024[46] - Stock-based compensation for the three months ended September 30, 2025, was $11,109 thousand, an increase from $8,890 thousand in the same period of 2024[38] - Other income (expense), net included a loss on extinguishment of debt totaling $99.9 million for the three months ended September 30, 2025[48]

Core Insights - Groupon reported a 7% increase in global revenue and an 11% increase in billings for Q3 2025 [1] - North America local revenue grew by 12%, with local billings increasing by 18% [1] Financial Performance - The company added nearly 300,000 net new active customers during the quarter [2] - The "Things To Do" vertical outperformed industry growth during the summer season [2] Strategic Outlook - CEO Dusan Senkypl emphasized the ongoing transformation of the marketplace and expressed confidence in becoming a trusted destination for local experiences [2]

Financial Performance - Gross billings for North America increased by $44.0 million (16.0%) to $319.1 million for the three months ended September 30, 2025, compared to the same period in 2024 [202]. - Revenue for the three months ended September 30, 2025, was $122.8 million, up from $114.5 million in 2024, representing a growth of 7.9% [194]. - Gross profit for the same period increased to $111.8 million, compared to $102.9 million in 2024, reflecting a growth of 8.6% [194]. - Contribution profit for the three months ended September 30, 2025, was $70.4 million, a 5.3% increase from $66.6 million in 2024 [194]. - Adjusted EBITDA for the three months ended September 30, 2025, was $17.5 million, compared to $14.8 million in 2024, marking a growth of 18.9% [194]. - Contribution profit for North America increased by $6.9 million (14.0%) to $55,962 thousand for the three months ended September 30, 2025 [208]. - Total gross profit for North America increased by $10.0 million (12.8%) to $87,708 thousand for the three months ended September 30, 2025 [206]. - Total gross profit for North America increased by $11.3 million (4.5%) to $262,012 thousand for the nine months ended September 30, 2025 [207]. - Revenue for the nine months ended September 30, 2025, was $365.7 million, with an increase of $1.9 million attributed to exchange rate changes [238]. - The company reported a gross profit of $332.6 million for the nine months ended September 30, 2025, which is an increase of $1.7 million from the previous year [238]. Customer Metrics - Active customers in North America grew by 8.3% to 10.999 million for the trailing twelve months ended September 30, 2025 [202]. - International TTM active customers decreased by 170 thousand (3.2%) to 5,127 thousand for the trailing twelve months ended September 30, 2025 [211]. Segment Performance - North America segment revenue increased by $9.1 million (10.5%) to $96,007 thousand for the three months ended September 30, 2025, compared to the prior year [206]. - International segment revenue decreased by $0.8 million (2.8%) to $26,818 thousand for the three months ended September 30, 2025 [215]. - International revenue decreased by $4.2 million (5.1%) to $78,598 thousand for the nine months ended September 30, 2025 [216]. - The Local category gross billings increased by 18.1% to $293.8 million for the three months ended September 30, 2025 [202]. - The Goods category experienced a decline of 31.9% in gross billings, dropping to $7.6 million for the three months ended September 30, 2025 [202]. Expenses and Cash Flow - Free cash flow for the three months ended September 30, 2025, was $(24.6) million, compared to $(19.7) million in 2024 [194]. - North America marketing expense increased by $3.1 million (10.8%) to $31,746 thousand for the three months ended September 30, 2025 [208]. - International marketing expense increased by 27.3% to $9,696,000 for the three months ended September 30, 2025, compared to $7,615,000 in 2024 [217]. - Total operating expenses for the three months ended September 30, 2025 were $109,642,000, a slight increase of 1.1% from $108,481,000 in 2024 [222]. - Selling, general and administrative (SG&A) expenses decreased by 4.3% to $68,264,000 for the three months ended September 30, 2025, compared to $71,327,000 in 2024 [222]. Tax and Other Financial Matters - Provision for income taxes for the three months ended September 30, 2025 was $2,321,000, compared to $21,248,000 in 2024, reflecting a significant change in effective tax rate [227]. - The company expects future effective tax rates to differ significantly from the U.S. federal income tax rate due to valuation allowances in jurisdictions with losses [227]. - The company expects to pay approximately $15.2 million in cash for tax assessments in Italy, significantly reduced from initial claims of $170 million [242]. - Other income (expense), net for the three months ended September 30, 2025 was $(98,728,000), a significant decrease from $22,429,000 in 2024, primarily due to a loss on extinguishment of debt [225]. Cash and Liquidity - As of September 30, 2025, the company had a cash balance of $238.5 million, with sufficient liquidity to meet operational needs for the next 12 months [240]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $7.9 million, compared to a net cash used of $11.1 million in the prior period [248]. - Net cash provided by investing activities for the nine months ended September 30, 2025, was $4.0 million, an increase from a net cash used of $3.1 million in the prior period [249]. - The company used $6.4 million in financing activities for the nine months ended September 30, 2025, a decrease from $32.9 million provided in the prior period [250]. - As of September 30, 2025, the company held $67.0 million in cash in international subsidiaries, primarily in various foreign currencies [260]. Foreign Currency and Debt - The company is exposed to inflationary pressures that could negatively impact operating costs and financial performance [270]. - The company assesses foreign currency exchange risk using a sensitivity analysis based on a hypothetical 10% change in currency rates [267]. - The net working capital deficit from subsidiaries subject to foreign currency translation risk was $29.8 million as of September 30, 2025 [268]. - A hypothetical 10% adverse change in foreign currency exchange rates could increase the working capital deficit by $3.0 million [268]. - The company has fixed-rate debt with aggregate principal amounts of $33.7 million, $47.3 million, and $244.1 million for the 2026, 2027, and 2030 Notes, respectively [269]. - Changes in market interest rates affect the fair value of the company's fixed-rate notes and other financial variables [269]. - The company’s cash balance as of September 30, 2025, consists of bank deposits, limiting exposure to interest rate changes [269]. - As of September 30, 2025, the U.S. dollar index decreased by 9.6% compared to December 31, 2024 [266]. - Approximately 21.8% and 21.5% of the company's revenue for the three and nine months ended September 30, 2025, respectively, was derived from the International segment [266].

Core Insights - November is historically a strong month for stocks, prompting a focus on companies with steady earnings growth and earnings acceleration, which significantly impacts stock prices [1][9] Earnings Acceleration - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), indicating an increase in quarter-over-quarter earnings growth rates [3] - Companies with earnings acceleration are often undervalued, leading to potential stock price rallies as investors take notice [4] Screening Parameters - The screening criteria for identifying stocks with earnings acceleration include: - Last two quarter-over-quarter EPS growth rates must exceed previous periods' growth rates [6] - Projected EPS growth rates for the upcoming quarter should exceed those of prior periods [6][7] - Additional criteria include a current price of at least $5 and an average 20-day volume of at least 50,000 [8] Identified Stocks - The screening process narrowed down to four stocks, with the top three being: - **Groupon, Inc. (GRPN)**: Expected earnings growth rate of 153% for the current year, operating a marketplace linking consumers to merchants [10] - **BriaCell Therapeutics Corp. (BCTX)**: Expected earnings growth rate of 81.6% for the current year, focused on developing immunotherapies for cancer [11] - **InnovAge Holding Corp. (INNV)**: Expected earnings growth rate of 209.1% for the current year, providing services to help seniors live independently [12]

Group 1 - Groupon currently has an average brokerage recommendation (ABR) of 2.00, indicating a Buy, with three Strong Buy and one Buy recommendations from five brokerage firms [2] - The ABR reflects that Strong Buy and Buy recommendations account for 60% and 20% of all recommendations, respectively [2] - Analysts' growing optimism over Groupon's earnings prospects is indicated by a 31.1% increase in the Zacks Consensus Estimate for the current year, now at $0.8 [14] Group 2 - The Zacks Rank for Groupon is 1 (Strong Buy), driven by the recent change in consensus estimates and other factors related to earnings estimates [15] - The ABR should not be solely relied upon for investment decisions, as studies show limited success of brokerage recommendations in guiding investors [5][10] - The Zacks Rank is a more reliable indicator of a stock's near-term price performance, as it is based on earnings estimate revisions and is updated more frequently than the ABR [8][13]