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]

Group 1 - Groupon's revenue has significantly declined, reaching approximately one-sixth of its value at the beginning of the decade by 2024 [1] Group 2 - The analyst emphasizes a focus on small and midcap companies with asymmetric upsides, highlighting a diverse professional background in the Industrials and chemicals sector [2] - The analyst's experience in finance and technology at a Canadian charity adds depth to their analysis, suggesting a synergy between execution and analytical skills [2]

Core Viewpoint - Groupon (GRPN) is experiencing significant selling pressure, with a 19.8% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analysts predicting better-than-expected earnings [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2] - GRPN's current RSI reading is 17.52, suggesting that the heavy selling may be exhausting itself, indicating a potential reversal towards a more balanced supply and demand [5] Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts to raise earnings estimates for GRPN, with a 31.1% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7] - GRPN holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8]

Group 1 - The recent rise in the stock market to all-time highs is primarily driven by large-cap technology stocks, particularly Microsoft and Oracle [1] - The author has extensive experience in covering technology companies and has been involved with seed-round startups, providing insights into current industry trends [1] Group 2 - The article does not provide any specific investment recommendations or advice regarding the suitability of investments for individual investors [2][3]

Core Insights - Eric Lefkofsky, a notable Chicago entrepreneur, has founded six unicorn companies, including Groupon and Tempus, significantly impacting the tech landscape in Chicago [2][3][8]. Company Overview - Lefkofsky co-founded Groupon in 2008, which once had a valuation of $25 billion but has since declined due to revenue drops, leading to a downsizing in 2024 [5][24]. - Tempus, founded in 2015, is an AI-powered healthcare technology company focused on cancer treatment, currently valued at over $13 billion with a workforce of 4,000 employees [9][16]. Financial Performance - Tempus reported nearly 90% year-over-year revenue growth in Q2 2025, raising its full-year revenue guidance to $1.26 billion and projecting a positive adjusted EBITDA of $5 million for 2025 [16]. - Lefkofsky has invested $100 million into Tempus, which has yet to turn a profit but is expected to do so soon [15][17]. Market Position - Tempus is one of the largest genomic sequencing companies in the U.S., with over 50% of oncologists ordering sequencing tests from the company [15]. - The company is pioneering new technologies in drug research and clinical genomic sequencing, aiming to personalize cancer treatment [13][14]. Future Prospects - Lefkofsky remains focused on Tempus, with plans to continue its growth and integration into mainstream medicine [33]. - The acquisition of Paige, an AI company specializing in digital pathology for $81 million, indicates Tempus's commitment to expanding its technological capabilities [33].

Group 1 - The average brokerage recommendation (ABR) for Groupon (GRPN) is 2.00, indicating a Buy, with 60% of recommendations being Strong Buy and 20% being Buy [2][5] - Brokerage recommendations may not effectively guide investors, as studies show they have little success in identifying stocks with high potential for price appreciation [5][10] - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [6][10] Group 2 - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) and is based on earnings estimate revisions, showing a strong correlation with near-term stock price movements [8][11] - The Zacks Consensus Estimate for Groupon has increased by 94.5% over the past month to $0.8, indicating growing optimism among analysts regarding the company's earnings prospects [13] - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 1 (Strong Buy) for Groupon, suggesting that the Buy-equivalent ABR may be a useful guide for investors [14]