Groupon Q3 Earnings Miss Estimates, Revenues Increase Y/Y

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]