Groupon Q4 Earnings Meet Estimates, Revenues Rise 2% Year Over Year

Core Insights - Groupon (GRPN) reported earnings of 17 cents per share for Q4 2025, matching the Zacks Consensus Estimate, a significant improvement from a loss of $1.2 per share in the same quarter last year [1] Financial Performance - Revenues for Q4 2025 were $132.71 million, missing the Zacks Consensus Estimate by 3.25%, but showing a 2% year-over-year increase [2] - Gross billings reached $446.5 million, reflecting a 4% year-over-year increase [2] - Consolidated gross profit grew 1.5% year-over-year to $120 million, with North America gross profit increasing by 2.6% [7] Revenue Breakdown - North America revenues were $98.7 million, missing the consensus by 6.58% and growing 2.1% year-over-year [2] - International revenues were $34 million, exceeding the consensus by 4.84% and increasing 0.9% year-over-year [2] - Local revenues totaled $124.5 million, missing estimates by 3.14% and rising 4% year-over-year [3] - Consolidated Travel revenues were $3.76 million, missing estimates by 10.26% and declining 13.2% year-over-year [4] - Goods revenues were $4.44 million, beating estimates by 4.01% but declining 27.3% year-over-year [5] Customer Metrics - Groupon had approximately 16.2 million active customers at the end of Q4, up 5% year-over-year and beating estimates by 2.73% [6] - North America accounted for about 11.1 million active customers, exceeding estimates by 3.74% [6] Operating Expenses - Selling, general, and administrative expenses decreased by 10.3% year-over-year to $65 million [8] - Marketing expenses increased by 13.9% year-over-year to $48.6 million, representing 37% of revenues [8] Cash Flow and Balance Sheet - Groupon ended the quarter with cash and cash equivalents of $296.1 million, up from $238.5 million as of September 30, 2025 [11] - Cash provided by operating activities was $56.6 million, compared to cash used of $20.5 million in the prior quarter [11] - Free cash flow was positive at $53 million, a turnaround from negative $24.6 million in the previous quarter [11] Guidance - For Q1 2026, Groupon expects revenues between $117 million and $120 million, with adjusted EBITDA between $13 million and $15 million [12] - For the full year 2026, the company anticipates revenues between $513 million and $523 million, indicating year-over-year growth of 3% to 5% [13]