Core Insights - Groupon reported Q2 2025 GAAP revenue of $125.7 million, exceeding Wall Street's expectation of $122.47 million, with diluted earnings per share of $0.46, a significant improvement from a loss of $0.25 per share in Q2 2024 [1][5] - Gross billings increased by 12% year-over-year to $416.7 million, indicating strong performance in North America, while international markets faced challenges [1][6][8] Financial Performance - GAAP revenue grew by 0.9% year-over-year, while gross billings rose by 11.5% [2][6] - Adjusted EBITDA decreased by 5.5% to $15.6 million, and free cash flow surged by 132.7% to $25.2 million [2][10] - The company achieved net income from continuing operations of $20.6 million, a turnaround from a net loss of $9.4 million in Q2 2024 [5] Business Model and Strategy - Groupon operates a digital marketplace connecting local businesses with consumers, focusing on curated local experiences [3][4] - The company is transitioning from a general daily deals platform to a destination for quality local experiences, emphasizing higher-value merchant partnerships and technology investments [4][12] Market Dynamics - North America remains the primary growth driver, with local billings increasing by 20% and active customers rising by 6% to 10.8 million [6][7] - International gross billings declined by 3%, with active international customers falling by 11% year-over-year [8][10] Operational Highlights - The company is investing in technology upgrades, including MobileNext rollouts and AI initiatives to enhance merchant deal design [12] - Marketing expenses increased by 13.4% year-over-year as Groupon aims to attract new users and merchants [10] Future Outlook - Management raised full-year billings growth guidance to 3% to 5%, but did not provide explicit revenue or profitability guidance [14] - Key areas to monitor include revenue growth relative to billings, customer and merchant retention, and performance in international markets [15]