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]

Core Viewpoint - Groupon reported a significant earnings beat in Q1 2025, with earnings of 18 cents per share, surpassing the Zacks Consensus Estimate by 190% and improving from a loss of 33 cents per share in the same quarter last year [1] Financial Performance - Revenues for the quarter were $117.2 million, exceeding the consensus estimate by 1.46%, but reflecting a year-over-year decline of 4.8% [2] - North America revenues were $91.11 million, beating the consensus by 2% but down 3.2% year-over-year; International revenues were $26.07 million, missing the consensus by 3.09% and down 9.9% year-over-year [2] - Local revenues totaled $108.4 million, beating estimates by 3.28% but declining 2.6% year-over-year; North America Local revenues decreased 0.6%, while International Local revenues fell 9.4% [3] - Consolidated Travel revenues were $5.05 million, missing estimates by 21.57% and down 20.5% year-over-year; North America Travel revenues decreased 20.4% [4] - Goods revenues were $3.78 million, missing estimates by 10.33% and declining 31.6% year-over-year; North America Goods revenues fell 50.9% [5] Customer Metrics - Groupon had approximately 15.5 million active customers at the end of Q1, down from 16.1 million year-over-year but beating the consensus estimate by 5.66%; North America had about 10.5 million active customers, exceeding estimates by 6.38% [6] Operating Details - Consolidated gross profit fell 3.9% year-over-year to $106.3 million, with North America gross profit down 1.5% and International gross profit down 9.4% [7] - Gross margin improved by 90 basis points to 90.7%; Selling, general and administrative expenses decreased by 6% to $69.84 million, while marketing expenses rose by 19.5% to $34.4 million [7] - GAAP operating profit was $1.88 million, down from $7.37 million year-over-year; adjusted EBITDA declined 21.5% to $15.3 million [8] Balance Sheet & Cash Flow - Groupon ended the quarter with cash and cash equivalents of $226.8 million, slightly down from $228.8 million at the end of 2024 [9] - Operating cash inflow remained stable at $67 million, while free cash outflow was $3.8 million compared to a free cash inflow of $63.2 million in the previous quarter [10] Guidance - For Q2 2025, Groupon expects revenues between $121 million and $123 million, indicating a year-over-year decline of 3-1%; adjusted EBITDA is projected to be between $14 million and $17 million [11] - For the full year 2025, the company anticipates revenues between $493 million and $500 million, reflecting a year-over-year growth of 0-2%; adjusted EBITDA is expected to be between $70 million and $75 million [12] - Groupon expects a positive free cash flow of at least $41 million for 2025 [13]