Groupon's fourth-quarter performance falls short of expectations, stock plunges 11%

LootboxPhobia · 2026-03-10T21:03:32+00:00

Groupon Inc. did not meet expectations in the fourth quarter, with an adjusted earnings per share of $0.17 and revenue of $132.7 million, both below analyst expectations. The stock price dropped 11.5%. Nevertheless, full-year performance saw a slight increase, and the CEO called it a milestone in the transformation.

LootboxPhobia

2026-03-10 21:03:32

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Chicago - Groupon Inc. (NASDAQ: GRPN) announced its fourth-quarter results, which fell short of analyst expectations, with both profits and revenue below forecasts. The company is still undergoing a multi-year transformation.

The company’s adjusted earnings per share for the quarter were $0.17, below the consensus estimate of $0.21. Revenue was $132.7 million, compared to the expected $137.34 million, representing a 2% increase from the same period last year. Revenue from core local business reached $124.5 million, a 4% year-over-year increase.

Following the announcement, the stock price dropped 11.5%.

Total gross billings for the quarter were $446.5 million, up 4% year-over-year. As of December 31, 2025, active customers reached 16.2 million, a 5% increase from the previous year. The company reported net income from continuing operations of $8.1 million, compared to a net loss of $50.1 million in Q4 2024. Adjusted EBITDA was $20.9 million, up from $18.7 million in the same period last year.

Groupon CEO Dusan Senkypl stated, “Our 2025 performance marks a milestone in Groupon’s multi-year transformation, achieving both billings and revenue growth for the first time in ten years.”

For the full year 2025, revenue was $498.4 million, a 1% increase from $492.6 million in 2024. Total gross billings grew 7% to $1.7 billion. The company’s operating cash flow from continuing operations for the year was $64.5 million, with free cash flow of $49.9 million.

North American local revenue grew 4% in Q4, with North American local billings increasing 9%. At the end of the quarter, the company’s cash and cash equivalents totaled $296.1 million.

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