Groupon's Q2 2025: Decoding Contradictions in AI Strategy, Merchant Engagement, and Customer Recovery

AI traffic growth and strategy, merchant engagement and repeat business, and reviving lost cohorts are the key contradictions discussed in Groupon's latest 2025Q2 earnings call.



Global Billings Growth and Market Performance:
- Groupon's global billings grew 12% year-over-year in Q2 2025.
- This growth was driven by strong performance in the core local category, with North America Local Billings up 20% year-over-year and International Local Billings, excluding Italy and Giftcloud, up 15% year-over-year.

AI-generated Traffic and Market Strategy:
- Groupon observed incremental traffic and business from AI-generated sources, with double-digit growth every month.
- The company sees AI traffic as a positive trend, positioning itself as a gateway for merchants to the AI economy, and is investing in its platform to be a preferred partner for AI-driven companies.

Hyperlocal Strategy and Enterprise Brand Performance:
- Groupon's hyperlocal strategy delivered strong results, with 26 brands generating over $1 million in North America quarterly billings, representing a 53% year-over-year growth.
- This growth was attributed to the exceptional performance of North America Things To Do, particularly in amusement parks, water parks, and multi-attraction tour passes.

Organizational Structure and Leadership Changes:
- Jiri Ponrt will assume the role of Chief Operating Officer, and Rana Kashyap will become the next Chief Financial Officer, effective September 1.
- These changes reflect Groupon's commitment to developing leaders from within to support its next chapter of growth.

Financial Guidance and Future Outlook:
- Groupon raised its full-year billings guidance from 3% to 5% to 7% to 9% growth, reflecting the strong momentum across its business.
- The growth is expected to be driven by multiple levers, and the company remains confident in its ability to build a hyperlocal experience marketplace that combines trust, curation, quality, and unbeatable value.