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Groupon 2025 Q1 Earnings Strong Turnaround as Net Income Swings 165.7%

Daily EarningsThursday, May 8, 2025 4:14 am ET
3min read
GRPN Trend
Groupon (GRPN) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The total revenue of groupon decreased by 4.8% to $117.19 million in 2025 Q1, down from $123.08 million in 2024 Q1. Groupon's impressive performance in Q1 saw it surpass expectations, driven by a significant turnaround in net income and strong growth in North America Local Billings. The company's guidance reflects confidence in continued growth, focusing on enhancing value for consumers and merchants. This optimistic outlook, combined with strategic initiatives, positions Groupon for potential gains in the upcoming quarters.

Revenue

Earnings/Net Income
Groupon returned to profitability with EPS of $0.18 in 2025 Q1, reversing from a loss of $0.33 per share in 2024 Q1 (154.5% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $7.56 million in 2025 Q1, representing a 165.7% positive swing from the net loss of $-11.51 million in 2024 Q1. This underscores a strong recovery in financial performance.

Price Action
The stock price of Groupon has edged down 0.35% during the latest trading day, has dropped 6.75% during the most recent full trading week, and has edged down 0.06% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Groupon (GRPN) shares following a revenue increase and holding them for 30 days has historically yielded moderate returns over the past five years. This approach capitalizes on the positive market sentiment that often accompanies revenue growth, indicating potential for increased investor confidence. However, the overall performance has been mixed due to market dynamics and economic conditions. Notably, during the peak drawdown in 2020, grpn shares suffered considerable losses due to market volatility amplified by the COVID-19 pandemic's impact on consumer spending and online retail stocks. The broader economic environment also played a role, with slight quarterly GDP growth in Germany in Q1 2025 supporting GRPN's performance, while weaker-than-expected GDP growth in the Eurozone contributed to a cautious market outlook. Investors must remain aware of these risks and consider company-specific developments and broader economic indicators in their investment decisions.

CEO Commentary
"After a strong start to 2025, it is time to go on offense," said Dusan Senkypl, Chief Executive Officer of Groupon. He highlighted that North America Local Billings have accelerated to double-digit growth, indicating a positive trend in their local marketplace strategy across various geographies and verticals. Senkypl expressed confidence in building momentum and emphasized their focus on delivering sustainable growth by creating exceptional value for both consumers and merchants.

Guidance
Groupon anticipates continued acceleration in growth, driven by the positive performance in North America Local Billings and the development of their local marketplace strategy. The company aims to focus on delivering sustainable growth and enhancing value for consumers and merchants as it moves forward in 2025.

Additional News
In recent strategic moves, Groupon has announced the acquisition of Giftcloud by Recharge, marking a notable development in the B2B digital rewards market. This acquisition positions Recharge to expand its services to business clients, enhancing its corporate prepaid offering. Furthermore, Groupon experienced a significant stock price fluctuation, with a notable drop of 5.9% on May 7, 2025, highlighting market volatility. In another update, the company's insiders hold 12.34% of its outstanding shares, with institutional holders owning 84.68%, led by PALE FIRE CAPITAL SE, which holds over 10.18 million shares, reflecting strong institutional interest in Groupon's future prospects.

Ask Aime: Groupon's earnings release sparks investor curiosity about the company's future growth prospects.

Comments

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kenton143
05/08
North America Local Billings on fire! Could GRPN be a solid play for the rest of '25?
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mrkitanakahn
05/08
Groupon's Q1 earnings are a flip, going from red to black. What's next? 🚀
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MirthandMystery
05/08
Institutional holders strong, PALE FIRE CAPITAL leads
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tostitostiesto
05/08
Senkypl's offense strategy could mean big gains ahead
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S_H_R_O_O_M_S999
05/08
Groupon's turnaround is wild, EPS flipped big time
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A_Moron_In-Existence
05/08
Holding GRPN long-term, mixed past returns though
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Solidplum101
05/08
North America Local Billings 🚀 double-digit growth, bullish sign
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lem_lel
05/08
Groupon's Q1 earnings are a surprise hit, but can they keep delivering? Market's skeptical with the stock dip.
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Running4eva
05/08
Holding some GRPN shares. Strategy: buy on dips, ride the growth wave. Let's see where it goes.
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SelectHuckleberrys
05/08
Dusan Senkypl seems bullish on growth. Is GRPN a hidden gem or just a flash in the pan?
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Hemp_Hemp_Hurray
05/08
@SelectHuckleberrys Do you think GRPN can sustain this momentum?
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I_killed_the_kraken
05/08
Damn!!The GRPN stock generated the signal, from which I have benefited significantly!
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victoryatsea0008
05/08
@I_killed_the_kraken I had GRPN once, sold too early. Regretted it when it turned around. FOMO hits hard.
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HotAspect8894
05/08
@I_killed_the_kraken How long you held GRPN? Was it a quick trade or long-term?
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