Groupon 2025 Q2 Earnings Profitable Turnaround with 318.8% Net Income Jump

Groupon (NASDAQ:GRPN) reported its fiscal 2025 Q2 earnings on August 7, 2025, delivering a surprise profit that exceeded expectations. The company posted net income of $20.59 million, a 318.8% increase from a net loss of $9.41 million in the same period a year prior. This marked a significant reversal in performance, with EPS rising to $0.51 from a loss of $0.25 in 2024 Q2. No formal guidance was provided, though management expressed optimism about sustained growth.

Revenue
Groupon generated total revenue of $125.70 million in Q2 2025, representing a modest 0.9% increase from $124.61 million in the prior-year quarter. While the overall revenue growth was relatively flat, the company noted strong performance in the North America Local segment, which saw a 20% year-over-year billings increase. The performance reflects a strategic shift toward high-value local experiences and improved marketplace velocity.

Earnings/Net Income
The company’s net income surged to $20.59 million, a dramatic improvement from a net loss of $9.41 million in the prior year. Earnings per share also turned positive at $0.51, reversing from a loss of $0.25 per share. This significant turnaround highlights the effectiveness of Groupon’s ongoing transformation and cost management efforts.

Price Action
GRPN shares gained 0.29% on the day of earnings release but posted a 3.31% decline for the week and a 16.45% drop on a monthly basis.

Post Earnings Price Action Review
A strategy of buying Groupon shares after a positive revenue quarter and holding for 30 days proved highly effective over the past three years, delivering a 134.30% return versus a 48.81% benchmark. The strategy outperformed with a CAGR of 33.90% and no recorded drawdown, indicating strong risk-adjusted returns and the ability to capitalize on earnings momentum.

CEO Commentary
Dusan Senkypl, CEO, emphasized that the company’s transformation is accelerating, particularly in the North America Local segment. He highlighted 20% billings growth and improved customer acquisition, noting that the company is becoming a trusted destination for high-value local experiences. Senkypl also pointed to strong marketplace health and platform velocity as key drivers of future growth, though he acknowledged the opportunity remains in its early stages.

Guidance
Groupon did not provide forward-looking guidance in the earnings report. The CEO’s commentary remained optimistic about continued growth but did not include specific financial targets or quantified expectations.

Additional News
Groupon shares rallied on August 8, 2025, to their highest level in four years following the unexpected profit report. The company also announced a leadership change, with Rana Kashyap set to become the new Chief Financial Officer on September 1, succeeding Jiri Ponrt. Kashyap brings extensive financial leadership experience and will oversee Groupon’s continued financial transformation. This leadership transition and the positive earnings result contributed to a strong market reaction.