Groupon 2025 Q3 Earnings Sharp Loss Despite 7.3% Revenue Growth

Groupon reported fiscal 2025 Q3 earnings on November 7, 2025, with revenue rising 7.3% to $122.83 million year-over-year. However, the company swung to a $2.92 per-share loss, marking a 934.3% decline from the prior year. Shares fell 18.85% month-to-date despite beating revenue estimates by 0.77%. Management emphasized progress in marketplace transformation but provided no quantitative guidance for future periods.

Revenue

North America drove growth, with local revenue surging 12.4% to $91.56 million, while international local revenue declined 1.2% to $23.18 million. North America’s total revenue hit $96.01 million (+10.5% YoY), outpacing international revenue ($26.82 million, -2.8% YoY). Travel segments saw mixed results: North America travel revenue rose 10.4% to $3.22 million, while international travel grew 5.6% to $1.46 million. Goods segments faced challenges, with North America goods revenue down 50.9% to $1.22 million and international goods declining 20.5% to $2.18 million.

Earnings/Net Income

Groupon’s net loss of $117.78 million reflected a 911.1% deterioration from the $14.52 million profit in 2024 Q3. The $2.92 per-share loss, compared to $0.35 in the prior year, highlights a dramatic shift in profitability despite revenue growth. The sharp decline underscores operational challenges, including legal disputes and tax liabilities.

Price Action

Groupon’s stock edged up 1.07% on the latest trading day but plummeted 18.85% month-to-date, contrasting with the S&P 500’s 1.3% gain. The stock closed the quarter down 19.1%, reflecting investor skepticism over earnings performance and guidance uncertainty.

Post-Earnings Price Action Review

The stock’s post-earnings trajectory remains uncertain, as the sharp loss and mixed guidance failed to inspire confidence. While revenue growth exceeded estimates, the net loss and guidance omission weighed heavily on sentiment. Analysts’ “Hold” rating suggests alignment with broader market trends, though recent price volatility—dropping 10.83% in the prior week—indicates ongoing uncertainty. The lack of concrete guidance and unresolved legal issues in Portugal and Italy further complicate near-term outlooks.

CEO Commentary

CEO Dusan Senkypl highlighted 11% global billings growth and 18% core local category expansion, crediting momentum in customer acquisition and platform modernization. The addition of 300,000 net new active customers and outperformance in the “Things To Do” vertical during summer were cited as key strengths. Senkypl emphasized Groupon’s ambition to become a “trusted destination for high-quality local experiences” but acknowledged the need for sustained operational execution.

Guidance

The company provided no explicit forward-looking financial targets, redirecting stakeholders to its investor relations site. While qualitative optimism around customer growth and platform improvements was expressed, the absence of numerical guidance left investors without clear metrics to assess future performance.

Additional News

Recent developments include legal disputes in Portugal and Italy, where Groupon faces tax liabilities. A preliminary agreement with the Italian Tax Authority could reduce its obligations, offering some relief. Meanwhile, the company’s focus on hyperlocal and AI-driven strategies has drawn attention, though execution risks remain. No dividend or buyback announcements were made, and C-suite stability persists with Senkypl’s continued leadership.