Groupon Stock Soars 13.07% on Strong Q1 Earnings

Groupon's stock surged 13.07% in pre-market trading on May 8, 2025, driven by strong first-quarter earnings and revenue performance.

Groupon reported a significant earnings surprise of 190% and a revenue surprise of 1.46% for the quarter ended March 2025. The company's revenue for the quarter was $117.19 million, a 4.8% decrease from the same period last year. However, the earnings per share (EPS) came in at $0.18, which was higher than expected.

Groupon's first-quarter earnings were $7.2 million, with a profit of 17 cents per share. The company's gross billings for the quarter reached $386.5 million, marking a 1% increase from the previous year. However, unit sales experienced a 17% sequential decline, totaling 8.5 million, which is a 6% decrease compared to the same period last year.

Groupon's active customer count stood at 15.5 million as of March 31, 2025, showing a modest sequential growth of 0.4% but a 4% decrease year-over-year. The company's CEO, Dusan Senkypl, expressed optimism about the company's trajectory, highlighting the acceleration in North America Local Billings and the positive developments in their marketplace strategy across various sectors and regions.

Groupon's adjusted EBITDA for the full year 2024 was $69 million, and the company generated $41 million in free cash flow, marking their first positive free cash flow since the pandemic. The company also saw double-digit growth in key verticals such as Things To Do, Enterprise Brands, and Gifting and Seasonal Offerings.