Groupon (GRPN) Q3 2025 earnings summary

Executive summary

• Global billings grew 11% year-over-year to $416.1 million, with global revenue up 7% to $122.8 million and strong North America Local growth of 18%.

• Adjusted EBITDA reached $18 million, exceeding expectations and up from $14.8 million year-over-year.

• Net loss attributable to common stockholders was $118.4 million for Q3 2025, driven by a $99.9 million loss on extinguishment of debt.

• Nearly 300,000 net new active customers were added in Q3, with active customers up 4% year-over-year to 16.1 million.

• Strategic focus remains on accelerating supply and growth toward over 20% billings growth while maintaining strong profitability.

Financial highlights

• Gross profit was $111.8 million, up 9% year-over-year, with consolidated gross margin at 91%.

• Adjusted EBITDA for the quarter was $18 million, ahead of expectations.

• Marketing spend increased 14% year-over-year to $41.4 million (37% of gross profit), supporting acquisition and ROI improvements.

• Operating expenses increased 1% year-over-year to $109.6 million.

• Free cash flow for the quarter was negative $24.6 million; cash and cash equivalents at quarter-end were $238.5 million.

Outlook and guidance

• Strategic priorities include accelerating supply and growth to achieve over 20% billings growth.

• Continued investment in technology, AI, and marketing to drive customer acquisition and engagement.

• The company believes it has sufficient liquidity for the next 12 months, including repayment of the 2026 Notes.

• Brand campaign launching in two weeks, with more data expected in the next earnings call.

• Anticipates potential release of U.S. federal and state valuation allowance within the next year, which could result in a tax benefit.