GRPNNasdaqServices-Advertising AgenciesUS GAAP · USD

Groupon, Inc.

Groupon, Inc. operates a global two-sided marketplace that connects consumers with local merchants through its mobile apps and websites. It monetizes transactions by taking commissions on local services, goods, travel, and digital coupon purchases, with most activity concentrated in North America and International operations across 13 localized country sites.

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Revenue498m USD
+1.2 %y/y
Operating profit (EBIT)23.6m USD
+168.8 %y/y
EBIT margin4.7%
+3.0 ppy/y
Net income-83.5m USD
−41.5 %y/y
Free cash flow49.9m USD
+23.0 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-50005001,0001,500m USD2020: 1,417 m USD2020: EBIT -277 m USD20202021: 967 m USD2021: EBIT -4.7 m USD20212022: 599 m USD2022: EBIT -168 m USD20222023: 515 m USD2023: EBIT -18 m USD20232024: 493 m USD2024: EBIT 8.8 m USD20242025: 498 m USD2025: EBIT 24 m USD202549824
RevenueOperating profit (EBIT)

Business

Share of revenue
Local80 %

Local and national merchant offers for experiences, services, and local commerce.

Goods10 %

Third-party merchandise sold through Groupon's marketplace.

Travel10 %

Discounted and market-rate travel experiences, hotels, airfare, and packages.

Customers

Groupon serves consumers looking for discounted local services, experiences, and products, especially value-seeking shoppers who browse and buy through mobile devices. On the supply side, merchants use Groupon to reach new customers, fill capacity, and promote services or inventory through a performance-based channel.

Consumers

Buy local deals, goods, and travel offers because Groupon provides value and discovery.

Local merchants

Sell services and experiences through Groupon to acquire customers and drive bookings.

Goods merchants

List merchandise on the marketplace to reach deal-oriented shoppers.

Travel partners

Offer hotels, airfare, and packages to monetize excess capacity and promotions.

Strategy

Groupon's strategy is to become the trusted local experience marketplace by deepening merchant relationships, improving curation, and increasing purchase frequency. It is also investing heavily in platform modernization, AI-ready search and checkout, and internal productivity tools to improve customer experience and position the company for AI-driven discovery channels.

Merchant relationship deepeningMedium term

More and better merchant supply improves selection, relevance, and repeat demand.

Platform modernizationShort term

A more stable and agile platform supports faster innovation and better customer experience.

AI-native commerce readinessMedium term

AI agents may become a new discovery and transaction channel for local commerce.

Geography

Groupon operates primarily through localized websites in 13 countries and reports two operating segments: North America and International. The business is geographically diversified, but performance depends on local merchant supply, consumer demand, payment infrastructure, and regulatory conditions in each market.

Risks

Groupon's model depends on attracting and retaining both consumers and merchants, so demand weakness or merchant churn can quickly reduce transaction volume. The company also faces execution risk from restructuring, technology migration, cybersecurity, and international regulatory complexity, all of which can disrupt operations or damage the brand.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Strategy execution risk1Merchant and customer churn2Cybersecurity and third-party vendor risk3International regulatory and operating risk4Quarterly volatility5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Strategy execution riskImpact: HighLikelihood: High

    The company is changing its platform and product model, and benefits may not materialize as planned.

    ExposureGrowthMarginsCustomer experience
  2. Merchant and customer churnImpact: HighLikelihood: High

    The marketplace only works if both sides remain active and engaged.

    Exposure: Transaction volume and revenue

  3. Cybersecurity and third-party vendor riskImpact: HighLikelihood: Medium

    The business relies on websites, mobile apps, cloud services, and payment systems.

    ExposureService continuityData securityBrand trust
  4. International regulatory and operating riskImpact: MediumLikelihood: High

    Local commerce operations face different employment, privacy, and commercial rules by country.

    Exposure: International segment performance

  5. Quarterly volatilityImpact: MediumLikelihood: High

    Deal supply, consumer demand, and marketing efficiency can vary materially by quarter.

    Exposure: Reported revenue and profitability

Accounting

Judgemental items
Net revenue recognition

Revenue is recorded net of amounts payable to merchants, so reported sales depend on commission rates and mix.

Impact: Affects top-line comparability and margin analysis

Refund reserve and voucher redemption estimates

Management estimates future refunds and unused vouchers using historical behavior and trends.

Impact: Can materially change revenue and liabilities

Breakage income

Customer credits not expected to be used are recognized based on estimates.

Impact: Affects revenue and earnings timing

Goodwill and long-lived asset impairment

Valuation depends on discounted cash flow assumptions and business outlook.

Impact: Could trigger non-cash impairment charges

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Last updated: 24/09/2026