Groupon (GRPN) Q4 2025 earnings summary

Executive summary

• Achieved first year of billings and revenue growth in a decade, with global billings up 7% to $1.76B for 2025, marking a significant milestone in a multi-year transformation.

• Ended 2025 with 16.2 million active customers, up 5% year-over-year; North America local active customers grew 12%.

• Delivered second consecutive year of positive free cash flow, ending with $296M in cash.

• Q4 billings grew 4% YoY but missed guidance, with shortfalls concentrated in enterprise channel and owned marketing.

• Q4 net income from continuing operations was $8.1M, a turnaround from a $50.1M loss in Q4 2024.

Financial highlights

• Full year 2025 revenue was $498.4M, up 1% (0.3% FX-neutral) from 2024; Q4 revenue was $132.7M, up 2% YoY.

• Gross billings for 2025 reached $1.76B, up 7% YoY; Q4 gross billings were $446.5M, up 4%.

• Gross profit for 2025 was $452.5M, up 2%; Q4 gross profit was $120.0M, up 2%.

• Adjusted EBITDA for 2025 was $69.3M; Q4 Adjusted EBITDA was $20.9M.

• SG&A in Q4 was unusually low due to one-time benefits; not expected to be the new baseline.

Outlook and guidance

• 2026 guidance: 3%-5% billings and revenue growth, $70M-$75M adjusted EBITDA, at least $60M free cash flow.

• Growth improvement expected to be moderate; headwinds in organic and enterprise channels are being addressed but will take time.

• Long-term target remains to accelerate global billings growth to over 20%.

• Marketing spend expected to grow high single digits YoY, outpacing revenue growth.

• Management expressed confidence in continued growth, citing momentum in the core local category and improved platform velocity.