Groupon’s Mixed Q1 2025 Results Show Growth Potential

Groupon ( (GRPN) ) has released its Q1 earnings. Here is a breakdown of the information Groupon presented to its investors.

Groupon, Inc., a prominent player in the e-commerce sector, operates a local marketplace that connects consumers with merchants offering a variety of services and experiences. The company is known for providing value-driven deals that enhance consumer lifestyles.

In its first-quarter 2025 earnings report, Groupon revealed a mixed financial performance. While global revenue saw a decline of 5% year-over-year, gross billings experienced a modest increase of 1%. The company reported a net income of $8 million from continuing operations, marking a significant turnaround from a net loss in the same period last year.

Key financial metrics highlighted in the report include a global revenue of $117.2 million and gross billings of $386.5 million. North America showed promising growth with local billings up by 11%, despite a slight dip in revenue. Internationally, local revenue declined by 8%, primarily due to the exit from the Italian market, although excluding Italy, there was a 4% growth. The company ended the quarter with $226.8 million in cash reserves.

Groupon’s strategic focus on its local marketplace strategy appears to be gaining traction, especially in North America, where active customer numbers rose by 3% year-over-year. However, international markets faced challenges, with a 15% drop in active customers. The company continues to invest in marketing, which accounted for 32% of its gross profit, to drive future growth.

Looking ahead, Groupon’s management remains optimistic about accelerating growth, particularly in North America, by delivering exceptional value to both consumers and merchants. The company aims to leverage its local marketplace strategy to sustain growth and enhance its market position.