Groupon (GRPN) AI Stock Analysis

• Market Cap: $731.55M
• Dividend Yield: N/A
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: -0.76%
• EPS Growth: -635.75%
• Country: US
• Employees: 2,079
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -2.92
• Shares Outstanding: 40,754,803
• 10 Day Avg. Volume: 1,825,535
• 30 Day Avg. Volume: 1,432,693
• PEG Ratio: 0.55
• Price to Book (P/B): 11.66
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 11.73
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $34.00
• Price Target Upside: 89.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.84
• Revenue Forecast (FY): $505.96M

• Rating: 48 Neutral
• Price Target: $18.00 ▲(0.28% Upside)

Groupon's overall stock score reflects significant financial and technical challenges, with high leverage and negative profitability weighing heavily. Despite positive earnings call highlights and improved cash flow, the stock's valuation and technical indicators suggest caution. The raised billings guidance and strategic initiatives provide some optimism, but risks remain substantial.

Positive Factors

Billings Growth

The consistent increase in billings, particularly in North America, indicates strong market demand and effective strategic execution, suggesting potential for sustained revenue growth in the future.

Free Cash Flow Improvement

Improved free cash flow reflects better cash management and operational efficiency, enhancing Groupon's ability to invest in growth initiatives and strengthen its financial position.

Leadership Changes

The appointment of new leadership roles signifies a commitment to strategic renewal and could drive improved operational and financial performance, aligning with long-term growth objectives.

Negative Factors

High Leverage

The significant leverage poses financial risks, potentially limiting Groupon's flexibility to navigate market challenges and invest in growth opportunities, impacting long-term stability.

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies and could hinder Groupon's ability to sustain growth and compete effectively in the marketplace over the long term.

Revenue and Billings Discrepancy

The gap between revenue and billings growth suggests challenges in converting sales into actual revenue, which could affect future financial performance and market confidence.

Groupon Business Overview & Revenue Model

Company Description

Groupon, Inc., together with its subsidiaries, operates a marketplace that connects consumers to merchants. It operates in two segments, North America and International. The company sells goods or services on behalf of third-party merchants; and first-party goods inventory. It serves customers through its mobile applications and websites. The company was formerly known as ThePoint.com, Inc. and changed its name to Groupon, Inc. in October 2008. Groupon, Inc. was incorporated in 2008 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Groupon generates revenue primarily through the sale of vouchers for local deals, which are offered at a discount to the consumer. When a consumer purchases a Groupon voucher, Groupon retains a portion of the payment as its fee, while the remaining amount goes to the merchant. This commission-based model is a significant revenue stream for the company. Additionally, Groupon earns revenue from its marketplace services, which includes promotional marketing and advertising solutions for businesses to enhance visibility and attract customers. Partnerships with various local and national brands further contribute to its earnings by providing exclusive deals, thus driving higher traffic and sales through the platform.

Groupon Financial Statement Overview

Summary

Groupon's financial performance is mixed. The income statement shows strong gross profit margins but negative net profit margins, indicating profitability challenges. The balance sheet reveals high leverage and negative returns on equity, posing financial risks. Cash flow has improved, with positive free cash flow growth, but reliance on cash flow over profitability remains a concern.

Income Statement

Groupon's income statement shows a mixed performance. The TTM gross profit margin is strong at 90.58%, indicating efficient cost management. However, the net profit margin is negative, reflecting ongoing profitability challenges. Revenue growth has been volatile, with a recent positive uptick of 22.3% in the TTM, but previous periods showed declines. EBIT and EBITDA margins have improved in the TTM, but historical figures were negative, highlighting past operational inefficiencies.

Balance Sheet

The balance sheet reveals significant leverage, with a high debt-to-equity ratio of 4.98 in the TTM, suggesting financial risk. Return on equity is negative, indicating that the company is not generating returns for shareholders. The equity ratio is low, reflecting limited equity financing and potential solvency concerns.

Cash Flow

Cash flow analysis shows improvement, with a 28.96% growth in free cash flow in the TTM, indicating better cash management. The operating cash flow to net income ratio is positive, suggesting that cash flow generation is stronger than accounting profits. However, the free cash flow to net income ratio is high, indicating reliance on cash flow rather than profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	496.09M	492.56M	514.91M	599.09M	967.11M	1.42B
Gross Profit	450.75M	444.31M	450.66M	522.82M	737.12M	677.29M
EBITDA	28.13M	9.04M	23.51M	-114.93M	178.05M	-173.35M
Net Income	-141.51M	-59.03M	-55.41M	-237.61M	118.67M	-287.93M
Balance Sheet
Total Assets	608.18M	612.69M	570.96M	793.12M	1.16B	1.41B
Cash, Cash Equivalents and Short-Term Investments	238.45M	228.84M	141.56M	281.28M	498.73M	850.59M
Total Debt	347.50M	252.93M	278.75M	346.76M	414.21M	558.17M
Total Liabilities	667.56M	571.64M	611.27M	784.26M	947.59M	1.30B
Stockholders Equity	-59.55M	40.81M	-40.63M	8.47M	209.87M	107.67M
Cash Flow
Free Cash Flow	84.65M	40.56M	-97.27M	-174.83M	-176.72M	-116.55M
Operating Cash Flow	95.36M	55.89M	-77.98M	-135.99M	-123.96M	-63.60M
Investing Cash Flow	258.00K	-6.81M	-1.40M	-38.84M	-45.81M	-20.12M
Financing Cash Flow	8.45M	47.79M	-35.69M	-34.41M	-183.85M	176.80M

Groupon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRPN, the sentiment is Negative. The current price of 17.95 is below the 20-day moving average (MA) of 20.48, below the 50-day MA of 21.92, and below the 200-day MA of 23.04, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 36.51 is Neutral, neither overbought nor oversold. The STOCH value of 26.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRPN.

Groupon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBLA	71 Outperform	$1.11B	52.13	2.63%	―	10.96%	―
YELP	70 Outperform	$2.03B	12.77	20.37%	―	5.35%	33.74%
FVRR	63 Neutral	$770.10M	35.64	6.18%	―	12.68%	133.00%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MAX	59 Neutral	$828.33M	―	―	―	64.86%	-112.92%
NXDR	51 Neutral	$698.11M	―	-14.07%	―	6.65%	50.32%
GRPN	48 Neutral	$731.55M	―	―	―	-0.76%	-635.75%

Groupon Corporate Events

Groupon Reports Strong Q3 2025 Revenue Growth

Groupon, Inc., a leading online marketplace for local services and experiences, has reported its financial results for the third quarter of 2025, showcasing growth in global revenue and billings. The company, known for offering unbeatable value in local experiences, operates primarily in the e-commerce sector.

Groupon’s Earnings Call: Growth and Strategic Moves

Groupon’s recent earnings call painted a picture of optimism, underscored by strong growth in global billings and positive free cash flow. The company is making strategic advancements in AI and refinancing, although challenges persist with the Italy tax settlement and a discrepancy between revenue and billings growth. Overall, the focus on growth initiatives and financial health suggests a positive outlook for the future.

Groupon’s Q2 2025: Revenue Growth and Strategic Moves

Groupon, Inc. is a global e-commerce marketplace that connects consumers with local merchants by offering discounted deals on a variety of services and experiences, primarily operating in the local commerce sector. Known for its unique approach to local deals, Groupon aims to provide unbeatable value to its customers.