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.

• Delivered second consecutive year of positive free cash flow, ending with $296M in cash and cash equivalents at year-end.

• Global active customers reached 16.2M, up 5% year-over-year; North America local active customers grew 12%.

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

• Positive operating cash flow and free cash flow for the trailing twelve months, with strong cash position at year-end.

Financial highlights

• Full year 2025 global billings increased 7% year-over-year to $1.76B; revenue was $498.4M, up 1% (0.3% FX-neutral).

• Q4 billings grew 4% year-over-year but missed guidance; Q4 revenue was $132.7M, up 2% year-over-year.

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

• Adjusted EBITDA for 2025 was $69.3M, consistent with 2024; Q4 Adjusted EBITDA was $20.9M, up from $18.7M in Q4 2024.

• SG&A in Q4 benefited from one-time items and was $65.0M, down 10% year-over-year; not expected to be a 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 due to headwinds in organic and enterprise channels; fixes underway but will take time.

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

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

• Investor event planned for H2 2026 to provide deeper strategic insight.