Groupon's Earnings Miss Estimates, Stock Drops
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 10 2026
0mins
Should l Buy GRPN?
Source: Benzinga
- Disappointing Earnings: Groupon reported quarterly earnings of 17 cents per share, falling short of the 21 cents estimate, while quarterly revenue of $132.71 million missed the consensus estimate of $137.34 million, indicating challenges in profitability.
- CEO's Positive Outlook: CEO Dusan Senkypl stated that the 2025 results mark a landmark achievement in Groupon's multi-year transformation, as it returned to growth in both billings and revenue for the first time in a decade, although still in early stages, the momentum in its core local category and improved platform velocity bolster confidence in future prospects.
- Cautious Future Guidance: Groupon expects fiscal 2026 revenue to range between $513 million and $523 million, below the analyst estimate of $556.53 million, reflecting a cautious market sentiment regarding the company's growth trajectory.
- Significant Stock Volatility: According to Benzinga Pro, Groupon's stock dropped 13.17% to $10.06 in Tuesday's extended trading, indicating a negative investor reaction to the earnings report.
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Analyst Views on GRPN
Wall Street analysts forecast GRPN stock price to rise
3 Analyst Rating
2 Buy
0 Hold
1 Sell
Moderate Buy
Current: 10.470
Low
17.00
Averages
35.33
High
47.00
Current: 10.470
Low
17.00
Averages
35.33
High
47.00
About GRPN
Groupon, Inc. is a scaled two-sided marketplace that connects consumers to merchants. The Company’s marketplace is accessible through its mobile applications and its websites, which are primarily localized groupon.com sites in 13 countries. It has two segments, North America and International, and in three categories: Local, Goods and Travel. The Local category includes services from local and national merchants, and other local and national merchants, including things to do, beauty and wellness and dining, as well as other services. The Goods category includes merchandise across multiple product lines, such as electronics, sporting goods, jewelry, toys, household items and apparel. The Travel category features travel experiences at both discounted and market rates, including hotels, airfare and package deals covering both domestic and international travel. The customer can contact the merchant directly to make a travel reservation after purchasing a travel voucher from the Company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Company Overview: Compass operates at scale in the U.S. real estate market, leveraging technology to enhance agent productivity and improve client experience, with a strategy that integrates advanced software solutions with traditional brokerage services to create a differentiated value proposition.
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- AUM Reduction: The sale reduced Compass's representation in Prentice's 13F reportable AUM from 4.26% to zero, indicating a significant decrease in the investment's importance within the fund's portfolio.
- Market Performance Insight: As of February 17, 2026, Compass shares were priced at $10.10, up 26.6% over the past year, outperforming the S&P 500 by 15.45 percentage points, suggesting ongoing competitiveness in the real estate market.
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- Strategic Transformation Plan: CEO Senkypl emphasized a shift towards an AI-native operating model as the top priority for 2026, alongside the establishment of a dedicated Artificial Intelligence Committee, which is expected to drive future business innovation and enhance market competitiveness.
- Growth Outlook Guidance: The company provided guidance for 2026, projecting 3% to 5% growth in billings and revenue, with adjusted EBITDA expected to be between $70 million and $75 million, although facing challenges from enterprise channel deceleration and marketing channel underperformance.
- Operational Efficiency Improvement: The new platform has achieved a 50% migration rate for iOS users, with full migration expected by the end of Q1, and early results indicate enhanced monetization per user, reflecting confidence in future growth.
See More
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- Revenue Miss: The company posted revenue of $132.7 million, a 1.8% year-over-year increase, but missed consensus estimates by $3.87 million, which could undermine investor confidence in the company's future growth prospects.
- Decline in Active Customers: As of December 31, 2025, Groupon had 16.2 million active customers, down 1% sequentially and 5% year-over-year, highlighting potential risks associated with customer attrition.
- Strong Cash Position: Groupon ended the quarter with $296.1 million in cash, with management emphasizing a continued focus on growth in the local experiences marketplace, a strategy that may support the company's long-term expansion efforts.
See More
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See More
