Groupon Reaches $25.3M Settlement with Italian Tax Authorities

In a regulatory filing, Groupon noted that an Italian subsidiary of the company, Groupon Italy, has been party to various disputed matters with the Italian tax authorities relating to tax years beginning as early as 2012. In connection with these matters, the Italian tax authorities had collectively asserted claims totaling approximately $170M, or EUR 144M, the company disclosed. "As reported in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, on August 5, 2025, Groupon Italy and the Italian tax authorities reached a non-binding agreement in principle to resolve these matters for approximately $25.3M, or EUR 21.6M, of which approximately $10.1M, or EUR 8.6M, had been previously paid by Groupon Italy through provisional installment payments. As of September 30, 2025, the Company recorded foreign income tax expense of approximately $25.3M, or EUR 21.6M, related to these assessments, with approximately $15.2M, or EUR 13.0M, reflected in accrued expenses and other current liabilities. On December 29, 2025, Groupon Italy and the Italian tax authorities entered into a binding framework agreement that definitively resolves all outstanding tax disputes involving Groupon Italy. Pursuant to the framework agreement, Groupon Italy paid approximately $25.2M, or EUR 21.5M, on or before December 31, 2025, inclusive of amounts previously paid, and will pay an additional approximately $33,000, or EUR 28,000, in the first quarter of 2026. Following these payments, the Company expects the matters covered by the Italian tax assessments to be formally closed in the first quarter of 2026, and the Company does not expect any further material obligations relating to these assessments. The Company does not expect any material changes to its accrued expenses related to these matters in the fourth quarter of 2025, and the settlement payments are expected to reduce the Company's free cash flow by approximately $15M," the filing stated.