Groupon (GRPN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this online daily deal service have returned -22.3% over the past month versus the Zacks S&P 500 composite's -1.2% change. The Zacks Internet - Commerce industry, to which Groupon belongs, has lost 3.1% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Groupon is expected to post a loss of $0.01 per share, indicating a change of +99.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of -$0.14 for the current fiscal year indicates a year-over-year change of +93.2%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.95 indicates a change of +776.2% from what Groupon is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Groupon is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Groupon, the consensus sales estimate for the current quarter of $129.41 million indicates a year-over-year change of +5.4%. For the current and next fiscal years, $517.75 million and $565.05 million estimates indicate +3.9% and +9.1% changes, respectively.
Last Reported Results and Surprise HistoryGroupon reported revenues of $124.68 million in the last reported quarter, representing a year-over-year change of -0.8%. EPS of -$0.04 for the same period compares with $0.46 a year ago.
Compared to the Zacks Consensus Estimate of $127.42 million, the reported revenues represent a surprise of -2.15%. The EPS surprise was +50%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Groupon is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Groupon. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
In the latest trading session, Groupon (GRPN - Free Report) closed at $16.28, marking a -2.98% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 1.05%.
Coming into today, shares of the online daily deal service had lost 21.15% in the past month. In that same time, the Retail-Wholesale sector gained 4.75%, while the S&P 500 gained 0.97%.
The upcoming earnings release of Groupon will be of great interest to investors. On that day, Groupon is projected to report earnings of -$0.01 per share, which would represent year-over-year growth of 99.66%. In the meantime, our current consensus estimate forecasts the revenue to be $129.41 million, indicating a 5.37% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.14 per share and a revenue of $517.75 million, representing changes of +93.2% and +3.88%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Groupon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Groupon is holding a Zacks Rank of #2 (Buy) right now.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 35% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
In the latest trading session, Groupon (GRPN - Free Report) closed at $16.87, marking a +1.81% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.41%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 1.11%.
Coming into today, shares of the online daily deal service had lost 13.16% in the past month. In that same time, the Retail-Wholesale sector gained 3.83%, while the S&P 500 gained 1.46%.
Analysts and investors alike will be keeping a close eye on the performance of Groupon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.01, marking a 99.66% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $129.41 million, indicating a 5.37% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of -$0.14 per share and a revenue of $517.75 million, demonstrating changes of +93.2% and +3.88%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Groupon. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Groupon is carrying a Zacks Rank of #2 (Buy).
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 179, placing it within the bottom 28% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Chicago, Illinois--(Newsfile Corp. - October 15, 2026) - Groupon, Inc. (NASDAQ: GRPN) today announced the relaunch of LivingSocial, an agent-first experience marketplace built for agents by agents and open to them by design. LivingSocial's mission is to get people offline, and its public preview is live at https://agent.livingsocial.com/ with more than 50,000 local experiences across the United States.
Nearly two decades ago, Groupon was founded to help experience operators reach customers as eyeballs moved from print and radio to the internet. Today, Groupon believes we are at a similar turning point, as agentic commerce rewires the internet around personal AI agents that act on people's behalf and make buying more convenient.
"We believe agents will become the dominant pathway by which people discover, compare and buy local experiences," said Dusan Senkypl, Chief Executive Officer of Groupon. "Experience operators need to be found all over again as people hand more of their planning to agents. We are building LivingSocial to connect the agent economy with experience operators, starting with those who already sell through Groupon."
Building for Experience Operators
Experience operators, from local activities, tours and attractions to spas, salons, and home and auto services, should be able to focus on what they do best, the in-person experience. Groupon's number one priority this year has been Project Foundry, its effort to become an AI-native company and close the diffusion gap between what AI can do and how it is deployed in everyday business. With LivingSocial, Groupon is turning that effort outward to help experience operators navigate a fast-changing AI landscape and be ready when their next customer arrives through an agent.
Selected quotes from LivingSocial launch partners
"Edge Immersive Observation Deck has had a great experience working with Groupon to welcome guests from around the world 100 stories above NYC. We are excited to extend our partnership through LivingSocial and extend our reach through their fantastic agent network." - Haley Ward, Vice President of Sales, Hudson Yards Experiences (Edge Immersive Observation Deck)
"Go City and Groupon share a vision for the future of how people discover and book experiences. We're excited to be a launch partner for the new LivingSocial and to help shape a more intelligent, AI-powered way for travelers to discover the best things to do. This is an exciting opportunity to connect more customers with Go City experiences while building on our longstanding partnership with Groupon." - Judy Gauthier, Chief Commercial Officer, Go City
"It's more important than ever tour operators and attractions understand how to position ourselves and our distribution strategies for the AI transformation. I am very impressed by Groupon's LivingSocial initiative in particular. They clearly understand the fundamental differences in a marketplace built for human search and comparison, and what a platform built for agents acting for humans needs. We are still in the very early days of how AI will transform travel discovery and booking behavior so it is critical the big industry players are testing, learning and adapting as quickly as possible. Thankful for Groupon in getting ahead of the curve." - Alexi Tabrizi, Executive Vice President, Distribution & Revenue Growth, Big Bus Tours
Built Agent-First
In an agent-first marketplace, the agent is the customer, helping its owner and their family plan how they spend time offline. Just as every business today needs a website, every experience operator will need to work well with agents, which means being:
Discoverable, so agents can find the operator and its offersClear, so agents understand exactly what an offer includes and what is still unknownBookable, so agents can act on the person's choiceTrusted, so the price and terms hold through checkoutSupported, so help is there after the purchaseThe public preview is our first step toward building this agent-first experience. It starts with existing eligible Groupon offers from independent operators and larger brands, with nothing new for operators to build and no change to how they work with Groupon.
An agent opens a shopping session in one call, without an account or API key, then searches and compares offers, prepares a cart and shares a link. The person reviews the total and pays on a trusted checkout. Once payment is confirmed and redemption codes are issued, the agent can retrieve them for the person, and Groupon's customer support and refund policy apply.
Anyone can try LivingSocial's agent-first experience by pointing their AI agent of choice to agent.livingsocial.com. A purchase does not reserve a date or time today; time-slot offers are coming soon, and agent payment and direct business listings are planned.
For the latest on what LivingSocial is shipping, visit https://agent.livingsocial.com/status or follow @LivingSocial on X (https://x.com/LivingSocial).
About Groupon
Groupon (NASDAQ: GRPN) (www.groupon.com) is an experience marketplace whose mission is to get people offline through quality local experiences at great value. To find out more about Groupon, please visit press.groupon.com.
About LivingSocial
LivingSocial is Groupon's agent-first experience marketplace and its lab for agentic commerce. It makes experience operators' offers easy for personal AI agents to find, understand and recommend, and is in public preview at https://agent.livingsocial.com/.
Note on Forward-Looking Statements
The statements contained in this release that refer to plans and expectations for the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “may,” “will,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “continue” and other similar expressions are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including the risk that LivingSocial, which is in public preview, does not operate or develop as described, is modified or is discontinued; the risk that offer availability, shopping sessions, the checkout handoff, redemption codes, bookable offers with time slots marked coming soon, planned agent payment, planned direct business listings, or partner participation develop differently than expected; the risk that third-party AI platforms limit or change how their agents connect to outside services; the risk that adoption by agents, agent platforms, consumers or experience operators differs from expectations; and the risk that our public statements regarding our AI strategy and deployment of AI agents are not adequately substantiated or are later viewed as inconsistent with our actual capabilities or results. Such risks and uncertainties include those discussed in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025 and Part II, Item 1A. Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to future events or circumstances. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/319161
Source: Groupon
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Key Takeaways Amazon benefits from international expansion, AWS growth and rising advertising revenues.Wayfair gains home furnishings market share buoyed by AI, loyalty programs and logistics investments.
Groupon's marketplace recovery, platform upgrades and restructuring savings support its outlook.
The U.S. holiday shopping season is set to begin within the next two to three weeks. This year holiday sales are expected to be very strong. To tap this opportunity, we recommend three online retail stocks with a favorable Zacks Rank.
These are: Amazon.com Inc. (AMZN - Free Report) , Wayfair Inc. (W - Free Report) and Groupon Inc. (GRPN - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Solid Holiday Sales ForecastThe Mastercard Economics Institute/SpendingPulse insights projected U.S. retail sales (excluding automobiles and gas) between Nov. 1 and Dec. 24 to grow 5.5% year over year. This marked the highest growth since 2021. Online sales and in-store sales are forecast to increase 11% and 3.6%, respectively, year over year.
Deloitte estimated holiday retail sales between $1.7-1.71 trillion during the November 2026 through January 2027 period. This marks 4-4.8% year-over-year Increase. Online sales during this period are projected in the range of $316.1-318.9 billion, reflecting an increase of 7.5-8.4% year over year.
Ernst & Young-Parthenon said that U.S. retail sales for the November–December 2026 holiday season are estimated to increase 5.2% year over year, its highest growth since 2021. Sales, excluding autos, gas and restaurant services, are expected to reach $1.08 trillion, up from $1.03 trillion in 2025.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Amazon.com Inc.Amazon.com’s continued international expansion strengthens its long-term growth profile as it deepens its footprint in high-potential overseas markets. AMZN keeps investing in cross-border logistics, faster delivery networks and localized marketplace features across Europe, Asia and Latin America, positioning it to capture rising e-commerce adoption where digital retail penetration remains comparatively low.
AMZN’s diversification across multiple high-growth business lines creates a resilient revenue base that lowers concentration risk while widening the path to profitability. Beyond core retail, cloud computing remains a primary earnings engine, with AWS segment sales increasing 37% year over year to $42.2 billion in the second quarter of 2026.
Advertising also keeps expanding briskly as brands direct more spend toward AMZN’s shopper data and purchase-intent signals, with advertising revenue up 26% year over year to $19.8 billion. AI integration across AMZN’s operations stands out as a durable catalyst for both efficiency gains and new revenue streams across the business.
Solid Estimate RevisionsFor 2026, the Zacks Consensus Estimate currently shows revenues of $829.29 billion, suggesting an improvement of 15.7% year over year and earnings per share of $13.02, indicating an increase of 81.6% year over year. The Zacks Consensus Estimate for the current year has improved 0.1% in the last seven days.
For 2027, the Zacks Consensus Estimate currently shows revenues of $949.8 billion, suggesting an improvement of 14.5% year over year and earnings per share of $10.58, indicating a decrease of 18.7% year over year. The Zacks Consensus Estimate for the current year has improved 0.1% in the last seven days.
Wayfair Inc.Wayfair continues to outpace the broader home furnishings market through sustained market share gains, supported by its broad product assortment, expanding logistics capabilities and initiatives such as loyalty, verified products, physical retail and specialty brands.
W continues to leverage AI, mobile engagement and loyalty programs to improve merchandising, personalization and marketing efficiency. Mobile represented 64.1% of second-quarter orders, while revenue per active customer increased 4.2% year over year.
W is expanding proprietary AI across product imagery, merchandising, search and design tools while broadening loyalty offerings, including a dedicated Perigold loyalty program. These investments are intended to strengthen W’s customer engagement, improve conversion and lower customer acquisition costs, supporting sustainable market share gains and profitability over the long term.
Solid Estimate RevisionsFor 2026, the Zacks Consensus Estimate currently shows revenues of $13.37 billion, suggesting an improvement of 7.3% year over year and earnings per share of $2.99, indicating an increase of 15% year over year. The Zacks Consensus Estimate for the current year has improved 1.4% in the last 60 days.
For 2027, the Zacks Consensus Estimate currently shows revenues of $14.26 billion, suggesting an improvement of 6.7% year over year and earnings per share of $4.1, indicating an increase of 37% year over year. The Zacks Consensus Estimate for the current year has improved 1.2% in the last 60 days.
Groupon Inc.Groupon’s hyperlocal marketplace offers a path to greater local supply density, but second-quarter 2026 results show that recovery remains dependent on execution. Things to Do and International Local are supporting a higher-value mix, while GRPN’s active customers increased even as unit sales declined, making purchase frequency a key test of marketplace health over time.
GRPN’s Project Foundry is advancing platform migration, personalization, organic reach and operating efficiency, and management maintained its 2026 outlook. Positive free cash flow in the second quarter and planned restructuring savings provide support.
Solid Estimate RevisionsFor 2026, the Zacks Consensus Estimate currently shows revenues of $517.75 million, suggesting an improvement of 3.9% year over year and earnings per share of -$0.14, indicating an increase of 93.2% year over year. The Zacks Consensus Estimate for the current year has improved 26.3% in the last 60 days.
For 2027, the Zacks Consensus Estimate currently shows revenues of $565.05 million, suggesting an improvement of 9.1% year over year and earnings per share of $0.95, indicating an increase of 776.2% year over year. The Zacks Consensus Estimate for the current year has improved 10.5% in the last 60 days.
In the latest close session, Groupon (GRPN - Free Report) was down 1.34% at $18.38. The stock trailed the S&P 500, which registered a daily loss of 0.06%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq depreciated by 0.44%.
Prior to today's trading, shares of the online daily deal service had lost 0.53% lagged the Retail-Wholesale sector's gain of 1.66% and the S&P 500's gain of 2.36%.
The investment community will be paying close attention to the earnings performance of Groupon in its upcoming release. The company's earnings per share (EPS) are projected to be -$0.01, reflecting a 99.66% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $129.41 million, up 5.37% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.14 per share and revenue of $517.75 million, indicating changes of +93.2% and +3.88%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Groupon should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Groupon presently features a Zacks Rank of #2 (Buy).
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 101, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Groupon (GRPN - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this online daily deal service have returned -0.5% over the past month versus the Zacks S&P 500 composite's +2.4% change. The Zacks Internet - Commerce industry, to which Groupon belongs, has gained 2.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Groupon is expected to post a loss of $0.01 per share, indicating a change of +99.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of -$0.14 for the current fiscal year indicates a year-over-year change of +93.2%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.95 indicates a change of +776.2% from what Groupon is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Groupon is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Groupon, the consensus sales estimate for the current quarter of $129.41 million indicates a year-over-year change of +5.4%. For the current and next fiscal years, $517.75 million and $565.05 million estimates indicate +3.9% and +9.1% changes, respectively.
Last Reported Results and Surprise HistoryGroupon reported revenues of $124.68 million in the last reported quarter, representing a year-over-year change of -0.8%. EPS of -$0.04 for the same period compares with $0.46 a year ago.
Compared to the Zacks Consensus Estimate of $127.42 million, the reported revenues represent a surprise of -2.15%. The EPS surprise was +50%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Groupon is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Groupon. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Groupon (GRPN - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
Groupon is one of 183 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Groupon is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for GRPN's full-year earnings has moved 10.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, GRPN has gained about 5.8% so far this year. In comparison, Retail-Wholesale companies have returned an average of -0.3%. As we can see, Groupon is performing better than its sector in the calendar year.
Another stock in the Retail-Wholesale sector, Target (TGT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 57.2%.
In Target's case, the consensus EPS estimate for the current year increased 6.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Groupon belongs to the Internet - Commerce industry, a group that includes 31 individual stocks and currently sits at #101 in the Zacks Industry Rank. On average, this group has gained an average of 3.6% so far this year, meaning that GRPN is performing better in terms of year-to-date returns.
Target, however, belongs to the Retail - Discount Stores industry. Currently, this 7-stock industry is ranked #16. The industry has moved +8.5% so far this year.
Groupon and Target could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.
Groupon, Inc. (NASDAQ:GRPN – Get Free Report) shares passed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $19.07 and traded as high as $19.83. Groupon shares last traded at $19.71, with a volume of 667,745 shares changing hands.
Wall Street Analysts Forecast Growth A number of equities research analysts have weighed in on GRPN shares. The Goldman Sachs Group restated a “sell” rating and issued a $22.00 target price on shares of Groupon in a research report on Monday, August 10th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Groupon in a research report on Friday, September 4th. Northland Securities set a $30.00 price objective on Groupon in a research note on Monday, August 17th. Wall Street Zen upgraded Groupon from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Finally, Citigroup reaffirmed an “outperform” rating on shares of Groupon in a research note on Tuesday, June 9th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Groupon currently has an average rating of “Reduce” and an average price target of $26.00.
Check Out Our Latest Analysis on Groupon
Groupon Stock Performance The company’s 50 day moving average is $21.14 and its 200 day moving average is $19.07. The stock has a market capitalization of $801.61 million, a price-to-earnings ratio of -6.34 and a beta of 0.20. Groupon (NASDAQ:GRPN – Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The coupon company reported ($0.04) earnings per share for the quarter, topping the consensus estimate of ($0.06) by $0.02. The firm had revenue of $124.67 million for the quarter, compared to analyst estimates of $127.09 million. On average, equities research analysts anticipate that Groupon, Inc. will post -0.14 earnings per share for the current fiscal year.
Institutional Investors Weigh In On Groupon Hedge funds have recently bought and sold shares of the company. Versant Capital Management Inc boosted its stake in shares of Groupon by 92.7% during the 2nd quarter. Versant Capital Management Inc now owns 1,299 shares of the coupon company’s stock worth $31,000 after acquiring an additional 625 shares during the period. Caitong International Asset Management Co. Ltd raised its stake in Groupon by 135.9% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,185 shares of the coupon company’s stock valued at $56,000 after acquiring an additional 1,835 shares during the period. Royal Bank of Canada raised its stake in Groupon by 10.6% in the 1st quarter. Royal Bank of Canada now owns 7,618 shares of the coupon company’s stock valued at $90,000 after acquiring an additional 731 shares during the period. Hennion & Walsh Asset Management Inc. raised its stake in Groupon by 13.4% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 13,129 shares of the coupon company’s stock valued at $316,000 after acquiring an additional 1,553 shares during the period. Finally, Headlands Technologies LLC lifted its holdings in Groupon by 10.1% during the 2nd quarter. Headlands Technologies LLC now owns 15,054 shares of the coupon company’s stock valued at $362,000 after purchasing an additional 1,382 shares during the last quarter. 90.05% of the stock is currently owned by institutional investors and hedge funds.
Groupon Company Profile (Get Free Report)
Groupon, Inc operates a global e-commerce marketplace that connects consumers with local businesses and merchants. Through its website and mobile applications, the company offers discounts and promotions on experiences, dining, beauty and wellness, entertainment, travel, and other products and services.
Groupon’s platform enables merchants to reach new customers, promote their offerings, and manage digital marketing campaigns. Consumers can search for deals by location, category, and activity, while participating businesses use Groupon’s marketplace and promotional tools to support customer acquisition.
Founded in 2008, Groupon initially became known for its “daily deals” model and subsequently expanded into a broader local commerce marketplace.
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Groupon (GRPN - Free Report) closed the most recent trading day at $19.71, moving +2.07% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.66%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 1.05%.
The online daily deal service's stock has climbed by 2.33% in the past month, exceeding the Retail-Wholesale sector's loss of 4.61% and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of Groupon in its forthcoming earnings report. The company is forecasted to report an EPS of -$0.01, showcasing a 99.66% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $129.41 million, indicating a 5.37% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.14 per share and revenue of $517.75 million, which would represent changes of +93.2% and +3.88%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Groupon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Groupon boasts a Zacks Rank of #3 (Hold).
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 200, this industry ranks in the bottom 19% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Groupon, Inc. (NASDAQ:GRPN – Get Free Report)’s share price traded down 6.9% on Monday. The stock traded as low as $20.19 and last traded at $19.8210. Approximately 271,686 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 1,548,750 shares. The stock had previously closed at $21.30.
Wall Street Analysts Forecast Growth Several equities research analysts have recently issued reports on the stock. The Goldman Sachs Group reissued a “sell” rating and set a $22.00 price objective on shares of Groupon in a research report on Monday, August 10th. Wall Street Zen raised shares of Groupon from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Northland Securities set a $30.00 target price on shares of Groupon in a research note on Monday, August 17th. Citigroup reiterated an “outperform” rating on shares of Groupon in a report on Tuesday, June 9th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Groupon in a research note on Friday, September 4th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average target price of $26.00.
Read Our Latest Research Report on GRPN
Groupon Stock Up 1.3% The company has a market capitalization of $812.99 million, a price-to-earnings ratio of -6.43 and a beta of 0.24. The stock’s fifty day moving average price is $21.71 and its 200-day moving average price is $18.81. Groupon (NASDAQ:GRPN – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The coupon company reported ($0.04) EPS for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.02. The business had revenue of $124.67 million during the quarter, compared to the consensus estimate of $127.09 million. Analysts anticipate that Groupon, Inc. will post -0.14 EPS for the current year.
Hedge Funds Weigh In On Groupon Several hedge funds have recently modified their holdings of GRPN. Bank of America Corp DE raised its position in Groupon by 64.2% during the first quarter. Bank of America Corp DE now owns 636,480 shares of the coupon company’s stock worth $7,574,000 after acquiring an additional 248,928 shares in the last quarter. Renaissance Technologies LLC increased its stake in shares of Groupon by 464.1% during the 1st quarter. Renaissance Technologies LLC now owns 619,413 shares of the coupon company’s stock worth $7,371,000 after purchasing an additional 509,600 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Groupon by 28.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 580,873 shares of the coupon company’s stock valued at $6,910,000 after purchasing an additional 128,097 shares during the period. SG Americas Securities LLC raised its holdings in shares of Groupon by 37.0% in the 1st quarter. SG Americas Securities LLC now owns 270,682 shares of the coupon company’s stock valued at $3,221,000 after purchasing an additional 73,136 shares during the period. Finally, Pacer Advisors Inc. acquired a new stake in Groupon in the 1st quarter valued at about $2,416,000. Institutional investors own 90.05% of the company’s stock.
Groupon Company Profile (Get Free Report)
Groupon, Inc (NASDAQ: GRPN) operates a digital marketplace that connects consumers with local merchants and service providers. Through its website and mobile applications, the company offers discounted deals and promotions for restaurants, entertainment, travel, beauty and wellness, automotive services, home services, and other local experiences.
Groupon’s platform is designed to help merchants attract new customers, promote available services and manage marketing offers, while giving consumers access to discounts and curated experiences in their communities.
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Groupon (GRPN - Free Report) closed at $19.98 in the latest trading session, marking a +1.19% move from the prior day. This change outpaced the S&P 500's 0.17% loss on the day. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.09%.
The stock of online daily deal service has risen by 2.92% in the past month, leading the Retail-Wholesale sector's loss of 6.36% and the S&P 500's loss of 0.24%.
Market participants will be closely following the financial results of Groupon in its upcoming release. It is anticipated that the company will report an EPS of -$0.01, marking a 99.66% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $129.41 million, up 5.37% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.14 per share and a revenue of $517.75 million, signifying shifts of +93.2% and +3.88%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Groupon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Groupon is carrying a Zacks Rank of #3 (Hold).
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 189, this industry ranks in the bottom 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Groupon (GRPN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this online daily deal service have returned +2.9% over the past month versus the Zacks S&P 500 composite's +1% change. The Zacks Internet - Commerce industry, to which Groupon belongs, has lost 8.6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Groupon is expected to post a loss of $0.01 per share, indicating a change of +99.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of -$0.14 for the current fiscal year indicates a year-over-year change of +93.2%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.95 indicates a change of +776.2% from what Groupon is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Groupon is rated Zacks Rank #3 (Hold).
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Groupon, the consensus sales estimate for the current quarter of $129.41 million indicates a year-over-year change of +5.4%. For the current and next fiscal years, $517.75 million and $565.05 million estimates indicate +3.9% and +9.1% changes, respectively.
Last Reported Results and Surprise HistoryGroupon reported revenues of $124.68 million in the last reported quarter, representing a year-over-year change of -0.8%. EPS of -$0.04 for the same period compares with $0.46 a year ago.
Compared to the Zacks Consensus Estimate of $127.42 million, the reported revenues represent a surprise of -2.15%. The EPS surprise was +50%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Groupon is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Groupon. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Engineers Gate Manager LP reduced its position in Groupon, Inc. (NASDAQ:GRPN – Free Report) by 92.1% in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 19,406 shares of the coupon company’s stock after selling 226,886 shares during the quarter. Engineers Gate Manager LP’s holdings in Groupon were worth $467,000 at the end of the most recent quarter.
Other hedge funds have also added to or reduced their stakes in the company. Versant Capital Management Inc lifted its holdings in Groupon by 92.7% in the second quarter. Versant Capital Management Inc now owns 1,299 shares of the coupon company’s stock valued at $31,000 after acquiring an additional 625 shares during the period. Royal Bank of Canada grew its position in shares of Groupon by 10.6% in the first quarter. Royal Bank of Canada now owns 7,618 shares of the coupon company’s stock valued at $90,000 after purchasing an additional 731 shares in the last quarter. Headlands Technologies LLC increased its position in Groupon by 10.1% during the second quarter. Headlands Technologies LLC now owns 15,054 shares of the coupon company’s stock worth $362,000 after purchasing an additional 1,382 shares during the last quarter. Hennion & Walsh Asset Management Inc. grew its holdings in shares of Groupon by 13.4% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 13,129 shares of the coupon company’s stock worth $316,000 after purchasing an additional 1,553 shares during the period. Finally, Caitong International Asset Management Co. Ltd raised its position in Groupon by 135.9% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,185 shares of the coupon company’s stock valued at $56,000 after purchasing an additional 1,835 shares during the period. 90.05% of the stock is owned by institutional investors.
Groupon Stock Performance GRPN stock opened at $20.04 on Thursday. The stock has a market cap of $815.03 million, a P/E ratio of -6.44 and a beta of 0.24. The firm has a 50 day simple moving average of $22.28 and a 200 day simple moving average of $18.56. Groupon, Inc. has a 52 week low of $9.17 and a 52 week high of $29.90.
Groupon (NASDAQ:GRPN – Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The coupon company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.02. The company had revenue of $124.67 million during the quarter, compared to analyst estimates of $127.09 million. Sell-side analysts predict that Groupon, Inc. will post -0.14 EPS for the current year. Wall Street Analysts Forecast Growth Several equities research analysts recently commented on GRPN shares. Wall Street Zen upgraded shares of Groupon from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Groupon in a research report on Friday, September 4th. Citigroup reiterated an “outperform” rating on shares of Groupon in a research note on Tuesday, June 9th. The Goldman Sachs Group restated a “sell” rating and issued a $22.00 price target on shares of Groupon in a research report on Monday, August 10th. Finally, Northland Securities set a $30.00 price objective on Groupon in a research report on Monday, August 17th. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus price target of $26.00.
Read Our Latest Stock Report on GRPN
About Groupon (Free Report)
Groupon, Inc (NASDAQ: GRPN) operates a digital marketplace that connects consumers with local merchants and service providers. Through its website and mobile applications, the company offers discounted deals and promotions for restaurants, entertainment, travel, beauty and wellness, automotive services, home services, and other local experiences.
Groupon’s platform is designed to help merchants attract new customers, promote available services and manage marketing offers, while giving consumers access to discounts and curated experiences in their communities.
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In the latest close session, Groupon (GRPN - Free Report) was down 5.83% at $20.04. The stock's performance was behind the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 1.13%.
Heading into today, shares of the online daily deal service had gained 8.63% over the past month, outpacing the Retail-Wholesale sector's loss of 3.45% and the S&P 500's gain of 1.26%.
The investment community will be closely monitoring the performance of Groupon in its forthcoming earnings report. The company is expected to report EPS of -$0.01, up 99.66% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $129.41 million, indicating a 5.37% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.14 per share and revenue of $517.75 million. These totals would mark changes of +93.2% and +3.88%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Groupon. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Groupon is carrying a Zacks Rank of #3 (Hold).
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
On September 23, 2026, Groupon Inc GRPN shares fell 5.8% to a current price of $20.04. This drop comes amid a 52-week range of $9.17 to $29.90, reflecting significant volatility in the stock's performance.
GF Value™ verdict: The current price is $20.04, compared to a GF Value™ of $12.97, indicating the stock is 54.5% overvalued.GF Score™ of 49/100, which suggests an average overall performance.Notable signal: No insider transactions in the past 12 months, indicating a lack of confidence from insiders.Is GRPN Overvalued or Undervalued?The GF Value™ for Groupon Inc is estimated at $12.97, significantly lower than the current price of $20.04. This substantial difference suggests that the stock is overvalued by approximately 54.5%. GF Value™ is GuruFocus' proprietary estimate of a stock's intrinsic value, which takes into account historical trading multiples, past business growth, and forecasts for future performance. In this instance, the GF Value™ label of "Significantly Overvalued" serves as a directional warning for investors, emphasizing that the stock price does not adequately reflect the company's underlying financial health.
Given Groupon's status as an unprofitable and cash-flow-negative company, traditional earnings-based valuation methods, such as Price-to-Earnings (P/E) ratios, are not suitable. Instead, a more relevant metric for assessing Groupon's valuation would be Price-to-Sales (P/S). Historically, Groupon has traded around a P/S multiple of approximately 0.8x. This suggests that current valuations may not be justified, and the risks associated with an overvalued stock are inherently high in the context of its financial performance.
How Does GRPN's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)N/A7.7xForward P/E24.7xN/AAs Groupon does not currently generate earnings, the P/E ratio cannot be applied in this context. However, the forward P/E of 24.7x indicates a high valuation compared to its historical median P/E of 7.7x. This further aligns with the GF Value™ assessment, which suggests that Groupon is trading well above its historical valuation metrics, indicating a potential risk for investors.
What Does GRPN's GF Score™ Tell Us?The GF Score™ is a composite score that evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. Groupon's GF Score™ of 49/100 reflects an average performance across these metrics, with distinct strengths and weaknesses evident in its sub-ranks.
MetricRatingGF Score™49Financial Strength3/10Profitability3/10Growth3/10Valuation3/10Momentum3/10The scores indicate that Groupon's financial strength, profitability, growth, valuation, and momentum are all rated poorly at 3/10. This low rating across multiple dimensions signals significant challenges facing the company, which may be contributing to its overvaluation as indicated by the GF Value™ assessment.
What Are Gurus and Insiders Doing with GRPN?Currently, 1 guru holds shares of Groupon Inc, with no recent additions and 2 gurus trimming their positions. This information highlights a cautious sentiment among institutional investors, suggesting that there may be concerns about the company's future performance.
Moreover, the absence of insider transactions in the past 12 months indicates a lack of confidence from company insiders regarding their own stock. Such patterns can often reflect uncertainty about the company's prospects, which is a critical signal for potential investors to consider.
What This Means for InvestorsBased on the analysis, Groupon Inc GRPN is currently overvalued, with a significant disparity between its market price and GF Value™ estimate. The absence of profitability combined with weak financial metrics and cautious behavior from gurus and insiders suggests that investors should be wary of entering a position in GRPN at this time. For further details on Groupon’s financials and performance, visit the Groupon Inc (GRPN) stock page.
Frequently Asked QuestionsWhat is GRPN's GF Score™?
Groupon's GF Score™ is 49/100, indicating an average overall performance across various financial metrics.
Is GRPN overvalued or undervalued?
Groupon is overvalued with a GF Value™ of $12.97 compared to its current price of $20.04.
What is GRPN's P/E ratio?
Groupon does not have a current P/E ratio due to unprofitability, but its historical median P/E is 7.7x, highlighting significant overvaluation at the current forward P/E of 24.7x.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Groupon Inc. (NASDAQ:GRPN) shares are trading higher Monday afternoon after active shareholder Nick Nemeth publicly urged the board of directors to accelerate share repurchases, implement a strict $120 million operating cash-balance target and establish an automated Rule 10b5-1 trading plan.
Here’s what investors need to know.
Groupon stock is showing exceptional strength. What’s behind GRPN gains? The activist pressure directly targets the e-commerce marketplace’s capital management strategy by demanding a more aggressive return of excess liquidity to investors.
By proposing a defined $120 million operating cash threshold, the shareholder aims to prevent leadership from holding unproductive capital on the balance sheet. Executing accelerated buybacks through a mechanized Rule 10b5-1 framework provides sustained, programmatic support for the equity while actively shrinking the outstanding float.
For a platform navigating a multi-year turnaround, retiring equity at currently depressed valuations structurally enhances future earnings per share and telegraphs institutional confidence in the firm’s underlying cash generation capabilities.
GRPN Shares Climb MondayGRPN Price Action: Groupon shares were up 12.89% at $21.54 at the time of publication on Monday, according to Benzinga Pro data.
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SANTA BARBARA, Calif., Sept. 21, 2026 (GLOBE NEWSWIRE) -- Groupon, Inc. (NASDAQ: GRPN) shareholder Nick Nemeth today publicly called on the Board and management to accelerate share repurchases, adopt a $120 million operating cash-balance goal and establish a Rule 10b5-1 plan that can continue buying through routine earnings blackouts.
“Dušan, Rana and the team have earned our confidence by cutting costs, restoring annual growth and rebuilding Groupon,” said Nemeth, publisher of Mispriced Assets. “We are asking the Board to bring the same urgency to capital allocation. If management delivers the improvement it sees ahead, waiting could mean retiring fewer shares with the same buyback dollars.”
Groupon returned to annual revenue and billings growth in 2025 for the first time in a decade: billings rose 7%, North America Local grew 14%, SG&A fell approximately $22 million and headcount declined 17%. Its 2026 restructuring targets another $20 million to $25 million in annualized payroll savings, partly reinvested in growth. 2025 results, 2026 update.
On the Mispriced Assets podcast, CFO Rana Kashyap called the rebuild “a complete gut.” Groupon is concentrating resources behind its strongest people, hiring talent from Uber, Klarna and DoorDash, and equipping teams with Foundry, its data and AI platform. Podcast.
Management is advancing priorities in Nemeth’s shareholder letter on X: platform modernization, personalization, customer service, AI distribution and shareholder engagement. Groupon’s deals are now live in ChatGPT and Claude, with tools for developers and creators announced. Operating update, AI announcement.
Management expects second-half growth to accelerate. Better retention could amplify the result: repeat purchases carry higher margins, while more transactions absorb existing fixed costs.
“One extra annual purchase per active customer could support over $100 million in incremental annual adjusted EBITDA in our illustrative model, assuming stable order economics and limited additional overhead,” Nemeth said. “We see a credible path to beating consensus over the next six quarters if retention improves. Repurchasing meaningfully undervalued shares now gives continuing shareholders more of that potential upside.”
The capital supports action:
$226 million of reported cash: approximately $106 million above Nemeth’s proposed $120 million goal, or $59 million after separately reserving for March 2027 notes, before seasonal changes and other commitments. June 30 balance sheet.Approximately $68 million of second-half 2026 free cash flow implied by analyst estimates; $112 million in 2027, the three-analyst average. Mr. Nemeth believes these estimates are materially too low. These are analyst estimates, not company guidance. Estimates.Potential gross SumUp proceeds of $180 million or more within 12 months, in Nemeth’s estimate. No sale has been announced; timing, valuation, taxes and costs remain uncertain. Management identifies September as a seasonal cash low and year-end as the high. Nemeth argues that excess cash is already a drag on per-share value, and waiting through December’s seasonal buildup increases the opportunity cost. Cash cycle.
Using 40.7 million shares outstanding on August 4 and the September 18 close of $19.08, Groupon’s equity value is approximately $776 million. Adding $291 million of note principal and subtracting $226 million of June cash and Nemeth’s $180 million SumUp valuation yields $661 million of operating enterprise value after subtracting SumUp—just 6.4 times 2027 consensus EBITDA of $102.6 million. This illustration excludes future free cash flow, SumUp sale taxes and costs, and future equity issuance. Price, balance sheet and shares, consensus.
At $20 per share, the $106 million of reported cash above the proposed goal, $180 million from SumUp and $68 million of estimated second-half free cash flow together represent 17.7 million shares. Reserving $47 million for the March debt maturity still leaves 15.4 million shares—approximately 38% of reported shares outstanding. Including 2027 consensus free cash flow lifts the illustration through year-end 2027 to 21 million shares, or 52%, before taxes, transaction costs, future issuance and other cash needs.
“Repurchases on that scale would be unlikely to clear at an unchanged $20,” Nemeth said. “That arithmetic captures why I believe Groupon is materially undervalued—and why buying aggressively now can magnify the turnaround for continuing shareholders.”
Nemeth supports continued investment in talent, AI and growth, with operating needs and debt obligations funded. He urges the Board to put excess capital to work under the existing authorization, which had approximately $214 million remaining at June 30, through a Rule 10b5-1 plan targeting daily purchases of at least 5% of trailing four-week average daily trading volume, with predetermined price and liquidity limits. He asks management to outline its execution plan at the next earnings update and report net share-count reduction after equity compensation.
“The operating leverage is clear. Now it is time to lever the outcome,” Nemeth concluded. “We believe an accelerated buyback serves all shareholders. Thank you to Dušan, Rana and the Groupon team for your engagement with Mispriced Assets. This is the next step.”
About Nick Nemeth
Nick Nemeth publishes Mispriced Assets, an independent investment research publication of Wyandanch Consulting LLC.
Disclosure: As of September 20, 2026, Nick Nemeth holds a position representing 78,200 Groupon shares and share equivalents, plus additional call options. He also holds long and short put positions; the share-equivalent count is not net or delta-adjusted exposure. Positions may change. This release expresses his views; forecasts and illustrative scenarios are not guarantees. It is not investment advice or a solicitation of any proxy, vote or consent.
Groupon (GRPN - Free Report) ended the recent trading session at $18.78, demonstrating a -2.85% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 1.14%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.69%.
Shares of the online daily deal service witnessed a loss of 5.01% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 8.01%, and underperforming the S&P 500's loss of 2.85%.
Analysts and investors alike will be keeping a close eye on the performance of Groupon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.01, marking a 99.66% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $129.41 million, up 5.37% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.14 per share and revenue of $517.75 million, indicating changes of +93.2% and +3.88%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Groupon. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Groupon is currently sporting a Zacks Rank of #3 (Hold).
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Company announces the AI Builder Pack, opening its local marketplace to independent developers, creators and AI agents
The move follows the company's belief that the next generation of local commerce will be AI-native
Builders can create a website, app or agent featuring Groupon deals and earn commission on qualifying purchases
Groupon deals are already live in ChatGPT and Claude
Public access expected during October; waitlist open now at groupon.com/hubs/ai-builder-pack
Chicago, Illinois--(Newsfile Corp. - September 16, 2026) - Groupon, Inc. (NASDAQ: GRPN) today announced the Groupon AI Builder Pack, opening its platform to a new generation of builders and AI agents. AI agents can now search Groupon's deals and buy on a customer's behalf, with Groupon handling checkout. With it, anyone can use AI to create a website or app featuring Groupon deals, build for a niche, a neighborhood or a community, and earn commission on qualifying purchases.
"The last several weeks are showing that we are nearing the next inflection of AI: the rise of personal AI agents. At Groupon, our mission is to get people offline, and we believe agents will become the dominant pathway by which people discover, compare and buy local experiences," said Dusan Senkypl, Chief Executive Officer of Groupon. "That is the belief we have been building for. Today we are excited to announce our Groupon AI Builder Pack, making Groupon accessible to any AI builders or agents that consumers choose to build their digital life around. We bring the marketplace and the audience, builders bring the ideas and the understanding of what their communities need. I am looking forward to seeing what people build."
Opening the Platform
Groupon is already inside ChatGPT as a plugin and inside Claude as a connector, both live today. In March, Groupon formed a board-level Artificial Intelligence Committee on the conviction that autonomous, agentic systems would redefine consumer discovery and merchant enablement in the local economy. The AI Builder Pack turns that conviction into an open platform, positioning Groupon as a bridge between the AI economy and local merchants.
Builders can filter Groupon's catalog by category and location, so what they create reflects what their audience cares about.
Built for Niches, Neighborhoods and Communities
A student, an independent developer or a community organizer can turn an idea into something useful. Early use cases include:
A website curating family activities or wellness deals
A neighborhood club helping people discover nearby businesses
A community project using earned commissions to support a charity
An agent helping someone find experiences that fit their interests and budget
"Developers have been asking for a cleaner way to work with local inventory," said Marie Havlikova, Chief Product Officer at Groupon. "The AI Builder Pack gives them the deals, the filtering and the checkout in one place, so they can spend their time on the experience they want to create rather than the plumbing behind it."
Part of Groupon's Mission
Groupon's mission is to get people offline through high-quality local experiences at unbeatable value. Every site, app and agent a builder creates is another route from a screen to a neighborhood business, and another way for a local merchant to be found.
Availability
Groupon is preparing the AI Builder Pack for public access, expected during October. Builders can join the waitlist now at groupon.com/hubs/ai-builder-pack.
About Groupon
Groupon (NASDAQ: GRPN) (www.groupon.com) is a trusted local marketplace whose mission is to get people offline through quality local experiences at great value. To find out more about Groupon, please visit press.groupon.com.
Note on Forward-Looking Statements
The statements contained in this release that refer to plans and expectations for the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "may," "will," "should," "could," "expect," "anticipate," "believe," "estimate," "intend," "continue" and other similar expressions are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including the risk that the AI Builder Pack is delayed, modified or does not become available as described, and the risk that builder or merchant adoption differs from expectations. Such risks and uncertainties include those discussed in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025 and Part II, Item 1A. Risk Factors in our Quarterly Report on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026, and our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to future events or circumstances. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/314573
Source: Groupon
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
Groupon (GRPN - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this online daily deal service have returned -5.9%, compared to the Zacks S&P 500 composite's -2% change. During this period, the Zacks Internet - Commerce industry, which Groupon falls in, has lost 4.7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Groupon is expected to post a loss of $0.01 per share for the current quarter, representing a year-over-year change of +99.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +40%.
The consensus earnings estimate of -$0.14 for the current fiscal year indicates a year-over-year change of +93.2%. This estimate has changed +25% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.95 indicates a change of +776.2% from what Groupon is expected to report a year ago. Over the past month, the estimate has changed +10.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Groupon.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Groupon, the consensus sales estimate of $129.41 million for the current quarter points to a year-over-year change of +5.4%. The $517.75 million and $565.05 million estimates for the current and next fiscal years indicate changes of +3.9% and +9.1%, respectively.
Last Reported Results and Surprise HistoryGroupon reported revenues of $124.68 million in the last reported quarter, representing a year-over-year change of -0.8%. EPS of -$0.04 for the same period compares with $0.46 a year ago.
Compared to the Zacks Consensus Estimate of $127.42 million, the reported revenues represent a surprise of -2.15%. The EPS surprise was +50%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Groupon is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Groupon. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Groupon (GRPN - Free Report) closed at $18.73 in the latest trading session, marking a +2.46% move from the prior day. This move outpaced the S&P 500's daily gain of 0.86%. On the other hand, the Dow registered a gain of 0.98%, and the technology-centric Nasdaq increased by 0.96%.
Prior to today's trading, shares of the online daily deal service had lost 16.83% lagged the Retail-Wholesale sector's loss of 9.35% and the S&P 500's loss of 1.96%.
The investment community will be closely monitoring the performance of Groupon in its forthcoming earnings report. The company is expected to report EPS of -$0.01, up 99.66% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $129.41 million, indicating a 5.37% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.14 per share and a revenue of $517.75 million, indicating changes of +93.2% and +3.88%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Groupon. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 25% higher. At present, Groupon boasts a Zacks Rank of #3 (Hold).
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 42% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Groupon, Inc. (GRPN) Discusses Investment Thesis and Business Strategy in Special Session September 10, 2026 11:00 AM EDT
Company Participants
Mike Tepeli
Dusan Senkypl - CEO & Director
Rana Kashyap - CFO and Senior VP of Finance, FP&A, Treasury & Strategy
Conference Call Participants
Nick Nemeth
Conversation
Mike Tepeli
Good morning, everyone, and thank you for joining. I'm Mike Tepeli, Communications at Groupon. Before we begin, today's discussion and management's responses to questions reflects management's views as of today, September 10, 2026, only and may include forward-looking statements. Actual results may differ materially.
Groupon undertakes no obligation to update these statements. Risks and other factors that could potentially impact the company's financial results are described in the company's SEC filings, including its most recent filings, Form 10-K and Form 10-Q.
This is not an earnings call. Management will not provide new financial information or update the guidance issued on August 6, 2026, and comments will be limited to information already made public.
Any non-GAAP financial measures referenced, including adjusted EBITDA and free cash flow are reconciled in our earnings material at investor.groupon.com. This session is open to everyone. It is being recorded, and a replay will be available. With that, I'm going to turn it over to today's host, Nick Nemeth. Nick, go ahead and introduce yourself.
Nick Nemeth
Thank you, Mike. I think you've done a great job, and I'm excited to talk to the CEO and CFO of Groupon today. Dusan and Rana. I'm Nick Nemeth. I write on Mispriced Assets, a Substack where I talk about small-cap stocks, full disclosure for me. I am a Groupon shareholder, and I'm bullish.
I hope to get into the details of the investment thesis and allow Dusan and Rana to talk about the business in a way that's atypical
SEA (NYSE:SE – Get Free Report) and Groupon (NASDAQ:GRPN – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Profitability This table compares SEA and Groupon’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets SEA 5.98% 13.54% 5.59% Groupon -25.26% N/A -20.28% Earnings & Valuation This table compares SEA and Groupon”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio SEA $22.94 billion 3.02 $1.58 billion $2.59 43.82 Groupon $498.42 million 1.55 -$83.52 million ($3.11) -6.09 SEA has higher revenue and earnings than Groupon. Groupon is trading at a lower price-to-earnings ratio than SEA, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility SEA has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Groupon has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.
Institutional and Insider Ownership 59.5% of SEA shares are owned by institutional investors. Comparatively, 90.0% of Groupon shares are owned by institutional investors. 0.2% of SEA shares are owned by insiders. Comparatively, 36.6% of Groupon shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations This is a summary of recent ratings and recommmendations for SEA and Groupon, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score SEA 1 2 10 1 2.79 Groupon 2 1 1 0 1.75 SEA currently has a consensus price target of $149.40, suggesting a potential upside of 31.65%. Groupon has a consensus price target of $26.00, suggesting a potential upside of 37.20%. Given Groupon’s higher possible upside, analysts plainly believe Groupon is more favorable than SEA.
Summary SEA beats Groupon on 12 of the 15 factors compared between the two stocks.
About SEA (Get Free Report)
Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.
About Groupon (Get Free Report)
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. 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.
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Bank of New York Mellon Corp bought a new position in shares of Groupon, Inc. (NASDAQ:GRPN – Free Report) in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 71,847 shares of the coupon company’s stock, valued at approximately $1,729,000. Bank of New York Mellon Corp owned 0.19% of Groupon as of its most recent SEC filing.
Several other hedge funds and other institutional investors also recently modified their holdings of the business. Dimensional Fund Advisors LP lifted its position in shares of Groupon by 28.3% during the first quarter. Dimensional Fund Advisors LP now owns 580,873 shares of the coupon company’s stock worth $6,910,000 after acquiring an additional 128,097 shares in the last quarter. Renaissance Technologies LLC lifted its holdings in shares of Groupon by 464.1% in the first quarter. Renaissance Technologies LLC now owns 619,413 shares of the coupon company’s stock worth $7,371,000 after buying an additional 509,600 shares in the last quarter. Bank of America Corp DE grew its stake in Groupon by 64.2% during the first quarter. Bank of America Corp DE now owns 636,480 shares of the coupon company’s stock valued at $7,574,000 after acquiring an additional 248,928 shares in the last quarter. SummitTX Capital L.P. grew its position in shares of Groupon by 432.6% during the 1st quarter. SummitTX Capital L.P. now owns 81,366 shares of the coupon company’s stock valued at $968,000 after purchasing an additional 66,088 shares in the last quarter. Finally, Pacer Advisors Inc. purchased a new position in shares of Groupon during the 1st quarter valued at $2,416,000. Institutional investors own 90.05% of the company’s stock.
Groupon Price Performance Shares of NASDAQ GRPN opened at $18.95 on Wednesday. Groupon, Inc. has a 1 year low of $9.17 and a 1 year high of $29.90. The company’s 50-day moving average is $23.68 and its 200 day moving average is $18.03. The stock has a market capitalization of $770.70 million, a P/E ratio of -6.09 and a beta of 0.24.
Groupon (NASDAQ:GRPN – Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The coupon company reported ($0.04) EPS for the quarter, topping the consensus estimate of ($0.06) by $0.02. The company had revenue of $124.67 million during the quarter, compared to analysts’ expectations of $127.09 million. Research analysts anticipate that Groupon, Inc. will post -0.14 earnings per share for the current year. Wall Street Analysts Forecast Growth Several analysts have weighed in on the company. Wall Street Zen raised Groupon from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. The Goldman Sachs Group reaffirmed a “sell” rating and set a $22.00 price objective on shares of Groupon in a research note on Monday, August 10th. Citigroup reissued an “outperform” rating on shares of Groupon in a research note on Tuesday, June 9th. Northland Securities set a $30.00 target price on shares of Groupon in a report on Monday, August 17th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Groupon in a research report on Friday. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and an average target price of $26.00.
Check Out Our Latest Research Report on GRPN
About Groupon (Free Report)
Groupon, Inc operates an online marketplace that connects subscribers with local merchants offering discounted goods, services and experiences. Through its website and mobile applications, Groupon provides time-limited deals across categories such as restaurants, travel, beauty and wellness, home services, and consumer products. Merchants partner with Groupon to attract new customers and drive foot traffic, leveraging the platform’s targeted marketing tools and large subscriber base to promote special offers and vouchers.
Founded in Chicago in 2008 by Andrew Mason, Eric Lefkofsky and Brad Keywell, Groupon pioneered the daily-deals model, quickly growing its user community and merchant network.
Further Reading Five stocks we like better than Groupon Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement Q3 Earnings Could Be the Catalyst the Market Has Been Waiting For
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Groupon (NASDAQ:GRPN – Get Free Report) and Baozun (NASDAQ:BZUN – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.
Analyst Recommendations This is a summary of recent recommendations and price targets for Groupon and Baozun, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Groupon 2 1 1 0 1.75 Baozun 1 1 2 0 2.25 Groupon presently has a consensus target price of $26.00, suggesting a potential upside of 40.85%. Baozun has a consensus target price of $3.80, suggesting a potential upside of 38.69%. Given Groupon’s higher possible upside, research analysts clearly believe Groupon is more favorable than Baozun.
Valuation and Earnings This table compares Groupon and Baozun”s gross revenue, earnings per share and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Groupon $498.42 million 1.51 -$83.52 million ($3.11) -5.94 Baozun $1.42 billion 0.11 -$34.62 million ($0.33) -8.30 Baozun has higher revenue and earnings than Groupon. Baozun is trading at a lower price-to-earnings ratio than Groupon, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares Groupon and Baozun’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Groupon -25.26% N/A -20.28% Baozun -1.26% 2.55% 1.43% Insider & Institutional Ownership 90.0% of Groupon shares are held by institutional investors. Comparatively, 47.3% of Baozun shares are held by institutional investors. 36.6% of Groupon shares are held by insiders. Comparatively, 59.2% of Baozun shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk Groupon has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Baozun has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.
Summary Baozun beats Groupon on 10 of the 14 factors compared between the two stocks.
About Groupon (Get Free Report)
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. 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.
About Baozun (Get Free Report)
Baozun Inc., through its subsidiaries, provides end-to-end e-commerce solutions to brand partners in the People’s Republic of China. The company operates through two segments, E-Commerce and Brand Management (BBM). The E-Commerce segment offers brands’ store operations, customer services and value-added services in logistics and supply chain management, IT, and digital marketing. The Brand Management segment provides brand management, strategic and tactic positioning, branding and marketing, retail and e-commerce operations, supply chain, and logistics and technology services. It serves brand partners in various categories, including apparel and accessories, appliances, electronics, home and furnishings, food and health products, beauty and cosmetics, fast moving consumer goods, mother and baby products, and automobiles. The company was formerly known as Baozun Cayman Inc. and changed its name to Baozun Inc. in March 2015. Baozun Inc. was founded in 2007 and is headquartered in Shanghai, the People’s Republic of China.
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Groupon, Inc. (GRPN) Discusses Strategies to Attract Younger Generations and Evolve Product Offerings Beyond Mystery Deals August 25, 2026 11:45 AM EDT
Company Participants
Dusan Senkypl - CEO & Director
Rana Kashyap - CFO and Senior VP of Finance, FP&A, Treasury & Strategy
Presentation
Unknown Attendee
Welcome, everyone, and thank you for joining Groupon's live investor conversation on X with CEO, Dusan Senkypl; and CFO, Rana Kashyap.
Before we begin, today's discussion and management's responses to questions reflect management's views as of today, August 25, 2026, only and may include forward-looking statements. Actual results may differ materially. Groupon undertakes no obligations to update these statements, risks and other factors that could potentially impact the company's financial results are described in the company's SEC filings, including its most recent Form 10-K and Form 10-Q.
This is not an earnings call. Management will not provide new financial information or update the guidance issued on August 6, 2026, and comments will be limited to information already made public. Any non-GAAP financial measures referenced, including adjusted EBITDA and free cash flow are reconciled in our earnings materials at investor.groupon.com. This session is open to all investors is being recorded, and a replay will be available.
With that, let's open the floor to questions. We will start with written questions we've received over the past week. But if you have questions live, please post them as a reply -- as a reply to our account or raise your hand here to be promoted to a speaker.
Question-and-Answer Session
Unknown Attendee
Our first question comes from CZ, YOLO trader. How do you plan to attract younger generations beyond the Mystery Deal concept? Dusan?
Dusan Senkypl
CEO & Director
So first, thank you, everyone, for joining us here. Very happy to have you here. Under Mystery Deal concept, first, let me provide some
Groupon NASDAQ: GRPN executives outlined priorities around marketplace density, personalization, artificial intelligence and merchant acquisition during a live investor discussion on X, while reiterating that the session did not include new financial information or updates to guidance issued Aug. 6.
Bank of America Corp DE increased its position in shares of Groupon, Inc. (NASDAQ:GRPN – Free Report) by 64.2% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 636,480 shares of the coupon company’s stock after purchasing an additional 248,928 shares during the quarter. Bank of America Corp DE owned 1.68% of Groupon worth $7,574,000 at the end of the most recent reporting period.
A number of other hedge funds have also recently added to or reduced their stakes in GRPN. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Groupon during the third quarter worth $32,000. Johnson Financial Group Inc. bought a new position in shares of Groupon in the 4th quarter worth about $35,000. Quarry LP boosted its holdings in shares of Groupon by 48.1% in the 3rd quarter. Quarry LP now owns 1,938 shares of the coupon company’s stock valued at $45,000 after buying an additional 629 shares during the period. Raymond James Financial Inc. acquired a new position in shares of Groupon in the 2nd quarter valued at about $69,000. Finally, National Bank of Canada FI grew its position in shares of Groupon by 172,400.0% during the 3rd quarter. National Bank of Canada FI now owns 3,450 shares of the coupon company’s stock valued at $81,000 after buying an additional 3,448 shares during the last quarter. Institutional investors and hedge funds own 90.05% of the company’s stock.
Groupon Stock Down 0.2% Groupon stock opened at $19.59 on Wednesday. The firm has a 50-day moving average price of $23.76 and a two-hundred day moving average price of $17.58. The firm has a market capitalization of $796.73 million, a price-to-earnings ratio of -6.30 and a beta of 0.23. Groupon, Inc. has a 52-week low of $9.17 and a 52-week high of $29.90.
Groupon (NASDAQ:GRPN – Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The coupon company reported ($0.04) EPS for the quarter, beating the consensus estimate of ($0.06) by $0.02. The firm had revenue of $124.67 million during the quarter, compared to analyst estimates of $127.09 million. Research analysts expect that Groupon, Inc. will post -0.14 earnings per share for the current year. Wall Street Analyst Weigh In GRPN has been the topic of several research reports. Wall Street Zen upgraded shares of Groupon from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Citigroup restated an “outperform” rating on shares of Groupon in a research note on Tuesday, June 9th. Northland Securities set a $30.00 target price on Groupon in a report on Monday, August 17th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Groupon in a research report on Tuesday, June 9th. Finally, The Goldman Sachs Group reissued a “sell” rating and issued a $22.00 price target on shares of Groupon in a report on Monday, August 10th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus target price of $26.00.
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Groupon Profile (Free Report)
Groupon, Inc operates an online marketplace that connects subscribers with local merchants offering discounted goods, services and experiences. Through its website and mobile applications, Groupon provides time-limited deals across categories such as restaurants, travel, beauty and wellness, home services, and consumer products. Merchants partner with Groupon to attract new customers and drive foot traffic, leveraging the platform’s targeted marketing tools and large subscriber base to promote special offers and vouchers.
Founded in Chicago in 2008 by Andrew Mason, Eric Lefkofsky and Brad Keywell, Groupon pioneered the daily-deals model, quickly growing its user community and merchant network.
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Company launches @GrouponIR investor relations account on X
CEO Dusan Senkypl to appear live on Yahoo Finance on August 19
Senkypl and CFO Rana Kashyap to host live X Spaces on August 25
Investor Q&A to be livestreamed from Groupon's investor relations site on September 10
Chicago, Illinois--(Newsfile Corp. - August 18, 2026) - Groupon, Inc. (NASDAQ: GRPN) today announced a series of engagements over the coming weeks designed to give retail shareholders direct access to company management, along with the launch of a dedicated investor relations account on X. Each session will be held live and announced in advance on Groupon's investor relations site at investor.groupon.com.
"Groupon has seen a meaningful increase in retail shareholders this year," said Rana Kashyap, Chief Financial Officer of Groupon. "We are going to meet them in the channels they use, and answer questions live."
A New Channel: @GrouponIR on X
@GrouponIR on X. Groupon has launched a dedicated investor relations account on X at x.com/GrouponIR. The account will carry company announcements, event notices, and links to material posted on Groupon's investor relations site.
Upcoming Engagements
Yahoo Finance interview, Wednesday, August 19. Chief Executive Officer Dusan Senkypl is scheduled to appear live on Yahoo Finance with anchor Josh Lipton during the 3 p.m. ET hour. The conversation is expected to cover Groupon's mystery getaway deals alongside the company's broader shift toward experiential travel and gifting. Exact timing will be posted from @GrouponIR ahead of the segment.
X Spaces, Tuesday, August 25. Mr. Senkypl and Mr. Kashyap will host a live audio session on X, taking questions from shareholders, at approximately 11:45 a.m. ET. Access details will be posted from @GrouponIR. The session will be recorded and available for replay.
Investor Q&A, Thursday, September 10. Mr. Senkypl will sit for a video interview with Nick Nemeth, a Groupon shareholder who publishes equity research as Mispriced Assets, at 11:00 a.m. ET. The session will be livestreamed on Groupon's investor relations site at investor.groupon.com and made available for replay following the event.
Investor Relations Website and Disclosure
Groupon encourages investors to use its investor relations website as a way of easily finding information about the Company. Groupon promptly makes available on this website, free of charge, the reports that the Company files or furnishes with the SEC, corporate governance information (including Groupon's Global Code of Conduct), and press releases and social media postings. Groupon uses its investor relations website (investor.groupon.com) and its X account (@GrouponIR) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
About Nick Nemeth / Mispriced Assets
Nick Nemeth publishes equity research under the Mispriced Assets banner through his firm, Wyandanch Consulting LLC, covering equities, macro, and digital assets. He can be followed on X at @NickNemo17 and on Substack at mispricedassets.substack.com. Mr. Nemeth has publicly disclosed a long position in Groupon common stock and call options. Groupon has no financial relationship with Mr. Nemeth or Mispriced Assets.
About Groupon
Groupon (NASDAQ: GRPN) (www.groupon.com) is a trusted local marketplace where consumers go to buy services and experiences that make life more interesting and deliver boundless value. To find out more about Groupon, please visit press.groupon.com.
Note on Forward-Looking Statements
The statements contained in this release that refer to plans and expectations for the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "may," "will," "should," "could," "expect," "anticipate," "believe," "estimate," "intend," "continue" and other similar expressions are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including the risk that scheduled events are rescheduled or do not occur. Such risks and uncertainties include those discussed in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025 and Part II, Item 1A. Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, and our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to future events or circumstances. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310114
Dimensional Fund Advisors LP increased its position in Groupon, Inc. (NASDAQ: GRPN) by 28.3% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 580,873 shares of the coupon company's stock after acquiring an additional 128,097 shares during the quarter. Dimensional Fund Advisors LP
Groupon, Inc. (NASDAQ:GRPN – Get Free Report) saw unusually large options trading activity on Monday. Investors purchased 14,702 call options on the company. This represents an increase of approximately 82% compared to the average daily volume of 8,065 call options.
Hedge Funds Weigh In On Groupon Institutional investors and hedge funds have recently bought and sold shares of the stock. Bank of New York Mellon Corp acquired a new position in shares of Groupon in the 2nd quarter valued at $1,729,000. Hennion & Walsh Asset Management Inc. boosted its holdings in Groupon by 13.4% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 13,129 shares of the coupon company’s stock valued at $316,000 after acquiring an additional 1,553 shares during the last quarter. Versant Capital Management Inc boosted its holdings in Groupon by 92.7% in the second quarter. Versant Capital Management Inc now owns 1,299 shares of the coupon company’s stock valued at $31,000 after acquiring an additional 625 shares during the last quarter. Pacer Advisors Inc. purchased a new stake in Groupon during the first quarter valued at about $2,416,000. Finally, Lombard Odier Asset Management Europe Ltd increased its stake in Groupon by 24.1% during the first quarter. Lombard Odier Asset Management Europe Ltd now owns 102,118 shares of the coupon company’s stock worth $1,215,000 after acquiring an additional 19,860 shares during the last quarter. Institutional investors and hedge funds own 90.05% of the company’s stock.
Groupon Stock Down 8.3% GRPN stock opened at $22.95 on Tuesday. Groupon has a 52-week low of $9.17 and a 52-week high of $35.18. The stock’s fifty day simple moving average is $22.99 and its 200-day simple moving average is $17.15. The stock has a market capitalization of $933.38 million, a price-to-earnings ratio of -7.38 and a beta of 0.23.
Groupon (NASDAQ:GRPN – Get Free Report) last released its earnings results on Thursday, August 6th. The coupon company reported ($0.04) EPS for the quarter, beating the consensus estimate of ($0.06) by $0.02. The business had revenue of $124.67 million during the quarter, compared to analyst estimates of $127.09 million. As a group, analysts anticipate that Groupon will post -0.17 earnings per share for the current fiscal year.
Analyst Ratings Changes A number of research analysts have recently weighed in on the stock. Citigroup reissued an “outperform” rating on shares of Groupon in a research note on Tuesday, June 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of Groupon in a research report on Tuesday, June 9th. Wall Street Zen upgraded Groupon from a “sell” rating to a “hold” rating in a research report on Saturday. The Goldman Sachs Group reiterated a “sell” rating and set a $22.00 price objective on shares of Groupon in a research report on Monday. Finally, Northland Securities set a $26.00 target price on shares of Groupon in a report on Wednesday, May 27th. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Reduce” and an average price target of $24.00.
View Our Latest Stock Analysis on GRPN
Groupon Company Profile (Get Free Report)
Groupon, Inc operates an online marketplace that connects subscribers with local merchants offering discounted goods, services and experiences. Through its website and mobile applications, Groupon provides time-limited deals across categories such as restaurants, travel, beauty and wellness, home services, and consumer products. Merchants partner with Groupon to attract new customers and drive foot traffic, leveraging the platform’s targeted marketing tools and large subscriber base to promote special offers and vouchers.
Founded in Chicago in 2008 by Andrew Mason, Eric Lefkofsky and Brad Keywell, Groupon pioneered the daily-deals model, quickly growing its user community and merchant network.
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Key Takeaways Groupon's Q2 loss came in narrower than estimates, but revenues fell 0.8% as North America Local declined 2%.GRPN's International Local revenues rose 8%, helped by improved organic performance and stronger city supply.Groupon's active customers grew 2% to 16.1 million despite unit sales falling 7% year over year. Groupon (GRPN - Free Report) reported an adjusted loss of 4 cents per share for the second quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 8 cents by 50%. This compares with earnings of 46 cents per share in the year-ago quarter. Revenues of $124.68 million fell 0.8% year over year and missed the consensus mark by 2.15%.
The revenue shortfall was concentrated in North America Local, where revenues declined 2% year over year. This was partly offset by International Local growth and continued customer gains.
Adjusted EBITDA was $14.8 million, down 4.7% year over year from $15.6 million.
GRPN's Local Trends Weigh on RevenueNorth America Local revenues declined 2% year over year, while Local billings decreased 1%. Softness in Health, Beauty & Wellness pressured the business, partly offset by strength in Things to Do and improving organic and managed channels.
International Local revenues were stronger, increasing 8% year over year, while Local billings rose 2%. Excluding Giftcloud, International Local revenue advanced 9%, and billings increased 5%, helped by improved organic performance and more seasonally relevant supply across major international cities.
Groupon Builds Momentum in International MarketsGroupon's global billings declined 1% year over year, matching the revenue trend. The decline was also 1% on an FX-neutral basis, indicating that currency movements were not the primary factor behind the billings pressure.
The product mix remained an important offset. Things to Do performed strongly, particularly tours, attractions and local activities. Beauty and Wellness was also a source of strength in July, with broad-based improvement seen across both North America and International markets.
GRPN's Customer Base Expands Despite Lower UnitsActive customers grew 2% to 16.1 million during the second quarter. Growth was recorded in both North America and International Local categories, providing a favorable customer trend despite weaker transaction volume.
Unit sales totaled 8.5 million, down 7% year over year. The decline reflected lower transaction volume in North America and international markets, partly offset by higher average order values as customers purchased higher-value local inventory.
Groupon Pushes Project Foundry and PersonalizationGroupon continued advancing Project Foundry, its company-wide effort to make operations AI-native. AI now builds and optimizes tens of thousands of hyperlocal marketing campaigns, while engineering output per developer has more than doubled over the past six months.
Organic revenues returned to growth in the second quarter and accelerated to double-digit growth in July. Managed channels continued improving, with revenue per send up strongly. Groupon expects the new consumer platform to be fully migrated across every surface and geography by the end of the third quarter.
GRPN Maintains Cash Generation and Restructuring PlanFree cash flow was $15 million compared with $25.19 million in the year-ago quarter, while operating cash inflow from continuing operations was $18.1 million versus $28.42 million a year earlier.
Cash and cash equivalents stood at $226.3 million at June 30, 2026, up 0.4% sequentially from $225.5 million at March 31. Groupon recorded $3.2 million of restructuring charges in the quarter and expects the payroll actions to generate $20 million to $25 million of annualized cost savings.
Groupon Maintains Q3 and 2026 OutlookFor the third quarter of 2026, Groupon expects billings growth of 4% to 6% and revenues of $128 million to $130 million. Adjusted EBITDA is projected at $19 million to $21 million, while free cash flow is expected to be negative.
The company maintained its 2026 outlook for billings growth of 3% to 5%, revenue of $513 million to $523 million and adjusted EBITDA of $75 million to $80 million. Free cash flow for 2026 is expected to be at least $60 million. The outlook implies second-half revenue growth of approximately 6% at the low end and approximately 10% at the high end, supported by easier year-over-year comparisons, additional marketing investment and increasing contributions from strategic initiatives.
Zacks Rank & Stocks to ConsiderGroupon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Newsmax (NMAX - Free Report) , H World Group Limited (HTHT - Free Report) and Viking Holdings (VIK - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Newsmax have returned 16.1% in the year-to-date period. Newsmax is slated to report second-quarter 2026 results on Aug. 13.
Shares of H World Group Limited have declined 9.9% in the year-to-date period. H World Group Limited is slated to report second-quarter 2026 results on Aug. 17.
Shares of Viking Holdings have returned 48.2% in the year-to-date period. Viking Holdings is slated to report second-quarter 2026 results on Aug. 19.
Avis Short Squeeze Shocked the Market: Are These 3 Stocks Next?Groupon NASDAQ: GRPN said second-quarter billings and revenue each declined 1% from a year earlier, with weakness concentrated in its North America Local business, while adjusted EBITDA reached the high end of its guidance range and free cash flow totaled positive $15 million.
Chief Executive Officer Dusan Senkypl said the company entered the third quarter with improving momentum, citing mid-single-digit growth in July. He said the improvement was supported by progress in North America Local and North America Travel, as well as continued strength in the company’s international operations.
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Top 3 Small Cap Stocks Emerging as Rotation Winners“We are confident in achieving our fourth consecutive year of improving revenue growth,” Senkypl said, while noting that the company’s second-half outlook requires growth to accelerate from its current pace.
AI transformation and platform migration Senkypl highlighted Project Foundry, Groupon’s initiative to redesign its operations around artificial intelligence, as a central element of the company’s strategy. The company aims for AI to handle repetitive work while employees focus on managing AI agents and interacting with customers and merchants.
MarketBeat Week in Review – 10/2 - 10/6According to Senkypl, AI is now creating and optimizing tens of thousands of hyperlocal marketing campaigns, while engineering output per developer has more than doubled over the past six months. He said Groupon expects its organization to be “AI fluent by default” by the end of 2026.
The company also expects to complete the migration of all customer-facing surfaces and geographies to its MobileNext technology platform by the end of the third quarter. Senkypl said the new platform is already powering all countries and surfaces, with remaining work focused largely on the least-used portions of the legacy application experience.
The platform migration is intended to support faster feature development and more personalized experiences. Senkypl said customer signals received in the morning can now be translated into features shipped the same day, a process that previously could take months.
Focus on personalization, quality and repeat purchases Groupon said its strategic priorities include improving organic search traffic, personalization, deal quality and customer trust. Revenue from organic channels returned to growth during the second quarter and accelerated to double-digit growth in July, according to Senkypl.
The company said it is using AI to create and organize local content for traditional search engines and AI-powered search systems. Its managed marketing channels also continued to improve, with Groupon sending fewer messages but generating strong double-digit revenue growth from those communications.
Senkypl identified purchase frequency as the company’s ultimate measure of success in improving trust and customer experience. Groupon is also monitoring customer segments and metrics such as conversion from a first purchase to a second purchase within seven or 30 days.
The company has removed or remediated hundreds of deals that did not meet its standards, management said. It is also making deal terms clearer by prominently displaying what is included in each offer and surfacing key elements that had previously been embedded in fine print.
AI now resolves the large majority of customer-support contacts, at roughly three times the speed seen at the start of the year. Groupon plans to add deal verification before publication in the second half of 2026. The company plans a redesigned redemption experience with wallet support. It also plans to pilot a Groupon AI concierge to help customers answer questions and book experiences. Senkypl said Groupon is not yet broadly marketing its quality-and-trust initiative because management wants the experience to be consistently reliable across the marketplace before making larger public claims or introducing potential customer guarantees.
Merchant acquisition and marketing initiatives Groupon acknowledged that its North America Local supply engine has been operating below expectations. The company recently appointed Adi Rajkumar as chief operating officer and Mark March as vice president of marketplace strategy and operations, with Senkypl saying the company has high expectations for their impact on the supply side.
The company is expanding its use of AI in merchant acquisition. Senkypl said its AI voice-agent pilot is designed to call merchants, communicate Groupon’s value proposition and schedule meetings with sales representatives. Groupon’s longer-term objective is for AI agents to schedule the majority of new merchant meetings by the end of the year.
Management described a broader AI-driven merchant acquisition system that could coordinate emails, paid campaigns, calls and other outreach based on category- and neighborhood-level demand. Groupon is also using an internal “sales brain” that analyzes merchant information, deal performance and customer feedback to recommend next actions for sales representatives.
On the demand side, the company said it plans to increase investment in brand marketing, influencer marketing and partnerships with recognized brands. Senkypl pointed to Groupon’s McDonald’s loyalty-app partnership as an example of the types of brand relationships it hopes to expand.
Groupon is also testing user-generated-content and influencer initiatives. Senkypl said some influencers have already generated tens of millions of impressions for the company, and Groupon is developing tools that could allow influencers and local communities to create customized deal collections.
Outlook maintained For the third quarter, Groupon forecast billings growth of 4% to 6%, adjusted EBITDA of $19 million to $21 million and negative free cash flow. Management maintained its full-year outlook for billings growth of 3% to 5%, revenue of $513 million to $523 million, adjusted EBITDA of $75 million to $80 million and free cash flow of at least $60 million.
The company said its full-year outlook implies second-half revenue growth of about 6% at the low end and about 10% at the high end. Senkypl said the expected acceleration is supported by easier comparisons, additional marketing investment and growing contributions from the company’s strategic initiatives.
Chief Financial Officer Rana Kashyap said July’s improvement was broad-based, with particular strength in the company’s Things To Do, beauty and wellness businesses. He said tours and attractions performed especially well during the seasonal period, while North America Local improved compared with the second quarter.
About Groupon (NASDAQ:GRPN)Groupon, Inc operates an online marketplace that connects subscribers with local merchants offering discounted goods, services and experiences. Through its website and mobile applications, Groupon provides time-limited deals across categories such as restaurants, travel, beauty and wellness, home services, and consumer products. Merchants partner with Groupon to attract new customers and drive foot traffic, leveraging the platform's targeted marketing tools and large subscriber base to promote special offers and vouchers.
Founded in Chicago in 2008 by Andrew Mason, Eric Lefkofsky and Brad Keywell, Groupon pioneered the daily-deals model, quickly growing its user community and merchant network.
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Groupon (GRPN - Free Report) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +50.00%. A quarter ago, it was expected that this online daily deal service would post a loss of $0.02 per share when it actually produced a loss of $0.32, delivering a surprise of -1500%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Groupon, which belongs to the Zacks Internet - Commerce industry, posted revenues of $124.68 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.15%. This compares to year-ago revenues of $125.7 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Groupon shares have added about 55% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Groupon?While Groupon has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Groupon was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.02 on $131.9 million in revenues for the coming quarter and -$0.17 on $519.48 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
XCel Brands (XELB - Free Report) , another stock in the broader Zacks Retail-Wholesale sector, has yet to report results for the quarter ended June 2026.
This brand management company is expected to post quarterly loss of $0.38 per share in its upcoming report, which represents a year-over-year change of -2.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
XCel Brands' revenues are expected to be $1.8 million, up 36.4% from the year-ago quarter.
For the quarter ended June 2026, Groupon (GRPN - Free Report) reported revenue of $124.68 million, down 0.8% over the same period last year. EPS came in at -$0.04, compared to $0.46 in the year-ago quarter.
The reported revenue represents a surprise of -2.15% over the Zacks Consensus Estimate of $127.42 million. With the consensus EPS estimate being -$0.08, the EPS surprise was +50%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Groupon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Gross Billings: $413.75 million versus the two-analyst average estimate of $422.09 million.Geographic Revenue- North America: $98.21 million versus $99.98 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -1.8% change.Geographic Revenue- International: $26.46 million versus $27.37 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +2.9% change.Geographic Revenue- North America- Local: $92.89 million compared to the $95.55 million average estimate based on two analysts. The reported number represents a change of -1.7% year over year.Geographic Revenue- International- Goods: $1.44 million versus the two-analyst average estimate of $2.16 million. The reported number represents a year-over-year change of -36.5%.Geographic Revenue- North America- Goods: $0.86 million compared to the $0.3 million average estimate based on two analysts. The reported number represents a change of -26.1% year over year.Geographic Revenue- International- Local: $23.98 million compared to the $24.69 million average estimate based on two analysts. The reported number represents a change of +8% year over year.Geographic Revenue- International- Travel: $1.04 million compared to the $0.96 million average estimate based on two analysts. The reported number represents a change of -16.4% year over year.Geographic Revenue- North America- Travel: $4.46 million compared to the $4.13 million average estimate based on two analysts. The reported number represents a change of +2.8% year over year.Revenue- Local: $116.87 million versus the two-analyst average estimate of $119.8 million. The reported number represents a year-over-year change of +0.2%.Revenue- Travel: $5.51 million compared to the $5.08 million average estimate based on two analysts. The reported number represents a change of -1.5% year over year.Revenue- Goods: $2.3 million versus $2.47 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -32.9% change.View all Key Company Metrics for Groupon here>>>
Shares of Groupon have returned +6.9% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
GRPN stock is moving. Watch the price action here. Groupon reported quarterly losses of four cents per share, which beat the analyst consensus estimate for losses of nine cents, according to Benzinga Pro data.
Quarterly revenue came in at $124.68 million, which missed the Street estimate of $127.09 million and was down from $125.7 million in the same period last year.
Groupon reported the following second-quarter highlights:
“Project Foundry, our AI-native redesign of how Groupon operates, remains the most consequential work underway at the company, and just over four months in, we are extremely pleased with the progress we have made,” said Dusan Senkypl, CEO of Groupon.
“While Q2 fell slightly short on the top line, we entered the third quarter with momentum and expect growth to accelerate in the second half,” Senkypl added.
GRPN Stock Price Activity: According to data from Benzinga Pro, Groupon stock was up 10.74% to $27.85 in Thursday’s extended trading.
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Loss from continuing operations was $1.5 million and Adjusted EBITDA was $14.8 million, at the high end of guidance
Project Foundry, our AI-native transformation, is beginning to deliver better outcomes for customers and faster execution across the company
Chicago, Illinois--(Newsfile Corp. - August 6, 2026) - Groupon, Inc. (NASDAQ: GRPN) today announced its financial results for the second quarter ended June 30, 2026. Results and a shareholder letter for the second quarter are posted on Groupon's Investor Relations site (investor.groupon.com). The Company has also filed its Form 10-Q with the Securities and Exchange Commission.
"Project Foundry, our AI-native redesign of how Groupon operates, remains the most consequential work underway at the company, and just over four months in we are extremely pleased with the progress we have made," said Dusan Senkypl, Chief Executive Officer of Groupon. "While Q2 fell slightly short on the top line, we entered the third quarter with momentum and expect growth to accelerate in the second half. We continue to make meaningful progress across our strategic bets, with organic channels returning to growth, managed channels continuing to improve and personalization scaling across our consumer platform, giving us confidence in our outlook for the second half of 2026."
Second Quarter 2026 Highlights
Global Revenue down 1% and Billings down 1% (down 1% FX-neutral) year-over-year.
North America Local Revenue down 2% and Local Billings down 1%, reflecting softness in Health, Beauty & Wellness, partially offset by strength in Things to Do and recovery within our organic and managed channels.
International Local Revenue up 8% and Local Billings up 2% (down 1% FX-neutral). Excluding Giftcloud, International Local Revenue up 9% and International Local Billings up 5%, driven by improved organic performance from our new consumer platform and an expansion of seasonally relevant supply across major International cities, led by our Health, Beauty & Wellness and Things to Do offerings.
Active customers grew 2% to 16.1 million, with growth in both North America and International Local categories.
Unit sales were 8.5 million, down 7% year-over-year, reflecting lower transaction volume in North America and International, partially offset by an increase in average order value as customers purchased higher-value local inventory.
Loss from continuing operations was $1.5 million, compared with income from continuing operations of $20.6 million in the prior year period.
Adjusted EBITDA, a non-GAAP financial measure, was positive $14.8 million, compared with positive $15.6 million in the prior year period.
Operating cash inflow from continuing operations was $18.1 million and free cash flow, a non-GAAP financial measure, was positive $15.0 million.
Cash and cash equivalents as of June 30, 2026 were $226.3 million.
The restructuring plan we announced in May is underway and on track. The payroll actions are estimated to result in $20.0 million to $25.0 million in annualized cost savings. We recorded $3.2 million of restructuring charges in the second quarter under our 2026 Restructuring Plan. The Company estimates total pre-tax charges of $7.0 million to $13.0 million, with a majority of the related headcount reductions expected by the end of the third quarter.
Made progress across Project Foundry and our strategic bets to deepen customer engagement and drive durable growth: the rollout of our new consumer platform nears completion with conversion improving on nearly every surface, organic channels returned to growth, managed channels continued to improve, and we scaled new personalization and trust and quality capabilities.
Definitions and reconciliations of all non-GAAP financial measures and additional information regarding operating measures are included below in the section titled "Non-GAAP Financial Measures and Operating Metrics" and in the accompanying tables.
2026 Outlook1
For the third quarter and full year 2026, the Company expects:
As of August 6, 2026Q3 2026 Guidance
2026 GuidanceLow-end
High-end
Low-end
High-endBillings+4%
+6%
+3%
+5%Revenue$128M
$130M
$513M
$523M+4%
+6%
+3%
+5%Adjusted EBITDA$19M
$21M
$75M
$80MFree Cash FlowNegative
At least $60M1 We do not provide a reconciliation for non-GAAP estimates on a forward-looking basis where we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking U.S. GAAP financial measure that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable U.S. GAAP financial measures may vary materially from the corresponding U.S. GAAP financial measures. Reconciling items to the amounts above include foreign currency gains and losses, restructuring and other cost savings-related charges, investment-related activity such as observable price changes, gains and losses on discrete transactions, certain income tax items, and impairment or other charges.
The outlook above reflects management's current expectations for 2026 and includes forward-looking statements regarding the Company's anticipated financial performance and operating priorities. Actual results may differ materially as a result of risks and uncertainties described in Groupon's filings with the Securities and Exchange Commission, including its most recent Form 10-Q and Form 10-K.
For information about our guidance, refer to our earnings commentary that is posted on our investor relations website (investor.groupon.com).
Conference Call
A conference call will be webcast Friday, August 7, 2026 at 7:00 a.m. CT / 8:00 a.m. ET and will be available on Groupon's investor relations website at https://investor.groupon.com. This call will contain forward-looking statements and other material information regarding our financial and operating results.
Groupon encourages investors to use its investor relations website as a way of easily finding information about the Company. Groupon promptly makes available on this website, free of charge, the reports that the Company files or furnishes with the SEC, corporate governance information (including Groupon's Global Code of Conduct), and select press releases and social media postings. Groupon uses its investor relations website (investor.groupon.com) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
About Groupon
Groupon (NASDAQ: GRPN) (www.groupon.com) is a trusted local marketplace where consumers go to buy services and experiences that make life more interesting and deliver boundless value. To find out more about Groupon, please visit press.groupon.com.
Non-GAAP Financial Measures and Operating Metrics
In addition to financial results reported in accordance with U.S. GAAP, we have provided the following non-GAAP financial measures: Foreign currency exchange rate neutral operating results, Adjusted EBITDA, and free cash flow. These non-GAAP financial measures, which are presented on a continuing operations basis, are intended to aid investors in better understanding our current financial performance and prospects for the future as seen through the eyes of management. We believe that these non-GAAP financial measures facilitate comparisons with our historical results and with the results of peer companies who present similar measures (although other companies may define non-GAAP measures differently than we define them, even when similar terms are used to identify such measures). However, these non-GAAP financial measures are not intended to be a substitute for those reported in accordance with U.S. GAAP. For reconciliations of these measures to the most applicable financial measures under U.S. GAAP, see "Non-GAAP Reconciliation Schedules" included in the tables accompanying this release.
We exclude the following items from one or more of our non-GAAP financial measures:
Stock-based compensation. We exclude stock-based compensation because it is primarily non-cash in nature and we believe that non-GAAP financial measures excluding this item provide meaningful supplemental information about our operating performance and liquidity.
Depreciation and amortization. We exclude depreciation and amortization expenses because they are non-cash in nature and we believe that non-GAAP financial measures excluding these items provide meaningful supplemental information about our operating performance and liquidity.
Income taxes, interest, and other non-operating items. Income taxes, interest, and other non-operating items include: income taxes, foreign currency gains and losses, loss on extinguishment of debt, interest income and interest expense. We exclude interest and other non-operating items from certain of our non-GAAP financial measures because we believe that excluding these items provides meaningful supplemental information about our core operating performance and facilitates comparisons to our historical operating results.
Special charges and credits. We exclude special charges and credits related to our 2026 Restructuring Plan, Italy Restructuring Plan, 2022 Restructuring Plan and 2020 Restructuring Plan, as well as gain on sale of assets, and gain on sale of business. We exclude special charges and credits from Adjusted EBITDA because we believe that excluding those items provides meaningful supplemental information about our core operating performance and facilitates comparisons with our historical results.
Descriptions of the non-GAAP financial measures included in this release and the accompanying tables are as follows:
Foreign currency exchange rate neutral operating results show current period operating results as if foreign currency exchange rates had remained the same as those in effect in the prior year period. Those measures are intended to facilitate comparisons to our historical performance.
Adjusted EBITDA is a non-GAAP performance measure that we define as Income (loss) from continuing operations excluding income taxes, interest and other non-operating items, depreciation and amortization, stock-based compensation and other special charges and credits, including items that are unusual in nature or infrequently occurring. Our definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Adjusted EBITDA is a key measure used by our management and Board to evaluate operating performance, generate future operating plans and make strategic decisions. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board. However, Adjusted EBITDA is not intended to be a substitute for Income (loss) from continuing operations.
Free cash flow is a non-GAAP liquidity measure that comprises Net cash provided by (used in) operating activities from continuing operations less purchases of property and equipment and capitalized software. We use free cash flow to conduct and evaluate our business because, although it is similar to Net cash provided by (used in) operating activities from continuing operations, we believe that it typically represents a more useful measure of cash flows because purchases of fixed assets, software developed for internal use and website development costs are necessary components of our ongoing operations. Free cash flow is not intended to represent the total increase or decrease in our cash balance for the applicable period.
Descriptions of the operating metrics included in this release and the accompanying tables are as follows:
Gross billings is the total dollar value of customer purchases of goods and services. Gross billings is presented net of customer refunds, order discounts and sales and related taxes. The substantial majority of our revenue transactions are comprised of sales of vouchers and similar transactions in which we collect the transaction price from the customer and remit a portion of the transaction price to the third-party merchant who will provide the related goods or services. For these transactions, gross billings differs from Revenue reported in our Condensed Consolidated Statements of Operations, which is presented net of the merchant's share of the transaction price. Gross billings is an indicator of our growth and business performance as it measures the dollar volume of transactions generated through our marketplaces. Tracking gross billings also allows us to monitor the percentage of gross billings that we are able to retain after payments to merchants.
Active customers are unique user accounts, identified by a distinct email address, that have made a purchase during the trailing twelve months ("TTM") either through one of our online marketplaces or directly with a merchant for which we earned a commission. We consider this metric to be an important indicator of our business performance as it helps us to understand how the number of customers actively purchasing our offerings is trending. Some customers could establish and make purchases from more than one account, so it is possible that our active customer metric may count certain customers more than once in a given period. We do not include consumers who solely make purchases with retailers using digital coupons accessed through our websites or mobile applications in our active customer metric, nor do we include consumers who solely make purchases of our inventory through third-party marketplaces with which we partner.
Units are the number of purchases during the reporting period, before refunds and cancellations, made either through one of our online marketplaces, a third-party marketplace, or directly with a merchant for which we earn a commission. We do not include purchases with retailers using digital coupons accessed through our websites or mobile applications in our units metric. We consider units to be an important indicator of the total volume of business conducted through our marketplaces.
Note on Forward-Looking Statements
The statements contained in this release that refer to plans and expectations for the next quarter, the full year or the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), including statements regarding our future results of operations and financial position, business strategy and plans and our objectives for future operations and future liquidity. The words "may," "will," "should," "could," "expect," "anticipate," "believe," "estimate," "intend," "continue" and other similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties include, but are not limited to, our ability to execute and achieve the expected benefits of our go-forward strategy, including our broader AI-native transformation; the risk that the anticipated benefits of our AI strategy may not be realized in the time frame we expect or at all and may have adverse effects on our operations, merchants and customers; the risk that our public statements regarding our AI strategy and deployment of AI agents are not adequately substantiated or are later viewed as inconsistent with our actual capabilities or results; execution of our business and marketing strategies; volatility in our operating results; challenges arising from our international operations, including fluctuations in currency exchange rates, tax, legal and regulatory developments in the jurisdictions in which we operate and geopolitical instability; global economic uncertainty, including as a result of inflationary pressures; any impact from U.S. and international financial reform legislation and regulations, and any potential trade protection measures, such as new or incremental tariffs and other trade policies; retaining and adding high quality merchants and third-party business partners; retaining existing customers and adding new customers; competing successfully in our industry; providing a strong mobile experience for our customers; managing refund risks; retaining and attracting members of our executive and management teams and other qualified employees and personnel; customer and merchant fraud; payment-related risks; our reliance on email, Internet search engines and mobile application marketplaces to drive traffic to our marketplace; cybersecurity breaches; maintaining and improving our information technology infrastructure; reliance on cloud-based computing platforms; the risks associated with our use and integration of AI and machine learning technologies; completing and realizing the anticipated benefits from acquisitions, dispositions, joint ventures and strategic investments; lack of control over minority investments; managing inventory and order fulfillment risks; claims related to product and service offerings; protecting our intellectual property; maintaining a strong brand; the impact of future and pending litigation; compliance with domestic and foreign laws and regulations, including the CARD Act, GDPR, CPRA, and other privacy-related laws and regulations of the Internet and e-commerce; classification of our independent contractors, agency workers, or employees; risks relating to information or content published or made available on our websites or service offerings we make available; exposure to greater than anticipated tax liabilities; adoption of tax laws; our ability to use our tax attributes; impacts if we become subject to the Bank Secrecy Act or other anti-money laundering or money transmission laws or regulations; our ability to raise capital if necessary; risks related to our access to capital and outstanding indebtedness, including our 2027 Notes and 2030 Notes; our Common Stock, including volatility in our stock price and financial markets; a potential economic slowdown; and those risks and other factors discussed in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025 and Part II, Item 1A. Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and our other filings with the SEC. Moreover, we operate in a very competitive and rapidly changing environment, including with respect to emerging technologies such as AI, machine learning, and data analytics. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we make. Neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to future events or circumstances. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
As used herein, "Groupon," "the Company," "we," "our," "us" and similar terms include Groupon, Inc. and its subsidiaries, unless the context indicates otherwise.
Groupon, Inc.
Non-GAAP Reconciliation Schedules
(in thousands)
(unaudited)
The following is a quarterly reconciliation of Adjusted EBITDA to the most comparable U.S. GAAP performance measure, Income (loss) from continuing operations:
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Income (loss) from continuing operations$20,593
$(117,782) $8,081
$(12,589) $(1,456)Adjustments:
Stock-based compensation
8,782
11,109
10,189
11,911
8,330
Depreciation and amortization
4,423
4,301
4,267
4,191
4,060
Restructuring and related charges (credits)
(46)
(64)
(61)
7
3,161
(Gain) on sale of business
(10,650)
-
-
-
-
Loss on extinguishment of debt
-
99,925
-
-
-
Other (income) expense, net
(18,466)
(1,197)
(3,595)
4,371
3,275
Provision (benefit) for income taxes
10,927
21,248
2,022
4,899
(2,536)Total adjustments
(5,030)
135,322
12,822
25,379
16,290
Adjusted EBITDA$15,563
$17,540
$20,903
$12,790
$14,834
Free cash flow is a non-GAAP liquidity measure. The following is a reconciliation of free cash flow to the most comparable U.S. GAAP liquidity measure, Net cash provided by (used in) operating activities from continuing operations.
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Net cash provided by (used in) operating activities from continuing operations$28,419
$(20,506) $56,607
$(9,958) $18,127
Purchases of property and equipment and capitalized software from continuing operations
(3,230)
(4,082)
(3,575)
(3,559)
(3,105)Free cash flow$25,189
$(24,588) $53,032
$(13,517) $15,022
Net cash provided by (used in) investing activities from continuing operations$10,761
$(3,024) $2,423
$(3,559) $(3,105)Net cash provided by (used in) financing activities$(2,684) $(3,275) $(1,097) $(55,669) $(13,827)
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/308088
Source: Groupon
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The upcoming report from Groupon (GRPN - Free Report) is expected to reveal quarterly loss of -$0.08 per share, indicating a decline of 117.4% compared to the year-ago period. Analysts forecast revenues of $127.42 million, representing an increase of 1.4% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 16.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let's delve into the average projections of some Groupon metrics that are commonly tracked and projected by analysts on Wall Street.
According to the collective judgment of analysts, 'Revenue- Local' should come in at $119.80 million. The estimate points to a change of +2.7% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenue- Travel' should arrive at $5.08 million. The estimate indicates a change of -9.1% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenue- Goods' will likely reach $2.47 million. The estimate indicates a change of -28.1% from the prior-year quarter.
Analysts expect 'Geographic Revenue- North America' to come in at $99.98 million. The estimate indicates a change of 0% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Geographic Revenue- International- Local' of $24.69 million. The estimate indicates a year-over-year change of +11.2%.
Analysts forecast 'Geographic Revenue- International' to reach $27.37 million. The estimate indicates a change of +6.5% from the prior-year quarter.
It is projected by analysts that the 'Geographic Revenue- North America- Travel' will reach $4.13 million. The estimate indicates a change of -5% from the prior-year quarter.
The consensus estimate for 'Geographic Revenue- North America- Local' stands at $95.55 million. The estimate indicates a change of +1.1% from the prior-year quarter.
Analysts' assessment points toward 'Gross Billings' reaching $422.09 million. Compared to the present estimate, the company reported $416.70 million in the same quarter last year.
View all Key Company Metrics for Groupon here>>>
Shares of Groupon have experienced a change of +7.8% in the past month compared to the +0.2% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), GRPN is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Groupon (GRPN - Free Report) ended the recent trading session at $27.22, demonstrating a -3.13% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 1.52%. On the other hand, the Dow registered a loss of 2.19%, and the technology-centric Nasdaq decreased by 1.74%.
The stock of online daily deal service has risen by 16.79% in the past month, leading the Retail-Wholesale sector's gain of 1.87% and the S&P 500's gain of 1.92%.
The investment community will be closely monitoring the performance of Groupon in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2026. In that report, analysts expect Groupon to post earnings of -$0.08 per share. This would mark a year-over-year decline of 117.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $127.42 million, up 1.37% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of -$0.17 per share and a revenue of $519.48 million, demonstrating changes of +91.75% and +4.23%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Groupon. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 8.51% fall in the Zacks Consensus EPS estimate. Groupon presently features a Zacks Rank of #3 (Hold).
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 168, this industry ranks in the bottom 32% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GRPN in the coming trading sessions, be sure to utilize Zacks.com.
Chicago, Illinois--(Newsfile Corp. - July 24, 2026) - Groupon, Inc. (NASDAQ: GRPN) announced today that it intends to release the company's second quarter 2026 financial results after the market closes on Thursday, August 6, 2026.
The company will also host a conference call to answer questions regarding the company's results at 8:00am ET on Friday, August 7, 2026. Investors may submit questions by emailing [email protected].
A webcast of the conference call can be accessed live at investor.groupon.com. A replay of the webcast will be available through the same link following the conference call, along with other published materials.
About Groupon
Groupon (www.groupon.com) (NASDAQ: GRPN) is a trusted local marketplace where consumers go to buy services and experiences that make life more interesting and deliver boundless value. To find out more about Groupon, please visit press.groupon.com.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/306359
In the latest close session, Groupon (GRPN - Free Report) was down 9.01% at $25.41. This change lagged the S&P 500's daily loss of 1.21%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 2.15%.
Prior to today's trading, shares of the online daily deal service had gained 52.4% outpaced the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 0.42%.
Analysts and investors alike will be keeping a close eye on the performance of Groupon in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.08, reflecting a 117.39% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $127.42 million, indicating a 1.37% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.17 per share and a revenue of $519.48 million, signifying shifts of +91.75% and +4.23%, respectively, from the last year.
Any recent changes to analyst estimates for Groupon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 34.21% fall in the Zacks Consensus EPS estimate. Groupon is currently sporting a Zacks Rank of #3 (Hold).
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 158, placing it within the bottom 36% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Groupon (GRPN - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this online daily deal service have returned +65.4%, compared to the Zacks S&P 500 composite's -0.6% change. During this period, the Zacks Internet - Commerce industry, which Groupon falls in, has gained 4.3%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Groupon is expected to post a loss of $0.08 per share for the current quarter, representing a year-over-year change of -117.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -37.5%.
For the current fiscal year, the consensus earnings estimate of -$0.17 points to a change of +91.8% from the prior year. Over the last 30 days, this estimate has changed -34.2%.
For the next fiscal year, the consensus earnings estimate of $0.89 indicates a change of +623.5% from what Groupon is expected to report a year ago. Over the past month, the estimate has changed +1.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Groupon.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Groupon, the consensus sales estimate for the current quarter of $127.42 million indicates a year-over-year change of +1.4%. For the current and next fiscal years, $519.48 million and $561.06 million estimates indicate +4.2% and +8% changes, respectively.
Last Reported Results and Surprise HistoryGroupon reported revenues of $117.2 million in the last reported quarter, representing no change year over year. EPS of -$0.32 for the same period compares with $0.18 a year ago.
Compared to the Zacks Consensus Estimate of $117.26 million, the reported revenues represent a surprise of -0.05%. The EPS surprise was -1500%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Groupon is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Groupon. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Groupon (GRPN - Free Report) closed the most recent trading day at $27.83, moving -2.62% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 1.01% for the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.4%.
Shares of the online daily deal service witnessed a gain of 76.53% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 0.78%, and the S&P 500's gain of 0.32%.
The upcoming earnings release of Groupon will be of great interest to investors. The company is forecasted to report an EPS of -$0.07, showcasing a 115.22% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $127.42 million, up 1.37% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.16 per share and a revenue of $519.48 million, representing changes of +92.23% and +4.23%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Groupon. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 23.68% decrease. Groupon is holding a Zacks Rank of #3 (Hold) right now.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Groupon (GRPN - Free Report) ended the recent trading session at $26.05, demonstrating a -2.1% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.42%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.29%.
The online daily deal service's shares have seen an increase of 57.74% over the last month, surpassing the Retail-Wholesale sector's gain of 0.24% and the S&P 500's gain of 2.2%.
Analysts and investors alike will be keeping a close eye on the performance of Groupon in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.07, signifying a 115.22% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $127.42 million, up 1.37% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.16 per share and revenue of $519.48 million, which would represent changes of +92.23% and +4.23%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Groupon. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 23.68% lower. At present, Groupon boasts a Zacks Rank of #3 (Hold).
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
In the latest close session, Groupon (GRPN - Free Report) was up +1.02% at $26.84. The stock exceeded the S&P 500, which registered a loss of 0.45% for the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 1.16%.
Prior to today's trading, shares of the online daily deal service had gained 64.21% outpaced the Retail-Wholesale sector's loss of 0.18% and the S&P 500's gain of 2.14%.
Market participants will be closely following the financial results of Groupon in its upcoming release. The company's earnings per share (EPS) are projected to be -$0.07, reflecting a 115.22% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $127.42 million, up 1.37% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.16 per share and a revenue of $519.48 million, indicating changes of +92.23% and +4.23%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Groupon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 23.68% lower. As of now, Groupon holds a Zacks Rank of #3 (Hold).
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 178, positioning it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Groupon (GRPN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this online daily deal service have returned +64.2%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Internet - Commerce industry, which Groupon falls in, has lost 0.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Groupon is expected to post a loss of $0.07 per share, indicating a change of -115.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -25% over the last 30 days.
The consensus earnings estimate of -$0.16 for the current fiscal year indicates a year-over-year change of +92.2%. This estimate has changed -23.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.89 indicates a change of +652.1% from what Groupon is expected to report a year ago. Over the past month, the estimate has changed +1.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Groupon is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Groupon, the consensus sales estimate of $127.42 million for the current quarter points to a year-over-year change of +1.4%. The $519.48 million and $561.06 million estimates for the current and next fiscal years indicate changes of +4.2% and +8%, respectively.
Last Reported Results and Surprise HistoryGroupon reported revenues of $117.2 million in the last reported quarter, representing no change year over year. EPS of -$0.32 for the same period compares with $0.18 a year ago.
Compared to the Zacks Consensus Estimate of $117.26 million, the reported revenues represent a surprise of -0.05%. The EPS surprise was -1500%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Groupon is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Groupon. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Groupon (GRPN - Free Report) ended the recent trading session at $22.60, demonstrating a -1.22% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.05%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.24%.
The online daily deal service's shares have seen an increase of 7.92% over the last month, surpassing the Retail-Wholesale sector's loss of 7.87% and the S&P 500's loss of 1.42%.
The investment community will be paying close attention to the earnings performance of Groupon in its upcoming release. The company is expected to report EPS of -$0.07, down 115.22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $127.42 million, up 1.37% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.16 per share and revenue of $519.48 million, which would represent changes of +92.23% and +4.23%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Groupon. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 840% lower within the past month. As of now, Groupon holds a Zacks Rank of #3 (Hold).
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
