Groupon Reports Q1 2025 Revenue of $117.2M, Net Income Turnaround to $7.6M

Groupon, Inc. reported a revenue of $117.2 million for the first quarter of 2025, a decrease of 4.8% from $123.1 million in the same period of the previous year. The company achieved a gross profit of $106.3 million, down from $110.6 million year-over-year. Despite the decline in revenue, Groupon posted a net income of $7.6 million, a significant turnaround from a net loss of $11.5 million in the prior year. This improvement was attributed to a favorable change in other income, primarily driven by foreign currency gains, which amounted to $10.2 million compared to a loss of $11.7 million in the previous year.

In terms of operational metrics, Groupon's gross billings increased to $386.5 million, up from $381.1 million in the prior year, indicating a 1% growth. However, the number of active customers decreased to 15.5 million from 16.1 million year-over-year. The company also reported a total of 8.5 million units sold, a decline from 9.1 million in the same quarter of 2024. The North America segment saw a slight increase in gross billings, while the International segment experienced a decline, primarily due to the exit from the Italian market and reduced site traffic.

Strategically, Groupon has been focusing on restructuring efforts, including the exit of its local business in Italy, which was part of a broader restructuring plan approved in July 2024. The company has also been investing in marketing, with expenses rising to $34.4 million from $28.8 million, reflecting a 19.5% increase. This investment aims to enhance customer acquisition and retention, particularly in the Local category, which has shown growth despite challenges in other areas.

Looking ahead, Groupon's management expressed optimism about future performance, citing ongoing investments in technology and marketing to improve customer experience and operational efficiency. The company has also completed an $80 million fully backstopped rights offering, which is expected to bolster its liquidity and support ongoing operational needs. However, challenges remain, including macroeconomic factors such as inflation and currency fluctuations, which could impact future performance. The company continues to monitor these risks closely as it navigates its strategic initiatives.