Groupon Reports Q2 2025 Revenue of $125.7M and Net Income Turnaround

Groupon, Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $125.7 million, a slight increase from $124.6 million in the same period last year. For the first half of 2025, the company generated $242.9 million in revenue, down from $247.7 million in the prior year. The company achieved a net income of $20.3 million for the quarter, compared to a net loss of $10.0 million in Q2 2024. This marks a significant turnaround in profitability, with net income for the first half of 2025 reaching $27.5 million, compared to a loss of $22.3 million in the same period last year.

Groupon's operational metrics showed mixed results. The company reported gross billings of $416.7 million for the second quarter, up from $373.6 million a year earlier, driven by a 20% increase in local gross billings. However, the number of active customers remained relatively stable, with 15.8 million active customers reported for the trailing twelve months ending June 30, 2025, compared to 15.8 million in the previous year. The company’s marketing expenses increased by 13.4% to $41.4 million, reflecting a strategic push to enhance customer acquisition and retention.

In terms of strategic developments, Groupon completed the sale of its non-core business, Giftcloud, for $17.1 million in cash, which contributed to a pre-tax gain of $10.7 million. The company also announced a rights offering that raised $80 million, which was used to pay down debt and improve liquidity. As of June 30, 2025, Groupon had cash and cash equivalents of $262.6 million, an increase from $228.8 million at the end of 2024.

The company continues to face challenges, particularly in its international segment, where revenue declined to $25.7 million from $26.3 million year-over-year. The decline was attributed to the divestiture of Giftcloud and the exit from the Italian market, although local gross billings outside these areas showed growth. Groupon is also navigating ongoing tax assessments in Italy, with a potential resolution in sight that could reduce liabilities significantly.

Looking ahead, Groupon remains focused on enhancing its marketplace offerings and improving customer experiences. The company is optimistic about its growth strategy, which includes strengthening relationships with local merchants and investing in technology to drive operational efficiency. However, it acknowledges the potential impact of macroeconomic conditions, including inflation and changes in consumer behavior, on its future performance.