Groupon (NASDAQ:GRPN) Posts Earnings Results, Misses Expectations By $0.30 EPS

Key Points

• Groupon missed earnings expectations in its quarterly report, posting EPS of -$0.32 versus the expected -$0.02. Revenue came in at $117.2 million, slightly below estimates of $117.65 million.
• The company’s profitability remains weak, with a negative net margin of 20.78% and negative return on equity of 717.37%. Core business trends also showed softness, including a 1% decline in billings and 1% decline in North America local revenue.
• Despite the earnings miss, the stock rose sharply after the report, trading up to $17.78 on heavy volume. Investors appeared encouraged by management’s confidence in “stronger performance ahead” and some growth in international local revenue and the “Things to Do” segment.

Groupon (NASDAQ:GRPN - Get Free Report) posted its quarterly earnings results on Thursday. The coupon company reported ($0.32) earnings per share for the quarter, missing the consensus estimate of ($0.02) by ($0.30), FiscalAI reports. Groupon had a negative return on equity of 717.37% and a negative net margin of 20.78%.The company had revenue of $117.20 million during the quarter, compared to analysts' expectations of $117.65 million.

Groupon Stock Performance

Shares of GRPN traded up $2.32 on Friday, hitting $17.78. 6,210,170 shares of the stock traded hands, compared to its average volume of 2,362,438. Groupon has a one year low of $9.17 and a one year high of $43.08. The company has a market capitalization of $689.86 million, a PE ratio of -6.81 and a beta of 0.11. The business has a 50 day simple moving average of $12.55 and a 200 day simple moving average of $15.22.

Trending Headlines about Groupon

Here are the key news stories impacting Groupon this week:

• Positive Sentiment: Groupon’s CEO said he is confident in “stronger performance ahead,” which helped offset some of the disappointment from the quarter and supported buying interest in the stock. Article Title
• Positive Sentiment: International local revenue rose 10%, or 19% excluding Giftcloud, and the “Things to Do” segment showed gains, suggesting some areas of the business are still growing. Article Title
• Positive Sentiment: Unusually large call-option buying in GRPN points to elevated trader speculation that the stock could continue its recent momentum. Article Title
• Neutral Sentiment: Groupon updated FY2026 revenue guidance to $513 million-$523 million and Q2 revenue guidance to $126 million-$128 million, which is broadly in line to slightly below analyst expectations. Article Title
• Negative Sentiment: First-quarter EPS of -$0.32 missed estimates by a wide margin, while revenue of $117.2 million was also slightly below expectations, underscoring that profitability remains under pressure. Article Title
• Negative Sentiment: Billings declined 1% and North America local revenue fell 1%, showing that core business trends are still soft despite pockets of improvement. Article Title

Institutional Trading of Groupon

Several institutional investors have recently added to or reduced their stakes in GRPN. Caitong International Asset Management Co. Ltd purchased a new position in shares of Groupon in the third quarter worth $32,000. Quarry LP boosted its position in shares of Groupon by 48.1% during the third 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 last quarter. Johnson Financial Group Inc. bought a new stake in Groupon in the 4th quarter worth about $35,000. Raymond James Financial Inc. bought a new stake in Groupon in the 2nd quarter worth about $69,000. Finally, Tower Research Capital LLC TRC raised its position in Groupon by 386.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,547 shares of the coupon company's stock worth $85,000 after buying an additional 2,023 shares during the last quarter. 90.05% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have commented on the company. Wall Street Zen downgraded Groupon from a "hold" rating to a "sell" rating in a report on Saturday. The Goldman Sachs Group reduced their price target on Groupon from $17.00 to $10.00 and set a "sell" rating for the company in a report on Thursday, March 12th. Two analysts have 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 has an average rating of "Hold" and an average price target of $33.67.

Groupon Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.