Groupon misses Q4 revenue estimates

Reuters03-11
Groupon misses Q4 revenue estimates

Overview

  • U.S. local marketplace's Q4 revenue rose 2% yr/yr but missed analyst expectations

  • Adjusted EBITDA for Q4 missed analyst expectations

  • Company returned to revenue and billings growth for first time in a decade

Outlook

  • Company did not provide specific guidance in the press release

Result Drivers

  • NORTH AMERICA LOCAL GROWTH - North America local revenue rose 4% and local billings increased 9% yr/yr in Q4

  • ACTIVE CUSTOMER INCREASE - Active customers rose 5% yr/yr to 16.2 mln as of Dec 31, 2025

  • HIGHER MARKETING SPEND - Marketing expense rose to $48.6 mln, or 37% of revenue, from $42.6 mln, or 33% of revenue, in prior year period

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Miss

$132.70 mln

$137.34 mln (3 Analysts)

Q4 Adjusted EBITDA

Miss

$20.90 mln

$22.59 mln (3 Analysts)

Q4 Billings

$446.50 mln

Q4 Gross Profit

$120 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the discount stores peer group is "buy."

  • Wall Street's median 12-month price target for Groupon Inc is $30.50, about 152.7% above its March 9 closing price of $12.07

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 27 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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