Groupon: Groupon Stock Soars Over 40% on Strong Q4 Revenue and Bullish 2025 Outlook

In This Article: Shares of Groupon ( NASDAQ:GRPN ) soared 41.86% to $13.86 as of 14:13 ET on Wednesday after the company beat Q4 revenue estimates and provided an upbeat 2025 outlook. The company expects 2025 revenue between $493 million and $500 million and adjusted EBITDA of $70 million to $75 million, both topping Bloomberg's consensus estimates of $491.3 million in revenue and $74.8 million in EBITDA. Groupon also projects at least $41 million in free cash flow for the year. Warning! GuruFocus has detected 4 Warning Signs with GRPN. CEO Dusan Senkypl highlighted the company's return to growth in North America and its first positive free cash flow since the pandemic. He noted that after a challenging Q3, North America Local Billings rebounded by 8% in Q4, setting a strong foundation for 2025. Q4 results showed North America gross billings up 3%, while International billings declined 11%. Active customers stood at 15.4 million, flat sequentially but down 6% year-over-year. Groupon ended the quarter with $228.8 million in cash and equivalents. Despite these positive trends, Groupon reported a net loss of $50.6 million ($1.20 per share), compared to a profit of $27.7 million ($0.76 per share) a year ago. The loss was driven by declining revenue, rising operating costs, and a $44.4 million other expense. Revenue fell 5.3% to $130.4 million but still beat analyst expectations of $127.7 million. This article first appeared on GuruFocus .