Groupon, Inc (GRPN) AI Stock Analysis

Groupon, Inc. functions as a global marketplace that facilitates connections between consumers and merchants through North America and International segments. Third-party merchants sell goods and services directly to customers on the platform, and the company also manages first-party goods inventory. Its offerings span local experiences, travel packages, consumer products, and services accessed via mobile applications and web platforms. Founded as ThePoint.com, Inc. and rebranded as Groupon, Inc. in October 2008, the company is headquartered in Chicago, Illinois. It works to expand merchant partnerships and drive engagement through promotional deals and marketing initiatives.

Groupon's revenue declined at a 5-year CAGR of -18.9% from FY2020 to FY2025, falling from $967.1M in FY2021 to $492.6M in FY2024 before rising 1.2% to $498.4M in FY2025. Gross margin expanded from 76.2% in FY2021 to 89.0% in FY2025. Operating margin turned positive to 1.8% in FY2024 and 2.6% in FY2025, improving from -28.0% in FY2022. Net income was -$83.5M in FY2025 with an EPS of $0.70. For the trailing twelve months ended June 30, 2026, revenue was $497.4M with an operating margin of 2.0% and EPS of -$3.12. In the quarter ended June 30, 2026, quarterly revenue fell 0.8% year-over-year while quarterly earnings grew 109.2%.

As of June 30, 2026, Groupon held $226.2M in cash and short-term investments against total debt of $312.3M, resulting in net debt of $86.0M. Total assets stood at $599.7M, while shareholders' equity was -$72.2M, reflecting negative equity, and the current ratio was 0.79. In FY2025, the company generated operating cash flow of $64.5M, free cash flow of $49.9M, and spent $14.6M on capital expenditures. Over the past 5 years, its share count changed by 16.7%.

At a last close of $16.57, Groupon trades at a forward P/E of 22.5x, an EV/EBITDA of 17.4x, and a price-to-sales ratio of 1.4x. These levels compare to the median of its US-listed Communication Services peers of 14.1x for forward P/E, 10.0x for EV/EBITDA, and 0.8x for price-to-sales. Its price-to-book ratio is 17.8x. Over the past year, GRPN delivered a return of -19.3% compared to 16.8% for the S&P 500 (SPY). Over 5 years, the stock returned -29.2% versus an 83.0% gain for the S&P 500.

Of the 3 analyst ratings covering Groupon, 2 rate it Strong Buy and 1 rates it Strong Sell. The mean price target is $28.67, representing a 73.0% premium over the last close of $16.57. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$0.16 on revenue of $518.6M. For the next fiscal year, analysts forecast an EPS of $0.86 on revenue of $560.3M. Groupon beat EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for November 5, 2026.

This page is an AI-written research summary of Groupon, Inc (GRPN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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