Groupon Delivers 7% Billings Growth to $1.67B, Sets $70-75M EBITDA Guidance
Full-year global billings rose 7% to $1.67 billion with $296 million in free cash flow, while active customers reached 16.2 million (up 5%) and North America locals grew 12%. Q4 billings increased 4% below guidance, and management forecasts 3–5% billings and revenue growth in 2026 with $70–75 million adjusted EBITDA and at least $60 million free cash flow as it shifts to an AI-native model.
1. Full-Year 2025 Results
Groupon achieved full-year global billings of $1.67 billion, up 7% year over year, and generated $296 million in free cash flow for the second consecutive year. The platform expanded to 16.2 million active customers (up over 5%), with North America local active customers rising 12%, driven by stronger conversion rates and targeted marketing.
2. Q4 Performance and Challenges
In Q4, global billings grew 4% year over year but fell short of the company’s guidance range. Management cited enterprise channel deceleration in North America, underperformance in organic and owned marketing channels, a weak pipeline for new enterprise merchants, and negative momentum in the travel category, while one-time SG&A benefits temporarily reduced expenses.
3. 2026 Guidance and Strategic Shift
For fiscal 2026, Groupon projects 3–5% growth in both billings and revenue, $70–75 million in adjusted EBITDA, and at least $60 million in free cash flow. The company plans to transition to an AI-native operating model, making inventory discoverable and transactable by AI agents by mid-2026 to enhance customer experience and operational efficiency.