Groupon Shares Drop 13% After Q4 EPS Miss, Launches Board AI Committee
Groupon reported Q4 EPS of $0.17 versus a $0.21 estimate and revenue of $132.7 million below the $137.3 million consensus, prompting a 13.2% share drop. The company also forecasts FY 2026 revenue of $513 million to $523 million and established a board-level AI committee chaired by Amit Shah.
1. Q4 Earnings Disappointment
Groupon posted Q4 EPS of $0.17, missing the $0.21 consensus, and revenue of $132.7 million below the $137.3 million estimate, driving a 13.2% decline in extended trading and prompting concern over near-term performance. Outlook for fiscal 2026 revenue was set at $513 million to $523 million, well under the $556.5 million analyst forecast.
2. Fiscal 2025 Growth and Cash Flow
For the full year 2025, North America local revenue rose 5% and local billings climbed 14%, contributing to trailing twelve-month operating cash flow of $64.5 million and free cash flow of $49.9 million, underlining progress in Groupon’s multi-year transformation.
3. Board-Level AI Committee Formation
Groupon established a board-level Artificial Intelligence Committee led by new director Amit Shah, entrusting the group with oversight of AI integration strategy, responsible governance, cybersecurity and vendor risk, and talent development to drive innovation in local marketplace transactions.