Groupon, Inc. reported strong first-quarter 2025 results, with net income reaching $7.2 million, or 17 cents per share. The company's revenue for the quarter was $117.2 million, surpassing estimates of $115.5 million, despite being down 5% year-over-year, or up 4% on an FX-neutral basis.
The company exceeded its guidance on both billings and Adjusted EBITDA, driven by robust performance in its core segments. Global billings grew 1.4% year-over-year, indicating continued progress towards sustained growth. North America Local billings accelerated to an impressive 11% year-over-year growth, marking the first time double-digit growth has been achieved since 2017, excluding the pandemic recovery period.
International Local billings, excluding Italy, also showed significant recovery, growing approximately 5% year-over-year. This improvement reflects the successful application of Groupon's marketplace playbook in international markets. The company raised its full-year 2025 billings growth rate guidance from 2-4% to 3-5%.
Furthermore, Groupon maintained its full-year 2025 revenue and Adjusted EBITDA guidance, despite the sale of the Giftcloud subsidiary in April 2025, which is expected to remove approximately $6 million in revenue and $4 million in Adjusted EBITDA for the remainder of the year. Management emphasized that maintaining the overall target effectively represents a raise for the core business.
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