Filing Flows › Groupon (GRPN) › Q1 2025
Groupon (GRPN) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 7, 2025
Groupon (GRPN) reported revenue of $117M for the first quarter 2025 (Q1 2025), -5% from a year earlier and -10% from the quarter before. Operating margin was 1.6%, net earnings $7.2M (6.1% of revenue).
Groupon, Q1 2025: revenue $117M (-5% year over year), operating margin 1.6%, net earnings $7.2M, operating cash flow −$22K. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $117M | -10% | -5% |
| Gross profit | $106M | -10% | -4% |
| Operating profit | $1.9M | -29% | -74% |
| Net earnings | $7.2M | — | — |
| Operating cash flow | −$22K | -100% | — |
What changed
Revenue was $117.2M in Q1 2025, down 5% year over year and down 10% from the previous quarter. North America was the largest line at 78% of revenue. North America lost $3.0M year over year (down 3%), 51% of the total change.
Gross margin was 90.7%, up 0.9 points from a year earlier. Operating profit was $1.9M, a 1.6% margin (down 4.4 points year over year). Operating expenses grew 1% against a revenue fall of 5%. The fastest-growing cost line was Other operating costs (+20%). Net earnings were $7.2M. The effective tax rate was 15.9%. Non-operating items added $7.1M, 79% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$22K. Non-cash charges added back $5.2M of depreciation and amortization and $7.7M of share-based compensation. Working capital and other items used $20.5M. Capital expenditures of $3.7M exceeded it, leaving free cash flow of −$3.8M.
Questions
What was Groupon's revenue in the first quarter 2025?
Groupon (GRPN) reported revenue of $117M for the first quarter 2025 (Q1 2025), -5% from a year earlier and -10% from the quarter before.
Was Groupon profitable in the first quarter 2025?
Operating profit was $1.9M (1.6% of revenue) and net earnings $7.2M.
Source: Groupon 10-Q on SEC EDGAR.