Q3 2025 Groupon Inc Earnings Call Transcript
Key Points
- Global billings grew 11% year over year, marking the second consecutive quarter of double-digit growth.
- North America Local category saw an 18% increase, while international local excluding gift cloud grew 15% year over year.
- Adjusted EBITDA reached $18 million, surpassing expectations, and trailing 12 months free cash flow was $60 million.
- The company added nearly 300,000 net new active customers quarter over quarter and over 1 million in the last four quarters, excluding Italy.
- Chicago, as a focus city, is growing at nearly double the rate of North America overall, demonstrating the success of the hyperlocal strategy.
- Despite improvements, the purchase frequency among new cohorts is still below that of legacy customers.
- The platform's technological limitations are hindering the ability to fully capitalize on marketing and personalization efforts.
- SEO traffic is decreasing due to changes in AI-driven search algorithms, posing a headwind for organic growth.
- The Italian tax settlement remains unresolved, with a remaining liability of approximately $15 million.
- The new app's monetization is on par with the legacy app, indicating no significant uplift in conversion yet.
Hello and welcome to Groupon's 3rd quarter 2025 financial results conference call. On the call today, our Chief Executive Officer, Dusan Senkypl and Chief Financial Officer, Rana Kashyap.
(Operator Instructions)
Before we begin, Groupon would like to remind listeners that the following discussion and responses to questions reflect management's views as of today, November 7, 2025, only, and will include forward-looking statements. Actual results may differ materially from those expressed or implied in the company's forward-looking statements. Groupon undertakes no obligation to update these forward-looking statements as a result of new information or future events. Additional information about risks and other factors that could potentially impact the company's financial results are included in its earnings press release and its filings with the SEC, including its quarterly report on Form 10-Q.
We encourage investors to use Groupon's investor relations website at investor.groupon.com as a way of easily finding information about the company.
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