Groupon maintains exceptional gross margins consistently around 91%, but operational profitability remains elusive due to volatile SG&A costs that drove a -2.8% operating margin in 2026Q1, while revenue growth has decelerated to -0.8% year-over-year in 2026Q2.
Groupon, Inc. (GRPN) annual income statement — 17-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Sales/Revenue | 497.41M | 498.42M | 492.56M | 514.91M | 599.09M | 967.11M | 1.42B | 2.22B | 2.64B | 2.84B | 3.01B | 3.12B | 3.19B | 2.57B | 2.33B | 1.62B | 713.37M | 14.54M |
| Revenue Growth % | 1.98% | 1.19% | -4.34% | -14.05% | -38.05% | -31.74% | -36.15% | -15.85% | -7.28% | -5.63% | -3.39% | -2.26% | 24.01% | 10.25% | 43.68% | 127.76% | 4806.22% | - |
| Cost of Goods Sold | 48.55M | 54.95M | 48.25M | 64.25M | 76.26M | 229.99M | 739.57M | 1.03B | 1.32B | 1.51B | 1.73B | 1.73B | 1.64B | 1.07B | 718.94M | 249.91M | 433.41M | 4.72M |
| COGS % of Revenue | - | 11.03% | 9.8% | 12.48% | 12.73% | 23.78% | 52.2% | 46.54% | 49.92% | 53.1% | 57.5% | 55.6% | 51.46% | 41.66% | 30.8% | 15.38% | 60.76% | 32.43% |
| Gross Profit | 448.86M | 443.47M | 444.31M | 450.66M | 522.82M | 737.12M | 677.29M | 1.19B | 1.32B | 1.33B | 1.28B | 1.39B | 1.55B | 1.5B | 1.62B | 1.37B | 279.95M | 9.82M |
| Gross Margin % | 90.24% | 88.97% | 90.2% | 87.52% | 87.27% | 76.22% | 47.8% | 53.46% | 50.08% | 46.9% | 42.5% | 44.4% | 48.54% | 58.34% | 69.2% | 84.62% | 39.24% | 67.57% |
| Gross Profit Growth % | - | -0.19% | -1.41% | -13.8% | -29.07% | 8.83% | -42.9% | -10.18% | -0.99% | 4.15% | -7.54% | -10.59% | 3.17% | -7.06% | 17.51% | 391.09% | 2749.69% | - |
| Operating Expenses | 444.24M | 430.51M | 435.51M | 468.92M | 690.64M | 741.77M | 954.39M | 1.15B | 1.27B | 1.3B | 1.38B | 1.45B | 1.56B | 1.43B | 1.52B | 1.58B | 497.12M | 10.9M |
| OpEx % of Revenue | - | 86.37% | 88.42% | 91.07% | 115.28% | 76.7% | 67.36% | 51.66% | 48.04% | 45.81% | 45.82% | 46.39% | 48.96% | 55.4% | 64.94% | 97.42% | 69.69% | 74.97% |
| Selling, General & Admin | 349.77M | 430.51M | 439.61M | 460.91M | 630.61M | 699.88M | 757.72M | 1.15B | 1.27B | 1.3B | 1.35B | 1.45B | 1.56B | 1.43B | 1.52B | 1.58B | 497.12M | 10.9M |
| SG&A % of Revenue | - | 86.37% | 89.25% | 89.51% | 105.26% | 72.37% | 53.48% | 51.66% | 48.04% | 45.81% | 44.86% | 46.39% | 48.96% | 55.4% | 64.94% | 97.42% | 69.69% | 74.97% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 58.8M | 56.6M | 53.9M | 57M | 55M | 50M | 42.1M | 25.2M | 3.4M | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | 4.15% | 2.55% | 2.04% | 2% | 1.83% | 1.6% | 1.32% | 0.98% | 0.15% | - | - | - |
| Other Operating Expenses | 3M | 0 | -4.09M | 8.01M | 60.03M | 41.9M | 137.87M | -56.57M | -53.9M | -57M | -25.96M | -28.54M | 11K | -94.62M | 0 | 0 | 0 | 0 |
| Operating Income | 4.61M | 12.96M | 8.79M | -18.25M | -167.81M | -4.66M | -277.1M | 39.8M | 54.04M | 29.43M | -65.55M | -79.78M | -14.84M | 75.75M | 98.7M | -203.38M | -420.34M | -1.08M |
| Operating Margin % | 0.93% | 2.6% | 1.79% | -3.54% | -28.01% | -0.48% | -19.56% | 1.79% | 2.05% | 1.03% | -2.18% | -2.56% | -0.46% | 2.94% | 4.23% | -12.52% | -58.92% | -7.41% |
| Operating Income Growth % | - | 47.33% | 148.18% | 89.12% | -3505.05% | 98.32% | -796.26% | -26.35% | 83.59% | 144.91% | 17.83% | -437.51% | -119.59% | -23.25% | 148.53% | 51.62% | -38929.16% | - |
| EBITDA | 21.42M | 31.56M | 39.69M | 32.97M | -105.15M | 68.16M | -189.58M | 145.56M | 169.87M | 167.26M | 70.36M | 53.19M | 130.08M | 165.2M | 154.5M | -171.32M | -407.39M | -997K |
| EBITDA Margin % | 4.31% | 6.33% | 8.06% | 6.4% | -17.55% | 7.05% | -13.38% | 6.56% | 6.44% | 5.88% | 2.33% | 1.71% | 4.08% | 6.42% | 6.62% | -10.54% | -57.11% | -6.86% |
| EBITDA Growth % | -39.34% | -20.5% | 20.41% | 131.35% | -254.26% | 135.96% | -230.24% | -14.31% | 1.56% | 137.72% | 32.27% | -59.11% | -21.26% | 6.93% | 190.18% | 57.95% | -40761.79% | - |
| D&A (Non-Cash Add-back) | 16.82M | 18.6M | 30.9M | 51.22M | 62.66M | 72.82M | 87.52M | 105.77M | 115.83M | 137.83M | 135.91M | 132.97M | 144.92M | 89.45M | 55.8M | 32.05M | 12.95M | 80K |
| EBIT | -84M | -31.2M | -21.86M | -27.71M | -177.59M | 105.23M | -260.87M | 10.06M | 22.94M | 56.83M | -155.62M | -105.31M | -47.29M | -18.62M | 94.94M | -254.06M | -217.16M | -1.08M |
| Net Interest Income | -6.49M | -8.3M | -3.38M | -5.45M | -4.85M | -12.09M | -26.84M | -15.85M | -15.49M | -17.39M | -14.1M | -1.93M | 533K | 1.43M | 2.52M | 1.18M | -240K | -16K |
| Interest Income | 7.63M | 5.95M | 5.15M | 10.26M | 9.53M | 5.12M | 6.35M | 7.74M | 6.42M | 3.29M | 1.81M | 863K | 1.42M | 1.72M | 2.52M | 1.18M | 160K | 0 |
| Interest Expense | 14.12M | 14.25M | 8.53M | 15.72M | 14.38M | 17.21M | 33.19M | 23.59M | 21.91M | 20.68M | 15.91M | 2.79M | 883K | 291K | 0 | 0 | 400K | 16K |
| Other Income/Expense | -102.72M | -58.41M | -39.19M | -25.17M | -24.16M | 92.68M | -16.97M | -53.33M | -53.01M | 6.71M | -105.98M | -37.65M | -33.35M | -94.66M | -3.76M | -20.68M | -202.9M | -16K |
| Pretax Income | -98.11M | -45.46M | -30.39M | -43.43M | -191.97M | 88.03M | -294.07M | -13.53M | 1.03M | 36.15M | -171.53M | -108.32M | -48.2M | -18.91M | 94.94M | -230.81M | -420.06M | -1.09M |
| Pretax Margin % | -19.72% | -9.12% | -6.17% | -8.43% | -32.04% | 9.1% | -20.75% | -0.61% | 0.04% | 1.27% | -5.69% | -3.47% | -1.51% | -0.73% | 4.07% | -14.21% | -58.88% | -7.52% |
| Income Tax | 25.63M | 35.63M | 26.12M | 9.51M | 42.41M | -32.32M | -7.5M | 761K | -957K | 7.54M | 5.32M | -19.14M | 15.72M | 70.04M | 145.97M | 44.3M | -6.67M | 248K |
| Effective Tax Rate % | -26.13% | -78.37% | -85.96% | -21.89% | -22.09% | -36.72% | 2.55% | -5.62% | -92.82% | 20.87% | -3.1% | 17.68% | -32.63% | -370.39% | 153.75% | -19.19% | 1.59% | -22.69% |
| Net Income | -125.66M | -83.52M | -59.03M | -55.41M | -237.61M | 118.67M | -287.93M | -22.38M | -11.08M | 14.04M | -194.59M | 20.67M | -73.09M | -95.39M | -54.77M | -256.78M | -389.64M | -1.34M |
| Net Margin % | -25.26% | -16.76% | -11.98% | -10.76% | -39.66% | 12.27% | -20.32% | -1.01% | -0.42% | 0.49% | -6.46% | 0.66% | -2.29% | -3.71% | -2.35% | -15.8% | -54.62% | -9.22% |
| Net Income Growth % | -1264.48% | -41.49% | -6.53% | 76.68% | -300.23% | 141.21% | -1186.73% | -101.98% | -178.91% | 107.22% | -1041.49% | 128.28% | 23.38% | -74.16% | 78.67% | 34.1% | -28955.93% | - |
| Net Income (Continuing) | -123.75M | -81.08M | -56.51M | -52.93M | -234.38M | 120.35M | -286.56M | -14.29M | 1.99M | 28.6M | -166.21M | -89.17M | -18.47M | -88.95M | -51.03M | -297.76M | -413.39M | -1.34M |
| Discontinued Operations | -191K | -616K | 0 | 0 | 0 | 0 | 382K | 2.6M | 0 | -1.97M | -17.11M | 106.93M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 114K | 172K | 236K | 319K | 383K | 424K | -1K | 1.11M | 1.36M | 872K | 642K | 1.19M | 2.12M | -1.97M | -1.94M | -3.07M | 1.45M | 0 |
| EPS (Diluted) | -3.23 | -2.08 | -1.51 | -1.77 | -7.88 | 3.68 | -10.02 | -0.79 | -0.39 | 0.40 | -6.75 | 0.60 | -2.17 | -2.87 | -1.68 | -14.18 | -25.53 | -0.09 |
| EPS Growth % | -1084.62% | -37.75% | 14.69% | 77.54% | -314.13% | 136.73% | -1168.35% | -102.56% | -197.5% | 105.93% | -1225% | 127.65% | 24.39% | -70.83% | 88.15% | 44.46% | -28944.37% | - |
| EPS (Basic) | - | -2.08 | -1.51 | -1.77 | -7.88 | 4.04 | -10.02 | -0.79 | -0.39 | 0.56 | -6.80 | 0.60 | -2.17 | -2.87 | -1.68 | -14.18 | -25.53 | -0.09 |
| Diluted Shares Outstanding | 38.96M | 40.3M | 39.17M | 31.24M | 30.17M | 33.51M | 28.6M | 28.37M | 28.33M | 28.42M | 28.82M | 32.51M | 33.74M | 33.2M | 32.51M | 18.11M | 15.26M | 15.26M |
| Basic Shares Outstanding | 38.96M | 40.3M | 39.17M | 31.24M | 30.17M | 29.37M | 28.6M | 28.37M | 28.33M | 27.97M | 28.62M | 32.51M | 33.74M | 33.2M | 32.51M | 18.11M | 15.26M | 15.26M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying GRPN stock.
For fiscal year 2025, Groupon, Inc. (GRPN) reported total revenue of $498.4M. This represents a 3327.9% increase compared to $14.5M in 2009.
Groupon, Inc. (GRPN) reported a net loss of $83.5M for the fiscal year ending 2025.
Groupon, Inc. (GRPN) reported an operating income of $13.0M, resulting in an operating profit margin of 2.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Groupon, Inc. (GRPN) generated $443.5M in gross profit for the year, representing a gross profit margin of 89.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Sustained operating losses and EPS volatility
Metrics are mathematically derived from official filings.
Stagnant Revenue with Volatile Quarterly Swings
Groupon's revenue growth has been largely stagnant, with year-over-year trends oscillating between contraction and minimal expansion, as evidenced by a -0.8% decline in 2026Q2 following a flat 0.0% result in 2026Q1, according to the reported quarterly figures.
The company's revenue trajectory lacks consistent organic momentum, with quarterly results showing significant volatility rather than a clear directional trend. This pattern suggests the business may be highly sensitive to deal cycles or promotional activity rather than building sustainable customer growth, making the underlying revenue base appear fragile. The lack of consistent top-line acceleration raises questions about long-term market share retention in its core deals marketplace.
Exceptional Gross Margins, Operational Profitability Elusive
While Groupon maintains best-in-class gross margins consistently around 90%, matching its peer ANGI, operational profitability remains elusive, with operating margins swinging from a 10.4% high in 2025Q2 to a -2.8% low in 2026Q1, as reported in the income statements.
The high gross margin reflects the asset-light, commission-based nature of the platform business. However, the extreme volatility in operating margins indicates a cost structure, particularly in SG&A, that is not well-aligned with the revenue stream, leading to periods of operating loss despite the strong gross profit contribution. This disconnect suggests significant fixed-cost components in overhead that cannot be easily scaled down during lower-revenue periods.
SG&A as the Dominant and Volatile Expense Driver
SG&A is the overwhelmingly dominant cost line item, varying from 55% to 93% of revenue across quarters, with the 2026Q1 spike to $109.4M (93% of revenue) directly causing the period's operating loss, per the detailed expense breakdowns.
The company's cost structure is characterized by extreme variability in selling, general, and administrative expenses, which appear to be the primary lever influencing bottom-line results. The quarter-to-quarter swings in SG&A are not mirrored in COGS, suggesting they are driven by discretionary spending like marketing, restructuring, or compensation rather than direct costs. This level of SG&A volatility implies a lack of disciplined cost control or highly lumpy expense recognition, which creates significant earnings uncertainty.
Net Income Volatility Driven by Non-Operating Items
Reported net income is highly inconsistent and often decouples from operating performance, with 2025Q3 showing a massive $118.4M net loss despite a $2.2M operating profit, suggesting significant non-cash charges or one-time items impacting the bottom line.
The erratic net income and EPS figures, which fluctuate wildly from quarter to quarter and do not correlate with operating income trends, signal poor earnings quality. The large discrepancy in 2025Q3 points to substantial non-operating charges, possibly related to asset impairments or restructuring, which distort the true ongoing profitability of the core business. Investors should focus on operating metrics rather than net income, as the latter appears to be subject to significant non-recurring adjustments.
Negative Operating Leverage Amid Cost Restructuring
Groupon appears to be experiencing negative operating leverage, where declining or flat revenue is paired with disproportionately high SG&A, leading to operating losses, as seen in the swing from $6.4M operating income in 2025Q4 to a -$3.3M loss in 2026Q1.
The analysis suggests the company's cost base, particularly SG&A, has not scaled down in line with the slight revenue contraction, magnifying losses. This indicates a potential failure in cost restructuring efforts or that the business has reached a scale where it cannot cover its fixed overheads without consistent revenue growth. The situation contrasts with the prior year (e.g., 2024Q4), where similar revenue levels supported positive operating income, pointing to a recent deterioration in cost efficiency.
Path to Profitability Hinges on Unproven Cost Control
The primary bear case is that Groupon's revenue is not growing, yet its massive SG&A expense base remains volatile and high, with the company swinging back to operating losses in recent quarters after a brief period of profitability.
Short-sellers would focus on the combination of stagnating top-line growth and an inability to consistently control overhead, which makes sustained profitability appear unlikely. The recent quarters (2026Q1 and 2026Q2) have shown a return to operating losses, undermining the narrative that the company had turned a corner after the profitable 2025Q2-Q4 period. Without clear evidence of SG&A discipline or a new growth catalyst, the income statement suggests a challenging path to creating long-term shareholder value.