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Groupon Q3 core profit misses analyst estimates

By Reuters News


Overview

  • U.S. local experiences marketplace's Q3 revenue rose 2% yr/yr, billings up 6%

  • Adjusted EBITDA for Q3 missed analyst expectations

  • Company posted $0.8 mln loss from continuing operations, sharply lower than prior year


Outlook

  • Groupon expects Q4 2026 revenue between $133 mln and $136 mln

  • Company sees full-year 2026 revenue between $500 mln and $503 mln

  • Groupon expects full-year 2026 adjusted EBITDA between $60 mln and $65 mln


Result Drivers

  • INTERNATIONAL GROWTH - Co said International Local Revenue rose 12% and Local Billings rose 11%, driven by expansion of seasonally relevant supply in major cities, especially in Health, Beauty & Wellness and Things to Do, and growth in paid and organic channels

  • NORTH AMERICA PERFORMANCE - Co said North America Local Revenue was flat and Local Billings up 4%, citing strength in Things to Do and Enterprise channel, and growth in paid and organic channels

  • HIGHER ORDER VALUE - Co said average order value increased 8% as customers purchased higher-value offerings, despite a 2% decline in unit sales


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EBITDA

Miss

$14.7 mln

$20.01 mln (3 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the discount stores peer group is "buy."

  • Wall Street's median 12-month price target for Groupon, Inc. is $23.00, about 48.5% above its November 6 closing price of $15.49

  • The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 64 three months ago


Reuters Recommended Reads

  • Nov 9 - Online ticket marketplace Vivid Seats' Q3 revenue beats estimates; to reduce debt

  • Nov 9 - Online gaming platform Sohu.com Q3 revenue drops on high base effect


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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