📊 GRPN Key Takeaways
Is Groupon, Inc. (GRPN) a Good Investment?
Groupon exhibits severe financial distress with negative stockholders equity (-62.6M), negative free cash flow (-13.5M), and unprofitability despite minimal revenue growth of 1.2% YoY. The company is burning cash while unable to control operating expenses despite maintaining a strong 90.5% gross margin, creating an unsustainable trajectory with 308.2M in long-term debt and liquidity concerns.
Core marketplace economics remain attractive with very high gross margin, positive operating income, and solid free cash flow despite modest top-line growth. However, persistent GAAP losses, negative equity, and sub-1.0 liquidity constrain flexibility and elevate risk. Further evidence of consistent net profitability and balance sheet repair is needed before a more constructive stance.
Why Buy Groupon, Inc. Stock? GRPN Key Strengths
- Strong gross margin of 90.5% demonstrates pricing power and favorable unit economics
- Significant cash reserves of 225.5M provide short-term liquidity cushion
- Revenue base remains stable with positive albeit minimal growth
- Exceptionally high gross margin indicating asset-light economics
- Positive operating income with 10% FCF margin
- Adequate interest coverage and sizable cash balance
GRPN Stock Risks: Groupon, Inc. Investment Risks
- Negative stockholders equity of -62.6M indicates balance sheet insolvency and technical bankruptcy
- Negative free cash flow of -13.5M with negative operating cash flow shows unsustainable cash burn
- Current ratio of 0.81x and quick ratio of 0.76x reveal acute liquidity stress despite cash on hand
- Operating expenses uncontrollably high relative to revenue, producing -2.8% operating margin
- Net income deteriorating 44.6% YoY with deepening operating losses
- High debt burden (308.2M) relative to financial position with negative interest coverage of -1.7x
- Negative stockholders’ equity and sub-1.0 liquidity ratios
- Continuing GAAP net losses and worsening EPS trend
- Low revenue growth suggesting potential structural demand headwinds
Key Metrics to Watch
- Operating cash flow and free cash flow trajectory - path to cash flow breakeven
- Monthly cash burn rate and runway given 225.5M cash balance
- Operating expense ratio and progress toward operating profitability
- Revenue growth acceleration required to justify current cost structure
- Debt maturity schedule and refinancing capability with negative equity
- Free cash flow (TTM)
- Net margin (GAAP)
Groupon, Inc. (GRPN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
GRPN Profit Margin, ROE & Profitability Analysis
GRPN vs Services Sector: How Groupon, Inc. Compares
How Groupon, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Groupon, Inc. Stock Overvalued? GRPN Valuation Analysis 2026
Based on fundamental analysis, Groupon, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Groupon, Inc. Balance Sheet: GRPN Debt, Cash & Liquidity
GRPN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Groupon, Inc.'s revenue has declined by 77% over the 5-year period, indicating business contraction. The most recent EPS of $-1.77 indicates the company is currently unprofitable.
GRPN Revenue Growth, EPS Growth & YoY Performance
GRPN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $117.2M | $7.2M | $0.17 |
| Q3 2025 | $114.5M | -$8.4M | $-0.22 |
| Q2 2025 | $124.6M | -$10.0M | $-0.25 |
| Q1 2025 | $117.2M | $7.2M | $0.17 |
| Q3 2024 | $114.5M | -$8.4M | $-0.22 |
| Q2 2024 | $124.6M | -$10.0M | $-0.25 |
| Q1 2024 | $121.6M | -$12.3M | $-0.33 |
| Q3 2023 | $126.5M | -$41.4M | $-1.31 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Groupon, Inc. Dividends, Buybacks & Capital Allocation
GRPN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Groupon, Inc. (CIK: 0001490281)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GRPN
What is the AI rating for GRPN?
Groupon, Inc. (GRPN) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GRPN's key strengths?
Claude: Strong gross margin of 90.5% demonstrates pricing power and favorable unit economics. Significant cash reserves of 225.5M provide short-term liquidity cushion. ChatGPT: Exceptionally high gross margin indicating asset-light economics. Positive operating income with 10% FCF margin.
What are the risks of investing in GRPN?
Claude: Negative stockholders equity of -62.6M indicates balance sheet insolvency and technical bankruptcy. Negative free cash flow of -13.5M with negative operating cash flow shows unsustainable cash burn. ChatGPT: Negative stockholders’ equity and sub-1.0 liquidity ratios. Continuing GAAP net losses and worsening EPS trend.
What is GRPN's revenue and growth?
Groupon, Inc. reported revenue of $117.2M.
Does GRPN pay dividends?
Groupon, Inc. does not currently pay dividends.
Where can I find GRPN SEC filings?
Official SEC filings for Groupon, Inc. (CIK: 0001490281) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GRPN's EPS?
Groupon, Inc. has a diluted EPS of $-0.32.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GRPN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Groupon, Inc. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GRPN stock overvalued or undervalued?
Valuation metrics for GRPN: ROE of N/A (sector avg: 16%), net margin of -11.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy GRPN stock in 2026?
Our dual AI analysis gives Groupon, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GRPN's free cash flow?
Groupon, Inc.'s operating cash flow is $-10.0M, with capital expenditures of $3.6M. FCF margin is -11.5%.
How does GRPN compare to other Services stocks?
Vs Services sector averages: Net margin -11.0% (avg: 10%), ROE N/A (avg: 16%), current ratio 0.81 (avg: 1.5).