📊 GRPN Key Takeaways
Is GRPN a Good Investment? Thesis Analysis
Groupon faces severe fundamental deterioration with negative stockholders' equity of -$42.6M, worsening net losses of -$83.5M (down 2.2% YoY), and EPS collapsing -37.7% despite modest 1.2% revenue growth. While positive free cash flow and strong gross margins provide short-term viability, the company's inverted balance sheet and tightening liquidity (current ratio 0.98x) indicate structural financial distress.
Why Buy GRPN? Key Strengths
- High gross margin of 90.8% demonstrates strong unit economics and pricing power
- Positive free cash flow of $49.9M (10% FCF margin) despite net losses provides operational cushion
- Adequate interest coverage ratio of 11.8x ensures near-term debt service capability
GRPN Investment Risks to Consider
- Negative stockholders equity of -$42.6M represents technical balance sheet insolvency and equity value destruction
- Net losses accelerating (-$83.5M) with EPS declining 37.7% YoY indicates widening operational distress despite flat revenue growth
- Liquidity crisis emerging with current ratio of 0.98x and quick ratio of 0.93x below 1.0x threshold
- Stagnant revenue growth of 1.2% YoY eliminates opportunity for operational leverage and margin recovery
- High long-term debt burden of $342.8M against negative equity creates structural vulnerability to refinancing risk
Key Metrics to Watch
- Quarterly net income trajectory and timeline to profitability
- Stockholders equity recovery from negative territory
- Free cash flow sustainability and burn rate
- Current ratio stabilization above 1.0x
- Revenue growth acceleration beyond 1-2% range
GRPN Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
GRPN Profitability Ratios
GRPN vs Default Sector
How Groupon, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GRPN Overvalued or Undervalued?
Based on fundamental analysis, Groupon, Inc. has mixed fundamental signals relative to the Default 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.
GRPN Balance Sheet & Liquidity
GRPN 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
GRPN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $129.1M | -$12.6M | $-0.41 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GRPN Capital Allocation
GRPN SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 87% confidence, based on fundamental analysis of SEC EDGAR filings.
What are GRPN's key strengths?
Claude: High gross margin of 90.8% demonstrates strong unit economics and pricing power. Positive free cash flow of $49.9M (10% FCF margin) despite net losses provides operational cushion.
What are the risks of investing in GRPN?
Claude: Negative stockholders equity of -$42.6M represents technical balance sheet insolvency and equity value destruction. Net losses accelerating (-$83.5M) with EPS declining 37.7% YoY indicates widening operational distress despite flat revenue growth.
What is GRPN's revenue and growth?
Groupon, Inc. reported revenue of $498.4M.
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 $-2.08.
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 April 2026, Groupon, Inc. has a SELL rating with 87% 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: 15%), net margin of -16.8% (sector avg: 12%). 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 $64.5M, with capital expenditures of $14.6M. FCF margin is 10.0%.
How does GRPN compare to other Default stocks?
Vs Default sector averages: Net margin -16.8% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.98 (avg: 1.8).