GRPN

Groupon has finally stopped the bleeding at the top line: revenue of $498M in FY2025 grew +1.2% after a brutal slide ($967M→$599M→$515M→$493M→$498M), and the underlying marketplace is actually expanding — gross billings rose to $1.67B from $1.56B (+6.9%) and TTM active customers grew to 16.2M from 15.4M, with units roughly flat. The two-sided net-commission model throws off a 90.8% gross margin, and the most important number in the filing is the operating turnaround: operating income swung to +$23.6M (+168.8% YoY), while operating cash flow grew to a healthy $64.5M (+15.4%) against just $14.6M of capex. On a cash basis this is a profitable, self-funding business trading at a non-demanding 1.9x sales.

The problem is everything below the operating line and on the balance sheet. GAAP net income worsened to -$83.5M (from -$59.0M), and the gulf between +$23.6M operating income and a -$83.5M net loss means ~$107M of non-operating drag — interest on a rising debt load and/or non-cash charges — that swamps the operating progress and produces a -$2.08 diluted EPS. Stockholders' equity is negative at -$42.6M (an accumulated deficit of -$1.59B), and leverage is climbing: long-term debt rose +25.7% to $309M with another $33.7M current, ~$343M total against $296M of cash. Total liabilities jumped +24.7% to $713M. The liabilities/equity ratio is meaningless (negative book), which itself signals a stressed capital structure.