Groupon Inc. Common Stock (GRPN)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I look for a business with durable advantages and owner earnings. Groupon is a discount marketplace connecting consumers with merchants. Its scale is modest: fiscal 2025, the year ended 2025-12-31, revenue was $498.4M; fiscal 2024, the year ended 2024-12-31, revenue was $492.6M; and fiscal 2023, the year ended 2023-12-31, revenue was $514.9M, so revenue is roughly flat. More troubling, fiscal 2025 net income was -$83.5M, fiscal 2024 net income was -$59.0M, and fiscal 2023 net income was -$55.4M. The recent picture remains uneven: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $124.7M and net loss was -$1.8M, better than fiscal Q1 2026, the quarter ended 2026-03-31, net loss of -$12.9M, but fiscal Q2 2025, the quarter ended 2025-06-30, had net income of $20.3M. So no consistent earning power. The Lynch category is none because of losses in each of the last four years. FairStock’s P/E is -5.92, ROCE 0.77%, Piotroski 6/9, and Altman Z-score -3.02. Negative Altman suggests financial risk; low ROCE suggests poor capital returns. The one positive is trailing free cash flow of $29.9M, a FairStock FCF yield of 4.0%, but that is thin against a $751.1M market cap and a $18.47 close on 2026-10-13. Groupon’s marketplace has little pricing power or moat I can identify; merchants and consumers can switch. The 52-week range $9.17-$29.90 shows volatility despite beta 0.19. Without a path to durable profits, I cannot call this a bargain; it is a speculative turnaround.

In plain English: Groupon runs an online marketplace that sells discount deals from local merchants, travel offers and products. The business has been losing money in each of the last four years, revenue is roughly flat to slightly down, and recent quarters still show losses, though it does produce some cash. At $18.47 a share, the price does not look clearly supported by steady profits; on the numbers given, it looks speculative rather than cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer