11. 05. 2025 | Natalie Bezděková

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Not long ago, Groupon was considered a relic of the internet era, but today it’s making a surprising comeback. Its shares have significantly exceeded analysts’ expectations, mainly thanks to the intervention of Czech investors from the Pale Fire Capital group. They restructured the company and now believe it is ready to start growing instead of defending itself.

There was an unexpected reversal on the Nasdaq stock exchange – the value of Groupon shares, which had long survived on the fringes of investor interest, doubled in a matter of weeks to cross the $24 apiece mark, even though analysts had expected an average of just $18.50.

This growth isn’t just an optical improvement – the stock has reached its highest value since 2021, surpassing for the first time the purchase price of Czech investors who joined the company four years ago. The main reason was the Q1 2025 results – even though revenue fell 5% year-over-year to $117.2 million, it still beat estimates. In addition, total brokered business volume rose 1% to $386.5 million.

Groupon’s biggest growth came in North America, where it has been particularly successful in local discounts. Despite a slight decline in sales in the region, voucher usage increased, leading to lower margins but an 11% year-over-year increase in local business. The number of active users reached 10.5 million in North America and 15.5 million globally.

“After a strong start to 2025, it’s time to go on the offensive,” said CEO Dusan Šenkypl. The company is now focusing on long-term sustainable growth through customer and partner benefits.The current share price, which has surpassed $24, suggests the market trusts the company more than it used to, according to Nasdaq. Analysts have been cautious so far, but developments in recent weeks (more than 100% growth for the year) are changing the situation.

For 2025, the company expects flat or modest revenue growth to $493-500 million and operating EBITDA in the $70-75 million range. A return to positive free cash flow is also expected. At the end of last year, the company had nearly $229 million in cash on hand.

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Natalie Bezděková

I am a student of Master's degree in Political Science. I am interested in marketing, especially copywriting and social media. I also focus on political and social events at home and abroad and technological innovations. My free time is filled with sports, reading and a passion for travel.