Groupon, Inc.GRPN

Groupon, Inc. Revenue Disclosure

10-KFiled Mar 10, 20262 min read
REVENUE RECOGNITION
See Note 19, Segment and Geographical Information, for revenue summarized by reportable segment and category.
Contract Balances
As of December 31, 2024 and 2023, our deferred revenue was $4.1 million and $2.7 million and primarily related to Giftcloud gift card revenue which was recognized upon customer redemption. As a result of the sale of Giftcloud during the second quarter 2025, our deferred revenue was immaterial as of December 31, 2025. All deferred revenue was recognized in the following annual period for the respective year-end.
Customer Credits
The following table summarizes the activity in the liability for customer credits for the years ended December 31, 2025 and 2024 (in thousands):
Customer Credits
Balance as of December 31, 2023$26,595 
Credits issued67,373 
Credits redeemed (1)
(66,354)
Breakage revenue recognized
(5,111)
Foreign currency translation(154)
Balance as of December 31, 2024$22,349 
Credits issued99,040 
Credits redeemed (1)
(87,987)
Breakage revenue recognized
(7,765)
Foreign currency translation305 
Balance as of December 31, 2025$25,942 
(1)Customer credits can be redeemed through our online marketplaces for goods or services provided by a third-party merchant and revenue is recognized on a net basis as the difference between the carrying amount of the customer credit liability derecognized and the amount due to the merchant for the related transaction. Customer credits are typically used within one year of issuance.
Cost of Obtaining Contracts
Deferred contract acquisition costs are presented in Prepaid expenses and other current assets and Other non-current assets on the Consolidated Balance Sheets. As of December 31, 2025 and 2024, deferred contract acquisition costs were $5.4 million and $4.2 million.

The amortization of deferred contract acquisition costs is classified within Selling, general and administrative expense in the Consolidated Statements of Operations. For the years ended December 31, 2025, 2024 and 2023, we amortized $6.7 million, $5.9 million and $7.9 million of deferred contract acquisition costs.
Allowance for Expected Credit Losses on Accounts Receivable
The following table summarizes the activity in the allowance for expected credit losses on accounts receivables for the years ended December 31, 2025 and 2024 (in thousands):
Allowance for Expected Credit Losses
Balance as of December 31, 2023$2,856 
Change in provision(71)
Write-offs(106)
Foreign currency translation(6)
Balance as of December 31, 2024$2,673 
Change in provision(32)
Write-offs(31)
Foreign currency translation37 
Balance as of December 31, 2025$2,647 
Variable Consideration for Unredeemed Vouchers
During the years ended December 31, 2025, 2024, and 2023, we recognized $4.4 million, $9.9 million, and $6.1 million of variable consideration from unredeemed vouchers that were sold in a prior year. When actual redemptions differ from our estimates, the effects could be material to the Consolidated Financial Statements.

Historical Timeline

Fiscal YearFiled
2025Mar 10, 2026Showing above
2024Mar 11, 2025
2023Mar 15, 2024
2022Mar 16, 2023
2021Feb 28, 2022
2020Feb 25, 2021
2019Feb 18, 2020
2018Feb 12, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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