Groupon, Inc.GRPN
Groupon, Inc. Segments Disclosure
SEGMENT AND GEOGRAPHICAL INFORMATION
In accordance with ASC Topic 280, Segment Reporting, we disaggregate our operations into two operating and reportable segments: North America and International based on geographically distinct market dynamics. The segment information below reflects the operating results that are regularly provided to and are reviewed by our CODM, who is our CEO, to assess performance and make resource allocation decisions. Our segment information is based on the "management" approach. The "management" approach, as defined within ASC Topic 280, designates the internal reporting used by the CODM for making decisions and assessing performance as the source of our reportable segments. Our measure of segment profitability is contribution profit, defined as net revenues less cost of sales and marketing expenses, as presented below, and is regularly provided to and reviewed by the CODM to allocate resources and assess performance. The CODM assesses our segments’ performance based on contribution profit predominantly in the monthly budget-to-actual variances analysis when making decisions about the allocation of our investment in marketing expenses to each segment. We do not report asset-related information by reportable segment because our CODM does not regularly receive asset information on a reportable segment basis.
The following table summarizes revenue by reportable segment and category for the years ended December 31, 2025, 2024 and 2023 (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| North America | |||||||||||||||||
| Local | $ | 366,787 | $ | 350,876 | $ | 346,962 | |||||||||||
| Goods | 5,484 | 10,990 | 18,436 | ||||||||||||||
| Travel | 13,560 | 14,206 | 14,554 | ||||||||||||||
Total North America revenue (1) | $ | 385,831 | $ | 376,072 | $ | 379,952 | |||||||||||
| International | |||||||||||||||||
| Local | $ | 97,506 | $ | 99,333 | $ | 111,543 | |||||||||||
| Goods | 9,561 | 10,929 | 14,961 | ||||||||||||||
| Travel | 5,524 | 6,223 | 8,454 | ||||||||||||||
Total International revenue (1) | 112,591 | 116,485 | 134,958 | ||||||||||||||
Total revenue | $ | 498,422 | $ | 492,557 | $ | 514,910 | |||||||||||
(1)North America includes revenue from the United States of $381.4 million, $371.3 million and $374.0 million for the years ended December 31, 2025, 2024 and 2023. There were no other individual countries that represented more than 10% of consolidated total revenue for the years ended December 31, 2025, 2024 and 2023. Revenue is attributed to individual countries based on the location of the customer.
The following table summarizes contribution profit by reportable segment and reconciles total contribution profit for our reportable segments to consolidated income (loss) before provision (benefit) for income taxes for the years ended December 31, 2025, 2024 and 2023 (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| North America | |||||||||||||||||
| Revenue | $ | 385,831 | $ | 376,072 | $ | 379,952 | |||||||||||
| Cost of revenue | |||||||||||||||||
Payment processor fees | 27,591 | 24,608 | 25,004 | ||||||||||||||
Other segment items (cost of revenue) (1) | 6,521 | 13,300 | 25,955 | ||||||||||||||
Total cost of revenue | 34,112 | 37,908 | 50,959 | ||||||||||||||
| Marketing | |||||||||||||||||
Online marketing | 122,187 | 109,996 | 69,403 | ||||||||||||||
Other segment items (marketing) (2) | 5,421 | 3,100 | 3,775 | ||||||||||||||
Total marketing | 127,608 | 113,096 | 73,178 | ||||||||||||||
Segment contribution profit | $ | 224,111 | $ | 225,068 | $ | 255,815 | |||||||||||
| International | |||||||||||||||||
| Revenue | $ | 112,591 | $ | 116,485 | $ | 134,958 | |||||||||||
| Cost of revenue | |||||||||||||||||
Payment processor fees | 6,503 | 5,902 | 7,415 | ||||||||||||||
Other segment items (cost of revenue) (1) | 5,268 | 4,441 | 5,872 | ||||||||||||||
| Total cost of revenue | 11,771 | 10,343 | 13,287 | ||||||||||||||
| Marketing | |||||||||||||||||
Online marketing | 34,841 | 27,432 | 30,270 | ||||||||||||||
Other segment items (marketing) (2) | 3,406 | 3,679 | 7,057 | ||||||||||||||
Total marketing | 38,247 | 31,111 | 37,327 | ||||||||||||||
Segment contribution profit | $ | 62,573 | $ | 75,031 | $ | 84,344 | |||||||||||
Total | |||||||||||||||||
Total contribution profit for the reportable segments | $ | 286,684 | $ | 300,099 | $ | 340,159 | |||||||||||
| Selling, general and administrative | 273,728 | 295,399 | 350,405 | ||||||||||||||
(Gain) on sale of assets | — | (5,160) | — | ||||||||||||||
(Gain) on sale of business | (10,650) | — | — | ||||||||||||||
| Restructuring and related charges (credits) | (34) | 1,066 | 8,006 | ||||||||||||||
| Income (loss) from operations | 23,640 | 8,794 | (18,252) | ||||||||||||||
Loss on extinguishment of debt | (99,925) | (1,631) | — | ||||||||||||||
| Other income (expense), net | 30,829 | (37,554) | (25,174) | ||||||||||||||
| Income (loss) before provision (benefit) for income taxes | $ | (45,456) | $ | (30,391) | $ | (43,426) | |||||||||||
(1) Includes editorial costs, compensation expense for technology support personnel who are responsible for maintaining the infrastructure of our websites, amortization of internally-developed software relating to customer-facing applications, and web hosting.
(2) Includes offline marketing costs, such as television, compensation expense for marketing employees, and customer acquisition and activation expense.
The following table summarizes tangible property and equipment, net of accumulated depreciation, by geographical region as of December 31, 2025 and 2024 (in thousands):
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
United States | $ | 462 | $ | 344 | |||||||
Rest of the world (1) | 1,010 | 397 | |||||||||
Total tangible long-lived assets | $ | 1,472 | $ | 741 | |||||||
(1) The increase is primarily attributable to Spain, Poland, United Kingdom, and India, during the year ended December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 12, 2019 | |
| 2017 | Feb 14, 2018 | |
| 2016 | Feb 15, 2017 | |
| 2015 | Feb 12, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.