Core Insights - Eric Lefkofsky, a notable Chicago entrepreneur, has founded six unicorn companies, including Groupon and Tempus, significantly impacting the tech landscape in Chicago [2][3][8]. Company Overview - Lefkofsky co-founded Groupon in 2008, which once had a valuation of $25 billion but has since declined due to revenue drops, leading to a downsizing in 2024 [5][24]. - Tempus, founded in 2015, is an AI-powered healthcare technology company focused on cancer treatment, currently valued at over $13 billion with a workforce of 4,000 employees [9][16]. Financial Performance - Tempus reported nearly 90% year-over-year revenue growth in Q2 2025, raising its full-year revenue guidance to $1.26 billion and projecting a positive adjusted EBITDA of $5 million for 2025 [16]. - Lefkofsky has invested $100 million into Tempus, which has yet to turn a profit but is expected to do so soon [15][17]. Market Position - Tempus is one of the largest genomic sequencing companies in the U.S., with over 50% of oncologists ordering sequencing tests from the company [15]. - The company is pioneering new technologies in drug research and clinical genomic sequencing, aiming to personalize cancer treatment [13][14]. Future Prospects - Lefkofsky remains focused on Tempus, with plans to continue its growth and integration into mainstream medicine [33]. - The acquisition of Paige, an AI company specializing in digital pathology for $81 million, indicates Tempus's commitment to expanding its technological capabilities [33].

Group 1 - The average brokerage recommendation (ABR) for Groupon (GRPN) is 2.00, indicating a Buy, with 60% of recommendations being Strong Buy and 20% being Buy [2][5] - Brokerage recommendations may not effectively guide investors, as studies show they have little success in identifying stocks with high potential for price appreciation [5][10] - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [6][10] Group 2 - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) and is based on earnings estimate revisions, showing a strong correlation with near-term stock price movements [8][11] - The Zacks Consensus Estimate for Groupon has increased by 94.5% over the past month to $0.8, indicating growing optimism among analysts regarding the company's earnings prospects [13] - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 1 (Strong Buy) for Groupon, suggesting that the Buy-equivalent ABR may be a useful guide for investors [14]

Group 1: Brokerage Recommendations - Groupon has an average brokerage recommendation (ABR) of 2.00, indicating a Buy, based on recommendations from five brokerage firms, with three Strong Buy and one Buy, accounting for 60% and 20% respectively [2][5] - The ABR should not be the sole basis for investment decisions, as studies show brokerage recommendations often lack success in guiding investors towards stocks with high price appreciation potential [5][10] - Analysts from brokerage firms tend to exhibit a positive bias in their ratings due to vested interests, leading to a higher number of Strong Buy recommendations compared to Strong Sell [6][10] Group 2: Zacks Rank vs. ABR - Zacks Rank is a proprietary stock rating tool that categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, making it a more effective indicator of near-term stock price performance [8][11] - Unlike ABR, which is based solely on brokerage recommendations and may not be up-to-date, Zacks Rank reflects timely changes in earnings estimates, providing a more accurate indication of future price movements [9][12] - The Zacks Consensus Estimate for Groupon has increased by 48.4% over the past month to $0.59, indicating strong analyst optimism and contributing to a Zacks Rank 1 (Strong Buy) for the stock [13][14] Group 3: Investment Implications - The combination of a Buy-equivalent ABR and a Zacks Rank 1 suggests that Groupon may present a legitimate investment opportunity for investors [14]

Core Viewpoint - The Portnoy Law Firm has initiated an investigation into Groupon, Inc. for possible securities fraud, following allegations of questionable accounting practices and misleading investors about the company's turnaround success [1][3]. Group 1: Investigation and Legal Actions - The Portnoy Law Firm is encouraging Groupon investors who have incurred losses to contact them for a potential class action lawsuit [1][2]. - The firm offers a complimentary case evaluation to discuss options for recovering losses [2][4]. Group 2: Stock Performance and Allegations - On June 9, 2025, a report by short-seller Captain's Log claimed that Groupon engaged in questionable accounting practices, leading to a decline in the stock price by $1.61 per share, or approximately 4.89%, closing at $31.33 per share [3].

Core Viewpoint - Groupon (GRPN) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Business Outlook - The upgrade in Groupon's rating suggests an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [5][10]. - For the fiscal year ending December 2025, Groupon is expected to earn $0.30 per share, with a significant increase of 265.5% in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Groupon's upgrade places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - Global billings grew 12% year over year, with North America local billings up 20% and international local billings, excluding Italy and GiftCloud, up 15% year over year [2][3] - Free cash flow of $25 million was generated, indicating profitable growth while investing in the platform [3] - Full year billings guidance was raised from 3-5% to 7-9% growth, reflecting strong business momentum [4] Business Line Data and Key Metrics Changes - The core local category, excluding Italy and GiftCloud, grew 19% and now represents nearly 90% of total billings [2] - North America "things to do" segment delivered strong double-digit growth for the sixth consecutive quarter, particularly in amusement parks and multi-attraction tour passes [4] Market Data and Key Metrics Changes - North America enterprise brands had 26 brands generating over $1 million in quarterly billings, representing 53% year-over-year growth [3] Company Strategy and Development Direction - The company is focused on building a hyper-local experience marketplace that combines trust, curation, quality, and value [5] - A proactive refinancing was announced to simplify the capital structure and eliminate constraints, positioning the company for growth [3] - The management is committed to developing leaders from within, with new appointments in key executive roles [4] Management's Comments on Operating Environment and Future Outlook - Management sees AI-generated traffic as a tailwind, with expectations of significant growth in this area [10] - The company is optimistic about the future, citing multiple levers for accelerating growth and building long-term value [4][5] - There is a focus on re-engaging lost cohorts and improving customer acquisition and retention [36] Other Important Information - The settlement with Italy is not yet binding and requires various approvals, but it may signal the end of past tax issues [38] - The company is exploring options for potentially reopening the local business in Italy [38] Q&A Session Summary Question: Can you elaborate on AI-generated traffic? - Management believes AI traffic is incremental and sees it as a positive trend with strong double-digit growth every month [10] Question: What efforts have been made to engage merchants? - The company is transforming its sales approach to be more performance-based and is focusing on understanding the economy for merchants [12][14] Question: How is the growth in AI traffic being achieved? - Growth is a mix of organic traffic and intentional enhancements to listings, with a focus on SEO and AI integration [21][26] Question: What is the dynamic between billings growth and revenue growth? - Billings are growing faster than revenue due to higher redemption rates and a mix of categories, which affects take rates [45]

Core Insights - Groupon reported Q2 2025 GAAP revenue of $125.7 million, exceeding Wall Street's expectation of $122.47 million, with diluted earnings per share of $0.46, a significant improvement from a loss of $0.25 per share in Q2 2024 [1][5] - Gross billings increased by 12% year-over-year to $416.7 million, indicating strong performance in North America, while international markets faced challenges [1][6][8] Financial Performance - GAAP revenue grew by 0.9% year-over-year, while gross billings rose by 11.5% [2][6] - Adjusted EBITDA decreased by 5.5% to $15.6 million, and free cash flow surged by 132.7% to $25.2 million [2][10] - The company achieved net income from continuing operations of $20.6 million, a turnaround from a net loss of $9.4 million in Q2 2024 [5] Business Model and Strategy - Groupon operates a digital marketplace connecting local businesses with consumers, focusing on curated local experiences [3][4] - The company is transitioning from a general daily deals platform to a destination for quality local experiences, emphasizing higher-value merchant partnerships and technology investments [4][12] Market Dynamics - North America remains the primary growth driver, with local billings increasing by 20% and active customers rising by 6% to 10.8 million [6][7] - International gross billings declined by 3%, with active international customers falling by 11% year-over-year [8][10] Operational Highlights - The company is investing in technology upgrades, including MobileNext rollouts and AI initiatives to enhance merchant deal design [12] - Marketing expenses increased by 13.4% year-over-year as Groupon aims to attract new users and merchants [10] Future Outlook - Management raised full-year billings growth guidance to 3% to 5%, but did not provide explicit revenue or profitability guidance [14] - Key areas to monitor include revenue growth relative to billings, customer and merchant retention, and performance in international markets [15]

Core Viewpoint - Groupon reported quarterly earnings of $0.46 per share, significantly exceeding the Zacks Consensus Estimate of a loss of $0.02 per share, marking an earnings surprise of +2,400% [1] - The company has shown consistent performance, surpassing consensus EPS estimates three times over the last four quarters [2] Financial Performance - Groupon's revenues for the quarter ended June 2025 were $125.7 million, surpassing the Zacks Consensus Estimate by 2.32% and showing a slight increase from $124.61 million in the same quarter last year [2] - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $121.43 million, while for the current fiscal year, it is $0.30 on revenues of $500.25 million [7] Stock Performance - Groupon shares have increased approximately 150.5% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Industry Outlook - The Internet - Commerce industry, to which Groupon belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Core Insights - Groupon reported a 1% increase in global revenue and a 12% increase in billings for Q2 2025 [1] - North America local revenue grew by 3% and local billings surged by 20% [1] - The company completed a financing transaction worth $244 million [1] Financial Performance - The financial results for Q2 2025 were filed with the Securities and Exchange Commission [1] - The earnings commentary is available on Groupon's investor relations website [1] Management Commentary - CEO Dusan Senkypl highlighted the momentum in Groupon's transformation, emphasizing the 20% growth in North America local billings and improved customer acquisition [2] - The company aims to establish itself as a trusted destination for quality local experiences at competitive prices [2] - There is a focus on marketplace health and platform velocity to ensure sustained growth [2]

Financial Performance - Global revenue for Q2 2025 was $125.7 million, up 1% year-over-year, while global billings increased by 12% to $416.7 million[5] - Net income from continuing operations was $20.6 million, a significant improvement from a net loss of $9.4 million in the prior year[6] - Revenue for Q2 2025 was $125.7 million, a slight increase from $124.6 million in Q2 2024, while revenue for the first half of 2025 was $242.9 million, down from $247.7 million in the same period last year[41] - Gross profit for Q2 2025 was $114.4 million, compared to $112.7 million in Q2 2024, indicating a growth in profitability despite a decrease in overall revenue for the first half of the year[41] - Operating expenses decreased to $101.4 million in Q2 2025 from $108.3 million in Q2 2024, contributing to improved income from operations of $13.1 million compared to $4.4 million in the prior year[41] - Basic net income per share for continuing operations was $0.51 in Q2 2025, compared to a loss of $0.25 per share in Q2 2024, showcasing improved earnings per share[41] - Net income for the three months ended June 30, 2025, was $20,593,000, compared to a loss of $9,412,000 in the same period of 2024, representing a significant turnaround[43] Customer Metrics - Active customers as of June 30, 2025, totaled 15.8 million, reflecting a 2% sequential increase and consistent with the prior year[6] - Active customers in North America increased to 10.8 million in Q2 2025, while international active customers remained stable at 5.0 million[47] - The total number of active customers for the trailing twelve months (TTM) was reported in thousands, indicating a focus on customer metrics[45] Revenue Breakdown - North America Local revenue reached $94.5 million, up 3% year-over-year, with Local billings growing by 20% to $292.4 million[10] - International revenue decreased by 2% to $25.7 million, primarily due to the divestiture of Giftcloud and withdrawal from the Italian market[10] - North America gross billings were $324.8 million, up 16% year-over-year, with unit sales increasing by 8% to 6.3 million[10] - Total gross billings for Q2 2025 amounted to $324,758 million, with a year-over-year growth of 16.4%[46] Cash Flow and Financing - The company reported net cash provided by operating activities from continuing operations of $28,419,000 for the three months ended June 30, 2025, up from $15,300,000 in the same period of 2024[43] - Cash, cash equivalents, and restricted cash at the end of the period on June 30, 2025, totaled $296,694,000, an increase from $206,454,000 on June 30, 2024[44] - The net cash provided by investing activities from continuing operations was $10,761,000 for the three months ended June 30, 2025, compared to $4,303,000 in the same period of 2024[43] - The net cash used in financing activities was $(2,684,000) for the three months ended June 30, 2025, compared to $(1,721,000) in the same period of 2024[43] Expenses and Adjustments - Marketing expenses were $41.4 million, representing 36% of gross profit, compared to 32% in the prior year[6] - The company recorded depreciation and amortization of $4,063,000 for the three months ended June 30, 2025, compared to $7,224,000 in the same period of 2024[43] - Stock-based compensation increased to $8,782,000 for the three months ended June 30, 2025, from $6,418,000 in the same period of 2024[43] - Total adjustments to income for Q2 2025 amounted to $7,299, contributing to the adjusted EBITDA calculation[51] Leadership Changes - The company announced leadership changes, with Jiri Ponrt becoming COO and Rana Kashyap stepping into the CFO role effective September 1, 2025[13] Risks and Strategic Focus - The company has ongoing risks related to international operations, currency fluctuations, and regulatory challenges that could impact future performance[34] - Groupon continues to focus on enhancing its marketplace and customer experience while navigating a competitive environment and potential economic uncertainties[34]