Today's Trend
Groupon, Inc. (NASDAQ: GRPN) shares have decreased as investors weigh a modest reduction to near-term earnings expectations against substantially improved longer-term forecasts from Northland Securities.
- Northland Securities raised its FY2026 EPS forecast to a loss of $0.06 from a loss of $0.20, while projecting a return to quarterly profitability in Q3 and Q4 2026 at $0.02 and $0.28 per share, respectively. The firm also increased its FY2027 EPS outlook to $1.13 from $0.98.
- Northland lifted its 2027 quarterly estimates across the board: Q1 to $0.07 from $0.04, Q2 to $0.23 from $0.22, and Q3 to $0.33 from $0.32. The upgrades suggest analysts expect improving profitability and operating momentum over the longer term.
- Groupon’s mystery-vacation offerings are receiving viral attention, and the CEO discussed the trend in a Yahoo Finance video. Increased consumer engagement and visibility could support demand, although the financial impact has not been quantified. Groupon's mystery vacations are going viral: CEO explains what's going on
- Northland’s current forecasts imply Groupon will remain unprofitable for full-year 2026, with estimated EPS of negative $0.06, compared with the broader consensus forecast of negative $0.17. This reflects a better-than-consensus outlook but continued near-term losses.
- Northland trimmed its Q4 2026 EPS estimate to $0.28 from $0.29. Although the change is small, the reduction may pressure the stock because it contrasts with the broader set of longer-term upgrades.
Overall, the news is mixed but leans favorable for Groupon: near-term earnings expectations were slightly reduced, while estimates for FY2026 and especially FY2027 improved materially. Investors appear focused on whether the company can convert its renewed consumer interest into sustained revenue growth and profitability.