Groupon (GRPN) shares tumbled 8.41% in pre-market trading on Friday following the release of its third-quarter earnings report and fiscal year 2025 guidance. The e-commerce marketplace company reported disappointing results that fell short of investor expectations, triggering a significant sell-off.

For the third quarter, Groupon reported a loss per share of $2.92, a stark contrast to the earnings of 35 cents per share in the same period last year. While revenue increased to $122.83 million from $114.48 million year-over-year, the company's profitability took a severe hit. On a positive note, Groupon's active customer base grew by 4% compared to the previous year, reaching 16.1 million as of September 30, 2025.

Adding to investor concerns, Groupon's outlook for fiscal year 2025 failed to impress. The company forecasts revenue between $500 million and $505 million, which is at the lower end of analyst consensus of $505.96 million. Groupon expects billings to increase by 7-9%, with adjusted EBITDA projected at $70-$72 million and free cash flow at $60 million. While the company emphasized its focus on accelerating growth and improving profitability, the market reaction suggests that investors were hoping for a more robust recovery and stronger guidance.