Groupon Shareholder Nick Nemeth Urges Board to Revamp Platform, Rebrand for the Thrifting Generation, and Accelerate Buybacks
SANTA BARBARA, Calif., May 13, 2026 (GLOBE NEWSWIRE) -- Nick Nemeth, a shareholder of Groupon, Inc. (NASDAQ:GRPN) holding approximately 37,000 shares of common stock (approximately 0.1% of the Company's outstanding shares), today publicly released an open letter to the Groupon Board of Directors urging the Company to prioritize its consumer platform, modernize the brand, and accelerate capital return. Mr. Nemeth publishes equity research under the Mispriced Assets banner through his firm, Wyandanch Consulting LLC.
Mr. Nemeth personally holds 37,000 shares of Groupon common stock — approximately 0.1% of shares outstanding — and also holds call options on Groupon stock. He believes the shares are meaningfully undervalued. Against a market capitalization of approximately $700 million, Groupon carries roughly $215 million in cash, $324 million in low-coupon convertible notes, and a stake in SumUp — which has been reported as a potential IPO candidate — that could represent a meaningful source of future liquidity. Adjusting for these items, the implied operating enterprise value is approximately $610 million for a marketplace serving 16.2 million active customers at approximately 90% gross margin.
The lever. Groupon customers transact approximately 2.3 times per year. Comparable destination marketplaces sit closer to 4.3. At current contribution margins, each incremental turn of customer frequency drops approximately $100 million to the bottom line — the single largest unlevered source of operating leverage in the model, and one that lives entirely on the consumer side of the platform.
| Customer Frequency (turns/yr) | Incremental EBITDA vs. Today |
| 2.3 — today | — |
| 3.0 | ~ +$70M |
| 3.5 | ~ +$120M |
| 4.0 | ~ +$170M |
| 4.3 — peer comp | ~ +$200M |
Illustrative. Assumes approximately $100M of incremental EBITDA per full turn of frequency at current contribution margins.
WYANDANCH CONSULTING LLC
Illustrative EBITDA Bridge — Run-Rate Earnings Power, 2–3 Years Out
| Driver | Adj. EBITDA |
| 2026 Adjusted EBITDA guide (midpoint) | $72M |
| + Full 20% RIF unlock (Q1 captured ~$2M severance only) | +$40M |
| + Frequency turn 1: 2.3 → 3.3 visits/customer/year | +$100M |
| + Frequency turn 2: 3.3 → 4.3 (full execution) | +$100M |
| Run-rate earnings power, 2–3 years out | ~ $310M |
Source: Wyandanch Consulting LLC. Illustrative analysis based on Company filings and management commentary; not a forecast.
Mr. Nemeth is urging the Board to focus on three priorities:
Revamp the platform. A unified iOS, Android, and web redesign with quarterly disclosure of conversion lift, time-to-purchase, and session depth — the highest-priority project at the Company and the conversion infrastructure on which retention compounds.
Rebrand the brand. Marketing currently runs approximately 35% of revenue and is miscast — buying clicks for individual deals rather than communicating the platform itself. Announce the revamp loudly; lean into verified influencer and user-generated-content distribution as a variable-cost replacement for high-CAC advertising; meet younger consumers where they are. The same generation that made thrifting cultural is the natural customer for value-driven local commerce.
Accelerate the buyback. Pursue repurchases at up to approximately 10% of trading volume, subject to applicable rules, liquidity, and market conditions, funded by ongoing free cash flow, balance-sheet cash above a stated floor, and potential SumUp monetization. The rate of repurchase should reflect the conviction that the shares are undervalued.
| VWAP Scenario | Shares Retired (~$570M) | Share-Count Reduction | |
| $20 | ~ 28.5M | ~ 77% | |
| $30 | ~ 19.0M | ~ 52% | |
| $45 | ~ 12.7M | ~ 34% | |
Illustrative shareholder estimate. Assumes approximately $570M of deployable capital over two years (cash drawdown to a stated floor + potential SumUp monetization + 2026–2027 free cash flow). Buyback execution is subject to applicable rules, liquidity, market conditions, and Board approval.
The Board's Artificial Intelligence Committee under Mr. Shah and the Project Foundry operating-model rebuild are directionally correct; Mr. Nemeth believes these initiatives benefit from fine-tuning rather than redirection. They are accelerants. The engine is the consumer.
"One turn of customer frequency drops approximately $100 million to the bottom line," said Nick Nemeth. "The generation that made thrifting cultural is the natural customer for local deals. The strategic direction Mr. Šenkypl has set is correct. The platform and the brand need to catch up to it."
The letter is offered constructively. Mr. Nemeth does not call for management change, board change, or strategic alternatives. The full letter is available at mispricedassets.substack.com.
DISCLOSURE
Nick Nemeth holds approximately 37,000 shares of Groupon, Inc. (NASDAQ:GRPN) common stock and call options thereon, and may transact at any time without notice. Forward-looking statements are projections, not guarantees. This communication reflects the author's personal opinion, is not investment advice, and is not a solicitation of any security, proxy, vote, or consent.
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CONTACT Nick Nemeth Principal, Wyandanch Consulting LLC Email: mispricedassetsresearch@substack.com X: @NickNemo17