Groupon Inc. (NASDAQ: GRPN) shareholder Nick Nemeth released an open letter urging the company's board to revamp its consumer platform, rebrand for younger customers, and accelerate share buybacks, according to a statement from his firm Wyandanch Consulting LLC.

Nemeth, who holds approximately 37,000 shares representing about 0.1% of outstanding stock and also holds call options, believes the shares are undervalued. He outlined three priorities for the board: platform redesign, brand modernization targeting younger consumers, and increased share repurchases at up to 10% of trading volume.

The shareholder's analysis suggests that increasing customer transaction frequency from the current 2.3 times per year to the 4.3 times seen at comparable destination marketplaces could generate approximately $100 million in additional EBITDA per frequency turn at current contribution margins. Groupon serves 16.2 million active customers at approximately 90% gross margin.

Nemeth projects potential run-rate earnings power of approximately $310 million within two to three years, up from the company's 2026 adjusted EBITDA guidance midpoint of $72 million. The projection includes $40 million from completing a 20% workforce reduction and $200 million from achieving two full turns of customer frequency improvement.

For share buybacks, Nemeth estimates approximately $570 million in deployable capital over two years, including cash drawdown, potential monetization of the company's SumUp stake, and projected free cash flow. At current trading levels, this could retire significant portions of the approximately 36.8 million shares outstanding.

Groupon carries approximately $215 million in cash, $324 million in convertible notes, and holds a stake in SumUp, which has been reported as a potential IPO candidate. The company's market capitalization is approximately $700 million.

"One turn of customer frequency drops approximately $100 million to the bottom line," Nemeth said. "The generation that made thrifting cultural is the natural customer for local deals."

The letter does not call for management or board changes. Information is based on a press release statement from Wyandanch Consulting LLC.