Groupon — Third Quarter 2026 Earnings Summary

Financial Performance:

• Global revenue increased 2% year-over-year.
• Global billings increased 6% year-over-year (6% FX-neutral).
• Loss from continuing operations was $0.8 million, a significant improvement from a $117.8 million loss in the prior year period.
• Adjusted EBITDA was $14.7 million, down from $17.5 million in the prior year period.
• Operating cash outflow from continuing operations was $43.2 million.
• Free cash flow was negative $45.8 million.
• Cash and cash equivalents as of September 30, 2026, were $177.4 million.
• Average order value increased 8% year-over-year.

Guidance and Future Outlook:

• Q4 2026 Billings guidance: +4% to +6% growth.
• Q4 2026 Revenue guidance: $133 million to $136 million.
• Q4 2026 Revenue growth guidance: flat to +2%.
• Q4 2026 Adjusted EBITDA guidance: $18 million to $23 million.
• Q4 2026 Free Cash Flow guidance: Positive.
• Full Year 2026 Billings guidance: +3% to +1% growth.
• Full Year 2026 Revenue guidance: $500 million to $503 million.
• Full Year 2026 Revenue growth guidance: flat to +1%.
• Full Year 2026 Adjusted EBITDA guidance: $60 million to $65 million.
• Full Year 2026 Free Cash Flow guidance: At least $40 million.

Business Segments and Product Lines:

• North America Local Revenue was flat year-over-year; Local Billings increased 4%, driven by "Things to Do" and the Enterprise channel.
• International Local Revenue increased 12% year-over-year; Local Billings increased 11% (12% FX-neutral), driven by supply expansion in Health, Beauty & Wellness, and Things to Do.
• Active customers were 16.2 million, roughly flat year-over-year, with 4% growth in International offsetting a 1% decline in North America.
• Unit sales were 9.0 million, down 2% year-over-year, reflecting lower transaction volume in North America partially offset by International growth.
• The company relaunched LivingSocial as an agent-first experience marketplace and a lab for agentic commerce, opening in public preview with over 50,000 local experiences in the United States.
• Project Foundry launched FoundryAI (FAI), an internal AI platform designed to centralize data, tools, and skills, with the majority of employees moved onto the platform.

Market and Competitive Landscape:

• Management states that as AI takes more of daily life online, the best things in life will increasingly happen offline.
• The company's mission is to get people offline through quality local experiences at a great value.
• Growth in paid and organic channels contributed to performance in both North America and International segments.

Risks and Challenges:

• The 2026 Restructuring Plan involves estimated total pre-tax charges of $7.0 million to $10.0 million.
• Payroll actions under the 2026 Restructuring Plan are estimated to result in $20.0 million to $25.0 million in annualized cost savings.
• Forward-looking statements involve risks including the ability to execute the AI-native transformation, potential failure of AI strategy benefits, currency exchange rate fluctuations, geopolitical instability, and competition in the industry.

Management Commentary and Tone:

• CEO Dusan Senkypl described Q3 as a "consequential quarter" for operations, highlighting strengthened leadership and accelerated investments in agentic commerce.
• Management expects FoundryAI to become the default way teams work by the end of 2026.
• The tone reflects confidence in the AI-native transformation and the strategic pivot to local experiences.

Other Key Points:

• The majority of headcount reductions related to the 2026 Restructuring Plan had occurred by the end of the third quarter.
• Groupon filed its Form 10-Q with the Securities and Exchange Commission.
• An investor update is scheduled for December 8, 2026, in New York.
• Non-GAAP financial measures exclude stock-based compensation, depreciation, amortization, income taxes, interest, and special charges/credits related to restructuring plans.