Groupon Reports Third Quarter 2026 Results
Groupon, Inc. (GRPN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Groupon Reports Third Quarter 2026 Results Global Revenue up 2% and Billings up 6% Loss from continuing operations was $0.8 million and Adjusted EBITDA was $14.7 million Groupon relaunched LivingSocial as an agent-first experience marketplace and its lab for agentic commerce, hel
How this was made
The 30-second read
Why it matters
The company provided explicit Q4 and full-year 2026 guidance ranges for Billings, revenue, and adjusted EBITDA, plus a free cash flow target, which can drive positioning ahead of the Nov 10 call.
Market read
Traders can update expectations for GRPN based on the reported Q3 operating metrics and the stated Q4 and full-year 2026 guidance ranges.
What to watch
Cash outflow and restructuring plan charges may pressure near-term liquidity, and the guidance includes free cash flow positive at least $40M for 2026, which may be scrutinized for execution risk.
Groupon Q3 2026: billings up 6% and revenue up 2%, loss from continuing operations of $(806) thousand, Adjusted EBITDA of $14,734 thousand, free cash flow of $(45,783) thousand
Billings growth of 6% (6% FX-neutral) and International Local growth of 12% are the strongest printed figures. Against that, global revenue grew only 2%, North America Local revenue was flat, Adjusted EBITDA was $14,734 thousand against $17,540 thousand a year earlier, and free cash flow was $(45,783) thousand. The release does not print a dollar revenue figure for the quarter, so the revenue line can only be read as a growth rate.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Loss from continuing operations, Q3 2026GAAP | −$806K | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $14.73M | – | – |
| Net cash provided by (used in) operating activities from continuing operations, Q3 2026GAAP | −$43.21M | – | – |
| Free cash flow, Q3 2026non-GAAP | −$45.78M | – | – |
| Net cash provided by (used in) financing activities, Q3 2026GAAP | −$6.68M | – | – |
| Cash and cash equivalents as of September 30, 2026GAAP | $177.4M | – | – |
| Global Revenue growth, Q3 2026 year-over-yearother | up 2% | – | up 2% |
| Global Billings growth, Q3 2026 year-over-year (as reported)other | up 6% | – | up 6% |
| Global Billings growth, Q3 2026 year-over-year (FX-neutral)non-GAAP | up 6% | – | up 6% |
| North America Local Revenue growth, Q3 2026 year-over-yearother | flat | – | flat |
| North America Local Billings growth, Q3 2026 year-over-yearother | up 4% | – | up 4% |
| International Local Revenue growth, Q3 2026 year-over-yearother | up 12% | – | up 12% |
| International Local Billings growth, Q3 2026 year-over-year (as reported)other | up 11% | – | up 11% |
| International Local Billings growth, Q3 2026 year-over-year (FX-neutral)non-GAAP | up 12% | – | up 12% |
| Active customers, September 30, 2026other | 16.2M | – | roughly flat |
| North America active customers, Q3 2026 year-over-yearother | 1% decline | – | 1% decline |
| International active customers, Q3 2026 year-over-yearother | 4% growth | – | 4% growth |
| Unit sales, Q3 2026other | 9M | – | down 2% |
| Average order value, Q3 2026 year-over-yearother | up 8% | – | up 8% |
| Annualized cost savings, 2026 Restructuring Plan (estimate)other | $20.0 million to $25.0 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North America LocalLocal billings up 4%, driven by strength in Things to Do and the Enterprise channel, and growth in paid and organic channels, as stated by the company. Active customers in North America declined 1%, and the release attributes the unit decline to lower transaction volume in North America. | Revenue dollar amount not printed in this release (growth only) | – | flat |
| International LocalLocal billings up 11% (up 12% FX-neutral), driven by an expansion of seasonally relevant supply in major International cities, led by Health, Beauty & Wellness and Things to Do, and growth in paid and organic channels, as stated by the company. Active customers in International grew 4%. | Revenue dollar amount not printed in this release (growth only) | – | up 12% |
Q4 2026 and full year 2026, as of November 9, 2026 outlook
- RevenueQ4 2026: $133M to $136M; full year 2026: $500M to $503M
- NoteQ4 2026 billings: +4% (low-end) to +6% (high-end), as printed
- NoteFull year 2026 billings: +3%, as printed (only one figure appears for this row)
- NoteQ4 2026 revenue growth printed as flat (low-end) and +2% (high-end); full year 2026 revenue growth printed as flat (low-end) and +1% (high-end)
- NoteQ4 2026 Adjusted EBITDA: $18M to $23M (non-GAAP)
- NoteFull year 2026 Adjusted EBITDA: $60M to $65M (non-GAAP)
- NoteQ4 2026 free cash flow: Positive (non-GAAP)
- NoteFull year 2026 free cash flow: At Least $40M (non-GAAP)
- NoteCompany states that reconciliations for forward-looking non-GAAP estimates are not provided for the reasons given in footnote 1 of the release
Capital returns
- No share repurchase or dividend amounts are printed in this release.
- Net cash used in financing activities from continuing operations was not separately described; the reconciliation prints net cash provided by (used in) financing activities of $(6,684) thousand for Q3 2026, against $(3,275) thousand for Q3 2025 and $(13,827) thousand for Q2 2026, without a breakdown.
What drove it
- Company states that North America Local billings were up 4%, driven by strength in Things to Do and the Enterprise channel, and growth in paid and organic channels.
- Company states that International Local billings grew 11% (12% FX-neutral), driven by an expansion of seasonally relevant supply in major International cities, led by Health, Beauty & Wellness and Things to Do.
- Company states that unit sales declined 2% reflecting lower transaction volume in North America, partially offset by growth in International, and that average order value increased 8% as customers purchased higher-value offerings.
- Company states that the 2026 Restructuring Plan payroll actions are estimated to result in $20.0 million to $25.0 million in annualized cost savings, with estimated total pre-tax charges of $7.0 million to $10.0 million, and that a majority of the related headcount reductions occurred by the end of the third quarter.
- Restructuring and related charges were $2,334 thousand in Q3 2026 and $3,161 thousand in Q2 2026, per the reconciliation schedule.
- Company states that it launched FoundryAI (FAI) in Q3 and that the majority of employees have moved onto the platform.
- Company states that LivingSocial was relaunched on October 15 as an agent-first experience marketplace, opening in public preview with more than 50,000 local experiences across the United States.
Concerns
- Global revenue grew 2%, while billings grew 6%. The release does not print a dollar revenue figure for the quarter.
- North America Local revenue was flat and active customers in North America declined 1%, with unit sales down 2% attributed by the company to lower transaction volume in North America.
- Adjusted EBITDA was $14,734 thousand, compared with $17,540 thousand in Q3 2025 and $14,834 thousand in Q2 2026.
- Free cash flow was $(45,783) thousand, against $(24,588) thousand in Q3 2025 and $15,022 thousand in Q2 2026. Operating cash outflow was $(43,208) thousand.
- The company's own forward-looking statements flag risks that the anticipated benefits of its AI strategy may not be realized in the time frame expected or at all, and that its public statements on AI may later be viewed as inconsistent with its actual capabilities or results.
What to watch
- Q4 2026 guidance: billings +4% to +6%, revenue $133M to $136M, Adjusted EBITDA $18M to $23M, and positive free cash flow.
- Full year 2026 guidance: revenue $500M to $503M, Adjusted EBITDA $60M to $65M, and free cash flow of at least $40M.
- Whether North America Local billings growth, which the company reports at 4%, carries into the fourth quarter alongside the flat North America Local revenue line.
- Realization of the $20.0 million to $25.0 million annualized savings from the 2026 Restructuring Plan.
- Active customer trend: 16.2 million total, with International up 4% and North America down 1%.
- The investor update in New York on December 8, 2026, as announced in the release.
- Commercial traction of LivingSocial in public preview, which the company describes as its lab for agentic commerce.
Balance sheet and cash flow
- Cash and cash equivalents were $177.4 million as of September 30, 2026. The prior-period cash balance is not printed in this release.
- Operating cash outflow from continuing operations was $(43,208) thousand in Q3 2026, against an inflow of $18,127 thousand in Q2 2026 (prior-year Q3 2025 outflow: $(20,506) thousand).
- Free cash flow was $(45,783) thousand, after purchases of property and equipment and capitalized software of $(2,575) thousand in Q3 2026.
- The release refers to a 2027 Notes and a 2030 Notes in its forward-looking statements, but no principal amounts, interest rates or total debt are printed in this release.
Analysis
Groupon reported Q3 2026 with global billings up 6% (6% FX-neutral) and global revenue up 2% year-over-year. Within that, North America Local revenue was flat while North America Local billings rose 4%, and International Local revenue rose 12% with local billings up 11% (12% FX-neutral). The release does not print a dollar revenue figure for the quarter, so the revenue read is limited to these growth rates. Demand indicators were mixed: active customers were 16.2 million, roughly flat, with International up 4% and North America down 1%; unit sales fell 2% to 9.0 million while average order value rose 8%. The company attributes the unit decline to lower transaction volume in North America and the AOV increase to customers buying higher-value offerings.
Profitability and cash flow moved in different directions. Loss from continuing operations was $(806) thousand, compared with $(117,782) thousand in Q3 2025 and $(1,456) thousand in Q2 2026. Adjusted EBITDA was $14,734 thousand, against $17,540 thousand a year earlier and $14,834 thousand in the second quarter. Operating cash flow from continuing operations was $(43,208) thousand, against $18,127 thousand in Q2 2026, and free cash flow was $(45,783) thousand. Gross margin, operating expense lines, net income and EPS are not printed in this release, so the quarter cannot be assessed on those lines.
The company describes restructuring and AI investment alongside the operating results. The 2026 Restructuring Plan payroll actions are estimated to produce $20.0 million to $25.0 million in annualized savings, against estimated pre-tax charges of $7.0 million to $10.0 million, with most headcount reductions completed by the end of the quarter. Restructuring and related charges were $2,334 thousand in Q3 2026. The release also reports the launch of FoundryAI and the October 15 relaunch of LivingSocial as an agent-first marketplace, which the company presents as its lab for agentic commerce. These are strategic statements; the release does not print financial results for either initiative.
The outlook for Q4 2026 calls for billings growth of +4% to +6%, revenue of $133M to $136M, Adjusted EBITDA of $18M to $23M and positive free cash flow. For full year 2026 the release prints revenue of $500M to $503M, Adjusted EBITDA of $60M to $65M and free cash flow of at least $40M. The release does not say whether these ranges were raised, lowered, held or narrowed, and no prior outlook was supplied for comparison. Capital returns are not discussed in the release; the only cash figures printed are the financing line of $(6,684) thousand and cash of $177.4 million at September 30, 2026. Debt is referenced only by note name, with no amounts printed.
The figures to watch are the gap between billings growth of 6% and revenue growth of 2%, the flat North America Local revenue line, the decline in Adjusted EBITDA year-over-year, and the size of the free cash flow outflow relative to the positive full-year free cash flow guide of at least $40M.
Management, verbatim
Q3 was a consequential quarter for how Groupon operates.
Dusan Senkypl, Chief Executive Officer, Groupon
As AI takes more of daily life online, we believe the best things in life will increasingly happen offline.
Dusan Senkypl, Chief Executive Officer, Groupon
Not in the filing
stated, not guessed- Global revenue in dollars for Q3 2026 and Q3 2025 (only growth rates are printed).
- Revenue dollar amounts for North America Local and International Local segments.
- Gross billings in dollars for Q3 2026, Q3 2025 and Q2 2026.
- Cost of sales, gross margin, and all operating expense lines (sales and marketing, technology, G&A, and similar).
- Operating income (loss), net income (loss), and GAAP and non-GAAP EPS.
- Income tax and interest lines as separate printed figures for Q3 2026 and comparison periods.
- Year-to-date (nine-month) figures; the release prints only the quarter.
- Prior-year and prior-quarter cash balances; total assets; total stockholders' equity; total debt and the principal amounts of the 2027 Notes and 2030 Notes.
- Share repurchase and dividend amounts for the quarter, if any.
- Prior-year and prior-quarter active customer counts and unit sales counts (only the Q3 2026 level or the year-over-year change is printed).
- Prior-year Q4 2025 revenue and billings base needed to interpret the Q4 2026 growth ranges.
- The release's guidance table is laid out ambiguously: the billings row prints +4%, +6% and +3%, and the revenue row prints flat, +2%, flat and +1%. The mapping of these percentages to the Q4 low-end, Q4 high-end, full-year low-end and full-year high-end columns is not explicit in the text, so the guidance field keeps the printed strings in the other list.
- Full year 2026 billings guidance low-end and high-end values, which are not clearly separated in the printed table.
- Prior outlook for vs_prior_guidance: no previous release outlook was provided, so guidance comparisons are not possible.
- Share price reaction and analyst consensus estimates: not provided in the documents.
- Basis of the revenue growth percentage (GAAP or other) is not stated in the release.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Groupon filed an SEC 8-K with Q3 2026 results and an outlook for Q4 and full-year 2026, alongside updates on FoundryAI and the LivingSocial relaunch.
Ticker impact
Groupon reported Q3 results with global revenue up 2%, billings up 6%, and provided Q4 and full-year 2026 Billings, revenue, and adjusted EBITDA guidance.
Likely modest upside or volatility as traders price the Q4 and full-year 2026 Billings, revenue, and adjusted EBITDA outlook against recent expectations.
The filing includes both quarterly performance (revenue, billings, loss from continuing ops, adjusted EBITDA, free cash flow) and forward guidance ranges for Q4 and full-year 2026, which are direct inputs to valuation and positioning.
Market effects
Reinforces the ongoing shift toward AI-enabled local commerce and agentic marketplaces among online deal platforms, but impact is company-specific.
Limited, as the disclosure is primarily company financials with no regional macro policy signal.
Low, since the news is not a cross-market macro release or industry-wide regulatory action.
Counterpoint
Despite billings growth and improved losses, free cash flow remained negative and adjusted EBITDA declined year over year, which could cap upside.
Key entities
- companyGroupon, Inc.
NASDAQ-listed local marketplace reporting Q3 2026 results and issuing Q4 and full-year 2026 guidance.
- productLivingSocial
Relaunched as an agent-first experience marketplace with a public preview of local experiences.
- technologyFoundryAI (FAI)
Internal AI platform intended to centralize data, tools, and skills across the organization.
