second quarter 2026
Filed Aug 6, 2026Global Revenue and Billings down 1%; loss from continuing operations was $1.5 million and Adjusted EBITDA was $14.8 million, at the high end of guidance
Global Revenue and Billings each declined 1% year-over-year, while loss from continuing operations widened to $1.5 million from income from continuing operations of $20.6 million. Adjusted EBITDA remained positive at $14.8 million, operating cash inflow from continuing operations was $18.1 million, and management guided to Billings growth and positive Adjusted EBITDA in the third quarter and full year 2026.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Global RevenueGAAP | down 1% | – | down 1% |
| Global Billingsother | down 1% | – | down 1% |
| Global Billings, FX-neutralnon-GAAP | down 1% | – | down 1% FX-neutral |
| Active customersother | 16.1 million | – | grew 2% |
| Unit salesother | 8.5 million | – | down 7% |
| Loss from continuing operationsGAAP | $1.5 million | – | – |
| Adjusted EBITDAnon-GAAP | positive $14.8 million | – | – |
| Operating cash inflow from continuing operationsGAAP | $18.1 million | – | – |
| Free cash flownon-GAAP | positive $15.0 million | – | – |
| Cash and cash equivalentsGAAP | $226.3 million | – | – |
| 2026 Restructuring Plan chargesGAAP | $3.2 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North America LocalSoftness in Health, Beauty & Wellness, partially offset by strength in Things to Do and recovery within our organic and managed channels. | down 2% | – | down 2% |
| International LocalImproved organic performance from our new consumer platform and an expansion of seasonally relevant supply across major International cities, led by Health, Beauty & Wellness and Things to Do offerings. | up 8% | – | up 8% |
| International Local excluding GiftcloudImproved organic performance from the new consumer platform and an expansion of seasonally relevant supply across major International cities. | up 9% | – | up 9% |
Q3 2026 and 2026 outlook
- RevenueQ3 2026: $128M to $130M; 2026: $513M to $523M
- NoteQ3 2026 Billings: +4% to +6%
- Note2026 Billings: +3% to +5%
- NoteQ3 2026 Adjusted EBITDA: $19M to $21M
- Note2026 Adjusted EBITDA: $75M to $80M
- NoteQ3 2026 Free Cash Flow: Negative
- Note2026 Free Cash Flow: At least $60M
What drove it
- Active customers grew 2% to 16.1 million, with growth in both North America and International Local categories.
- Organic channels returned to growth and managed channels continued to improve.
- The rollout of the new consumer platform nears completion, with conversion improving on nearly every surface.
- Customers purchased higher-value local inventory, increasing average order value.
- New personalization and trust and quality capabilities were scaled across the consumer platform.
- The payroll actions under the 2026 Restructuring Plan are estimated to result in $20.0 million to $25.0 million in annualized cost savings.
Concerns
- Global Revenue and Billings were each down 1% year-over-year.
- North America Local Revenue was down 2% and Local Billings were down 1%, reflecting softness in Health, Beauty & Wellness.
- Unit sales were down 7% year-over-year, reflecting lower transaction volume in North America and International.
- Loss from continuing operations was $1.5 million, compared with income from continuing operations of $20.6 million in the prior year period.
- Adjusted EBITDA declined to positive $14.8 million from positive $15.6 million in the prior year period.
- The Company recorded $3.2 million of restructuring charges in the second quarter under its 2026 Restructuring Plan.
What to watch
- Q3 2026 Billings guidance of +4% to +6%.
- Q3 2026 Revenue guidance of $128M to $130M.
- Q3 2026 Adjusted EBITDA guidance of $19M to $21M.
- The expected majority of related headcount reductions by the end of the third quarter.
- Execution of Project Foundry and whether conversion, organic-channel growth, managed-channel improvement and personalization continue to scale.
- Recovery in North America Local, particularly Health, Beauty & Wellness.
Balance sheet and cash flow
- Cash and cash equivalents as of June 30, 2026 were $226.3 million.
- Operating cash inflow from continuing operations was $18.1 million.
- Free cash flow was positive $15.0 million.
Analysis
Groupon reported a mixed second quarter for the period ended June 30, 2026. Global Revenue and Billings both declined 1% year-over-year, including a 1% decline in FX-neutral Billings. The reported top-line performance reflects a weaker North America Local result, where Revenue declined 2% and Local Billings declined 1%, alongside an improving International Local business, where Revenue increased 8% and Local Billings increased 2%.
Customer engagement indicators were uneven. Active customers grew 2% to 16.1 million, with growth in both North America and International Local categories. However, unit sales declined 7% to 8.5 million, which the Company attributed to lower transaction volume in North America and International. Groupon said higher average order value, as customers purchased higher-value local inventory, partially offset the transaction decline.
Profitability and cash generation diverged. Loss from continuing operations was $1.5 million, compared with income from continuing operations of $20.6 million in the prior-year period. Adjusted EBITDA remained positive at $14.8 million, versus positive $15.6 million in the prior-year period, and was at the high end of guidance. Operating cash inflow from continuing operations was $18.1 million and free cash flow was positive $15.0 million. Cash and cash equivalents were $226.3 million as of June 30, 2026.
The Company is pursuing cost savings through its 2026 Restructuring Plan while advancing Project Foundry and consumer-platform initiatives. It recorded $3.2 million of restructuring charges in the quarter, and payroll actions are estimated to result in $20.0 million to $25.0 million in annualized cost savings. The Company estimates total pre-tax restructuring charges of $7.0 million to $13.0 million, with a majority of the related headcount reductions expected by the end of the third quarter.
Management's outlook calls for acceleration in the second half. For Q3 2026, it expects Billings growth of +4% to +6%, Revenue of $128M to $130M, and Adjusted EBITDA of $19M to $21M, while Q3 free cash flow is expected to be Negative. For 2026, the Company expects Billings growth of +3% to +5%, Revenue of $513M to $523M, Adjusted EBITDA of $75M to $80M, and free cash flow of At least $60M. The central execution question is whether the new consumer platform, organic-channel growth, managed-channel improvement and personalization can sustain the planned top-line acceleration, particularly in North America Local.
Management, verbatim
Project Foundry, our AI-native redesign of how Groupon operates, remains the most consequential work underway at the company, and just over four months in we are extremely pleased with the progress we have made.
Dusan Senkypl, Chief Executive Officer of Groupon
While Q2 fell slightly short on the top line, we entered the third quarter with momentum and expect growth to accelerate in the second half.
Dusan Senkypl, Chief Executive Officer of Groupon
Not in the filing
stated, not guessed- Total Global Revenue dollar amount
- Total Global Billings dollar amount
- North America Local Revenue dollar amount
- North America Local Billings dollar amount
- International Local Revenue dollar amount
- International Local Billings dollar amount
- Gross profit and gross margin
- Operating income or loss
- Net income or loss
- GAAP and non-GAAP earnings per share
- Prior-quarter comparisons for reported metrics
- Debt balance
- Share repurchases
- Dividends
- Q3 2026 gross margin guidance
- Q3 2026 operating expenses guidance
- Q3 2026 tax-rate guidance
- 2026 gross margin guidance
- 2026 operating expenses guidance
- 2026 tax-rate guidance
- Previous-release outlook for comparison with reported results
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.