Groupon Earnings Call Transcripts
Fiscal Year 2026
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Management is executing a full-scale transformation, leveraging AI to rebuild the business, drive operational efficiency, and unlock growth in a large, underpenetrated market. Strategic focus includes talent density, trust, and a best-in-class acquisition engine to convert customers into repeat buyers and maximize operating leverage.
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Management prioritizes AI-driven transformation to deepen market presence, improve personalization, and enhance customer and merchant experiences. Financial discipline is shown through targeted reinvestment, capital allocation, and a shift to higher-value offerings. Active customers are up, but units sold are down, reflecting a focus on higher-value inventory.
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Q2 2026 saw a 1% year-over-year decline in billings and revenue, but adjusted EBITDA was strong and free cash flow reached $15M. July showed mid-single-digit growth, with AI-driven transformation accelerating feature delivery and operational efficiency.
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Q1 2026 billings declined 1% year-over-year, with revenue flat and adjusted EBITDA slightly below guidance due to severance costs. Project Foundry is driving an AI-native transformation, with further restructuring and cost reductions planned. Full-year guidance is reaffirmed.
Fiscal Year 2025
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Returned to billings and revenue growth in 2025, with strong local marketplace and customer gains. Q4 missed guidance due to enterprise and marketing headwinds, but AI initiatives and platform upgrades position for moderate growth in 2026.
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The conference highlighted a strategic turnaround with renewed growth in core local categories, strong AI and tech investments, and a focus on hyperlocal expansion. Key priorities include scaling billings, maintaining cost discipline, and leveraging AI for both merchant and customer engagement.
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Global billings rose 11% year-over-year, led by 18% growth in the core local category and strong international performance. Adjusted EBITDA reached $18 million, with robust free cash flow and ongoing investments in technology, marketing, and AI initiatives.
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Global billings grew 12% year-over-year, led by 19% growth in the core local category and strong North America performance. Full-year billings guidance was raised to 7%-9% growth, with AI and SEO providing incremental traffic tailwinds.
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Q1 2025 billings and adjusted EBITDA exceeded guidance, with North America local billings up 11% year-over-year and international markets improving. Full-year billings growth guidance was raised, and platform modernization plus AI initiatives are driving operational gains.
Fiscal Year 2024
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2024 saw a strong turnaround with 8% North America Local billings growth in Q4, positive free cash flow, and major platform upgrades. 2025 guidance expects continued growth, with a focus on retention, high-impact categories, and further operational improvements.
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Cost structure improvements and a new platform have stabilized operations and enabled growth initiatives. Conversion rates and SEO are improving, with further gains expected from targeted merchant and customer enhancements. 2025 guidance is cautious due to legacy user headwinds, but upside remains from ongoing product upgrades.
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Q3 revenue declined 9.5% year-over-year, but Adjusted EBITDA exceeded guidance, supported by strong performance in International Local (excluding Italy) and the Things To Do vertical. Raised $197 million in new secured convertible debt, and expect positive free cash flow for the year.
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Q2 2024 saw improved results with positive Adjusted EBITDA and free cash flow, led by North America Local growth and strong June performance. Guidance for Q3 and full-year 2024 was revised down due to site stability issues, but investments in sales, marketing, and technology continue to support long-term growth.