Groupon (GRPN) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $124.7M, nearly flat year-over-year, with billings and revenue both declining 1% and a net loss of $1.5M, reflecting higher operating expenses and unfavorable foreign currency impacts.

• Adjusted EBITDA reached $14.8M, at the high end of guidance, and free cash flow was $15M, with strong positive operating cash inflow.

• Project Foundry, an AI-native transformation initiative, is driving operational changes, accelerating feature delivery, and improving customer outcomes.

• The company approved a restructuring plan targeting up to 400 position reductions, with $3.2M in charges recorded in Q2 and expected annualized cost savings of $20–25M.

• Leadership team strengthened with new COO and VP of Marketplace Strategy and Operations to address supply challenges.

Financial highlights

• Adjusted EBITDA for Q2 2026 was $14.8M, down from $15.6M in Q2 2025, but at the high end of guidance.

• Free cash flow was positive at $15M for the quarter, compared to $25.2M in Q2 2025.

• Cash and cash equivalents at June 30, 2026 were $226.3M.

• Gross profit for Q2 2026 was $113.4M, with a gross margin of 91.0%.

• Unit sales were 8.5M, down 7% year-over-year, but average order value increased.

Outlook and guidance

• Q3 2026 guidance: billings growth of 4–6%, revenue of $228M–$230M, adjusted EBITDA of $19M–$21M, negative free cash flow expected.

• Full-year 2026 outlook: billings $513M–$523M, revenue $513M–$523M, adjusted EBITDA $75M–$80M, free cash flow of at least $60M.

• Second half revenue growth expected between 6–10%, with acceleration driven by easier comps, increased marketing, and strategic initiatives.

• The restructuring plan is expected to generate $20–25M in annualized cost savings, with $10–12M gross savings in 2026 and approximately $5M in net savings after reinvestment.

• Management expects continued evaluation of cost-reduction and automation actions through 2027.