Groupon (GRPN) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 2.1% YoY to $125.5M and gross billings grew 5.5% to $439.1M; units declined 1.9% to 9.0M, while TTM active customers reached 16.2M.

• Adjusted EBITDA was $14.7M vs. $17.5M, and contribution profit fell to $61.7M from $70.4M as marketing investment increased.

• Loss from continuing operations narrowed to $0.8M from $117.8M; net loss attributable to common stockholders was $1.1M vs. $118.4M.

Financial highlights

• Q3 revenue was $125.5M vs. $122.8M YoY; gross profit was $113.4M vs. $111.8M.

• Marketing expense rose 24.8% to $51.7M; SG&A declined 19.3% to $55.1M, and restructuring charges were $2.3M.

• Prior-year Q3 net loss attributable to common stockholders included a $99.9M debt-extinguishment loss.

• 9M revenue was $367.3M vs. $365.7M; net loss attributable to common stockholders was $15.7M vs. $90.9M.

• 9M Adjusted EBITDA was $42.4M vs. $48.4M; free cash flow was negative $44.3M vs. negative $3.2M.

Outlook and guidance

• Q4 2026 guidance: billings growth of 4%–6%, revenue of $133M–$136M, Adjusted EBITDA of $18M–$23M and positive free cash flow.

• FY 2026 guidance: revenue of $500M–$503M, Adjusted EBITDA of $60M–$65M, free cash flow of at least $40M and billings growth beginning at 3%.

• The 2026 Restructuring Plan targets $20M–$25M in annualized payroll savings; up to $10M of gross savings in 2026 will be reinvested in marketing, AI infrastructure and talent.

• Restructuring actions cover up to 400 global positions; most were completed by Q3-end, with estimated pretax charges of $7M–$10M.

• Liquidity is expected to support operations for 12 months, including repayment of the $47.3M 2027 Notes at maturity on March 15, 2027.