Groupon Restores Global Revenue Growth After Two Weak Quarters
Third-quarter revenue rose 2% and billings 6% as the company guided fourth-quarter revenue of $133 million to $136 million.
Groupon, Inc. (GRPN) reported global revenue up 2% and billings up 6% in the third quarter ended September 30, 2026, reversing a 1% year-over-year decline in both measures in the second quarter.
The local marketplace said the turn followed a flat global revenue print in the first quarter. Billings rose 6% on an FX-neutral basis.
North America Local revenue was flat year-over-year after a 2% decline in the second quarter and a 1% decline in the first. North America Local billings rose 4%, which the company attributed to strength in Things to Do and its Enterprise channel, and growth in paid and organic channels.
International Local revenue growth accelerated to 12% from 8% in the second quarter and 10% in the first. International Local billings rose 11%, or 12% FX-neutral. Groupon said the International result was driven by an expansion of seasonally relevant supply in major cities, led by Health, Beauty & Wellness and Things to Do, and growth in paid and organic channels.
Active customers were 16.2 million, roughly flat year-over-year, after 2% growth to 16.1 million in the second quarter and 5% growth to 16.2 million in the first. The company said 4% growth in International offset a 1% decline in North America. Unit sales were 9.0 million, down 2% year-over-year, reflecting lower transaction volume in North America, partially offset by growth in International. Average order value increased 8% as customers purchased higher-value offerings.
Loss from continuing operations was $0.8 million, compared with a loss from continuing operations of $117.8 million in the prior-year period. Adjusted EBITDA was $14.7 million, compared with $17.5 million a year earlier.
Operating cash outflow from continuing operations was $43.2 million and free cash flow was negative $45.8 million. Cash and cash equivalents were $177.4 million as of September 30, 2026.
Payroll actions under the 2026 Restructuring Plan remain estimated at $20.0 million to $25.0 million in annualized cost savings. The company estimates total pre-tax charges of $7.0 million to $10.0 million, with a majority of related headcount reductions having occurred by the end of the third quarter.
Chief Executive Officer Dusan Senkypl said the quarter was consequential for how Groupon operates, citing continued strengthening of operating leadership, accelerated investments in agentic commerce through the relaunch of LivingSocial, and more work moved onto FoundryAI.
On October 15, Groupon relaunched LivingSocial as an agent-first experience marketplace and its lab for agentic commerce, opening in public preview with more than 50,000 local experiences across the United States. In the third quarter it launched FoundryAI, an internal AI platform designed to centralize company data, tools and skills. The company said the majority of employees have moved onto the platform and that it expects FAI to become the default way teams work by the end of 2026.
For the fourth quarter, Groupon expects billings up 4% to 6%, revenue of $133 million to $136 million, or flat to up 2%, Adjusted EBITDA of $18 million to $23 million, and positive free cash flow. For full-year 2026, it expects billings up 3%, revenue of $500 million to $503 million, Adjusted EBITDA of $60 million to $65 million, and free cash flow of at least $40 million.
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