GRPN · Groupon, Inc.

Groupon's Q1 2026 results showed resilience with flat global revenue and Billings down just 1% year-over-year on a reported basis, or 3% FX-neutral, amid a strategic pivot toward AI-native operations under CEO Dusan Senkypl's refreshed mission to drive offline local experiences. North America Local faced headwinds from small business merchants, Health Beauty & Wellness, Enterprise channels, managed/organic traffic, and adverse January-February weather, partially offset by strength in Things to Do and paid channels, resulting in 1% revenue decline but 2% Billings growth. International Local shone with 10% revenue growth and, excluding Giftcloud, 19% revenue and 14% Billings increases, fueled by expanded seasonally relevant Things to Do supply and improved organic traffic from the new consumer platform. Active customers expanded 5% to 16.2 million across regions, signaling demand strength, though unit sales dipped 5% to 8.1 million due to softer North America transaction volumes. GAAP net loss of $12.6 million reversed prior-year income of $8.0 million, while non-GAAP Adjusted EBITDA of $12.8 million held positive though down from $15.3 million. Balance sheet remains solid with $225.5 million in cash, supporting aggressive share repurchases totaling over $31 million YTD. Cash burn persisted with $10 million operating outflow and negative $13.5 million free cash flow. Guidance signals optimism: Q2 Billings flat to +2%, full-year +3-5% with Revenue $513-523 million and Adjusted EBITDA $70-75 million, underpinned by Project Foundry's AI agent integration across functions to boost velocity in agentic commerce. Management emphasizes AI adoption's early momentum for stronger performance ahead, with results and 10-Q filed and call scheduled May 8.