Groupon cuts 2026 revenue outlook to $500–503 million after 6% billing growth
Key Facts
Groupon reported results for the third quarter ended September 30 on November 9, 2026, and cut its full-year revenue outlook to a range of $500–503 million and adjusted EBITDA to $60–65 million. The announcement came after global revenue rose 2% year over year and billings increased 6%, or 6% excluding the effect of foreign exchange rates. But adjusted earnings were $14.7 million, below the company’s previous guidance range, compared with $17.5 million in the same period last year. Management said lower-than-expected revenue and continued investment in marketing were the main factors behind the company’s failure to reach its target earnings range. The stock closed at $16.25 on November 9, while the premarket decline attributed to the results could not be confirmed by a reliable open source.
Revenue and billings improved from the second quarter, when Groupon recorded a 1% year-over-year decline in each. Global revenue also increased in the third quarter, but adjusted operating profitability fell from its level a year earlier, putting sales growth alongside continued pressure on spending efficiency. The loss from continuing operations was $0.8 million, compared with a loss of $117.8 million in the third quarter of the previous year. The comparison shows a substantial reduction in the loss from continuing operations, alongside a decline in adjusted earnings from $17.5 million to $14.7 million. The official results do not confirm that revenue or earnings missed analysts’ estimates.
Active customers totaled 16.2 million, roughly stable year over year, as 4% growth in international customers offset a 1% decline in North America. Units sold fell 2% to 9.0 million, while average order value rose 8%. In North America, local revenue was flat and billings increased 4%, supported by strength in Experiences and the corporate channel, as well as growth in paid and organic channels. International local revenue rose 12% and billings increased 11%, or 12% excluding the effect of foreign exchange. The company attributed this performance to expanding seasonal offerings in major international cities, particularly in health, beauty and wellness, and Experiences, alongside growth in paid and organic channels.
Management identified four factors that weighed on quarterly results: higher marketing spend with lower-than-expected returns, a lower acquisition rate due to a shift in business mix, trust and quality headwinds, and slower progress through the customer lifecycle. In its statement, the company said results were affected by “higher marketing spend with lower returns than we expected, a lower acquisition rate due to mix shift, trust and quality headwinds, and slower progress through the customer lifecycle.” This came as the company continued to spend on marketing, which management said contributed to adjusted earnings remaining below the guidance range. General and administrative expenses declined in part, offsetting some of the impact of weaker revenue and marketing spend. In the same quarter, cash flow from continuing operations was an outflow of $43.2 million, and free cash flow was negative $45.8 million.
The outlook cut marks a shift from the range the company announced after its second-quarter results in August, when it forecast annual revenue of $513 to $523 million and adjusted earnings of $75 to $80 million. Compared with those estimates, the new full-year revenue range is lower, while the adjusted earnings outlook has fallen to $60–65 million. For the fourth quarter, Groupon expects revenue of $133 to $136 million and adjusted earnings of $18 to $23 million. After the second quarter, the company said it entered the third quarter with momentum and expected growth to accelerate in the second half of 2026. It also said at the time that its restructuring plan was underway and on track, and that pay-reduction measures were expected to deliver annual savings of $20 to $25 million.
Groupon had reported that second-quarter metrics showed simultaneous year-over-year declines in revenue and billings, while adjusted earnings were $14.8 million, compared with $15.6 million a year earlier. Third-quarter results pair revenue and billings growth with lower adjusted earnings than a year earlier and a cut to the full-year outlook. The company is scheduled to host a webcast to discuss the results on November 10, 2026, at 7:00 a.m. Central Time, or 8:00 a.m. Eastern Time. Management also scheduled an investor update in New York on December 8, 2026, with venue and time details to be announced later. The stated priorities for the next phase include rebuilding North America’s offerings, improving customer trust, encouraging repeat purchases through personalization, and expanding AI-powered commerce.