Groupon, Inc. Q2 2026 Earnings Recap

Groupon’s shares edged down 0.5% post-earnings, reflecting investor caution despite progress in AI-driven initiatives as North America Local revenue underperformed and revenue declined 1% year-over-year, missing expectations in the key segment.

Key Takeaways

• Q2 revenue and billings each declined 1% year-over-year, pressured by underperformance in North America Local.
• Adjusted EBITDA finished at the high end of guidance, with free cash flow strong at +$15 million.
• AI transformation efforts are underway; engineering productivity has more than doubled, and AI now handles thousands of hyperlocal marketing campaigns.
• Organic search channel revenue returned to growth in Q2, accelerating to double-digit growth in July.
• Q3 guidance expects 4%-6% billings growth, $128 million to $130 million revenue, adjusted EBITDA of $19 million to $21 million, and negative free cash flow.