Key Highlights

  • Groupon (NASDAQ:GRPN) fell about 18% in after-hours trading on November 9, 2026 after third-quarter results missed estimates on both Revenue and earnings.
  • Revenue rose 2% to about USD 125.5 million, about 3% below consensus, while billings grew 6% and North America local revenue was flat.
  • The company posted a loss of USD 0.03 per share against an expected loss of USD 0.01, and adjusted EBITDA fell to USD 14.7 million from USD 17.5 million.
  • Full-year 2026 revenue guidance of USD 500 million to USD 503 million implies flat to 1% growth, below the roughly USD 518 million the market had expected.

Where the Quarter Fell Short

Groupon (NASDAQ:GRPN) has been trying to return its local deals marketplace to steady growth, and the third quarter showed slow progress. Billings, the gross value of vouchers sold, rose 6%, with North America local billings up 4% and international local billings up 11%. Revenue, however, rose only 2% to about USD 125.5 million, and North America local revenue was flat, which matters because it is the core of the business. Units sold fell 2% to 9.0 million, while average order value rose 8%, suggesting fewer but larger purchases. Active customers were roughly flat at 16.2 million. The loss from continuing operations narrowed sharply to USD 0.8 million from USD 117.8 million, but the prior year included a large debt-related charge, so the improvement says less about operating momentum than it appears at first glance.

Guidance and Cash Flow Concerns

The outlook added to the disappointment. Fourth-quarter revenue guidance of USD 133 million to USD 136 million points to flat to 2% growth, below expectations, with adjusted EBITDA of USD 18 million to USD 23 million and positive free cash flow. For the full year, revenue is guided at USD 500 million to USD 503 million, billings growth of about 3%, adjusted EBITDA of USD 60 million to USD 65 million and free cash flow of at least USD 40 million. Third-quarter free cash flow was negative USD 45.8 million, a seasonal outflow that leaves a large gap to close in the final quarter. Cash stood at USD 177.4 million at the end of September. The company also announced restructuring expected to save USD 20 million to USD 25 million a year in payroll, with USD 7 million to USD 10 million of charges.

What Comes Next

The bull case for Groupon (NASDAQ:GRPN) rests on billings growth turning into revenue growth as the merchant base improves, and on new products. The company relaunched its LivingSocial Brand on October 15, 2026 as a marketplace built around AI agents, an experiment that could reach new customers if it gains traction. Cost savings from restructuring should support margins in 2027. The risks are that North America stays flat, that consumer discretionary spending weakens if interest rates rise further, and that the fourth-quarter cash flow target proves hard to reach. Investors will look to the Earnings call on November 10 and the investor update on December 8 for detail on the turnaround plan, the timeline for revenue growth, Marketing spending and Capital allocation.

Where Things Stand

Groupon sank about 18% after hours on November 9, 2026 because revenue rose only 2% and missed estimates, North America local revenue was flat and full-year guidance of USD 500 million to USD 503 million came in below expectations. Billings growth of 6% and new cost savings offer some support. The December 8 investor update will be the next test of the turnaround.