Groupon (GRPN) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Mon, June 1, 2026 astatine 12:26 PM CDT 29 min read

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DATE

Friday, May 8, 2026 astatine 8 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Dusan Senkypl

• Chief Financial Officer — Rana Kashyap

Full Conference Call Transcript

Dusan Senkypl: Hello, and acknowledgment for joining america for our archetypal 4th 2026 net call. It's large to beryllium with each of you today. Yesterday, aft the marketplace closed, we released our net and posted our shareholder missive connected our Investor Relations website. Today, I volition marque opening remarks and past unfastened up the telephone for your questions. For much details connected our quarterly performance, I promote you to work our afloat shareholder letter, property merchandise and 10-Q. Let maine commencement with the headline. Q1 fell abbreviated of our expectations. Global billings of $383 cardinal declined 1% year-over-year, somewhat beneath our guidance. Revenue of $117 cardinal was level year-over-year and wrong our guidance range.

Adjusted EBITDA was $12.8 million, somewhat beneath our guidance range. I privation to beryllium wide connected 1 item: adjusted EBITDA of $12.8 cardinal includes astir $2 cardinal of severance reflected successful SG&A successful the 4th related to the astir 5% caput number simplification we executed successful Q1. The pressures successful the 4th concentrated successful 3 areas: continued softness successful our managed and integrated channels, which we flagged connected the Q4 call; a deceleration successful North America local, wherever SMB merchant acquisition slowed and endeavor turned antagonistic for the archetypal clip successful 5 quarters and our archetypal brushed 4th successful health, quality and wellness aft 4 consecutive quarters of growth. Severe wintertime upwind successful January and February added a near-term headwind.

Things to Do proceed to turn crossed some North America and planetary and partially offset these pressures. April show has improved, driven by North America section reaccelerated. Managed channels are recovering with email returning to affirmative year-over-year growth. SEO trajectory turned affirmative successful mid-April. These are aboriginal indicators, but they validate the enactment we person been doing connected our lawsuit information platform, and connected AI-driven contented and they springiness america assurance successful the backmost half. Importantly, nary of the Q1 results yet bespeak the operating interaction of Project Foundry, which I volition talk to next. Turning to Project Foundry. Foundry is the astir consequential operating determination this absorption squad has made since arriving astatine Groupon 3 years ago.

We are rebuilding Groupon arsenic an AI-native company. Foundry is not a merchandise launch. It's a redesign of however the institution works. We are embedding AI agents into the halfway of each function, giving concern and merchandise owners nonstop entree to the data, tools and originative leverage they request to enactment successful hours alternatively than weeks and removing the analytical and engineering layers that antecedently sat betwixt an thought and its execution. The operating displacement is already visible. We are piloting AI dependable agents that behaviour outbound outreach to small- and medium-sized merchants. And our nonsubjective is for the bulk of caller merchant meetings to beryllium acceptable by AI dependable agents by the extremity of 2026.