--- title: "Groupon | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 117.2 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285659776.md" datetime: "2026-05-08T03:44:51.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285659776.md) - [en](https://longbridge.com/en/news/285659776.md) - [zh-HK](https://longbridge.com/zh-HK/news/285659776.md) --- # Groupon | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 117.2 M Revenue: As of FY2026 Q1, the actual value is USD 117.2 M, missing the estimate of USD 117.65 M. EPS: As of FY2026 Q1, the actual value is USD -0.32, missing the estimate of USD -0.04. EBIT: As of FY2026 Q1, the actual value is USD -1.794 M. ### Overall Company Financial Metrics #### Revenue - Total Revenue: $117,200 thousand for the three months ended March 31, 2026, compared to $117,187 thousand for the same period in 2025, showing a minimal change. #### Gross Profit - Total Gross Profit: $106,049 thousand for the three months ended March 31, 2026, down from $106,298 thousand for the same period in 2025. #### Contribution Profit - Total Contribution Profit: $69,716 thousand for the three months ended March 31, 2026, a decrease from $71,861 thousand for the same period in 2025. #### Adjusted EBITDA - Adjusted EBITDA: $12,790 thousand for the three months ended March 31, 2026, compared to $15,326 thousand for the same period in 2025. #### Free Cash Flow - Free Cash Flow: -$13,517 thousand for the three months ended March 31, 2026, compared to -$3,759 thousand for the same period in 2025. #### Operating Expenses - Marketing: $36,333 thousand for the three months ended March 31, 2026, up from $34,437 thousand in 2025, representing a 5.5% increase. As a percentage of revenue, marketing increased from 29.4% to 31.0%. - Selling, General and Administrative (SG&A): $73,028 thousand for the three months ended March 31, 2026, up from $69,840 thousand in 2025, a 4.6% increase. SG&A as a percentage of revenue increased from 59.6% to 62.3%. - Restructuring and Related Charges: $7 thousand for the three months ended March 31, 2026, a significant decrease from $137 thousand in 2025, representing a -94.9% change. - Total Operating Expenses: $109,368 thousand for the three months ended March 31, 2026, up from $104,414 thousand in 2025, a 4.7% increase. #### Other Income (Expense), Net - Other Income (Expense), Net: -$4,371 thousand for the three months ended March 31, 2026, a decrease from $7,571 thousand for the same period in 2025, primarily due to a $13.0 million decrease in net foreign currency gains (losses). #### Income Taxes - Provision (Benefit) for Income Taxes: $4,899 thousand for the three months ended March 31, 2026, compared to $1,428 thousand for the same period in 2025. The effective tax rate was -63.7% in 2026 and 15.1% in 2025. #### Net Cash Flows - Net Cash Used in Operating Activities: -$9,958 thousand for the three months ended March 31, 2026, compared to -$22 thousand in 2025. - Net Cash Used in Investing Activities: -$3,559 thousand for the three months ended March 31, 2026, compared to -$3,737 thousand in 2025. - Net Cash Used in Financing Activities: -$55,669 thousand for the three months ended March 31, 2026, compared to -$454 thousand in 2025, primarily due to the repayment of $33.7 million in 2026 Notes and $21.3 million in share repurchases. ### North America Segment #### Operating Metrics - Gross Billings: $286,028 thousand for the three months ended March 31, 2026, a -0.2% decrease from $286,519 thousand in 2025. Local gross billings increased by 2.0% to $260,643 thousand, while Goods decreased by -42.1% to $4,991 thousand and Travel decreased by -8.3% to $20,394 thousand. - Units: 5,345 thousand for the three months ended March 31, 2026, a -6.5% decrease from 5,715 thousand in 2025. Local units decreased by -4.4% to 5,132 thousand, Goods decreased by -47.1% to 137 thousand, and Travel decreased by -14.6% to 76 thousand. - TTM Active Customers: 10,980 thousand for the trailing twelve months ended March 31, 2026, a 4.9% increase from 10,466 thousand in 2025. #### Financial Metrics - Revenue: $89,913 thousand for the three months ended March 31, 2026, a -1.3% decrease from $91,113 thousand in 2025. Local revenue decreased by -0.5% to $85,537 thousand, Goods decreased by -40.9% to $894 thousand, and Travel decreased by -4.8% to $3,482 thousand. - Cost of Revenue: $7,990 thousand for the three months ended March 31, 2026, a -3.0% decrease from $8,241 thousand in 2025. - Gross Profit: $81,923 thousand for the three months ended March 31, 2026, a -1.1% decrease from $82,872 thousand in 2025. - Marketing: $26,921 thousand for the three months ended March 31, 2026, a 1.7% increase from $26,474 thousand in 2025. - Contribution Profit: $55,002 thousand for the three months ended March 31, 2026, a -2.5% decrease from $56,398 thousand in 2025. ### International Segment #### Operating Metrics - Gross Billings: $96,518 thousand for the three months ended March 31, 2026, a -3.4% decrease from $99,957 thousand in 2025. Local gross billings decreased by -2.9% to $78,128 thousand, Goods decreased by -8.8% to $11,302 thousand, and Travel increased by 0.1% to $7,088 thousand. - Units: 2,803 thousand for the three months ended March 31, 2026, a -0.8% decrease from 2,825 thousand in 2025. Local units increased by 3.8% to 2,539 thousand, Goods decreased by -32.4% to 227 thousand, and Travel decreased by -14.0% to 37 thousand. - TTM Active Customers: 5,229 thousand for the trailing twelve months ended March 31, 2026, a 4.5% increase from 5,006 thousand in 2025. #### Financial Metrics - Revenue: $27,287 thousand for the three months ended March 31, 2026, a 4.7% increase from $26,074 thousand in 2025. Local revenue increased by 9.7% to $24,597 thousand, Goods decreased by -30.0% to $1,584 thousand, and Travel decreased by -20.5% to $1,106 thousand. - Cost of Revenue: $3,161 thousand for the three months ended March 31, 2026, a 19.4% increase from $2,648 thousand in 2025. - Gross Profit: $24,126 thousand for the three months ended March 31, 2026, a 3.0% increase from $23,426 thousand in 2025. - Marketing: $9,412 thousand for the three months ended March 31, 2026, an 18.2% increase from $7,963 thousand in 2025. - Contribution Profit: $14,714 thousand for the three months ended March 31, 2026, a -4.8% decrease from $15,463 thousand in 2025. ### Future Outlook and Strategy Groupon, Inc. aims to become the leading local experience marketplace by fostering long-term merchant relationships to expand inventory and enhancing customer experience through curation and convenience. The company is investing in AI-native capabilities, including personalization and AI-driven tools, to capitalize on local experiences demand. To support this AI-native model and improve operational efficiency, Groupon initiated Project Foundry in Q1 2026, planning significant restructuring actions in Q2, including a global headcount reduction of approximately 15%. ### Related Stocks - [GRPN.US](https://longbridge.com/en/quote/GRPN.US.md) ## Related News & Research - [Groupon (NASDAQ:GRPN) Posts Earnings Results, Misses Expectations By $0.30 EPS](https://longbridge.com/en/news/285824342.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [Hafnia’s Q1 2026 Financial Results Presentation to Be Held on 27 May 2026 | HAFN Stock News](https://longbridge.com/en/news/287014236.md) - [Sangoma Announces Third Quarter Fiscal 2026 Results | SANG Stock News](https://longbridge.com/en/news/286317217.md) - [Crombie Reit Announces May 2026 Monthly Distribution | CROMF Stock News](https://longbridge.com/en/news/286603129.md)