Groupon (GRPN) Q2 2026 Earnings Report

The call highlighted meaningful operational progress driven by the Foundry AI initiative, improved organic and managed-channel performance, clear leadership additions, and positive Q2 cash flow—balanced against a modest top-line decline (-1% YoY) concentrated in North America Local, ongoing migration execution risk, and a forecasted negative free cash flow quarter in Q3. Management conveyed momentum in July (mid-single-digit growth and double-digit organic gains) and reiterated full-year targets, but noted the acceleration depends on execution of AI, marketing, and supply initiatives.

Management's guidance: Q3 billings growth of 4%–6% year‑over‑year, revenue of $128M–$130M, adjusted EBITDA of $19M–$21M and negative free cash flow in the quarter; reaffirmed full‑year billings growth of 3%–5%, revenue of $513M–$523M, adjusted EBITDA of $75M–$80M and free cash flow of at least $60M (implying second‑half revenue growth of roughly 6%–10%), with July accelerating to mid‑single‑digit growth — for context Q2 saw billings and revenue each down 1% YoY, adjusted EBITDA at the high end of guidance and free cash flow of +$15M.