Groupon, Inc., encompassing its various subsidiary entities, operates a digital platform designed to connect shoppers with businesses. The company's operational scope is ...
Groupon, Inc. is a global e-commerce platform that connects millions of consumers with local businesses, offering daily deals on a wide range of products, services, and experiences. Founded in November 2008 by Andrew Mason with backing from Eric Lefkofsky and Brad Keywell, the company quickly grew to become a household ...Groupon, Inc. is a global e-commerce platform that connects millions of consumers with local businesses, offering daily deals on a wide range of products, services, and experiences. Founded in November 2008 by Andrew Mason with backing from Eric Lefkofsky and Brad Keywell, the company quickly grew to become a household name in the daily deals space. Its business model is two-fold: it earns revenue by commission from merchant deals and from direct sales of goods from its own inventory. Geographically, operations are divided into North America and International segments, with a strong presence primarily in the U.S. and Canada. The company relies heavily on its mobile apps and website to reach customers, and it serves over 16 million active customers as of recent quarters. Financially, Groupon has faced challenges, with a net loss of $253 million in the trailing twelve months (TTM) as of the latest data, and a market cap of about $950 million. The company has a negative book value per share of -$1.85 and a debt-to-equity ratio that indicates high leverage. However, it maintains a gross profit margin of over 90%, showcasing the scalability of its marketplace model. Key executives include CEO Dusan Senkypl, who took over as interim CEO from Pale Fire Capital, Groupon's largest shareholder. The company went public in 2011 and has faced intense competition and shifting consumer habits, leading to strategic pivots and a focus on automation and technology to improve efficiency. Despite challenges, Groupon remains a recognizable brand in local commerce, with a mission to help local businesses thrive and customers discover new experiences.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$498.4M
+1.2%
+6.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-83.5M
-41.5%
+86.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+89.0%
-1.4%
+0.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+2.6%
+45.6%
+79.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-16.8%
-39.8%
+87.1%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$49.9M
+24.8%
+211.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+10.0%
+23.3%
+204.5%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
-821.4%
-232.5%
+13.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.98x
-5.5%
-2.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Thank you. Hello and welcome to Groupon's Second Quarter 2026 Financial Results Conference Call. On the call today are Chief Executive Officer, Dusan Senkypl; and Chief Financial Officer, Rana Kashyap. [Operator Instructions] The company has posted earnings materials, including earnings commentary, on the company's investor relations website at investor.groupon.com. Today's conference call is being recorded. Before we begin, Groupon would like to remind listeners that the following discussion and responses to the questions reflect management's views as of today, August 7, 2026, only, and will include forward-looking statements. Actual results may differ materially from those expressed or implied in the company's forward-looking statements. Groupon undertakes no obligation to update these forward-looking statements as a result of new information or future events. Additional information about risks and other factors that could potentially impact the company's financial results are including in its earnings press release and in its filings with the SEC, including its annual (sic) [ quarterly ] report on Form 10-Q. We encourage investors to use Groupon's investor relations website at investor.groupon.com as a way of easily finding information about the company. Groupon promptly makes available on its website, the reports that the company files or furnishes with the SEC, corporate governance information, and select press releases and social media postings. On the call today, the company will also discuss the following non-GAAP financial measures, adjusted EBITDA and free cash flow. In Groupon's press release and their filings with the SEC, each of which is posted on its investor relations website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures to the most comparable measures under U.S. GAAP. And with that, I would like to turn it over to CEO, Dusan Senkypl, to make a few opening remarks before we jump into Q&A.
Dusan Senkypl: Hello and thanks for joining us for our second quarter 2026 earnings call. It's great to be with all of you today. Yesterday, after the market closed, we released our earnings and posted our shareholder letter on our investor relations website. Today, I will make opening remarks and then open up the call for your questions. For more details on our quarterly performance, I encourage you to read our full shareholder letter, press release and Form 10-Q. We believe the best things in life happen offline. As the world becomes increasingly digitized, we believe demand will grow for analog, in-person experiences and for the digital pathways consumers use to identify, discover, and book those experiences. Groupon sits at that intersection of consumer intent and local supply, a natural bridge between the AI economy and the millions of local merchants who power Main Street. Q2 fell slightly short on the top line with Billings and Revenue each down 1% year over …