Q4 2025 Groupon Inc Earnings Call

March 11, 2026

Dušan Senkypl: Make opening remarks and then open up the call for your questions. For more details on our quarterly and full year performance, I encourage you to read our full earnings commentary, press release, and Form 10-K. I want to start with what matters most. 2025 was a milestone year for Groupon. For the first time in a decade, we returned to both billings and revenue growth. Full year global billings grew 7% to approximately $1.67 billion. We delivered a second consecutive year of positive free cash flow and exited the year with approximately $296 million in cash. These are not incremental improvements. This is a fundamentally different company than the one that existed three years ago.

Dušan Šenkypl: Make opening remarks and then open up the call for your questions. For more details on our quarterly and full year performance, I encourage you to read our full earnings commentary, press release, and Form 10-K. I want to start with what matters most. 2025 was a milestone year for Groupon. For the first time in a decade, we returned to both billings and revenue growth. Full year global billings grew 7% to approximately $1.67 billion. We delivered a second consecutive year of positive free cash flow and exited the year with approximately $296 million in cash. These are not incremental improvements. This is a fundamentally different company than the one that existed three years ago.

Details on our quarterly and full year performance I encourage you to read our full earnings commentary press release and 10-K.

I want to start with what matters. Most 2025 was a milestone year for Groupon for the first time in a decade, we returned to both billings and revenue growth.

Full year global Billings grew 7% to approximately $1 767 billion, we delivered our second consecutive year of positive free cash flow and.

And exited the year with approximately $296 million in cash.

<unk> are not incremental improvements this is a fundamentally different company than the one that existed three years ago.

Dušan Senkypl: Our core local marketplace, which represents approximately 90% of billings, grew double digits for the full year in both North America and international, excluding Giftcloud. Global active customers reached 16.2 million, up more than 5% year-over-year, with North America local active customers growing 12%. Now, let me be direct about Q4. We did not finish the year the way we planned. Global billings grew 4% year-over-year, but came in below our guidance range, as did revenue and Adjusted EBITDA. The shortfall was not broadly distributed. It was concentrated in two specific areas, enterprise channel deceleration in North America and underperformance in our organic and owned marketing channels. Both are well understood, both have clear root causes, and both have direct action plans underway, which we go into more detail in our earnings commentary that we released last night.

Dušan Šenkypl: Our core local marketplace, which represents approximately 90% of billings, grew double digits for the full year in both North America and international, excluding Giftcloud. Global active customers reached 16.2 million, up more than 5% year-over-year, with North America local active customers growing 12%. Now, let me be direct about Q4. We did not finish the year the way we planned. Global billings grew 4% year-over-year, but came in below our guidance range, as did revenue and Adjusted EBITDA. The shortfall was not broadly distributed. It was concentrated in two specific areas, enterprise channel deceleration in North America and underperformance in our organic and owned marketing channels. Both are well understood, both have clear root causes, and both have direct action plans underway, which we go into more detail in our earnings commentary that we released last night.

Our core local marketplace, which represents approximately 90% of billings grew double digits for the full year in both North America and international excluding gift cards.

Mobile active customers reached $16 2 million up more than 5% year over year.

With North America, local active customers growing 12%.

Now let me be direct about Q4, we did not finish the year. The way we planned global billings grew 4% year over year, but came in below our guidance range as the revenue and adjusted EBITDA.

The shortfall was not broadly distributed it was concentrated in two specific areas enterprise channel deceleration in North America, and underperformance in our organic and Owens marketing channels.

Both are well understood.

<unk> has a clear road courses.

And both have direct action plans underway, which will go into more detail in our earnings commentary that we released last night.

Dušan Senkypl: On the product side, our product and engineering organization is shipping more, faster, and with better quality than at any point in recent memory. Our platform migration reached a significant milestone with 50% of all iOS North America users now on the new mobile app, and we expect all iOS North America app users to be migrated by the end of Q1. Along with our new website, this is a complete rebuild of our core consumer platform, a multi-year undertaking, and completing this ramp-up is meaningful, not just as a technical milestone, but as the foundation for our next phase of growth. Earlier results show that the new users on the updated platform are generating stronger monetization per user than on the legacy app. With the new platform in place, we now have the development velocity to move quickly on the opportunities ahead.

Dušan Šenkypl: On the product side, our product and engineering organization is shipping more, faster, and with better quality than at any point in recent memory. Our platform migration reached a significant milestone with 50% of all iOS North America users now on the new mobile app, and we expect all iOS North America app users to be migrated by the end of Q1. Along with our new website, this is a complete rebuild of our core consumer platform, a multi-year undertaking, and completing this ramp-up is meaningful, not just as a technical milestone, but as the foundation for our next phase of growth. Earlier results show that the new users on the updated platform are generating stronger monetization per user than on the legacy app. With the new platform in place, we now have the development velocity to move quickly on the opportunities ahead.

On the product side, our product and engineering organization is shipping more faster and with better quality than at any point in recent memory.

Our platform migration reached a significant milestone with 50% of all iOS North America users now under the new mobile App and we expect all iOS North America users to be migrated by the end of Q1.

Along with our new website, which is a complete rebuild of our core consumer platform, a multiyear undertaking and completing this ramp up is meaningful not just as a technical milestone, but the foundation for our next phase of growth.

Early results show that the new users on the updated platform are generating stronger monetization per user than on the legacy.

With the new platform in place, we now have the development velocity to move quickly on the opportunities ahead.

Dušan Senkypl: In 2026, our product agenda shifts from conversion first to grow first with a new search and relevance engine. A customer data platform now live in North America to drive personalized customer journeys and the infrastructure to make our inventory discoverable and transactable by AI agents and platforms. That last point is central to where we are taking this business. Our number one strategic priority for 2026 is to shift the business towards an AI native operating model. We believe the next generation of local experience discovery and transaction will be driven by autonomous agentic systems that can evaluate options and execute transactions on behalf of customers. The platforms that position early for this shift will capture disproportionate value, and we intend to be one of them.

Dušan Šenkypl: In 2026, our product agenda shifts from conversion first to grow first with a new search and relevance engine. A customer data platform now live in North America to drive personalized customer journeys and the infrastructure to make our inventory discoverable and transactable by AI agents and platforms. That last point is central to where we are taking this business. Our number one strategic priority for 2026 is to shift the business towards an AI native operating model. We believe the next generation of local experience discovery and transaction will be driven by autonomous agentic systems that can evaluate options and execute transactions on behalf of customers. The platforms that position early for this shift will capture disproportionate value, and we intend to be one of them.

In 2026, our product agenda shifts from converse converse Jordan first to grow first with.

With our new search and relevance and Jane a customer data platform now late life in North America to drive personalized customer journeys.

And the infrastructure to make our inventory discoverable and transportable by AI agents and platforms.

The last point is central to where we are talking taking this business.

Our number one strategic priority for 2026 is to shift the business towards an AI native operating model.

We believe the next generation of broker experience discovery and transaction will be driven by autonomous agent X systems.

That can evaluate options and execute transactions on behalf of customers.

The platforms that position early for this shift will capture disproportionate value and we intend to be one of them we.

Dušan Senkypl: We are building our proprietary AI personalization layer, making our inventory discoverable and transactable by AI agents, and targeting technical readiness for AI agents initiating transactions by mid-2026. To underscore our commitment, today we announced the formation of a dedicated artificial intelligence committee of the board of directors, making Groupon one of the first publicly traded consumer marketplaces to establish a board-level AI committee. We appointed Amit Shah as a new independent director to chair the committee. Shah is the founder and CEO of Instalily AI and previously served as the president of 1-800-Flowers.com. His experience in the intersection of commerce, platforms, and emerging technologies is directly relevant to the work ahead. On 2026 guidance, our full-year results delivered our first consecutive year of improving revenue growth, and we expect that trend to continue.

Dušan Šenkypl: We are building our proprietary AI personalization layer, making our inventory discoverable and transactable by AI agents, and targeting technical readiness for AI agents initiating transactions by mid-2026. To underscore our commitment, today we announced the formation of a dedicated artificial intelligence committee of the board of directors, making Groupon one of the first publicly traded consumer marketplaces to establish a board-level AI committee. We appointed Amit Shah as a new independent director to chair the committee. Shah is the founder and CEO of Instalily AI and previously served as the president of 1-800-Flowers.com. His experience in the intersection of commerce, platforms, and emerging technologies is directly relevant to the work ahead. On 2026 guidance, our full-year results delivered our first consecutive year of improving revenue growth, and we expect that trend to continue.

We are building, our proprietary AI personalization layer, making our inventory discoverable and transact double by AIA Jones and targeting technical readiness for AI agent initiating transactions by mid 2006.

To underscore our commitment today, we announced the formation of a dedicated artificial intelligence committee of the board of directors, making Groupon one of the first publicly traded consumer marketplaces to establish a board level AI Committee.

We appointed Amit Shah as a new independent director to Chair. The Committee Shah is the founder and CEO of installed <unk> II and previously served as the president of Bon 800 flowers com.

His experience and the intersection of Commerce platforms and emerging technologies is directly relevant to the work ahead.

On 2026 guidance, our full year results delivered our first first consecutive year of improving revenue growth.

And we expect that tends to continue that.

Dušan Senkypl: That said, the pace of growth improvement will be more moderate than the trajectory we were building toward. The headwinds in organic, owned, and enterprise channels are addressable, and we have clear plans against each, but the fixes will take time to compound. Our guidance reflects that reality. We are guiding to 3 to 5% billings growth, 3 to 5% revenue growth, $70 to 75 million in Adjusted EBITDA, and at least $60 million in free cash flow. We also plan to host an investor event in the second half of 2026 to provide deeper insight into our strategy and our path forward. Taking a step back, the long-term opportunity here remains enormous. The market for online experiences has significant under-penetration compared to categories like hotels and airfare.

Dušan Šenkypl: That said, the pace of growth improvement will be more moderate than the trajectory we were building toward. The headwinds in organic, owned, and enterprise channels are addressable, and we have clear plans against each, but the fixes will take time to compound. Our guidance reflects that reality. We are guiding to 3 to 5% billings growth, 3 to 5% revenue growth, $70 to 75 million in Adjusted EBITDA, and at least $60 million in free cash flow. We also plan to host an investor event in the second half of 2026 to provide deeper insight into our strategy and our path forward. Taking a step back, the long-term opportunity here remains enormous. The market for online experiences has significant under-penetration compared to categories like hotels and airfare.

That said the pace of growth improvement will be more moderate than the trajectory we were building towards.

The headwinds in organic owned and enterprise channels are addressable and we have clear plans against each but the fixed fees will take time to compound.

Our guidance reflects that reality, we are guiding to 3% to 5% billings growth, 3% to 5% revenue growth.

70% to $75 million and adjusted EBITDA and at least $60 million in free cash flow.

We also plan to host an investor event in the second half of 2026 to provide deeper insight into our strategy and our path forward.

Taking a step back the long term opportunity here remains enormous.

The market for online experiences significant under penetration compared to categories like hotels and airfare.

Dušan Senkypl: We believe AI-driven discovery and agentic transactions will accelerate online penetration in local experiences, and Groupon is well-positioned to capture that growth. We remain confident in our long-term targets to accelerate global billings growth to over 20%. As we move into our growth phase, we are anchoring the company around a clear mission. We get people offline through quality local experiences at great value. In a market where every platform competes for more screen time, Groupon exists to drive real-world commerce, connecting consumers to local businesses and generating measurable foot traffic and spend. As AI shifts from assistive tool to autonomous agents that can discover, evaluate, and transact, Groupon's position at the intersection of consumer intent and local supply makes us a natural bridge between the AI economy and the millions of businesses that power local communities.

Dušan Šenkypl: We believe AI-driven discovery and agentic transactions will accelerate online penetration in local experiences, and Groupon is well-positioned to capture that growth. We remain confident in our long-term targets to accelerate global billings growth to over 20%. As we move into our growth phase, we are anchoring the company around a clear mission. We get people offline through quality local experiences at great value. In a market where every platform competes for more screen time, Groupon exists to drive real-world commerce, connecting consumers to local businesses and generating measurable foot traffic and spend. As AI shifts from assistive tool to autonomous agents that can discover, evaluate, and transact, Groupon's position at the intersection of consumer intent and local supply makes us a natural bridge between the AI economy and the millions of businesses that power local communities.

We believe AI, driven discovery and agency transactions will accelerate online penetration in local <unk>.

And groupon is well positioned to capture that growth.

We remain confident in our long term targets to accelerate global billings growth to over 20%.

As we move into our growth phase, we are anchoring the company around a clear mission we.

We get people offline through quality local experiences at a great value and.

In a market where every platform competes for more screen time, groupon exists to drive real world commerce connecting consumers to local businesses.

Generating measurable foot traffic and spend.

As AI shifts from assistive tool to out animals agents that can discover evaluate and transact group.

<unk> position at the intersection of consumer intent and global supply makes us nature bridge between the AI economy, and the millions of businesses that power of local communities.

Dušan Senkypl: We are still in the early innings of a massive opportunity to become the trusted destination for discovering high quality local services and experiences at unbeatable value. We have the cash, the technology, and the strategy to win. Our work is far from finished, but the foundation we have built gives me real confidence in what comes next. I want to thank our team. This transformation is not easy and their dedication, intensity, and execution excellence has made this progress possible. With that, let's open the call for questions.

Dušan Šenkypl: We are still in the early innings of a massive opportunity to become the trusted destination for discovering high quality local services and experiences at unbeatable value. We have the cash, the technology, and the strategy to win. Our work is far from finished, but the foundation we have built gives me real confidence in what comes next. I want to thank our team. This transformation is not easy and their dedication, intensity, and execution excellence has made this progress possible. With that, let's open the call for questions.

We are still in the early innings of a massive opportunity to become the trusted destination for discovering high quality local services and experiences at unbeatable value.

We have the cash the technology and the strategy to win.

Our work is far from finished by the foundation. We have built gives me real confidence in what comes next.

I want to thank our team. This transformation is not easy and very dedication intensity and execution excellence have made this progress possible.

That let's open the call for questions.

Operator: Thank you, Dušan. Our first question comes from Bobby Brooks from Northland Capital Markets. Bobby, you can now unmute your line.

Thank you D.

Our first question comes from Bobby Brooks from Northland Capital markets. Bobby you can now on mute your line.

Hey, good morning, Tina and thank you for taking my question. So it was excellent to hear how the commentary of how conversion rates across every part on key geo improves in the fourth quarter.

Bobby Brooks: Good morning, Dusan. Thank you for taking my question. It was excellent to hear how the commentary of how conversion rates across every portal and geo improves in the Q4. I just wanted to hear more on what you believe drove that. Do you feel like there's more room to go on improving this further? Or maybe it's at a level you'd like to maintain. Just curious to hear more there.

Wanted to hear more on what you believe drove that and do you feel like Theres more.

For them to go on improving this further or maybe it's at a level you'd like to maintain just curious to hear more there.

Dušan Senkypl: Yeah. Thank you, Bobby, for the question. I believe that the conversion results which we have are a result of several different aspects. The first I would like to mention is the platform development, because when you compare what we are running and operating in Groupon versus what we had two years ago, the consumer interface is much more consumer friendly. We are improving the search and the relevance experience, just trying to present our customers the products which are relevant. The second dimension of that is also related to our offer because we are not just trying to get as many merchants on the platform as possible, but we are really discussing the quality of merchants, quality of offerings, and this is also translated to conversion.

Dušan Šenkypl: Yeah. Thank you, Bobby, for the question. I believe that the conversion results which we have are a result of several different aspects. The first I would like to mention is the platform development, because when you compare what we are running and operating in Groupon versus what we had two years ago, the consumer interface is much more consumer friendly. We are improving the search and the relevance experience, just trying to present our customers the products which are relevant. The second dimension of that is also related to our offer because we are not just trying to get as many merchants on the platform as possible, but we are really discussing the quality of merchants, quality of offerings, and this is also translated to conversion.

Thank you Bob for the question.

I believe that the conversion of our results, which we have a result of several different aspects there.

First I would like to mention is the platform development because venue comparable we are running and operating and groupon versus what we had.

Two years ago, the consumer interface is much more consumer friendly we are improving the search and the relevance experienced just trying to present our customers.

<unk> switch which are irrelevant.

Second dimension of.

That is.

Also related to our offer because we are not just trying to get as many merchants on the platform as possible, but we are really discussing the quality of merchants quality of offerings and this has also translated to conversion.

Dušan Senkypl: At the same time, in our marketing channels, we are trying to buy as relevant traffic as possible, not just widely get users who may not be really interested in our deals on the platform, but we are trying to improve the marketing. We are buying in the paid channels the traffic which has the highest possible conversion. This comes also with the fact that we are buying slightly less eyeballs in general, but improving the conversion significantly. I expect that this trend will continue because also this like decision making funnel is moving towards like AI surfaces and interfaces which are informing customers on what's possible. We will continue with our conversion improvements through the better inventory and better products. I expect that this trend will continue.

Dušan Šenkypl: At the same time, in our marketing channels, we are trying to buy as relevant traffic as possible, not just widely get users who may not be really interested in our deals on the platform, but we are trying to improve the marketing. We are buying in the paid channels the traffic which has the highest possible conversion. This comes also with the fact that we are buying slightly less eyeballs in general, but improving the conversion significantly. I expect that this trend will continue because also this like decision making funnel is moving towards like AI surfaces and interfaces which are informing customers on what's possible. We will continue with our conversion improvements through the better inventory and better products. I expect that this trend will continue.

And at the same time in our marketing.

Panels, we are trying to buy astral advanced traffic as possible not just widely.

Get users, who may not be really interested in our deals on the platform, but we are trying to improve the marketing. So we are buying.

In the paid channels, the traffic, which has the highest possible conversion.

This comes also with the fact that we are buying slightly less eyeballs in general, but improving the conversion significantly I expect that this trend will continue goes also part of the decision, making funnel is moving towards like AI surfaces, and interfaces, which are informing customers on board.

Possible, but we will continue with our conversion improvements through the better inventory and better product. So I expect that this trend will continue.

Bobby Brooks: Got it. Shifting gears, you mentioned how a weak pipeline of new brand ads and some one-off issues with existing enterprise merchants kind of drove that weakness in that segment, but I wanted to get a little bit more in depth there. Why do you think the pipeline is weak, just generally? It felt like we turned a corner in winning new merchants as you could kind of go to them with a lot more data supporting, "Hey, why doing vouchers on Groupon is beneficial." Did something change there? Or maybe that was more specific to SMBs. Just wanted to hear more on how that pipeline for enterprise weakened.

Got it and then shifting gears you mentioned.

<unk> pipeline of new brand ads and some one off issues with existing enterprise margins kind of drove that weakness in that segment and I wanted to get a little bit more in depth there.

Why do you think the pipeline as we just generally.

Felt like because it felt like we turned the corner and winning new merchants as you could kind of go to them with a lot more data supporting a wide doing vouchers on groupon is beneficial.

Something changed there or maybe that was more specific to smbs.

Wanted to hear more on how.

How that pipeline for enterprise weakened.

Dušan Senkypl: Last year, we made a bet on a partner to be our channel to acquire new customer acquisition, and simply that deal is going below our expectations. We were expecting to get more traction and more new partners on our platform through that partnership, which actually we announced last year publicly. At the same time, we see that the market is slightly changing with, and we need to work on our products to have better product market fit, because traditionally we have the coupons or the deal type of product. What we see is that the market is moving towards a closed loop transactions when the product price, for example, is not visible directly on the website.

So.

Dušan Šenkypl: Last year, we made a bet on a partner to be our channel to acquire new customer acquisition, and simply that deal is going below our expectations. We were expecting to get more traction and more new partners on our platform through that partnership, which actually we announced last year publicly. At the same time, we see that the market is slightly changing with, and we need to work on our products to have better product market fit, because traditionally we have the coupons or the deal type of product. What we see is that the market is moving towards a closed loop transactions when the product price, for example, is not visible directly on the website.

Last year we.

<unk> made a bet on a partner to be our channel to acquire new customer acquisition.

And simply that the deal is going below our expectations. So we were expecting to get more traction and more new partners on our platform through this partnership which should it be.

<unk> lost their publicly.

At the same time, we see that the market is slightly changing with an hour we need to work on our products to have better product market fit.

Because traditionally we have do coupons.

The deal that deal type of product what we see.

Is that the market is moving towards a close loop transactions when the.

Product price for example is not visible directly on the website you need to register or the offer is up only.

Dušan Senkypl: You need to register or the offer is up only, because it's so easy now to find out what's the pricing and the big brands don't want to see different pricing on Groupon publicly versus what's, for example, on their website. In this area, we are iterating our product with improvements on this closed loop proposition so that we can serve more brands in this direction. Maybe I would mention the reason why we are talking about the fact that it will take some time to compound the results. Enterprise is a long cycle. When we start talking to the potential partner, the deal is not closed in few weeks.

Dušan Šenkypl: You need to register or the offer is up only, because it's so easy now to find out what's the pricing and the big brands don't want to see different pricing on Groupon publicly versus what's, for example, on their website. In this area, we are iterating our product with improvements on this closed loop proposition so that we can serve more brands in this direction. Maybe I would mention the reason why we are talking about the fact that it will take some time to compound the results. Enterprise is a long cycle. When we start talking to the potential partner, the deal is not closed in few weeks.

Because it's so easy now to find out what's the pricing.

The big brands don't want to see different pricing on groupon publicly on groupon publicly versus votes. For example on variable side. So in this in this area. We are iterating, our product with improvements on the close loop proposition. So that we can sort of more brands and more brands in this in this direction.

And then maybe I would mentioned the reason why we are talking about.

The fact that it will take some time to compound the results enterprises selling cycle. So when we start talking to the potential partner. The deal is not closed in few weeks.

Dušan Senkypl: You should think about it more as a negotiation process which takes several months to close, sometimes even quarters, because they sometimes need to include it in their annual planning.

Dušan Šenkypl: You should think about it more as a negotiation process which takes several months to close, sometimes even quarters, because they sometimes need to include it in their annual planning.

You should think about it more as a.

Negotiation process, which takes several months to close sometimes even quarters, because sometimes if they need to included in their annual planning.

Bobby Brooks: Got it. That's helpful. Just that was something I wanted to double-click on too, is the closed loop part. If I'm understanding it correctly, it's essentially kind of not having like the price of the deal listed just blank, but you would have to like kinda create a Groupon account to then see the deal. Just-

Got it that's helpful and just that was something I wanted to double click on to its a closed loop.

The close loop part so if I'm understanding you correctly essentially.

Kind of not having the price of the deal listen just blankly, but you would have kind of created Groupon account to then see the deal just.

Dušan Senkypl: Yes.

Bobby Brooks: Wanna make sure I'm understanding. Okay. That's all right.

Dušan Šenkypl: Yes.

Bobby Brooks: Wanna make sure I'm understanding. Okay. That's all right.

Make sure I'm understanding that this is this is this is it where it will be several levels of the closed loop because there are different requirements of brands on the market.

Dušan Senkypl: Yeah. This is it. There will be several levels of the closed loop because there are different requirements of brands on the market. We already have some experiments up and running in travel and in some other categories. There will be cases where the offer will be visible on the website, but you have to first register, which is pretty much one click right now, using the single sign-on technologies. In some cases, we will just have an information on the website that in order to access the price for this deal, you need to install the application, and you can get the deal in the application.

Dušan Šenkypl: Yeah. This is it. There will be several levels of the closed loop because there are different requirements of brands on the market. We already have some experiments up and running in travel and in some other categories. There will be cases where the offer will be visible on the website, but you have to first register, which is pretty much one click right now, using the single sign-on technologies. In some cases, we will just have an information on the website that in order to access the price for this deal, you need to install the application, and you can get the deal in the application.

We already have some experiments up and running and travel and some other categories.

There will be cases, where the offer will be visible on the website.

You have to first register which is pretty much one click right now using the single sign on.

Acknowledges in some cases, we will just have an information on the website in order to access the price for this deal you need to install the application.

And you can get the deal in the application.

Bobby Brooks: Got it. Just last one from me before going back to the queue is sticking with this enterprise stuff. You mentioned how you kinda reorganized the enterprise channel to align with vertical focus category structure. Just wanted to get some color on how was the team structured previously, and is this new vertical focus category structure, is that the same structure that has led to strong success in key cities like Chicago?

Got it and then just last one for me before going back to the Qs.

Taken with this enterprise stuff you mentioned, how you're kind of reorganized enterprise channel to align with current focus category structure just wanted to get some color on how was the team structured previously and as this new vertical focus categories furniture is that the same structure that has led to strong success in key cities like Chicago.

<unk>.

Dušan Senkypl: It's similar structure. I would not say that it's same structure. What we see across the board in Groupon, when we look at any segment or category as one product, one Groupon product, it typically doesn't work because there is a lot of color for each category. The go-to-market in Things to Do in local experiences is different than go-to-market, for example, in health and beauty categories. We are doing exactly same stuff. We have the category GMs who have the industry knowledge. They typically also know the people within the industry. Then they are guiding the sales team, how they should be approaching the product for very specific category.

It's it's similar structure I would not say that it's the same structure that would we see across the board in a groupon when we look on the NSS segment or category as one product one groupon product typically doesn't work because there is a lot of color.

Dušan Šenkypl: It's similar structure. I would not say that it's same structure. What we see across the board in Groupon, when we look at any segment or category as one product, one Groupon product, it typically doesn't work because there is a lot of color for each category. The go-to-market in Things to Do in local experiences is different than go-to-market, for example, in health and beauty categories. We are doing exactly same stuff. We have the category GMs who have the industry knowledge. They typically also know the people within the industry. Then they are guiding the sales team, how they should be approaching the product for very specific category.

Each category the go to market in a things to do in local experiences is different than.

Go to market.

For example in health and beauty.

Categories. So we.

We are doing exactly the same stuff, we have the category Gms, who have the industry knowledge. They typically also know the people.

In the industry and then we are guiding the sales team, how we should be approaching the products for very specific category.

Dušan Senkypl: In the local segment, we were incorporating this geography-specific know-how, which is not necessary in enterprise, but the core idea behind it is exactly the same. We simply need to have very targeted, focused go-to-market for each category where we operate. The people who will be talking to our enterprise partners are people who understand the value proposition of Groupon in this specific category, not just some generic one.

Dušan Šenkypl: In the local segment, we were incorporating this geography-specific know-how, which is not necessary in enterprise, but the core idea behind it is exactly the same. We simply need to have very targeted, focused go-to-market for each category where we operate. The people who will be talking to our enterprise partners are people who understand the value proposition of Groupon in this specific category, not just some generic one.

In the local segment Weaver incorporating <unk>.

Geographic specific know, how which is not necessary and enterprise, but the core idea behind it is exactly the same we simply needs to have very targeted focused go to market for each category, where we operate the people who will be talking to our enterprise partners are people, who understand the value proposition of groupon in this specific category.

Not just some generic one.

Okay.

Bobby Brooks: Appreciate it. I'll return to the queue.

I appreciate I'll return to the queue.

Dušan Senkypl: Thank you.

Dušan Šenkypl: Thank you.

Okay.

Operator: Thank you, Bobby. Our next question comes from Sean McGowan from Roth Capital Partners. Sean, you can now unmute your line.

Thank you Bobby our next question comes from Sean Mcgowan from Roth Capital Partners, Sean you can now mute your line.

Sean McGowan: Thank you. Maybe this is related to what you were talking about, but I'm interested in some color on what happened in travel. That seemed to be, I mean, I know it's not a big category, but it seemed to be developing some positive momentum that was negative in the Q4. Is that related to these enterprise comments you've been making?

Thank you.

Maybe this is related to what you were talking about but I'm interested in some color on what happened in travel that seem to be I mean, I know, it's not a big category, but it seem to be developing some positive momentum that was negative in the fourth quarter is that related to these enterprise comments you've been making.

Dušan Senkypl: I would say that in travel, we have partnerships with very few brands which are making a big share of the travel revenue which we generate. Travel for us right now is not the top priority and focus. We still believe that Groupon has a position and play in this category. Yet right now, it's kind of not a central focus for new product features, new product developments. This is related.

Dušan Šenkypl: I would say that in travel, we have partnerships with very few brands which are making a big share of the travel revenue which we generate. Travel for us right now is not the top priority and focus. We still believe that Groupon has a position and play in this category. Yet right now, it's kind of not a central focus for new product features, new product developments. This is related.

I will say that in travel or via partnerships with.

Very very few brands, which are making a big.

<unk> share of the travel revenue, which we generate and travel for US right now is not the priority and focus. So we still believe that Groupon has a position in play in this category you have right now.

Kind of.

Not not a central focus for new product features new product development services. This is sort of related.

Sean McGowan: Okay. Can you comment on what you're seeing in those European markets that you've referenced in previous calls that, you know, were kinda early in the adoption of some of the acceleration initiatives you've adopted that you were seeing very good success in those markets. Can you comment on how those markets did in Q4?

Okay.

Can you comment on what Youre seeing in those <unk>.

European markets that you've referenced in previous calls.

We're kind of early in the adoption of some of the acceleration initiatives here.

Adopted.

Yes.

You were seeing very good success in those markets can you comment on how those markets during the fourth quarter.

Dušan Senkypl: We have very good performance across the board in international. On our international markets, we were implementing all the changes, and sometimes they were even on the forefront in this, how to run the sales organization, how to be very diligent in the quality of the deal, going to the city level to find out what should be the next deal we sign in any given metro. In terms of technology, actually, the UK was the first country where we implemented our CDP as a pilot project. In Q1, we were able to migrate to new web interface, to new MobileNext platform, which we are operating in United States, in most countries, either fully or with, like, high percentage of traffic.

So we have very good performance across the board in international.

Dušan Šenkypl: We have very good performance across the board in international. On our international markets, we were implementing all the changes, and sometimes they were even on the forefront in this, how to run the sales organization, how to be very diligent in the quality of the deal, going to the city level to find out what should be the next deal we sign in any given metro. In terms of technology, actually, the UK was the first country where we implemented our CDP as a pilot project. In Q1, we were able to migrate to new web interface, to new MobileNext platform, which we are operating in United States, in most countries, either fully or with, like, high percentage of traffic.

And on our international markets, we were implementing all the changes and sometimes even in frontiers in this how to run the sales organization how to be very diligent in the quality of the deal going to the city level to find out what should be the next deal we sign in.

Given our metro in terms of technology.

<unk> technology actually that UK was the first part of a country, where we implemented our CDP as a pilot project and in our Q1, we were able to.

My grades two new web interface.

Mobile next platform, which we are operating in the United States in most countries either fully or with.

The high percentage of traffic so.

Dušan Senkypl: From the perspective of the sales organization, the international is running on the same level in some areas and countries, even better than North America. In terms of technology, we don't have the application in international yet. This will be Q2 and Q3 of this year, but we are already migrated most countries to the new web interface.

Dušan Šenkypl: From the perspective of the sales organization, the international is running on the same level in some areas and countries, even better than North America. In terms of technology, we don't have the application in international yet. This will be Q2 and Q3 of this year, but we are already migrated most countries to the new web interface.

From the perspective of sales organization.

The international is running on the same level in some areas and countries even better than.

And then North America in terms of technology.

We don't have the application and internationally. This will be Q2, and Q3 of this year, but we are already.

Migrated most countries to the new web interface.

Sean McGowan: Okay. Thank you. Excuse me. Last question is from me for now on modeling. Is there anything in the SG&A figure in the Q4 that was kind of unusually low, or is this a level we should expect? I thought it might be higher, which is, you know, which is good, but should we expect it to be at about this level?

Okay. Thank you.

And the last question is for me for now.

On modeling is there anything in the SG&A.

Figure in the fourth quarter that was kind of unusually low or is this a level we should expect.

I thought it might be higher which as you know which is good but should we expect it to be at about this level yes.

Rana Kashyap: Yeah, Sean, I'll take this. This is Rana.

Yeah sure I'll take this is Ron.

Dušan Senkypl: Hi, Rana.

Sean McGowan: Hi, Rana.

Rana Kashyap: Yeah, SG&A did come in lower than we were expecting in Q4. I do think there were some one-time benefits in SG&A there. I do not expect that would be, let's say, the new level. How we're thinking about SG&A right now, if you take a step back and look at where it was excluding D&A and excluding stock-based compensation, we're really looking for SG&A to be flattish year-over-year. We would encourage you to take more of the full year view, as you think about SG&A for 2026.

Yes, SG&A did come in lower than we were expecting in Q4 and I do think there were some one time benefits.

SG&A, there and so I do not expect that would be let's say that the new level, how we're thinking about SG&A right now.

Take a step back and look at where it was on a excluding.

DNA and excluding stock based compensation were really looking for SG&A to be flattish year over year.

And so we would encourage you to take more of a full year view.

As you think about SG&A for 2026.

Sean McGowan: Okay. Thank you very much.

Okay. Thank you very much.

Operator: Thank you, Sean. Our next question comes from Eric Sheridan from Goldman Sachs. Eric, you can now unmute your line.

Thank you Sean our next question comes from Eric Sheridan from Goldman Sachs. Eric You can now on mute your line.

Eric Sheridan: Great. Thank you very much. Maybe 2, if I can. The first, the big picture one. With this new committee of the board that's aimed broadly at AI as a theme, could you talk a little bit about how the management team, this committee, and the broader board will sort of work together in terms of formulating strategy and then more importantly, implementing and investing against AI strategy looking out over the next couple of years? That'd be the big picture one. The more model-oriented one would be, you talked about some of the headwinds you saw in Q4 persisting into the front half of the year.

Great. Thank you very much and maybe two if I can the first a big picture one with this new committee of the board that's aimed.

<unk> AI is a theme could you talk a little bit about how the management team. This committee and the broader board will sort of work together in terms of formulating strategy and then more importantly, implementing and investing against AI strategy looking out over the next couple of years that'd be the big picture, one and then the more model oriented one would be.

You talked about some of the headwinds you saw in Q4 persisting into the front half of the year is there any way you could give us a sense of a bit of the pace and cadence of the headwinds dissipating as we get deeper into the year and how to think about some of the sequential dynamics.

Eric Sheridan: Is there any way you can give us a sense of a bit of the pace and cadence of the headwinds dissipating as we get deeper into the year, and how to think about some of the sequential dynamics, as we progress through 2026? Thanks so much.

As we progress through Charlie Tracy Thanks, so much.

Dušan Senkypl: Great. Thank you, Eric, for the question. On the AI piece or AI committee question. The AI is right now number one topic for me personally as a CEO in Groupon. I see it as a huge opportunity for us on all possible surfaces and areas. We need to start internally with the team and then translate this also to our product and how we operate on the market. I am personally very heavily invested in AI. I am meeting multiple people, and we formed a partnership with Amit, which is very close in terms, let's say, in the depth how we are cooperating.

Dušan Šenkypl: Great. Thank you, Eric, for the question. On the AI piece or AI committee question. The AI is right now number one topic for me personally as a CEO in Groupon. I see it as a huge opportunity for us on all possible surfaces and areas. We need to start internally with the team and then translate this also to our product and how we operate on the market. I am personally very heavily invested in AI. I am meeting multiple people, and we formed a partnership with Amit, which is very close in terms, let's say, in the depth how we are cooperating.

Thank you Eric for the question on the on the AIP.

Our AI kumite.

Our gross churn that AI is right now number one topic for me personally as a CEO and integral bond I see.

A huge opportunity for us.

<unk>.

All possible surfaces in areas, we need to start internally.

Vivid theme.

Diana translate this also to our product and how we operate on the market. So I am personally very heavily invested in AI I am meeting multiple people and we formed a partnership with Amit.

Which is which is very close in terms let's.

Let's say in the in the depth, how we are cooperating so amit will be.

Dušan Senkypl: Amit will be participating on discussions with management, sharing his vision, but also providing feedback on what we are creating. He will be providing feedback also on the level of management team AI fluency, and he will be participating on building the future AI-driven products and revenue streams for Groupon. This is not just like a formal AI committee, which is a meeting once a quarter, but this is like a heavy focus, deep integration with Groupon management team. On the second question, the timing of those headwinds. We were talking on this call about the enterprise segment where the sales cycle is long.

Dušan Šenkypl: Amit will be participating on discussions with management, sharing his vision, but also providing feedback on what we are creating. He will be providing feedback also on the level of management team AI fluency, and he will be participating on building the future AI-driven products and revenue streams for Groupon. This is not just like a formal AI committee, which is a meeting once a quarter, but this is like a heavy focus, deep integration with Groupon management team. On the second question, the timing of those headwinds. We were talking on this call about the enterprise segment where the sales cycle is long.

Participating on discussions with management.

Trailing his vision, but also providing feedback on what we are creating he will be providing feedback also on the level of.

Management team AI fluency and he will be participating on building the future.

To deliver on our products and revenue streams for Groupon. So this is not just like a formal.

AI Committee, which is a meeting about a quarter about a it's just like a heavy focus.

Our deep integration with Groupon, our management team.

On the on the second question the timing of those headwinds.

We were talking on this call about the enterprise segment, where the sales cycle is long. So it may take up to several quarters to get us to the same speed.

Dušan Senkypl: It may take up to several quarters to get us to the same speed as we were in the past. At the same time, I would like to mention that when we are looking on the comps, it's mainly Q1 and Q2 where we have very challenging comps in enterprise segments, and then we don't have such a tough comps in the second half of the year. In other areas of the headwind which we have, which are earned channels, SEO, and the managed channels, we implemented already the new CDP, which will help us fundamentally change the way how we are talking to our customers. I expect that the benefits will start coming very soon.

Dušan Šenkypl: It may take up to several quarters to get us to the same speed as we were in the past. At the same time, I would like to mention that when we are looking on the comps, it's mainly Q1 and Q2 where we have very challenging comps in enterprise segments, and then we don't have such a tough comps in the second half of the year. In other areas of the headwind which we have, which are earned channels, SEO, and the managed channels, we implemented already the new CDP, which will help us fundamentally change the way how we are talking to our customers. I expect that the benefits will start coming very soon.

Veeva in the past at the same time I would like to mention that when we are looking on the comps.

It's mainly Q1 and Q2, where we have.

Very challenging comps and enterprise segments, and then we don't have such a tough comps in the second half of the of the year on the.

In other areas.

Of the headwind, which we had which arent channels SCO and under managed channels.

We implemented already the new CDP, which will help us fundamentally change the way how we are talking to our customers.

And I expect that the benefits will start coming very soon in SCO.

Dušan Senkypl: In SEO, it's a question on the timing because Google is under a lot of pressure from AI-generated content, so they are doing plenty of changes. I believe that long term Groupon is positioned very well because we are one of very few players who own user-generated content. We have so many customers who are coming back to Groupon, providing feedback about local merchants, about the experiences. The content which we are collecting, but not yet fully using it, is very valuable. It will be very valuable content for AI future because all this is extremely relevant for AI-generated answers on AI engine agents. The timing is very hard to comment.

Dušan Šenkypl: In SEO, it's a question on the timing because Google is under a lot of pressure from AI-generated content, so they are doing plenty of changes. I believe that long term Groupon is positioned very well because we are one of very few players who own user-generated content. We have so many customers who are coming back to Groupon, providing feedback about local merchants, about the experiences. The content which we are collecting, but not yet fully using it, is very valuable. It will be very valuable content for AI future because all this is extremely relevant for AI-generated answers on AI engine agents. The timing is very hard to comment.

Churn.

On the timing because Google is under a lot of pressure from AI generated content. So we're doing plenty of changes.

I believe that long term groupon is positioned very well because we are one of very few players who own user generated content because we have so many customers who are coming back to groupon, providing feedback about local merchants about the experiences. So the content, which we are collecting but not yet fully using it.

Is very valuable it will be very valuable content for AI future because all this is extremely relevant for.

AI generated.

Uncertainty on AI engine.

Johnson, but the.

The timing is very hard to comment.

Eric Sheridan: Okay. Thank you so much.

Okay. Thank you so much.

Dušan Senkypl: You're welcome.

Dušan Šenkypl: You're welcome.

Duncan.

Operator: We have a follow-up question from Bobby Brooks. Bobby, you can unmute your line.

We have a follow up question from Bobby Brooks, Bobby you cannot mute your line.

Bobby Brooks: Hey, thanks, team. So you guys have done a really good job of winning new customers, and that's been a trend over the last four quarters or so. I understand that these new customers initially don't have the same purchase frequency as legacy ones. What I was curious to hear on is those cohorts of new customers that you won, say, in the first half of 2025, have you seen those purchase frequencies start to tick up? Or you've kinda found a way through kinda managed marketing to spur those purchase frequencies higher? Just curious to hear more on there.

Thanks, Tim.

So you guys have done a really good job of winning new customers and that's been that's been the trend over the last four quarters or so and I understand that this these new customers. Initially more hands don't have the same purchase frequency as legacy ones, but what I was curious to hear on those.

Cohort of new customers that you won say in the first half 'twenty five he's seen those purchase frequency start to take off or if you've kind of found a way through kind of manage marketing to spur those.

Purchase frequency is higher just curious to hear more on there.

Dušan Senkypl: Yeah. My goal during this year is to improve the way how we are talking and communicating about the customers cohorts and purchase frequency to our shareholders. We were mentioning in the script that we will have investors conference, and I believe that at that moment we will be able to present much more simple and easier to understand the model for Groupon marketplace, including the consumer segments. Going back to your questions. The purchase frequency is not related only to new and active customers and the structure of our portfolio, but it's also related to the category where the customer is buying. For example, historically, the goods were quite a big and important channel for Groupon and the purchase frequency in this category is much higher versus purchase frequency in other categories.

Dušan Šenkypl: Yeah. My goal during this year is to improve the way how we are talking and communicating about the customers cohorts and purchase frequency to our shareholders. We were mentioning in the script that we will have investors conference, and I believe that at that moment we will be able to present much more simple and easier to understand the model for Groupon marketplace, including the consumer segments. Going back to your questions. The purchase frequency is not related only to new and active customers and the structure of our portfolio, but it's also related to the category where the customer is buying. For example, historically, the goods were quite a big and important channel for Groupon and the purchase frequency in this category is much higher versus purchase frequency in other categories.

Yeah. So.

My goal during this year is to improve the way, how we are talking and communicating about the customers' cohorts in purchase frequency to our shareholders.

We were mentioning in the script that we.

You will have investors conference and I believe that at that moment, we will be able to present much more sims.

Simple and easier to understand the model for Groupon marketplace.

The consumer.

<unk>.

But going back to your question the purchase frequency is not related only to new and active customers and the structure of our portfolio, but it's also related to the category where the customer is buying so for example, historically the goods, we're quite a big and important channel for Groupon and for <unk>.

Frequency in this category, it's a much higher versus purchase frequency in our categories.

Dušan Senkypl: As the goods, for example, is still declining, it's in a negative way, let's say, impacting our purchase frequency. We internally see some cohorts of customers of loyal customers where we see the improved performance. We see in some segments improved conversion from first to second purchase, and this is internally one of the top priority areas for us. With new CDP, we are finally having the tools to really target small individual segments and deliver them the deals and offers which are highly relevant for them. Like more consistent and more detailed communication on numbers and structure, my goal is to bring it to you in, during this year.

Dušan Šenkypl: As the goods, for example, is still declining, it's in a negative way, let's say, impacting our purchase frequency. We internally see some cohorts of customers of loyal customers where we see the improved performance. We see in some segments improved conversion from first to second purchase, and this is internally one of the top priority areas for us. With new CDP, we are finally having the tools to really target small individual segments and deliver them the deals and offers which are highly relevant for them. Like more consistent and more detailed communication on numbers and structure, my goal is to bring it to you in, during this year.

The goods for example, it's still declining it's in a negative way, let's say impacting our purchase frequency we internally see.

Some cohorts of customers of loyal customers, who where we see the improved performance we see in some segments improved conversion from first to second purchase and this is internally one of the top priority areas for us and with new CDP. We are finally.

Having the tools to really target small individuals segments and deliver them to deals and offers which are highly relevant for women, but more consistent and more detailed communication on numbers and structure.

My goal is to bring it to you in during this year.

Bobby Brooks: Got it. Then kind of piggybacking on that, the CDP and the retargeting measures that you're taking, could you maybe provide a couple examples of what that might look like? Secondly, I think some might hear the commentary on this and think it's something that has kind of occurred as the headwinds popped up in Q4. This is something that you've just kinda been under, that you guys have been working on for a couple quarters, right? It's not just a response to the drop-off in organic traffic in Q4, right?

Got it and then piggybacking on that the CDP and the re targeting managements that you're taking could you maybe give.

A couple of examples of what that might look like and secondly, I think some might hear the commentary on this and think it's something that is kind of occurred as the headwinds, but headwinds popped up in the fourth quarter, but this is something that has kind of been under that you guys have been working on working on for a couple of quarters right.

It's not just a response to the drop off in organic traffic in the fourth quarter right.

Dušan Senkypl: No, the CDP is one of the foundational projects which we have in Groupon. We were not really talking about it a lot. However, I see it as one of the most important projects because it allows us completely different level of flexibility. Groupon originally had the platform which was in-house developed. It was 10+ years old. If our team decided we want to test some campaign like for example, if you buy, I don't know, spa in your area, that we will send you a push notification two weeks, three weeks after offering you something relevant as an upsell, let's say, it took weeks to implement it to our engineering team. Everything was done really very, very manually. With the new platform, it's all user interface.

Dušan Šenkypl: No, the CDP is one of the foundational projects which we have in Groupon. We were not really talking about it a lot. However, I see it as one of the most important projects because it allows us completely different level of flexibility. Groupon originally had the platform which was in-house developed. It was 10+ years old. If our team decided we want to test some campaign like for example, if you buy, I don't know, spa in your area, that we will send you a push notification two weeks, three weeks after offering you something relevant as an upsell, let's say, it took weeks to implement it to our engineering team. Everything was done really very, very manually. With the new platform, it's all user interface.

No. The CDP is one of the foundational projects, which we have in a groupon and we will not really talking about it.

And a lot. However, I said one of the one of the most important project because it allows us a completely different level of flexibility Groupon originally had the platform, which was in house developed it was 10 plus years old.

<unk>.

If our team decided we want to test some campaign like for example, if you buy.

I don't know Spa in your area that we will send you a push notification two weeks three weeks after offering you something relevant.

That's an upsell of let's say.

It took three weeks to implemented to our engineering team and everything was done really very very manually with the new platform. It's all user interface. We can it's a bracket that we can decide what to do and we can be running like 10 plus different campaigns.

Dušan Senkypl: It's a drag and drop. We can decide what to do, and we can be running like 10 plus different campaigns every week, or new campaigns and new experiments. We can go much more granular in really user stories, what's relevant at which situation. Meaning based on how you behaved on the website, if you visited the deal several times and didn't decide to buy it, then we can provide some specific better offer for the customer in terms of cases. It will also help us improve our paid marketing channels because with new CDP we know whether the consumer, for example, is reading our messaging.

Dušan Šenkypl: It's a drag and drop. We can decide what to do, and we can be running like 10 plus different campaigns every week, or new campaigns and new experiments. We can go much more granular in really user stories, what's relevant at which situation. Meaning based on how you behaved on the website, if you visited the deal several times and didn't decide to buy it, then we can provide some specific better offer for the customer in terms of cases. It will also help us improve our paid marketing channels because with new CDP we know whether the consumer, for example, is reading our messaging.

Or new campaigns, and new experiments and we can go much more granular and really user stories, what's relevant.

Each situation, meaning based on how you behaved on the website. If you visited the deal several times and didn't decide to buy that we can provide some specific better offer for the customer in terms of cases. It will also help us improve our paid marketing channels, because with new CDP, we know whether the <unk>.

<unk> for example.

Reading our messaging at this moment, we don't have a reason to spend money on Google.

Dušan Senkypl: At that moment, we don't have a reason to spend money on Google, Meta, and other paid channels to get that customer back, and we can really target our retargeting campaigns only to customers where we see the customer is not communicating through our channel. It really opens a lot of opportunities for us. Definitely this is not a project which is just a reflection of what's happening in Q4. SEO, it's similar story that area is highly dynamic because with such a high availability of AI-generated content, there are many websites and projects which are just generating content and then trying to be presented on Google and visible on Google.

Dušan Šenkypl: At that moment, we don't have a reason to spend money on Google, Meta, and other paid channels to get that customer back, and we can really target our retargeting campaigns only to customers where we see the customer is not communicating through our channel. It really opens a lot of opportunities for us. Definitely this is not a project which is just a reflection of what's happening in Q4. SEO, it's similar story that area is highly dynamic because with such a high availability of AI-generated content, there are many websites and projects which are just generating content and then trying to be presented on Google and visible on Google.

Google matter and other paid channels to to get that customer back and we can really target our re targeting campaigns only two customers, where we see the customer is not communicating through our channel. So it really opens a lot of opportunities for us and definitely this is not a project which is just.

A reflection of what's happening in Q4 and SCO. It's similar it's similar story that the area is highly dynamic.

Cause with.

Such a high availability of AI generated contents that are many many many of the sites and projects with charges generating content and trying to.

To be presented on a Google invisible on Google, Google, Obviously doesn't want it. So we are changing the rules and all other.

Dušan Senkypl: Google obviously doesn't want it, so we are changing the rules and all other websites which have highly relevant content, including Groupon. We just need to react to new rules and change the behavior. What's the very important for me, that underlying trend that Google is putting more and more focus on the user-generated content, on the original content. That's why the Reddit is, for example, ranking very well in SEO. That's why we are doubling down on our reviews, which were kind of hidden in the past on Groupon. Now we are producing user-generated content for AI reviews, meaning like the AI summaries for reviews. We are generating FAQs and additional information which is based on what our real customers told us about the merchants, which means this is the content which no one else has.

Dušan Šenkypl: Google obviously doesn't want it, so we are changing the rules and all other websites which have highly relevant content, including Groupon. We just need to react to new rules and change the behavior. What's the very important for me, that underlying trend that Google is putting more and more focus on the user-generated content, on the original content. That's why the Reddit is, for example, ranking very well in SEO. That's why we are doubling down on our reviews, which were kind of hidden in the past on Groupon. Now we are producing user-generated content for AI reviews, meaning like the AI summaries for reviews. We are generating FAQs and additional information which is based on what our real customers told us about the merchants, which means this is the content which no one else has.

<unk>, which have highly relevant content, including Groupon, we just need to react to new rules and change the behavior and what's the very important for me that underlying trend.

Google is putting more and more focus on the user generated content on the original content.

Read it as for example, ranking very well in our Seo and Thats why we are doubling down on our reviews, which are kind of done in the past on groupon, but now we are producing user generated content for AIA reviews, meaning greater AI summaries for reviews, we are generating.

Some additional information, which is based on what our real customers told us about the merchants, which means this is the content, which no one else on us.

Bobby Brooks: That's super helpful color, Dušan, thank you. Maybe just the last one for me is on the kinda headwinds in the managing organic channels. It seems like it's more kinda macro-driven, like stuff. It's not like you were trying things and they didn't work. It's the, you know, SEO algorithms are changing, and then when you go to Google, instead of seeing 2 ads, you're seeing 8, right? Am I thinking about that more, or was there something internally that you felt you could have done better with that piece?

That's Super helpful. Color addition, thank you and and maybe just last one for me is on <unk>.

Wins in the manage and organic channels.

It seems like it's more kind of macro driven like stuffed it sounded like you were trying things and they didn't work it.

SCO.

<unk> of changing and then when you go to Google incentives are going to do and Youre seeing a right.

Am I thinking about that more or theres, some where there was there something internally that you've got.

Got it done better with with that piece.

Dušan Senkypl: Yeah. I think we always can do our work better. You can ask me about any area, and I will have exactly same answer everywhere.

Dušan Šenkypl: Yeah. I think we always can do our work better. You can ask me about any area, and I will have exactly same answer everywhere.

So I think we always can do our work better.

And you can ask me about any area and I will have exactly the same answer every everywhere.

Bobby Brooks: Yeah.

Dušan Senkypl: However, this is driven originally by the macro situation and the change in this landscape which is happening for everyone. I just consider Groupon to be lucky that we have an answer which fits into AI world with this user-generated content.

Dušan Šenkypl: However, this is driven originally by the macro situation and the change in this landscape which is happening for everyone. I just consider Groupon to be lucky that we have an answer which fits into AI world with this user-generated content.

However versus driven originally by the macro situation and the change in this landscape, which is happening for everyone.

And I'd just consider groupon to be lucky that we have been answer which fits into into April this year.

User generated content.

Bobby Brooks: Appreciate the call, Dušan, and also wanted to say congrats on the Entrepreneur of the Year from EY. That's awesome.

I appreciate the color to shine and I also wanted to say congrats on the entrepreneur of the year for for me why don't you answer I appreciate it. Thank you.

Dušan Senkypl: Thank you very much. Appreciate it. Thank you.

Dušan Šenkypl: Thank you very much. Appreciate it. Thank you.

Operator: Yep. We'll now pose written questions to management that came in through the company's investor relations press line. Analysts who are live on the call, we will continue to move back to you. Our first written question: You talked about setting a new baseline for agentic AI-first leadership across the company. Can you talk about what that means concretely for how your teams are working today, and what kind of productivity gains are you seeing, specifically in engineering?

Okay.

We will now pose written questions to management that came in through the company's Investor Relations Press line analysts who are live on the call. We will continue to move back to our first written question you talked about setting a new baseline for adjourn take AI first leadership across the company can you talk about what that means concretely.

Or how your teams are working today and what kind of productivity gains are you seeing specifically in engineering.

Dušan Senkypl: Okay. I am very closely following and having meetings with people who I consider AI frontiers in terms what AI enables across the board. I see major shifts happening last few months, where originally most of us, including me, were using AI as a chatting tool, let's say. When I was discussing all my projects, I was asking for feedback. However, I see that this is changing fundamentally. We right now are seeing much more use cases in the agentic-based of approach, which is driven by Claude Code and similar solutions. I am personally very heavy involved in this. I have my own agentic setup, which is reading all my data. She's doing all the preparations for the meeting.

Dušan Šenkypl: Okay. I am very closely following and having meetings with people who I consider AI frontiers in terms what AI enables across the board. I see major shifts happening last few months, where originally most of us, including me, were using AI as a chatting tool, let's say. When I was discussing all my projects, I was asking for feedback. However, I see that this is changing fundamentally. We right now are seeing much more use cases in the agentic-based of approach, which is driven by Claude Code and similar solutions. I am personally very heavy involved in this. I have my own agentic setup, which is reading all my data. She's doing all the preparations for the meeting.

Okay. So I am very closely following and having meetings with people, who I consider AI Frontera in terms, what AI enabled us across the board.

And I see major shifts happening last few months of our originally most of US including me, we're using AI set chatting to let's say when I was discussing all my projects I was asking for for feedback. However, I see that this is a changing fundamentally.

And we right now are seeing much more use cases and the agent based approach, which is driven by cloud growth in civil are similar.

<unk> solutions and <unk>.

I am personally very heavily involved in this I have my own agent that setup, which is reading all my data she's doing all the preparations for the meeting when I'm new topic, it's like really deeply analyzing the market opportunity is coming with solutions and all that using the older data, which we have available so I think.

Dušan Senkypl: When I'm new to a topic, it's like really deeply analyzing the market opportunities, coming up with solutions and all that using all the data which we have available. I think it's a complete mindset shift, and this is what we are doing right now and implementing in Groupon. I want to have all the team here to be AI first. In engineering, for example, my goal is that we have 100% of the code written by AI by the end of the year. I want to make Groupon a company where all our employees are managers because they will be managing AI agents or orchestrating them, deciding how and where we will improve. It's a big change.

Dušan Šenkypl: When I'm new to a topic, it's like really deeply analyzing the market opportunities, coming up with solutions and all that using all the data which we have available. I think it's a complete mindset shift, and this is what we are doing right now and implementing in Groupon. I want to have all the team here to be AI first. In engineering, for example, my goal is that we have 100% of the code written by AI by the end of the year. I want to make Groupon a company where all our employees are managers because they will be managing AI agents or orchestrating them, deciding how and where we will improve. It's a big change.

A complete mindset shift and versus what the.

We are trying to or not to try and this is what we are doing right now and implementing and a groupon I want to ask all the team here to be AI for us.

Engineering for example, my goal is that we have 100% of the code return by AI by by the end of the year I want to make Groupon a company of our all our employees our managers because they will be managing AIA, Johns orchestrating them, deciding how and where vivo improve so it's a big change.

Dušan Senkypl: I see that it can bring, obviously higher efficiency, but it will allow us to do much more in the product, in engineering, in sales, provide completely new tools and interfaces to merchants. I'm extremely excited about this. This is really the project number one for me right now in Groupon. What we see when I take the best AI frontiers who are working in Groupon and look on their workflows, it's really completely different world. I think the world where people were specialists in some area is really over or maybe not over realistically because it's still the case, but people who are frontiers don't operate at this mode.

Dušan Šenkypl: I see that it can bring, obviously higher efficiency, but it will allow us to do much more in the product, in engineering, in sales, provide completely new tools and interfaces to merchants. I'm extremely excited about this. This is really the project number one for me right now in Groupon. What we see when I take the best AI frontiers who are working in Groupon and look on their workflows, it's really completely different world. I think the world where people were specialists in some area is really over or maybe not over realistically because it's still the case, but people who are frontiers don't operate at this mode.

I see that it can bring.

Obviously higher efficiency, but it will allow us to do much more in the product and engineering and sales provide completely new tools and interfaces to two merchants. So I'm extremely excited about the about this is the really the project number one for me right now in Groupon, and what we see when I take it.

The best AI from Trs, who are working and Groupon and Luke on <unk> workflows, it's really completely different growth I think the growth of our people that are specialists in some area, it's really over or maybe not over.

<unk>, particularly because it's still the case, but people who are from payers don't operate at the small we are more like generalists and way they start with understanding the customer then.

Dušan Senkypl: They are more like generalists, and they start with understanding the customer, then definition of the product, building the demo version of the product so that other people can look at it, but they continue also with engineering. In the future, I don't expect that we will have product team and then the engineering team. I expect that we will have like builders and all people in this structure will be able to start from design and with delivery of the product, which would allow us to really 10x and maybe even more delivery of product features, improvements to our customers. I see that with individuals. This is what right now we are implementing in whole management team.

Dušan Šenkypl: They are more like generalists, and they start with understanding the customer, then definition of the product, building the demo version of the product so that other people can look at it, but they continue also with engineering. In the future, I don't expect that we will have product team and then the engineering team. I expect that we will have like builders and all people in this structure will be able to start from design and with delivery of the product, which would allow us to really 10x and maybe even more delivery of product features, improvements to our customers. I see that with individuals. This is what right now we are implementing in whole management team.

Definitions of the pro product building.

The demo version of the product so with other people can look at it but they continue also with engineering. So in the future I don't expect that we will have product.

And then the engineering team I expect that we will have like builders and all people in this structure will be able to start from design and delivery of the of the product, which will allow us to really pemex and maybe even more a deli.

Delivery of product features improvements to our customers and I see that with individuals versus what the right now we are implementing in our whole management fee.

Dušan Senkypl: We have very high expectation here, because it's such a great pleasure to work with people who switched into this AI-first mode in terms of productivity, how great ideas they have, and that they don't have to do the, let's say, the boring part of the work.

Dušan Šenkypl: We have very high expectation here, because it's such a great pleasure to work with people who switched into this AI-first mode in terms of productivity, how great ideas they have, and that they don't have to do the, let's say, the boring part of the work.

And we have very high expectation here, because it's such a great pleasure to work with people who switched into this AI first mode in terms of productivity, how great ideas, they have and that they don't have to do the let's say, but the boring part of the of the work.

Operator: Thank you, Dušan. We'll go back to Sean McGowan from Roth Capital. Sean, you can now unmute your line.

Thank you Ms Shang.

We will go back to Sean Mcgowan from Roth Capital, Sean you can now on mute your line.

Sean McGowan: Thank you. A couple follow-ups. Could you comment on what you're seeing, what trends you're seeing in the redemption rates? You know, you made that effort last year to kinda remind people when they had Groupons expiring, and that had an effect on the redemption rate. What are you seeing currently year over year and what do you expect?

Thank you a couple of follow ups.

You comment on what Youre seeing.

What trends Youre seeing in the redemption rates you know you've made that effort last year to kind of remind people. When they had groupon is expiring and that had an effect on the redemption rate. What are you seeing currently year on year, what do you expect.

Okay.

Dušan Senkypl: I don't right now have the exact specific numbers in mind, but the overall trend in redemption was continuing in the same pace. This is one of the numbers where the product teams are making sure that the deals have good redemption rate, that customers really get the experience. We are trying not only to send these reminders, which we were talking about, but now we are much more actively also asking for feedback so that we can improve the deals or even provide the feedback to merchants. It's part of the core marketplace proposition. We don't see any like significant changes there. It's just going in the right direction.

So I don't.

Dušan Šenkypl: I don't right now have the exact specific numbers in mind, but the overall trend in redemption was continuing in the same pace. This is one of the numbers where the product teams are making sure that the deals have good redemption rate, that customers really get the experience. We are trying not only to send these reminders, which we were talking about, but now we are much more actively also asking for feedback so that we can improve the deals or even provide the feedback to merchants. It's part of the core marketplace proposition. We don't see any like significant changes there. It's just going in the right direction.

Right now the exact specific numbers in mind, but the overall trend in the redemption.

Continuing in the same pace. So the this is one of the numbers.

Product teams are making sure that the deals have good redemption rate that customers really get the experience we are trying not.

Not only to send reminders, which we were talking about but now we're much more actively also asking for feedback so that we can improve the deals or even provide a feedback too to merchants. So it's part of the core marketplace proposition.

We don't see any significant changes there, it's just going in the right direction.

Rana Kashyap: Sean, this is Rana. Like, just to echo what Dušan said, we see trends very stable-ish. Like in terms of how it was impacting take rates, in 2025, we expect the impact to take rates from higher redemption rates to be very modest. It's mostly through our numbers now.

Yes.

Sean This is Ron.

Just to Echo what you just said, we see trends very stable ish and so like in terms of how it is impacting take rates in 2025, we expect the impact take rates from hydro.

Higher redemption rates to be very modest.

Mostly through our numbers now.

Sean McGowan: Okay. That, that's what I thought. Thank you. And then on marketing plans, I think you had talked last year about leaning in a bit more to marketing, Groupon, you know, as a brand. Can you talk about your expectations for marketing spending as a percentage of revenue or as a percentage of whatever metric you want?

Okay.

Thank you.

And then on marketing plans I think you had talked last year about leaning in a bit more to marketing groupon as a brand. So can you talk about your expectations for marketing spending as a percentage of revenue are as a percentage of whatever metric you want.

Rana Kashyap: Dušan, do you wanna talk about the brand, and I can talk about the numbers?

John do you want to talk about the brand and I can talk about the number that you can start with numbers and then I can follow up with Brian Yes, So in terms of numbers.

Dušan Senkypl: Sure. You can start with numbers, and then I can follow up with brand.

Dušan Šenkypl: Sure. You can start with numbers, and then I can follow up with brand.

Rana Kashyap: Yeah. In terms of numbers, Sean, our expectation is that marketing will grow year-over-year, call it in high single-digit range. We do want to support the business with marketing spend, and we are expecting that marketing spend growth will be a little faster than revenue growth. However, the relationship between our marketing spend growth and our revenue growth, that relationship will improve versus what we had in 2025. You know, our focus here over time is to grow contribution profit dollars. This year, we're expecting to make progress against that. In terms of your model, I would expect that marketing will grow high single digits year-over-year.

Sean we have.

We are our expectations is that marketing will grow.

The year over year call. It in high single digit range. So we are expecting marketing, we do want to support the business with marketing spend and we are expecting their marketing withstand growth will be a little faster than revenue growth. However, the relationship between our marketing spend growth and our revenue growth.

That relationship will improve versus what we had in 'twenty five.

Our focus here over over time is to grow contribution profit dollars.

And this year, we expected to make progress against that so in terms of your model I would expect that marketing will grow high single digits year over year.

Sean McGowan: Okay. Thank you.

Okay. Thank you.

Dušan Senkypl: I would follow up in terms of our brand campaign, which we started in the second half of Q4 last year. The main motto is turn your life on, which is like highly relevant to the mission which we have as Groupon to pretty much get people offline. We see some really interesting results, which are different based on the location when we were running the campaign, 'cause we were making sure that we will be able to collect the latest data on the geo levels. We still run the campaign not in huge numbers, but we are still running the brand campaign in Q1, and I expect that we will continue.

Dušan Šenkypl: I would follow up in terms of our brand campaign, which we started in the second half of Q4 last year. The main motto is turn your life on, which is like highly relevant to the mission which we have as Groupon to pretty much get people offline. We see some really interesting results, which are different based on the location when we were running the campaign, 'cause we were making sure that we will be able to collect the latest data on the geo levels. We still run the campaign not in huge numbers, but we are still running the brand campaign in Q1, and I expect that we will continue.

I would follow up in terms of our brand campaign, which we started in the second half of Q.

Q4 of last year. The main mottos 10 year life on which is highly relevant to the mission would you be happy Groupon to motivate.

It gets people offline.

And we see some really interesting results.

Which are different based on the location of in vivo running the campaign because we were we were making sure that we will be able to collect data.

Data on the Geo levels. So we still are under campaign and not in huge numbers, but we are still are still running the brand campaign in Q1, and I expect that we will continue.

Dušan Senkypl: We are processing and improving our density commercial model to understand the behavior of customers in individual locations. Because in some cities, we saw some incredible response on the brand campaign versus in some cities we got pretty much the baseline expectation on, of, the marketing campaign on the market. We want to double down and understand better where and how to spend the brand marketing dollars or where and what is the driver of that behavior so that we can replicate the offers and inventory which we have in cities where the response to the Groupon brand campaign was, like, super positive.

Dušan Šenkypl: We are processing and improving our density commercial model to understand the behavior of customers in individual locations. Because in some cities, we saw some incredible response on the brand campaign versus in some cities we got pretty much the baseline expectation on, of, the marketing campaign on the market. We want to double down and understand better where and how to spend the brand marketing dollars or where and what is the driver of that behavior so that we can replicate the offers and inventory which we have in cities where the response to the Groupon brand campaign was, like, super positive.

But we are processing and improving our dense.

Density commercial model to understand but.

Behavior of customers and individual location because in some cities. We saw some incredible response on the brand campaign.

In some cities, we got pretty much to what is a baseline on the baseline expectation of the marketing campaign in the market. So we want to double down and understand better how to spend the brand marketing dollars or rather than what is the driver of that behavior. So that we can replicate the of course.

And inventory, which we have in cities, where the response to the Groupon brand campaigns looks like Super positive.

Sean McGowan: Okay. Thank you.

Okay. Thank you.

Operator: Thank you, Sean. Another written question that came in. Can you talk about the new mobile app migration? You're now at 50% of iOS in North America for users on the new platform with stronger monetization. What should we expect as you complete that rollout?

Thank you Sean.

Another written question that came in.

Can you talk about the new mobile App migration Youre now at 50% of iOS in North America for users on the new platform with stronger monetization what should we expect as you complete that rollout.

Dušan Senkypl: Right now, the migration and the new platform takes a lot of resources within the product and engineering team. As we are very close to finalizing this migration, all that capacity will be focused on improved user experience, focused on improving purchase frequency for our customers. This will be delivered through new functionality. I were talking here on this call that we have the bets around search and relevance, about personalization. The team is really digging deep into behavior of customers, splitting the customers into multiple groups based on how they behave in the app and on the website. We will be building the features which will be specifically targeting these customer groups so that we provide better offers, easier interface.

So right now the migration in a new platform takes a lot of resources within the product and engineering team.

Dušan Šenkypl: Right now, the migration and the new platform takes a lot of resources within the product and engineering team. As we are very close to finalizing this migration, all that capacity will be focused on improved user experience, focused on improving purchase frequency for our customers. This will be delivered through new functionality. I were talking here on this call that we have the bets around search and relevance, about personalization. The team is really digging deep into behavior of customers, splitting the customers into multiple groups based on how they behave in the app and on the website. We will be building the features which will be specifically targeting these customer groups so that we provide better offers, easier interface.

We are very close to finalizing this migration OLED capacity will be focused on improved the user experience or focused on.

Improving purchase frequency.

For our customers.

This will be delivered through new functionality, Viva or Ivo talking here on this call that we have the bets around search and relevance about personalization.

The team is really digging deep into behavior of customers splitting the customers into multiple groups based on how they behave in V up and on the website and.

And we will be building the features which will be specifically targeting this customer group. So when we provide better offer us better easier interface. So I'm really looking forward to the space.

Dušan Senkypl: I'm really looking forward to this space. Some demos and prototypes which I saw are really incredible, and I believe that it will improve significantly customer experience, and this will be one of the drivers for improved purchase frequency for us.

Dušan Šenkypl: I'm really looking forward to this space. Some demos and prototypes which I saw are really incredible, and I believe that it will improve significantly customer experience, and this will be one of the drivers for improved purchase frequency for us.

Some are the Molson prototypes, which I saw a really incredible and I believe that it will improve significantly customer experience. This will be one of the drivers for improve purchase frequency for us.

Operator: All right. Another written question that came in. You've made a number of leadership additions recently, including a new chief people officer and an SVP of operations and consumer AI. Any commentary on the additions, and how are you thinking about the team and talent you need for the next phase of growth?

Alright.

Another written question that came in.

You've made a number of leadership additions recently, including a new chief people officer, and an SVP of operations and consumer AI any commentary on the additions and how are you thinking about the team and talent you need for the next phase of growth.

Okay.

Dušan Senkypl: When I joined Groupon, one of our main problems and issues which we had, excluding the internal financial situation, was that we were not able to attract new talent. I'm very happy right now to state that I see that we are able to hire, that we are able to attract really talented people from great companies. I see that we are really raising the bar not only within the management team, but overall within the Groupon organization on what's expected. It's. I was talking about the AI expectations a few minutes ago, but this is across the board. This is thanks to the new joiners who are really challenging us, like asking us to try different ways, move faster, move with higher quality at the same time.

Dušan Šenkypl: When I joined Groupon, one of our main problems and issues which we had, excluding the internal financial situation, was that we were not able to attract new talent. I'm very happy right now to state that I see that we are able to hire, that we are able to attract really talented people from great companies. I see that we are really raising the bar not only within the management team, but overall within the Groupon organization on what's expected. It's. I was talking about the AI expectations a few minutes ago, but this is across the board. This is thanks to the new joiners who are really challenging us, like asking us to try different ways, move faster, move with higher quality at the same time.

So when I joined the group on one of our main.

Problems and issues, which we had.

Excluding the internal financial situation was that we were not able to attract new talent and I'm very happy right now to state that I see that we are able to hire that we are able to attract.

Really talented people from great companies.

I see that we are really raising the bar not only within the management team, but overall given the vendor Groupon organization on what's expected and I was talking about the AI expectations, a few minutes ago, but this is across the board and this is thanks to the new joining us who are really changing.

Like asking us to try different ways move faster.

<unk> moved with a higher quality at the same time so.

Dušan Senkypl: Overall, I see great progress, and I really see Groupon in very different situation versus just a few years ago, even just 12 months ago.

Dušan Šenkypl: Overall, I see great progress, and I really see Groupon in very different situation versus just a few years ago, even just 12 months ago.

Overall, I see great progress and I are going to see groupon in very different situations.

Just a few years ago, even just 12 months ago.

Yeah.

Operator: Thank you, Dusan. There are no other questions. This concludes our call for today. Thank you everyone for joining. For additional information, please go to investor dot Groupon dot com.

Thank you Sean there are no other questions. This concludes our call for today. Thank you everyone for joining for additional information. Please go to Investor Dot group Dot com.

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