Groupon Inc. (GRPN) stock plunged more than 20% in premarket trading Tuesday after the online marketplace reported weaker-than-expected third-quarter results and lowered its full-year 2026 outlook.

Groupon Misses Earnings and Revenue Estimates

Groupon reported a quarterly loss of 3 cents per share, wider than the analyst estimate of a 1-cent loss.

Revenue rose 2.1% year over year to $125.45 million but missed the $129.39 million estimate.

Billings increased 6% to $439 million on both a reported and constant-currency basis.

The company's take rate, or revenue as a percentage of billings, fell to 29% from 30% a year earlier. The decline reflected a larger contribution from businesses with lower take rates.

Adjusted EBITDA fell to $14.7 million from $17.5 million a year earlier.

Groupon reported a loss from continuing operations of $0.8 million, compared with a $117.8 million loss a year earlier.

CEO Dusan Senkypl outlined four priorities for 2027: rebuilding North American supply, improving customer trust, encouraging repeat purchases through personalization and expanding AI-powered commerce.

International Growth Outpaces North America

Groupon's largest business, North America Local, reported a 4% increase in billings to $306 million. Revenue remained flat at $92 million.

Higher average order values in categories such as Things to Do and the Enterprise channel supported growth. However, lower transaction volumes partially offset those gains.

The segment accounted for about 70% of global billings and 73% of total revenue.

International Local performed better, with billings rising 11% to $86 million and revenue increasing 12% to $26 million.

Growth came from expanded offerings in Health, Beauty & Wellness and Things to Do, alongside stronger paid and organic sales channels.

Active customers were roughly flat at 16.2 million. International customer growth of 4% offset a 1% decline in North America.

Unit sales fell 2% to 9 million, while average order value increased 8%.

Groupon Expands AI Push and Cuts Costs

Groupon ended the quarter with $177.4 million in cash and cash equivalents. Operating cash outflow totaled $43.2 million, while free cash flow was negative $45.8 million.

The company repurchased $48 million in shares during the first nine months of 2026. As of Nov. 9, about $202 million remained under its buyback authorization.

Groupon also launched FoundryAI, an internal platform designed to expand AI access across its operations.

It relaunched LivingSocial as an AI-powered marketplace focused on agentic commerce.

Meanwhile, Groupon's restructuring plan includes cutting up to 400 jobs worldwide. The company expects annualized cost savings of $20 million to $25 million.

It forecasts up to $10 million in gross savings this year, which it plans to reinvest in marketing, AI infrastructure and talent.

Groupon Cuts 2026 Revenue Forecast

Groupon lowered its full-year revenue forecast to $500 million-$503 million from $513 million-$523 million. The revised range falls below the analyst estimate of $518.63 million.

The company expects billings to grow 3% and adjusted EBITDA to reach $60 million-$65 million.

For the fourth quarter, Groupon forecasts billings growth of 4% to 6%, revenue of $133 million-$136 million and adjusted EBITDA of $18 million-$23 million.

Management cited lower take rates, continued investments in customer trust and quality, and challenges in marketing efficiency for the weaker outlook.

GRPN Price Action: Groupon shares were down 20.80% at $12.87 during premarket trading on Tuesday, according to market data.