Groupon (GRPN) Q2 FY26 earnings call: guidance and Q&A

Can you provide more details on the new UI rollout, especially since the classic UI is still visible on the website?

The company is in the final phases of migrating all countries and surfaces to the new MobileNex platform, expected to be complete in Q3. This platform enables faster development and personalization. They are running multiple tests and piloting new features weekly to improve user experience, including showing important deal parameters and fine print more visibly to build trust.

“We are running multiple tests, and we already developed multiple features, which we are testing and piloting. And we are identifying user groups who best interact with these features. And I see and expect that during the third quarter, it's pretty much every week when we introduce something new to improve the user experience in terms of personalization.”

asked by Robert Brooks · answered by Dusan Senkypl

What KPIs will the team be watching to track progress on building customer trust and quality?

The ultimate metric is purchase frequency, which drives shareholder value. Internally, they segment customers (new, champions) and track performance weekly. A key metric is conversion to second purchase within 7 or 30 days for new customers. They are shifting marketing optimization from short-term transactions to customer lifetime value, reallocating resources to campaigns that bring customers with better purchase frequency.

“So ultimate metric which we are all watching here is purchase frequency. This is the key metric which will drive value also for shareholders.”

asked by Robert Brooks · answered by Dusan Senkypl

How did the McDonald's loyalty app partnership play out, and can we expect similar short-duration partnerships with recognized brands in the future?

The McDonald's partnership was the first of its kind, and the company plans to expand similar collaborations. As the marketing engine matures beyond transactional focus, they are investing more in brand activities and influencer marketing. Such partnerships increase Groupon's visibility and expose a huge number of customers to the brand, with plans to show more of these going forward.

“McDonald's is type of partnership which we will be bringing more and more with like recognized brands. And it's definitely not just McDonald's. You can see many other great top companies on the platform, but internally right now we have an initiative to bring them more because it simply brings Groupon visibility.”

asked by Robert Brooks · answered by Dusan Senkypl

Elaborate on the confidence in H2 acceleration, distinguishing between macroeconomic factors and internal structural/product development improvements.

H2 comparisons will ease. Drivers for acceleration include near-complete platform rollout, double-digit growth in organic SEO, improved managed channels, personalization capabilities, increased marketing with improving returns, and accelerated delivery from AI-native teams. Macro-wise, demand for local experiences remains resilient, and pressure on wallets increases the appeal of value, which is Groupon's core proposition. Management sees macro as not a headwind, and all numbers are execution-driven.

“And on the macro piece of this question, in general demand for local experiences remains resilient. Yes, I fully agree and see that there is a pressure on wallets and it's probably increasing, but at the same time it also increases the appeal of value, which is our core consumer proposition.”

asked by Eric Sheridan · answered by Dusan Senkypl

How is Groupon communicating the shift towards trust and quality to consumers, beyond just having a good experience?

The company's strategy is to 'do the work first' and let results speak for themselves. They believe communicating the shift prematurely, before 100% of deals and experiences meet the new standard, would not be beneficial. The change is visible in the user interface. Once the ramp-up to 200% is complete and internal satisfaction is met, they plan to expand into more marketing and promotional communication, potentially through guarantees.

“I don't think that if we would start communicating this, as long as we can't stand for 100% of deals on Groupon and 100% on Groupon, 100% of experience that it would do us good in the long run.”

asked by Sean McGowan · answered by Dusan Senkypl

Can any of the recent improvements, like the uptick in July, be directly attributed to Project Foundry, or is it too early to see its benefits in the numbers?

The sequencing of Project Foundry focuses on changing the operating engine first, not on external visibility. Internally, there are significant results, such as improved data availability and AI support for new hires, leading to faster development. The pace of AI-native teams is incomparable to the past. While not yet quantifiable in external numbers, the internal acceleration of feature delivery and speed is directly attributable to Foundry, which is seen as the biggest impact in three years on how Groupon operates and delivers results.

“We would not be able to have all the personalization features implemented if we would not be able do it in AI. The financial impact, it's coming after that and we believe that it will be coming through better features, reaching customers faster, seeing better results from marketing, building, identifying needs of customers and same day, week delivering and solving them.”

asked by Sean McGowan · answered by Dusan Senkypl