By Elias Schisgall

Groupon reported fourth-quarter revenue below Wall Street expectations as the company said its results were hit by a slowdown in enterprise channels and organic and owned marketing.

The online coupon provider on Tuesday posted a profit of $7.3 million, or 17 cents a share, compared with a loss of $50.6 million, or $1.20 a share, a year earlier. Analysts surveyed by FactSet were expecting earnings of 14 cents a share.

Revenue rose to $132.7 million, from $130.4 million a year prior. Analysts were expecting $136.6 million in revenue.

Global billings increased 2% at constant currency to $446.5 million. Active customers rose 5% to $16.2 million.

Shares fell 13% to $10.05 in after-hours trading Tuesday.

Chief Executive Officer Dusan Senkypl said the company saw deceleration in North American enterprise channels and underperformance in the company's organic and owned marketing channels.

He said the company was addressing the marketing challenges through a new customer data platform, which was rolled out in North America last month and is expected to be launched internationally in the coming weeks. Groupon is also investing in organic discoverability, Senkypl said, though he added the company was impacted by an update to the Google algorithm.

Senkypl attributed the slowdown in North American enterprise to a weak pipeline of new brand additions and certain issues in existing merchant relationships. He said the company had reorganized the team and brought in new leadership to address execution gaps.

"Enterprise recovery will take time," Senkypl said. "We expect Q1 to remain under pressure, but expect the organizational changes we have made can get the channel back to the strong performance we expect."

The company's 2026 guidance reflects more moderate growth than the company had been anticipating due to these headwinds, Senkypl said.

Groupon is expecting revenue in the current first quarter of between $117 million and $120 million, representing 1% growth at the midpoint. The company is expecting billings growth between flat and 2%, and is projecting negative free cash flow.

Analysts were expecting $124.2 million in revenue, according to FactSet.

The company is projecting full-year revenue between $513 million and $523 million, representing 4% growth at the midpoint. It expects billings growth between 3% and 5% with free cash flow of at least $60 million.

Analysts are expecting $540.8 million in full-year revenue.

Groupon also said Monday that it would convene an Artificial Intelligence Committee on its board to oversee the company's AI strategy. It said it was adding AI entrepreneur Amit Shah to the board to assist in guiding the company's implementation of AI.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

March 10, 2026 16:50 ET (20:50 GMT)

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