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DATE

Friday, May 8, 2026 at 8 a.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Dusan Senkypl
  • Chief Financial Officer — Rana Kashyap

TAKEAWAYS

  • Global Billings -- $383 million, reflecting a 1% decrease year over year and falling slightly below guidance.
  • Revenue -- $117 million, flat year over year and positioned within management’s stated guidance range.
  • Adjusted EBITDA -- $12.8 million, slightly below the guided range and included approximately $2 million of severance in SG&A from a 5% head count reduction.
  • North America Local Segment -- Merchant acquisition slowed, enterprise sales turned negative for the first time in five quarters, and health, beauty, and wellness posted the first soft quarter after four quarters of growth.
  • Things to Do Category -- Delivered growth in both North America and international, partially offsetting softness elsewhere.
  • April Performance -- Improved sequentially, led by reaccelerated North America local segment, positive year-over-year growth in managed channels’ email, and SEO trajectory turning positive mid-April.
  • Project Foundry Launch -- Introduced as a comprehensive operating model overhaul establishing Groupon as an AI-native company, with AI agents now piloting outbound merchant contact and integrated into all core functions.
  • Further Restructuring -- Potential for an additional 15% global head count reduction under evaluation for Q2, with details to be provided once Board-approved.
  • Platform Upgrades -- New iOS app fully deployed in North America, new Android app launched to new users in the region at end of quarter, and new international web platform live in all markets.
  • Share Repurchases -- 2.8 million shares bought since March 10 for $29.7 million at a weighted average price of $10.58, representing 7% of outstanding shares; $215 million remains authorized.
  • Full-Year Guidance Affirmed -- Billings growth expected at 3%-5%, revenue $513 million–$523 million, adjusted EBITDA $70 million–$75 million, and free cash flow of at least $60 million.
  • Q2 Outlook -- Management guided for billings flat to up 2%, revenue $126 million–$128 million, and adjusted EBITDA $13 million–$15 million, maintaining a similar range as Q1 due to anticipated performance differences in large enterprise campaigns later in the period.
  • International Performance -- Management cited persistent strength in international billings excluding Giftcloud, with geographically tailored sales teams noted as a contributing factor.
  • SumUp Minority Stake -- The company remains a passive shareholder and is prepared to opportunistically monetize the holding to fund share buybacks or other priorities upon a liquidity event.
  • AI-Driven Marketing -- Greater opportunity seen with Meta, especially in video content, versus Google where most surfaces have already been penetrated; AI is used for campaign and creative management.

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RISKS

  • CEO Senkypl said, "Q1 fell short of our expectations," with global billings and adjusted EBITDA landing below guidance, linked to merchant acquisition deceleration, enterprise softness, and sector-specific headwinds.
  • Severe January–February winter weather created "a near-term headwind" for North America local performance according to management.
  • Additional restructuring actions in Q2 that are expected to further reduce global head count by approximately 15%, along with other significant cost reduction and automation actions, remain under evaluation, highlighting ongoing operational risks pending Board approval.
  • Headwinds in the Emirates market continue due to a very complex situation with the war and politics, which may weigh on international results.

SUMMARY

Groupon (GRPN 6.48%) delivered flat revenues at $117 million and a 1% year-over-year billings decline to $383 million, citing enterprise sales softness, deceleration in merchant acquisition, and temporary weather disruption. Management emphasized a decisive shift to an AI-native organizational model via Project Foundry, with initiatives including end-to-end automation, piloting of AI agents for merchant outreach, and full integration of AI tools across sales, marketing, and product development. Leadership affirmed full-year guidance and highlighted sequential improvement in April, while committing to further restructuring actions and ongoing share repurchases under the expanded authorization.

  • Senkypl described Project Foundry as "the most consequential operating decision this management team has made since arriving at Groupon 3 years ago," underscoring its centrality to the company’s forward strategy.
  • Kashyap confirmed that, regarding SumUp, if there are opportunities to monetize that investment, the company will look at it opportunistically, reinforcing readiness to redeploy capital into growth or shareholder returns.
  • The platform overhaul culminated with region-wide deployment of new mobile applications and customer data platform, aiming to transition marketing strategy toward customer lifetime value optimization.
  • Senkypl observed that AI-generated content for merchants is in their best interest to be represented in the best possible way and the quality of media, which thanks to AI, can now be provided also to small businesses is comparable with the professional outputs, which bigger companies are using, supporting enhanced merchant engagement prospects.

INDUSTRY GLOSSARY

  • Project Foundry: Groupon’s company-wide transformation initiative to reengineer processes and operations as “AI-native,” embedding AI agents and automation into all business functions.
  • Managed Channels: Groupon’s internally operated marketing or sales channels, such as email and SEM, as distinguished from organic or third-party channels.
  • Groupon IQ: The company’s proprietary AI-powered platform for automated deal creation and optimization within the marketplace.
  • SumUp: A financial technology company in which Groupon holds a minority investment.
  • Giftcloud: A distinct offering or sub-segment referenced in international billings, separated in management’s discussion to clarify operating performance trends.

Full Conference Call Transcript

Dusan Senkypl: Hello, and thanks for joining us for our first quarter 2026 earnings call. It's great to be with all of you today. Yesterday, after the market closed, we released our earnings and posted our shareholder letter on our Investor Relations website. Today, I will make opening remarks and then open up the call for your questions. For more details on our quarterly performance, I encourage you to read our full shareholder letter, press release and 10-Q. Let me start with the headline. Q1 fell short of our expectations. Global billings of $383 million declined 1% year-over-year, slightly below our guidance. Revenue of $117 million was flat year-over-year and within our guidance range.

Adjusted EBITDA was $12.8 million, slightly below our guidance range. I want to be clear on one item: adjusted EBITDA of $12.8 million includes approximately $2 million of severance reflected in SG&A in the quarter related to the roughly 5% head count reduction we executed in Q1. The pressures in the quarter concentrated in 3 areas: continued softness in our managed and organic channels, which we flagged on the Q4 call; a deceleration in North America local, where SMB merchant acquisition slowed and enterprise turned negative for the first time in 5 quarters and our first soft quarter in health, beauty and wellness after 4 consecutive quarters of growth. Severe winter weather in January and February added a near-term headwind.

Things to Do continue to grow across both North America and international and partly offset these pressures. April performance has improved, driven by North America local reaccelerated. Managed channels are recovering with email returning to positive year-over-year growth. SEO trajectory turned positive in mid-April. These are early indicators, but they validate the work we have been doing on our customer data platform, and on AI-driven content and they give us confidence in the back half. Importantly, none of the Q1 results yet reflect the operating impact of Project Foundry, which I will speak to next. Turning to Project Foundry. Foundry is the most consequential operating decision this management team has made since arriving at Groupon 3 years ago.

We are rebuilding Groupon as an AI-native company. Foundry is not a product launch. It's a redesign of how the company works. We are embedding AI agents into the core of every function, giving business and product owners direct access to the data, tools and creative leverage they need to act in hours rather than weeks and removing the analytical and engineering layers that previously sat between an idea and its execution. The operating shift is already visible. We are piloting AI voice agents that conduct outbound outreach to small- and medium-sized merchants. And our objective is for the majority of new merchant meetings to be set by AI voice agents by the end of 2026.

Our marketing teams are operating an AI-driven stack across SEM and SEO that continuously evaluates campaign performance, generates creative variants and runs experiments at a pace not previously possible. Our product teams are starting from AI-built demos rather than written specifications and in some workflows, shipping consumer-facing functionality without traditional engineering involvement. Groupon IQ, our AI deal creation platform is in production. AI-generated review summaries are live across the marketplace. By the end of Q2, we expect every leader at Groupon to be using AI agents in their daily work. As we rebuild around AI-native execution, we are also restructuring the operating model. We reduced total head count by approximately 5% in Q1.

We are evaluating additional restructuring actions in Q2 that we expect will further reduce global head count by approximately an additional 15%, along with other significant cost reduction and automation actions. These plans have not been finalized or approved by the Board, and we will share details on timing, expected costs and anticipated savings once approved. The proposed is straightforward, to enable Groupon to operate at the speed required to win in an AI-native world. Outside of Foundry, we made meaningful progress on our other strategic bets. Our customer-facing platform rebuild is in the final stretch after a multiyear journey. The new iOS app is fully deployed across North America.

The new Android app launched in North America at the end of Q1 to new users. The new international web platform is live in all markets. These platform upgrades were delivered without material disruption to our financial results, which is itself a meaningful accomplishment given the scope of the work. Our customer data platform is now live in all major markets, and we are using it to drive a fundamentally different approach to managed channels, anchored on customer lifetime value rather than individual transactions. And in SEO and AI search, we are positioning Groupon to continue to drive performance in an organic search landscape restructured by AI-driven search experiences. On capital allocation, we executed against the buyback authorization.

Since our last earnings release on March 10, we repurchased 2.8 million shares for $29.7 million at a weighted average price of $10.58, representing approximately 7% of shares outstanding. As of May 7, approximately $215 million remains available under that program. Going forward, we will continue to be opportunistic, taking into account our cash generation, our investment priorities, market conditions and the trading price of our shares. Our first capital priority remains investing in the organic growth opportunities in front of us. We continue to hold our minority stake in SumUp and any liquidity event there would give us additional capital to deploy. On guidance, we are affirming our full year.

We continue to expect billing growth of 3% to 5%, revenue of $513 million to $523 million, adjusted EBITDA of $70 million to $75 million and free cash flow of at least $60 million. For Q2, we are guiding billings flat to up 2%, revenue of $126 million to $128 million and adjusted EBITDA of $13 million to $15 million. While April's improvement give us a positive start to the quarter, we have set Q2 guide in the same range as Q1 to factor in a difficult comparison later in the quarter related to several large enterprise campaigns that have different performance expectations this year.

We expect the second half to deliver improved results from our strategic bets, better execution in North America for local and additional marketing support. Stepping back, the long-term opportunity for Groupon remains compelling. The market for online local experiences is significantly underpenetrated relative to categories like hotels and airfare. We believe AI-driven discovery and agentic transactions will accelerate that penetration and Groupon sits at the intersection of consumer intent and local supply, a natural bridge between the AI economy and the millions of local merchants who power Main Street. We remain committed to our long-term ambition for accelerated growth. Our refreshed mission anchors all of this. We get people offline through quality local experiences at great value.

The best things in life happen offline, and as the world becomes increasingly digitized, demand will grow for analog, in-person experiences and for the digital pathways consumers use to identify, discover and book those experiences. That is the company we are building. I want to thank our team. This transformation is not easy and their dedication, intensity and execution under pressure have made this progress possible. With that, let's open the call for questions.

Operator: Our first question comes from Bobby Brooks from Northland Capital.

Robert Brooks: I just wanted to unpack a little bit more some of the factors that caused some of the headwinds in the small business merchant base in North American local. Is that mostly stemming from kind of the weather -- the kind of severe weather in the first 2 months? Curious to hear there.

Dusan Senkypl: So severe weather was definitely a part of that. Also -- and Bobby, thank you for the question. The SEO and managed channel headwinds, which we were talking about on the last call also participated on headwinds. And the third element was also related to enterprise where the AI inventory is very important. At the same time, we are -- we have plenty of bold actions right now with -- for local, and we are very optimistic going forward.

The AI will significantly unlock for us an opportunity to acquire more merchants without being restricted to limitations and the size of our core sales team because we plan and we are already piloting the meeting setups for them with AI, which significantly increases the performance and capacity. And we have many other tools which we are deploying right now.

Robert Brooks: Curious on that outbound -- AI outbound with the merchants, I was just curious like are you seeing good win rates, I guess, is the word I'll use of like merchants getting those calls and setting up that first -- because I also kind of see when I get an AI call, like I usually just kind of ignore it or hear it's AI and hang up. Like is that -- have you guys kind of figured it out where it doesn't seem like AI and those merchants are booking the first meeting?

Dusan Senkypl: So there is definitely a small group of people, but it's really minority who don't want to talk to AI yet. I believe personally that this group will be getting smaller and smaller as pretty much every big company, every bank is deploying the AI. And the quality when we are using the frontier models and frontier solutions, I'm personally not able to recognize whether the call is coming from AI or from a human person. But at the same time, what it opens to us is unlimited capacity at required times because right now, with limited number of salespeople, they are pretty much trying to find out when to call to whom.

And based on the AI, suddenly, we have 0 limitations in terms of how many calls we can be doing and when. So we can be doing the calls at times which are fitting much more to merchants. So if we know that in some segments, for example, the owners of small businesses don't have so many customers around noon, so we can be calling them around noon to all of them at the same time. We can be accommodating based on where you are sitting, is it -- East Coast versus West Coast. Right now, majority of our workforce in sales is in Chicago, in Illinois. So we are not really calling in the evening.

All this opens up, and it's more than paying off versus that initial loss, which we currently have with people who don't want to talk to AI.

Robert Brooks: Okay. That's great color. And then kind of continuing on the AI initiatives, with obviously a clear focus of being AI-native company. And I think last quarter, you mentioned how all business unit leaders kind of had to come and propose how they're going to integrate AI into the workflow. And I think today's call, you said that you expect all folks to be using agents later this year. So I was just curious to kind of hear more of a deeper update on like what some of those initiatives -- maybe what some of the more exciting initiatives you heard get proposed by those business leaders?

And is it fair to think that the head count reductions is direct relation to, oh, okay, we can use AI for this. And so now we can kind of pull back on our head count in this area.

Dusan Senkypl: So first, let me tell you that the motivation for the change and being AI first is not to save cost or have less people working for us. For me, the main motivation is to accelerate how company operates. I personally don't think that companies which will not operate in this mode would survive. And because I'm investing heavily in AI for the last 2 years, and we have plenty of people like this in Groupon and in other companies around me, I see how people who are AI native completely changing the paradigm of how quickly they are moving because they are not waiting on others to prepare reports or data.

They can just -- you can imagine it like you have additional 5 or 6 AI people working for you 24/7, you can ask them whatever you want. So that pace which comes with it is really, really amazing. We are changing, and it's not only us, it's pretty much everyone who is on this AI frontier level. The way how corporations are working, it doesn't make sense anymore to have like teams of 5 or 6 people working on something with all that communication overhead around it and meetings. It's really one or two people, we call it speedboats, who are taking decisions immediately moving super fast, shipping products in days or weeks.

And I expect that more and more of this will be coming to Groupon. But when you look how we were talking about SEO less than 3 months ago, for example, without AI, we would not be able to accelerate so significantly. I see same happening on SEM, also [ mobile next. ] Last almost 3 years, we were talking about the project, how we are moving really slowly. But last 3 to 5 months, the progress significantly accelerated. We would not be able to achieve it without AI. And I see right now that this is happening across all projects.

We pretty much don't want to have in the Groupon any project which would not be around AI first because we simply see the outcomes, speed and the results from these projects to be significantly superior to the old way of working.

Operator: Our next question comes from Sean McGowan from ROTH Capital Partners.

Sean McGowan: I want to follow up on Bobby's question a little bit. You were already doing a pretty good job with SG&A spending and a lot of cuts. But how -- I know you just said it's not about cost primarily, but how much lower could the G&A spending get with some of these initiatives?

Dusan Senkypl: Sean, thank you for the question. We were in the commentary stating that right now, the 15% restructuring is not approved by the Board, and we are not talking about specific actions. At the same time, we were mentioning that we are looking very closely on the 15%, along with other significant cost reduction and automation actions because we really see this as a paradigm change how to operate the company. So I will not give you really any numbers.

The saving is definitely not a primary motivation because this is probably for the first time in Groupon's history when we are talking about these reductions while we are growing, not when we need to cut something because -- like Groupon has a major problem with the business, the motivation is really to speed up and change the operation mode of the company. I see it as an opportunity and definitely that will be a lower cost related to all these changes, but it gives us opportunities to invest to grow maybe in other areas. So sorry, I can't give you right now any numbers.

Sean McGowan: I understand. There's sensitivity around that. I appreciate that. Shifting gears, it seems like consistently as you talk about international billings ex-Giftcloud, that the underlying business, excluding Giftcloud has been pretty strong. Is there any reason that we should not expect that ex-Giftcloud business to stay as strong as it's been or much stronger than the overall reported number? Or are there factors that are going to make that comparison tougher?

Dusan Senkypl: I see the difference with international versus NA that in the past, we were -- or Groupon was doing much less cuts to the sales force and was cutting mainly outside of the sales team. So I would say, in general, the sales teams in international are slightly stronger also, not only in terms of experience, but also head count. And because they are serving individual countries, they can be more focused. So you can think about it that we have these like countries runs in a similar way how we are running the Chicago in NA, where we have better results versus the rest of the country, which is driving the pace.

And obviously, the team is doing there great job. So I'm optimistic about around international. Right now, we have headwinds with Emirates because of this very complex situation with the war and politics there. But otherwise, I see opportunity for us in all markets.

Sean McGowan: Okay. I have two quick questions for Rana, if I can. First, what's up with the taxes? What's the weird thing going on in taxes in the quarter? And second, why would you not add back that severance if that's, in fact, something that's boosting the G&A spending? Why would you not add that back for adjusted EBITDA?

Rana Kashyap: Yes. Thanks, Sean. I'll take the second question first, and then I'll go to the first question. We have a pretty established policy on how we define adjusted EBITDA, consistent with guidance from our regulators. And these severance actions were undertaken on sort of ongoing activities. It was not part of a restructuring action that we put in place in Q1 that was Board approved. And so at the same time, we wanted to let investors know that we did have material severance expenses. So this is why we made sure that it was disclosed in our commentary around SG&A. So this is something that we are -- see in our numbers.

We see it is part of the story in Q1 and why we told you. I don't know if that answers your question, Sean. Before I go to the first one...

Sean McGowan: No, it just seems like you actually didn't miss. Even though the way most investors would look at it. You didn't come in below. But anyway, I get it's a matter of policy, but your adjusted EBITDA is actually better than it looks.

Rana Kashyap: And that's correct. And we are -- our role here, we want to be as transparent as we can be. So we want to make sure you understand the puts and takes of the quarter, and that's why we included that note in the letter. I'm glad you picked up on that. Listen, in terms of tax, and there was -- there's always quite a bit of movements going around quarter-to-quarter related to how we are planning the business and potential changes that we're making. I'm happy to go in a little more detail with you offline, but there's nothing structurally that's changed with our business, Sean, at this point.

We have -- we do expect to see some benefits on the cash tax side related to some of the legislature that was passed last year. And so from a cash tax standpoint, we do expect this year to be more efficient. But structurally, our business, there's nothing very different happening from a tax perspective, absent changes in the regulatory environment.

Operator: We'll now pose written questions to the leadership team. [Operator Instructions] Our first question is for Dusan. How are you personally using AI day-to-day? And what's changed for you in the last 6 months?

Dusan Senkypl: It's -- thank you for the question. I see major changes happening pretty much every month. If I will be looking backwards how I was using AI 6 months ago, I was experimenting with like Vibe coding and having agents doing some like small engineering tasks to build tools for me to make my life easier. I was using AI as like a chat partner, all my projects, all my brainstormings were run in AI. Then I would say some 6 to 8 weeks ago, I switched into the agentic mode.

I was actually commenting this or posting some articles on LinkedIn about it that I built AI chief of staff, which is like a solution where all my projects live with. It's built on a Claude code, an Anthropic solution. And it's running all the data. It has access to all the data which I need for my work. I'm sharing a lot of content. It sees my emails, reads all the tasks which we are working on. And this is like a primary way of working for me. I'm really spending time on meetings with people or -- then everything else I am working on through my AI. And I see significant boost of productivity.

I was -- and I am sharing this toolkit within Groupon and with my peers. Some of them took it and improved it significantly and much more advanced versus me. But really right now, I see AI with pretty much old models right now because all the major AI companies will be coming with significantly better models in coming weeks and months. But if I provide enough context, the AI is giving me the answers which are same or better versus what I would be able to do, but it provides me these answers in minutes or hours versus me, I would need to be spending hours. So I can work on 10x more projects.

I have visibility in more stuff. And also it changed the way how we are working with leadership and managers in the company. In the past, it was always prepare 2-pager, 1-pager with big picture, don't spend more time. Right now, it's completely different. Just -- let's provide raw data, throw it on AI and AI can do completely research, find out how best-in-class on the market are working and doing the stuff, show 5, 10 different versions for our solutions. So for me, it's a complete game changer. I feel that I don't have to wait anymore on this stuff because I have it available right now. And I see that the landscape is really developing significantly.

The pace is really unbelievable. And what we have right now, in a few months, will be even significantly more capable.

Operator: A follow-up question on that. What's your conviction on where AI and local commerce goes over the next 18 to 24 months? And where does Groupon need to be to get -- when it gets there?

Dusan Senkypl: So I would like to position Groupon as a company, which will be significantly helping small businesses because it's not easy to run and operate small business, not only in North America, but pretty much anywhere in the world, and you definitely don't have time to educate yourself on what's happening in AI. So Groupon is investing and will be investing more into the toolkit so that we are providing platform to small businesses, how to operate their business, how to get more clients, advise them. We are sitting on a lot of data. We were talking about the CDP, about the customer data platform for consumers, but we have a ton of data also for merchants.

And I would like to build a solution, which will be taking this data and helping merchants to run their businesses better. This is on the merchant side. On the consumer side, the way how people are searching, browsing is changing. So I want to position Groupon at a place, which is a platform which any AI agents can be using. So we can be connected to pretty much anything in the world, whatever will be popular, best-in-class as a platform, which will be consolidating the links and traffic and deals of small merchants who on their own would not be able to do this.

So we would -- with all this, when we put it together, we will be able to provide the power and benefits of AI to small businesses because right now, it's quite limited to bigger organizations, which have much more resources versus small businesses.

Operator: Another follow-up on that. What's the right way for investors to track whether the AI-native operating model is actually working beyond the headline P&L?

Dusan Senkypl: So the way which we are taking in Groupon is slightly different to the way which some other companies are taking. My strong belief is that if we want to be AI-native company also in terms of AI products for merchants and for partners, for us, we need to be AI first inside. So that's why this like high focus on how we operate to make sure that every single person is running AI because it changes not only the cost and SG&A, which we were discussing here on the call, which is really not so important for me right now, but it changes the mindset. It changes the way how you are thinking about the stuff.

It changes the -- you are not simply willing to do anything in a slow way if you know that you can deliver something in hours. And then this translates into products which we are building, which not only that we will be able to ship them and move them fast, but we will be also able to come with products which will be AI first.

If I would be in the shoes of external investor, I would be definitely looking how Groupon is used by AI platforms, whether when you are searching there, whether you can find Groupon deals, which -- any time I'm trying that I'm able to find Groupon deals in OpenAI or in Google, and this is one of our focused strategies. In the future, I expect that this discovery piece will be moving towards whole agentic commerce, and we, inside Groupon have bets and projects to build a platform, which will be like an open connector for pretty much any new standards which will be coming.

Operator: And one final written question. What has surprised you most about AI inside the company since you launched Project Foundry?

Dusan Senkypl: I would say the biggest surprise for me was the quality of AI voice agents. I was covering this on the call because I was testing when -- last year, I'm talking to other people who are using it. Last quarter, during the trip, which I had in my team to San Francisco, we were visiting ElevenLabs and some other frontier companies. And what we saw as a progress in this area was unbelievable. And I think it's a major unlock for us how we will be able to talk to small merchants and really unlock the capacity.

When the AI call is done right, you are simply not able to recognize whether you are talking to human or AI agents. So this changed in last probably 5 months because in the beginning of the year, this was definitely not true. This was the biggest surprise for me.

Operator: We have a follow-up from Bobby Brooks from Northland Capital.

Robert Brooks: Just on the -- obviously, there's been some news bubbling up of SumUp moving towards an IPO. And I think you guys have made it clear to the market that when you get a liquidity window, you'll use it. Just wanted to hear, it would be a nice cash sum for you. Any thoughts on like what that cash would go to use for? Obviously, the balance sheet is really strong. So would it just be -- but a lot of like the growth initiatives seem to be like low capital requirements. So just curious to hear maybe how you're thinking about how you might use that cash windfall, if it were to occur.

Rana Kashyap: Do you want me to take that, Dusan?

Dusan Senkypl: Yes. You can take it.

Rana Kashyap: Yes. So thanks, Bobby, for the question. We continue to be -- believe that SumUp is an incredibly valuable asset. And as you've noted, we continue to own a small minority stake in it. They are developing well. Their performance is strong. And as you've noted, there's some public commentary that they're getting ready to be a public company. Our view on this is they are -- they have the scale, they have the business model, they have the management team, and they have really, I think, the story to be a successful public company. But the timing on that and when that will happen is quite uncertain.

So we continue to be a passive shareholder there, and we continue to be supportive of the actions and the direction they're headed. In terms of -- this is a non-core investment for us, and we don't plan to hold this for the long term. So if there is opportunities for us to monetize that investment, we will look at it opportunistically. And in terms of that -- if that capital does -- if that asset does turn to cash, we will look to allocate this with -- consistent with how we think about our capital allocation policy right now, where we are looking opportunistically at share buybacks.

We are looking at what we see in terms of our investment needs, which you've noted, how our business is performing, market conditions and where our stock is trading. So we will be opportunistic, and we will see where things go. The only other thing I will tell you, Bobby, is we've been following SumUp since we've been here for 3 years. And so they have definitely improved a lot, but I've never gotten the timing right on that one, and I don't think it will be smart for us to try to pick timing now.

So what is most important to me is that, that business is doing well and has a great position in their market, and we are rooting for them to continue on that path.

Robert Brooks: Yes, absolutely. I appreciate that color, Rana. And yes, definitely not looking for -- looking for the crystal ball prediction. It's obviously a passive asset for you, but great to hear that additional color on how you would maybe think about using that cash. And then maybe one last one for me is just on the different marketing channels. I know that was -- some details were discussed there. But some of the other digital marketplaces I cover, one particular was talking about really good strength and leaning into advertising on Meta and [ Pin ] and more so leaning away from Google.

Just curious if you could provide any color on -- a little bit more color on what marketing funnels, channels are working best for you and which ones maybe you're starting to lean away from?

Dusan Senkypl: I can take this question. I don't think there are marketing channels where we are starting to lean from. I believe that Groupon should be maintaining the position and try to spend as much as possible with very disciplined ROI on every channel. But you are completely right with Meta, where I see disproportionately bigger opportunity versus Google, where I believe we penetrated most of the surfaces, which are suitable for Groupon, and we can get much better there. But in Meta, especially with video content, we have much more opportunities. Meta also released in the last -- I think it's 2 weeks or so, much better connectivity for AI.

So our team is already working with AI, generating the advertisements and completely AI managing the campaigns. And at the same time, we are experimenting heavily with AI-driven way how to generate quantity of videos based on our local content because currently, AI allows you, if you take just a few pictures, just from those photos, let's say, you can create really beautiful, compelling videos, which will be opening us opportunity to advertise mainly on Meta, but then also on TikTok more.

Robert Brooks: Very interesting. And then maybe just one follow-up on that AI content. How does it work, the relationship like with the merchant, essentially, if they're signing up to use you as a service or use your platform, do they inherently then give you the ability to kind of create content for them through AI? Like just because I would guess some business owners probably want to be a little bit more protective around that. Just curious to hear how that dynamic works.

Dusan Senkypl: We are significantly improving quality of content with AI. So actually, until now, I didn't hear about any single complaint. In several cases, I heard wow, this is unbelievable, when we took, I would say, mediocre pictures from merchant website, for example, and then reprocessed it and improved it with AI. So I actually see it as a positive thing for merchants because it is in their best interest to be represented in the best possible way and the quality of media, which thanks to AI, we can now provide also to small businesses is comparable with the professional outputs, which bigger companies are using.

Operator: There are no other questions. So this concludes our call for today. Thank you, everyone, for joining. For additional information, please go to investor.groupon.com.