Welcome everyone, and thank you for joining Groupon's live investor conversation on X with CEO Dušan Šenkypl and CFO Rana Kashyap. Before we begin, today's discussion and management's responses to questions reflect management's views as of today, August 25, 2026 only, and may include forward-looking statements. Actual results may differ materially. Groupon undertakes no obligations to update these statements. Risks and other factors that could potentially impact the company's financial results are described in the company's SEC filings, including its most recent Form 10-K and Form 10-Q. This is not an earnings call. Management will not provide new financial information or update the guidance issued on August 6, 2026, and comments will be limited to information already made public. Any non-GAAP financial measures referenced, including adjusted EBITDA and free cash flow, are reconciled in our earnings materials at investor.groupon.com. This session is open to all investors, is being recorded, and a replay will be available. With that, let's open the floor to questions. We will start with written questions we've received over the past week, but if you have questions live, please post them as a reply to our account, or raise your hand here to be promoted to a speaker. Our first question comes from CV Yolo Trader. How do you plan to attract younger generations beyond the mystery deals concept? Dušan? First, thank you everyone for joining us here. Very happy to have you here. On the mystery deal concept, first, let me provide some bigger picture for those who don't know the mystery deal concept, because it's part of how we are transforming Groupon, how we are bringing new types of products. Mystery vacations right now, but I see the same mystery concept opportunity also for many other products with Groupon, a result of the change how we think about the travel. We are moving from selling just destination to selling experiences. We are pretty much taking away also from our customers a decision which they have to make where I will travel. So this is very explanatory product where they just buy for $199 to $299 per person a trip, and then, without knowing where you are going, they pick their days. We call them in three days, and somebody tells them where way to go. So it's something which was not promoted, which was not on the Groupon in the past, and this is one example how we are building a completely new product proposition, which is relevant for especially younger generation in this case. On the levers, how we plan to attract the younger generation in general. T here are three dimensions to this. This is reach, this is product and inventory. With reach, we are heavily investing both in our organic channel and paid channels. I'm very happy that we returned to growth with organic channels in Q2, and we see many more opportunities here to continue in the trajectory. At the same time, we are building and improving our paid and brand partnerships and also influencer capabilities so that Groupon appears where younger customers typically discover ideas. On the product side, the answer which I see is that Groupon can't be the same for everyone visiting the platform. I was talking on the earnings call about the personalization, which helps us shape experience around affinity to category by our customers and the browsing behavior. I think this will be very important part how we will be making Groupon more attractive to people in actually not only younger groups, but in different groups. We will be also bringing in Q3 new onboarding experience, which will help especially younger people who may not know Groupon yet understand what is Groupon about. On inventory, this new format is very important for us. Tours, packages have reached customers who did not respond to other deal formats. What I see overall is that we have public evidence that active customers grew 2% to over 16 million, and conversion is improving on pretty much every surface which we have. Also, if I would double down on what will work best for young people, my personal bet is that influencer marketing will help us a lot together with better socials, because this is how especially younger people are discovering new products, new services. This is an area which we just recently started. I believe that we have all the right tools which we need, and you can expect a lot of stuff coming from us in this area. Especially together with our mission to get people offline, I see it as a great fit. Another dimension where I believe that it will be very specifically helping us, especially with younger generation, is AI, because I strongly believe that AI is redefining how the distribution opportunity works. We simply see that younger people are adopting AI trends faster versus rest of the population. We are building towards that. By the way, we will be sharing on our X account an example of what we built recently based on the input from Nick Nemeth and other actually small shareholders with AI Deal Advisor, where customers can be talking to Groupon AI and AI is recommending them deals. So we will be investing heavily in this direction. The first, but definitely not last is personalization, because right now we need to do a better job in recognizing younger people and providing relevant products. We have data and feedback showing that some of them are confused because we have variety of categories and deals, and we are expecting something else. So this is actually the bread and butter and core of the personalization bit, which we have to take very early signals like the device you have, location, browser, first one or 2 clicks, and recognize the profile of customer and serve the deal which makes sense to them. Thank you, Dušan. As Dušan just said, if you want to see an example of how AI is a new distribution opportunity for us, we just posted an example as a reply to this space. Our next question also for you, Dušan. Do you plan to expand into new countries and markets? Right now our priority is really go deeper where we already operate, not just to expand and add additional countries or areas where the marketplace would not have significant impact. Because pretty much every marketplace, and especially local ones, are about density and about pretty much city-by-city coverage. We have an evidence from other successful marketplaces that they were really growing not on the country level, but they were conquering every single city, category by category by having enough quality supply and then attracting enough customer demand in each location. In international, even we are concentrating supply and marketing investments in major cities in most countries. We see that the cities where we have higher density of our marketplace are growing at strong double-digit rates in Q2. This is a signal that this is the way how we need to be working. At the same time, we are also resuming operations in Italy, and the reason for that is that, we have a large base of merchants where they were still eager to work with us given our recent presence in the market. In the long-term, I believe that Groupon business model is very suitable, and we can definitely see opportunities in many other countries. However, right now, our focus is on the markets where we are in. This is not something which we are actioning right now. Thank you, Dušan. A final pre-submitted question from CZ Yolo Trader, this one for Rana. If SumUp IPOs, would Groupon sell its stake? If so, how would you use the proceeds? Thank you for the question. First, we do own a small minority stake in SumUp. We have been pleased to be shareholders there. We continue to get updates from that management team, and their business continues to do well. It is growing healthily. It is profitable. How I see this, it has all the features of what should be a successful public company. I understand that the desire of that management team is to one day be public. We have identified and communicated for several years now that this is a non-core investment for us. We will look at opportunistically, opportunities to monetize that stake, whether it is an IPO or a pre-IPO secondary. This is something that we are very open to. As long as there is a good commercial opportunity, we do not believe it is in the best interest for shareholders for them to get, let us say, SumUp long-term investment results from investing in Groupon. The core business of Groupon is what we are focused on here. We do expect at some point to get liquidity there, and it is more of a question of timing, which has been hard to predict with that situation. The good news is that that business is doing well and continues to do well, so we can be patient. In terms of using the proceeds, our business generates positive cash flow. It has healthy amount of adjusted EBITDA. Based on the plans that we have right now, we expect that to continue. Our core business does not need additional capital. To the extent we do sell SumUp, we would be looking at the opportunity to reinvest those proceeds against our capital allocation framework. You saw how we have made comments now for several quarters now that we will be looking the best way to create shareholder value. We will be quite opportunistic about this. We are significant shareholders here, and we think about how to grow long-term per value share all the time. If we have excess capital, we will be thinking of the best way to deploy that to generate the highest rate of return. Thank you, Rana. We will move to a question from RVXCV. Of the approximately $20 million-$25 million in annualized payroll savings, how much should investors expect to flow through to 2027 EBITDA/FCF versus being reinvested into growth? Yeah, I'll take this one. We haven't issued 2027 guidance, so I'm not going to do that now. What we said right now is as follows. As you've already noted, the restructuring we expect to realize about $20 million-$25 million in savings. We also noted that about half of that we'll expect to get this year and that we expect to invest about half of that into marketing, AI infrastructure, and talent density. That's what we've said thus far. As we think about next year, there'll be the other half that we'll be picking up and how we might think about that. I think it's too early to say. We also continue to run our overall foundry program, and as we execute against that and get more visibility on how the business is evolving, we will be coming back to shareholders and updating them on how we're thinking about 2027. This is what I can say right now. Happy to take a follow-up on this if anyone has one, though. Another question from RVXCV. What do you see as a sustainable long-term FCF margin for Groupon once the transformation is further along? Yeah. We don't have a long-term free cash flow margin target, so I'm not going to give one right now. But I do think it's useful to talk about the framework here, because I do think free cash flow is something that's not well understood in our business. If you just think about the components of what you get to free cash flow, you have your adjusted EBITDA margin, which is I think fairly easy to calculate. You also have some pretty easy-to-model discrete items like cash taxes, interest expense, and CapEx. And we have a pretty CapEx-light business or asset-light business. That gets you to one subtotal. The last remaining piece is working capital. And in our business, we have a negative working capital cycle. If you just think about this, our ambition here and the opportunity we see is to accelerate growth against what we see as a pretty big market opportunity. As we get billings to grow, working capital will be a source of cash. If you think about the long-term free cash flow margin potential for the business, you really need to have two assumptions that you need to be thinking about, is one is where do you think we will get adjusted EBITDA margins, and two, where do you think we will get sort of durable growth? There is definitely scenarios I can see in the future if we have billings growing at the levels that we believe are possible, where the free cash flow margin could be higher than our adjusted EBITDA margin, given the negative working capital cycle that we have in our business. Our next question. How should shareholders think about the convertible notes and potential dilution if the share price moves materially higher? It is a good question. As you might imagine, we think about dilution a great deal here. Dušan is personally a large shareholder, and through his fund, Pale Fire Capital, they are our largest shareholder. I personally have a significant amount of my net worth invested in Groupon. So dilution is something that we do not take lightly. I think the best way to think about this is just look at our track record. We have executed now two transactions on our capital structure related to the converts. The first one was when we refinanced our 2026 into a 2027. At that time, our business was not, let us say, performing as strongly as it is today. There were many options we had on the table to refinance it. We decided to choose a fairly complex refinancing, which included higher interest rates, some structured aspects of the note, let us say. We did that all to get a strike price, which was, at the time, I cannot exactly recall, but I think our stock was in the teens or the low teens. But we went and got a strike price of $30 a share. Most of our advisors thought that was quite odd. Like regular way convert financings, you do a 20%, 30%, 40%, 50% premium, you call it a day. But we were very clear that we were not interested in any dilution at that time, given the fundamentals and our belief in the business, and anywhere near where the sort of standard terms were coming. That is sort of, let us say, transaction one. I think the second transaction you can look at as instructive to see how we think is what we did last summer. Last summer we issued a 2030 note, which has a strike price into the 50s, which would take our EV over $2 billion. What we thought about at the time, and there were trade-offs because that refinancing was not costless, and there were some things that we took on. It was in some ways quite expensive. But as we thought about the pros and cons overall, again, we chose to really push the dilution potential for our business to a point where now we have most of that in the 50s. Given where the fundamentals of that business were at that time, of our business at the time, we felt that north of the $2 billion, issuing some stock would make sense. That is sort of how we are going to think about this going forward. I think there is a question later on about just debt. I mean, our business is predictable. It generates cash. We do think that it is a business that can have some debt on it. So we will be thinking about the best instruments to do that. But clearly for me, and Dušan Senkypl, and I think the board, for us managing the optimal capital structure, our goal is maximizing long-term shareholder value per share. To do that, we have to think about both the numerator and the denominator. So it is something that we very much pay attention to. I am happy with the track record we have thus far. I am sure we can always do better. But that is the best way to explain to you how we think is looking at our actions. Thanks, Rana Kashyap. A question for Dušan Senkypl. What specifically needs to improve in North American Local for you to feel confident that growth there is sustainable? I would not answer specifically about North America Local, but I would answer how I see Groupon overall. For me, the sustainability means that we see the marketplace engine works, and it is not for one good month, it is really for a longer time period. It has three components. The first, this is a supply-driven marketplace, so the core themes are the sa me ones which we talk about almost every quarter. We need to adequate supply coverage and sales engine that keeps bringing freshness and new inventory to the site. You can see that we invested a lot also to the human capital here. Adi Rajkumar and Mark March joined Groupon sales organization primarily recently, and we are pretty much rebuilding and improving the capability so that we can drive sales department further. The second, when we have the right inventory, we need to have capability to properly merchandise it to our customers so that they buy it. What is most important is so that they build a trust about the quality and products which we are selling. Because with the trust and quality, we can then talk about the third piece, which is purchase frequency. Here in this trust and quality piece, I see huge progress which we are making over last, I would say even months, and this is one of AI unlocks which we have. Because in the past, the number of deals which we have at Groupon, it was super complicated to go through it and analyze what is working, what is not working for customers, what is the friction. Right now, we are able to pretty much on daily basis to review all the customer communication, all the signals which we are getting from redemption, from customer reviews, from our customer support communication, and identify what we need to change on deal. Sometimes it means turn off the deal, sometimes it means talk to merchant and change the deal. Sometimes we just see the way how either merchant or our team describes the deal on the website. It is not understandable for the customer, so we are changing the layout, making more prominent features which are important for customer decision. I see a huge progress on this piece. The third part of the product flywheel is improving the experience on both sides of the marketplace. But I would focus here more on the customer part, where we want to make whole process very smooth. It starts with the content, with the deal quality, but then it continues also with the bookability, with the customer experience during the redemption. We actually introduced recently also the Apple and Android wallets where our coupons can be, for some deals, not all deals yet, can be simply moved to the Apple wallet, which you just present and makes all the experience during the redemption much better and easier. All this together should be reflected in the purchase frequency, which is ultimate driver and mark for me that the marketplace engine works. We need to see improvements in purchase frequency, which is the core priority of the whole company right now. When I am looking on what specifically in numbers based on what we actually published for Q2, clearly the small business merchant base was slightly lower year-over-year because the new merchant acquis ition was not as strong as we were expecting. I still see health, beauty, and wellness soft, and this is one of the focus areas for us to restart the category and bring there especially more freshness, similar to what we did with mystery deals. On the other hand, Things to Do grew double digits, so this is a very strong signal for us and one of key categories which Groupon is betting on. We are also re-accelerating new merchant acquisition. We pretty much want to double the new merchant productivity to approximately 10% of North America local supply and with that return health, beauty, and wellness to growth. Great. Thank you, Dušan. We're going to turn now to a live question we received. As a reminder, if you have a question while you're listening, you can reply to the live Spaces post on our handle, or you can request to be unmuted. Look for the request icon located below the audio controls at the bottom of your screen. This question came in from Nick Nemeth. Rana has talked about excess cash. What do you feel is a sufficient cash buffer considering the negative working cash model? Yeah, thanks for the question, Nick. We've gotten answered. We've had this question a few times. We never issued a formal guidance, this is the level of cash that we can operate on. How I've answered is I've given people a couple of data points for them to sort of make their own conclusions. The first is, look at our history. We have operated in much tighter cash conditions several years ago when our business was, let's say, more challenged. At that time, we never really had, I would say, significant challenges in operating the business. We paid our vendors on time. We paid our merchants on time. One way to look at what's the right level of cash is just look at where we've operated in the past. When you do that, you do need to remember that our business is somewhat seasonal, and cash does fluctuate quarter to quarter. What I've also told people is our high point of cash or our high point from a working capital standpoint is end of the year. Our low p oints are really September and April. April, we don't report. March sort of closes, but April we see sort of the unwind of the, let's say, spring break season. I would really look at September as sort of one point, but then you need to remember that that's the low point from also a working capital standpoint. The last thing I would just say on this topic is, when I think about excess cash, I also think about what we need to handle in terms of upcoming liabilities. At one point, we had an unknown l iability related to Italy. We were pleased to settle that dispute in the end of Q4 and remove that uncertainty. Now, as Dušan mentioned earlier in the call, we're re-entering Italy. So that was good. We also paid off our 2026 notes when they came to maturity. We have a small stub on the 2027 notes that are coming for maturity in the spring. So those are the other things I think about. If you try to work through the calculation of what is excess cash, I would sort of think through a few of those assumptions I just laid out, and that's the most that we've been able to give to investors at this point. Thanks, Rana. A follow-up for you. If free cash flow continues to improve, how do you think about the priority between debt reduction, reinvestment, and potential buybacks? Yeah. I think I've already answered some of this, so I'll try to go fast. Our first priority is organic growth. At the same time, we feel that we are sufficiently allocating the capital through our P&L to fund our organic growth. I think that will always be our first priority. We know we need a healthy, sustaining, growing business with good cash flow, which will produce excess cash and with which that we can then do other things with. But it only contingent on doing the first thing and doing the first thing well. That will always be our first priority. In terms of debt and buyback, I had a comment earlier. I think our business can have some debt. We don't have a clear leverage target. But we like the instrument we have on our balance sheet. It's long maturity, it's unsecured, very limited covenants. Yes, there's potential dilution, but as we covered before, we've navigated that in the past and we will be opportunistic in how we will manage it going forward. We're not trying to be a highly levered company. That's not really where we think the value is for shareholders, essentially. There's a lot of operating levera ge in our business. We think that executing on our playbook to unlock value here is primarily going to be driven by operational leverage. Some modest financial leverage will be something that we think is reasonable. Really that sort of frames how we think about debt reduction. And with respect to buybacks, we have said consistently now, I would say now for four quarters, that we are going to be very opportunistic, and we will look to allocate capital to buybacks in a way that we believe will create best long-term shareholder value. Thank you, Rana. Our next question is from Martin Novak. How do you consider the biggest competitor now? Who do you consider the biggest competitor now and in the next three years? How do you see your competitive advantage as well as a disadvantage? I do not really see one biggest competitor for Groupon, because we are operating in several categories. When you think about today how local experiences are discovered and sold today, it is very fragmented. There are travel and experience marketplaces which are focused on travelers, which is definitely not Groupon, our bread and butter, our local customers who are just discovering what to do in their neighborhood with their friends, with their families. There are plenty of direct merchant relationships, where it is search and soc ial platforms and specialized marketplaces which are focusing just on one category. It is very hard to name just one competitor. However, what I consider very important, and it is not just as a competitor, but it is a changing landscape, because I strongly believe that AI will change how people decide what to do offline. We need to be there, and I believe that we are positioned very well. There will be a competition. Who will be the trusted local intent and structured local supply provider? I believe that our advantage is that we already sit between consumer demand with our millions of local customers and transactions. Often, our merchants, they are not technologically advanced, and we can help them with our platform, with our AI focus to be a gateway, how they can get their businesses into online world of the future and make overall local commerce much easier for them to understand. But at the same time, this is a potential threat and disadvantage. The experience is not consistent enough because we have so many categories with so many different product flows. The supply is fragmented, and most importantly, I mentioned it as a focus, the purchase frequency declined year-over-year in Q2. Yes, we are positioned very well with the new tooling and re-platforming, which we were doin g recently, that we can really unlock the focus and just work on the improvement. But at the same time, right now, I still see it as a disadvantage, which we are focusing on solving. This is why our strategy talks and centers on personalization, reach, trust, and quality. In the end of the day, it means the focus on purchase frequency. With all this, if we execute well, Groupon can really become a natural bridge between AI-driven discovery, where we have all the tools for connection, and then the main street and merchants who have trouble actually to understand technology and get there. Thank you, Dušan. As a reminder, if you have a question live, yo u can ask as a reply to our Spaces post on our handle, or you can request to be promoted. We had a request a little earlier. It looks like someone put their hand down. Just want to keep that out there for everyone. Our next question, also for Dušan. Improvement of offering is a constant focus for more than two years. Why do you think the result in increased volumes is not yet visible? CTM units decreased since 2026 after slight recovery between 2024 and 2025. What else do you plan to do to attract more merchants, except more capacity to reach out, thanks to voice AI, and any changes in structure of the deals for merchants? So there are two contradicting trends, I would say. We see active customers grew 2% to over 16 million. At the same time, units declined 7%. So it clearly signals that customers are buying higher value local inventory. On the other hand, it's pushing back our purchase frequency, and it went down. In North America local, the small businesses base was slightly lower year-over-year becau se new merchant acquisition was not as good as we were expecting. On the other hand, existing merchant supply grew. So it means, or how I read it, is that individual offers have not yet been enough to overcome the supply and frequency gaps of the marketplace. Yes, I was talking in the past about voice AI. It's just one tool, but it's definitely not all the plan. Right now, again, with improvements with AI, we have visibility into all communication, which is happening between the merchant and Groupon, being it customer support or merchant support in this case, or being it the sales team. We are building a multi-touch acquisition engine which will understand every merchant history, all the communication, which will be using not only voice AI, but also emails, SMS. It will be assigning merchants to the best-suited sales representatives to help them and handle them. Also it will be auto-launching paid cam paigns based on what supply in which neighborhood we need. So this level of granularity was not possible in the past. At the same time, I was talking in one of previous questions that we are investing into the talent here, which is important part of this. Last but not least, is all the curation, quality, improving deal content, deal clarity, having much better integrations with our suppliers, as you can see with Things to Do and attractions, for example, and overall strengthening the whole marketplace. The target which we are talking about is same. We want to pretty much double the new merchant productivity. That is 10% of our North America sales in local are from new merchants. Great. Another question for you, Dušan. What are the top three business initiatives that you consider will bring the most value to shareholders over the next three years, and why? For me, it is not one, two, or three specific initiatives, because Groupon, I do not see simply silver bullet here, which if we would go after, it would solve everything and grow. If I look out over the next three years, it is mainly about the capabilities which we need to have as a company. First, I would start with the platform. I want to have best-in-class AI native operating team for experienced mar ketplaces. It is complete change of mindset. It is complete change of how we are working. Because I believe that with the best team, with best setup, we can then achieve pretty much anything. We started with this as a part of Project Foundry early this year. The pace which I see right now in many parts of the company, and there is still a lot of work ahead of us, is really incredible. We are able to release much more features and improvements versus what we were able to do in the past. We have much better understanding of data of customers. The level which would be impossible just 12, 18 months ago is now possible. This is, for me, a must-have to build successful company, a company which will perform not one quarter or two quarters, but which will perform over the long time period. Second, this obviously AI mindset will be translated into AI native modern marketplace, also from the product standpoint. This is actually on both sides. It is on the merchant side and it is on consumer side. I was talking a lot about the personalizations and similar features which we are developing on the consumer part, but on the merchants, I want to have pretty much the same. We have a lot of data which can help merchants. We know the price sensitivity of customers. We understand what is the pricing in their areas for different quality of services, so we can really help them drive their business. We will be developing and investing into the interface which they use to interact with Groupon to provide them much more than just set up a deal an d run it on Groupon. We really want to be a partner for merchants who will help them drive their business. The bigger picture is, if we can really succeed in building best-in-class operating model for experience marketplaces, that is the way we will drive most shareholder value over the long-term, from my perspective. Great. A follow-up for you, Dušan. Yes. Historically, Groupon's value proposition attracted more deep discount-seeking customers. The current strategy emphasizes more higher quality, higher value deals. Can you describe how the customer base is evolving between these two cohorts? Are you seeing meaningful migration of existing customers towards higher value inventory, or is growth dependent on acquiring an entirely different customer profile? What does the typical Groupon customer look like now versus two years ago? I don't see the way that one customer cohort is just replacing another one. I was talking that we grew customers, that we declined with units, which means that average order value increase as customers are buying higher va lue local inventory, and the negative impact on purchase frequency. From my perspective, the opportunity is not only to attract a different customer, it's to give existing and new customers more reasons to return, and this is through the quality, this is through the innovative product offering. Maybe just to dig a little bit deeper in numbers. Our most loyal customers are approximately 25% of the active base, but they generate 45% of the revenue. This is obviously a group where we are focusing a lot on deepening the relationship, on building the features, on re-engaging customers when we see a risk of lapsing from this core group, on improving conversion from the first purchase to second purchase. With this loyal customer group, we have a lot of data, so we understand what they are buying, what they are reacting to. For example, when we were launching the personalization, all tests in the initial phase were running on loyal customers because these are the ones which have very high purchase frequency, and it is very simple to see how the personalization is improving the term. This was the group, for example, when we discovered very different behavior during the weekends versus the weekdays, simply because the intent of the customer is different. I was talking about onboarding experience for new ones, where I believe that we can do much better job, and we will be releasing new features this quarter to make it much easier. I would continue also to the products. We were touching mystery deals in the beginning of this conversation, but I believe that we can come with many more innovative products. Until now, we did not have capacity and resources. But right now, I feel that we have the team and we have an opportunity not only to look backwards, what w as working on Groupon in the past, but also start following the trends. For example, where I was touching HBW, which we need to return to growth, I believe that we will be able to achieve it by bringing, first, new way how we market the product on the social networks and influencers. Second, start following trends so that people, and especially younger generation, can find on Groupon the deals which Groupon was not selling 12 months ago, six months ago. Mike, just maybe I will add one thing on this question of deep discount versus higher quality, higher value. It is management's belief that what we are really trying to solve is best value. You guys are all investors, you are also consumers. Price is what you pay, but value is what you get. Just showing a deep discount without really understanding the quality of that offering, it does not complete the equation, right? While management is talking more and more about value and quality to build trust, we are not going away from the fact that we want to be the destination for where people know they will get the best value, right? This is more of a slight, let us say, shift. We believe it will fit for our customer group. Because customers are. Maybe there is a very small segment of people who are buying something because it's 70% off. Oh, I can't believe that. But how many of those are coming back if that turns out to be a bad experience? The way I think about this is this is less about bargain basement, buyer beware type shopping experience and more about we wa nt to be known as the destination for the best value when seeking experiences offline. We believe there's a real opportunity to deliver on that proposition. When we look at our customers and we look at those who reengage with us, it's exactly those customers who come back again and again. The ones that are buying, sometimes you call them gotcha deals, they don't come back and there's a reason for that. They didn't have a good experience. That's what's really promoting the shift, just to put it in different context. That's a great add, Rana. Thank you. Our next question, I think, is for both of you. Marketing costs rose in the last quarter about 4.5% year-over-year, while the total revenue declined about 1%, redu cing contribution margin to 56% from 58%. What is the current marketing ROI, and are you still targeting 1x marketing ROI? What incremental gross profit customer LTV and acquisition costs are you expecting from the added marketplace spend? Why should we expect the upper funnel investments to improve North American local growth? What KPI should improve first? Traffic, conversion, purchase frequency, or customer retention? In paid marketing, which is the vast majority, really, of our spend, we were able to maintain our returns, and we are running it with pretty much same ROI, plus minus, but more often we have better ROI versus what we had in the past. We have much better granularity and visibility into how we are running it. This is actually standing also behind the higher s pend. Part of the increase in marketing is also investment in the platform itself. We are also investing into brand. We are investing in platform improvements, which are enablers for other parts, which I will be talking in a few seconds about. We are investing more into influencer marketing, where we are, I would say, still in the learning phase, and it's also standing behind higher expenses. Obviously, the long-term goal for us is to grow the portion of the traffic where we have full control of the customer, and one part of it is SEO and organic traffic, where we see a growth after few quarters where we were heavily investing and were able to completely change the trend. We were talking also about several platform changes and I w ould say technology changes, which are enabler for us to grow the part of the traffic share where we can say we own the customer. We were implementing new CDP platform, which we are right now ramping up and building new onboarding experience and significantly decreasing the number of messages which we are sending to customers while maintaining and switching to the growth of the revenue from these channels. We are also implementing there a lot of features from this personalization bag, which I was mentioning multiple times, to make it highly personal and increase the conversion. Another super important aspect for us is application, because the customers who are using the application are the customers which we don't have to acquire through paid channel, and this is one of our big focus areas right now. I see it as a sequence, as a funnel that on the website the customer is doing the first transaction, then the redemption is do ne through the application. So we have a very nice and huge install base of the application. Through the better onboarding and through the better features and more targeted features towards that customer, we will be, and we are improving the purchase frequency and moving the second, third, fourth purchase into the application. Okay. Maybe last but not least, one extremely important fundamental project for us, which we were talking about for last over two years, was the migration to new platform. On the last earning calls, we announced that we will be on every surface which we have on the new platform. This is a huge unlock because we are able to ship significantly more features and the pace of improvements, which you can see now on the new platform, is incomparable with the old legacy platform. Thanks, Dušan. We're going to try to speed up. We have a lot of questions left in our queue, and we want to make sure we get to as many as possible. As a reminder, if you have a live question, you can help just reply to our handle on this thread or hit the request icon and we'll promote you to a speaker. Our next question, what is the take rate a nd contribution margin profile of mystery packages and tours versus legacy travel? Looks like we might have lost Rana. Give us one second, folks. Rana, can you hear us? Yeah, I'm here. Can you hear me? Yes. All right. Listen on travel and tour. The tour operator business is a lower margin. We're not going to disclose the exact margin. It's still, we think, very attractive business. The tour segment, and this is not just for you, the tour segment overall is quite, let's say, is a lower margin than just booking a hotel. The way we think about though, just taking this sort of further overall margin at our business, really, we have to make a proposition that makes sense for everybody, including us. What we're looking for is deals that can serve the right place on the shelf, right? You may see deals that are higher purchase frequency, which drive engagement, and they may come at lower take rates. You may see deals that drive freshness, which drives acquisition, which may come in at lower take rates. Then you may also see deals that are higher AOV, higher margin, that are less purchase frequency, that drives margin. I think that Groupon in the past had a kind of view of like every product is the same SKU and it all has to carry the same weight. But that's just not how our marketplace works. We're moving to a business model where we believe that if we solve the customer and merchant need and make it a very healthy, sustainable business, we can find a place for that on our shelves, and build the ecosystem on driving long-term lifetime value of both consumers and merchants. That's all I have, Mike, on that question. Great. We just have a live question from Apple BPO Solutions. Go ahead and ask your question. You may need to unmute yourself. All right, Mike, let's keep moving. All right. You are presenting AI as a source of labor leverage following the restructuring. Can you confirm the merchants are as willing to engage with an AI voice agent as with a human representative and that the full cost of the operating system, including tokens, telephony vendors, engineering, AI, QA, compliance, and escalation, remains structurally below the saved employee costs on a cost per activated merchant basis? Publicly, we shared that our voice AI agents can call merchants. They are able to explain Groupon's value proposition and book a meeting for a human sales colleague. The objective which we have is that the majority of new merchant meetings for our core local business will be set by AI agent or AI workflow by year-end. In terms of results and cost and experience, yes, there are customers who are not willing to talk to AI, and they hang up immediately. However, overall efficiency, including the cost, is much higher versus if we do the cold calling with human agents. I personally expect by seeing how the AI models are improving every month, which is visible, and you can hear it on the quality of our voice AI agent calls. That first, because of this quality, the gap will be lower and lower in these people who are not willing to talk to AI. On the other hand, I expect that we are kind of early adopters here and there will be man y other companies, starting with banks and their customer support, which will be driving their customer support with AI. So it will be much more common in the future. In terms of cost, actually, I see this as a tool which will allow us to scale sales much more because the cost efficiency even at current AI levels, and I don't expect that the cost would go up with the competition in the AI voice. It's very competitive. Last but not least, actually, it is helping our human colleagues because no one in sales likes other cold calls. If we are able to outsource cold calls to AI and then have them talking to merchants who are interested in our value proposition, it will improve their own performance and their own satisfaction with the work. Great. What is Groupon's expected revenue growth in 2027 and beyond? I can take that. We haven't given guidance to 2027 or our longer-term growth target. We have what we've said in the past, and this management team still stands behind it, is that we see an opportunit y to drive north of 20% bookings growth in this business. When you think about the markets we serve, both in a category level and a geographic level, we have significant opportunities to drive faster growth. I'll give you a couple examples, right? If you think about the experience marketplace from a sort of online penetration standpoint, it's actually one of the least penetrated categories. For lights, hotels, rideshare, food delivery, obviously e-commerce, and physical products, these are all very well-penetrated categories. If you look based on some data we've seen from third-party research, the experience marketplace is really around, let's say, 35% penetrated. There is a secular tailwind that we believe if we can put our product and our marketplace in the right position, we should at least grow at that level. Then there's the additional growth that we should be able to achieve based on solving customers' problems better than others. I think we see examples of this across our business. Now, we've been saying fo r many quarters, Things to Do has been growing strong double digits. We believe that our Things to Do business is growing faster than the market for Things to Do experiences and faster than the market for online bookings for those experiences. What we observe, though, is that growth in our business is still uneven. We have some cities that are growing very healthily, and we have other cities that are not growing that healthily. We have some categories that are growing very healthily, and we have some categories that are not. That is about going back to the core capabilities we are trying to build here, as Dušan comments. That is about, for us, getting a best-in-class management team which can execute against the scale of the opportunity and really unlock the growth that we see. The blockers here are really internal, is my view, and I know has been Dušan's view for some time. We have made significant progress, and if you loo k over our track record, what the growth rate of the business was when we took over three years ago and where we are now, you can see the basis point improvement in the year-over-year growth rate. We expect to continue to improve that growth rate going forward. That is the most I can tell you. We, at this point, are not issuing a formal long-term guide or a number or medium-term or a 2027 guide. Thanks, Rana. I know we are running out of time here, but another follow-up live from Nick Nemeth. I see the 2023 Q3 being the cash low point of the past decade at $86 million with the business where it is today. Is that what you are referring to? Would you be comfortable running cash down to there in Q3 consistently? Yeah. So that is the data point I was thinking about. I just will give you two things to think about. The first is, what I described was operationally what we found ourselves at that time, and that was a constrained time for our business. I was describing how we operated at that point. But the other data point to consider is we are a public company. As part of bein g a public company, you need to look out over the next 12 months to look at what liquidity you have across a wide range of sources. What ultimately leads is you concluding that you may operate the business with a higher level of cash than you may otherwise if you were a private company. I think there's the operational realities which I was pointing to, but I think there's another aspect that you also want to look at because, listen, our business many years ago, we had a going concern warning, and it made the business more difficult to operate. That's another data point that we will look at. We are not interested to go back to the re. We are a growing business. We're a profitable business. We have a healthy balance sheet, and we have no reasons to take on that additional burden at this point. That's not something you can easily discern from our financials, but what you pointed out is a starting point, and then you just need to sensitize that a little bit given the additional commentary I've given you. Great. Thanks, Rana. We are actually well over time, guys. Is there any other live question? Does anyone want to raise their hand, put something in the queue? If not, I'm going to turn it over to Dušan and Rana for closing remarks. Yeah. I'll just say two comments, and then Dušan, I'll come to you. Really want to thank all of you guys for spending part of your lunch hour with us. I see many of you are already dropping off, but this was something we did in response to shareholder inquiries to engage in more discussions. I would like this to be a discussion. We really learn from our investors. We're r unning this company for our shareholders, and we consider all of you guys our partners. So please send us your feedback. This was the first time we were doing something like this. We'd be happy to change the format, iterate so we get better at this. What we're really looking here is to have a discussion. So please keep the questions coming and look forward to speaking with all of you soon. Dušan, anything from you? I will just underline, Rana, what you said. We made, as a company, huge progress because really in 2024, we were not so far from almost being bankrupt, and we made huge progress, and we are pushing a lot. 2025 was the first year when we were growing, and I believe that we can accelerate from that. Having the community of shareholders, which Nick Nemeth actually started, and I would like specifically thank to Nick, is actually extremely encouraging, and it's helping us to move forward. You came with so many great pr oduct ideas. It's actually internally discussed a lot within our teams. You see that we are actually reacting and showing the features which were built based on what you brought. So huge thanks to all the community. Huge thanks for having been with us on this call. We would definitely double down to make this communication open. The top management team and I are trying to change this across the b oard. The company is communicating much more on LinkedIn, on social networks about what we are building, and we would be very happy if we can get as much feedback as we are getting in the last few months from you. Thanks, everyone. Thanks, everyone. For additional information, head to investor.groupon.com and keep our X handle on your feed. Have a great day.