Groupon (GRPN) shows deeply negative equity recovery under a liquidation lens as of March 31, 2026. MFFAIS-calculated cash liquidation value is negative $414M, consistent with the balance sheet structure: total assets of $595.9M against total liabilities of $658.3M yield book stockholders' equity of negative $62.6M before haircuts are applied. Once haircuts are applied — zero recovery on goodwill ($178.7M, 30% of total assets), zero on finite-lived intangibles ($2.9M net), steep discount on PP&E ($15.6M), and retention of all liabilities at face value — the residual to equity is substantially more negative than book suggests. Cash of $225.5M (100% recovery) and restricted cash of $29.6M are the primary asset-side anchors. Accounts receivable of $20.0M haircuts modestly. Goodwill at $178.7M contributes zero in liquidation and is the single largest driver of the negative recovery gap relative to book. The convertible debt stack is the dominant liability: $290.3M face value across the 2027 Notes ($197.3M, 6.25%, maturing March 15, 2027) and 2030 Notes ($244.1M, 4.875%, maturing June 30, 2030), with $45.8M classified current (2027 Notes residual post-Q1 payoff of the 2026 Notes). The 2026 Notes ($33.7M) were paid off in March 2026, which cleared that current obligation but consumed cash and drove $55.7M in Q1 financing outflows. Operating lease liabilities total $5.9M ($3.4M current, $2.5M non-current) — not material to the recovery calculation. The $107.9M in OtherLiabilitiesCurrent is a significant aggregated current liability bucket; the filing identifies merchant and supplier payables as the primary driver. Q1 2026 operating cash was negative $10.0M vs. near-zero in Q1 2025, driven by drawdown of accrued merchant payables accumulated in Q4 2025. Free cash flow was negative $13.5M vs. negative $3.8M in Q1 2025. Project Foundry restructuring (15% global headcount reduction announced post-period) is not yet booked; financial impact described as not yet reasonably estimable — no restructuring charge accrual appears in Q1 XBRL. The filing discloses an advance pricing agreement signed with international tax authorities in Q1 2026 and an increased liability for unremitted foreign earnings, contributing to the anomalous negative 63.7% effective tax rate on a pre-tax loss. A full valuation allowance remains against all U.S. federal and state deferred tax assets. Net loss from continuing operations was $12.6M in Q1 2026 versus net income of $8.0M in Q1 2025. The period-over-period deterioration reflects a $13.0M swing in foreign currency gains/losses (intercompany USD-denominated balances re-measured as USD weakened vs. Euro) plus SG&A growth from higher stock-based compensation ($11.9M in Q1 2026 vs. $7.7M in Q1 2025).
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