Coupang, Inc.
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The Company
Coupang is a technology and Fortune 150 company listed on the New York Stock Exchange that provides retail, restaurant delivery, video streaming, and fintech services to customers under brands that include Coupang, Eats, Play, Rocket Now, and Farfetch. We serve millions of customers in over 190 countries and territories around the world.
We have organized our operations into two segments: Product Commerce and Developing Offerings. These segments reflect the way we evaluate our business performance and manage operations. Information on our segments is included in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Overview — Segment Information.” Financial information for our segments is included in Note 3 — “Segment Reporting” to the consolidated financial statements included in Part II, Item 8 of this Form 10-K.
Our Customer Experience
We are committed to building a one-of-a-kind service for our customers designed to provide them with the best selection, savings, and service. Our approach focuses on controlling the entire end-to-end experience – from technology and automation to fulfillment and logistics – so we can continually raise the bar for what customers expect.
The technology, infrastructure, and operational excellence we have built allow us to invest in customer experiences and new, adjacent services. Capabilities originally developed to deliver general merchandise at speed have evolved to support fresh grocery, food delivery, digital entertainment, payments, and other services – all designed to make our customers’ lives easier.
Across our markets, customers benefit from one or more of our core experiences built around speed, convenience, and reliability including:
•Fast, reliable delivery experience, ranging from next-day, dawn, and even same-day delivery, with order cutoffs as late as midnight;
•Broad selection, spanning daily essentials, general merchandise, fresh groceries, luxury, and specialized niche categories;
•Frictionless returns, designed to be as simple and customer friendly as ordering; and
•Digital services, such as streaming entertainment and secure payments.
Through our WOW membership offerings, customers receive additional value – such as delivery benefits and service perks – further reinforcing a seamless, high-value experience.
Whether through local commerce, international selection, food delivery, or global marketplaces like Farfetch – which connects customers with some of the world’s leading luxury brands – we combine technology, fulfillment, logistics, and customer obsession to deliver an exceptional customer experience.
Our Merchant Experience
Small and medium-sized enterprises (“SMEs”) on Coupang form an essential part of our business, and we strive to make it easy for SMEs to reach customers all over the world with our comprehensive end-to-end support. We have invested billions of dollars to expand artificial intelligence (“AI”) technologies and other innovations, helping to accelerate the growth of hundreds of thousands of SMEs around the world. In the United States, for example, sellers ship their products to one of Coupang’s U.S. facilities, and Coupang’s world-class fulfillment and logistics teams receive, store, pick, pack, and ship those products directly to customers. Coupang’s online retail services are helping U.S. brands drive billions of dollars in international sales every year. And in the Republic of Korea (“Korea”), more than 75% of our SME sellers are based outside Seoul, supporting regional businesses and more balanced economic development. We have reimagined traditional online commerce to strengthen local businesses. By streamlining the entire supply chain through direct sourcing and mobile fulfillment sites, Coupang enables faster delivery of high-volume, locally sourced products. This helps small businesses reach more customers, grow sustainably, and thrive in an increasingly connected marketplace.
At Coupang, we continue to develop new ways for SMEs to unlock growth through offerings such as Coupang’s Private Label Brand, which develops and markets high-quality products under our private label at affordable prices. As more SMEs partner with Coupang on private label products, more jobs are created. We also launched Rocket Overseas to customers in Taiwan, empowering SME partners to unlock growth by connecting with customers in other countries, bringing savings and convenience to both customers and merchants.
| Coupang, Inc. | 2025 Form 10-K | 4 | ||||||||||
We offer merchants of all sizes around the world the opportunity to sell through Coupang and provide effective solutions to improve customer experience and enhance demand generation. Our fulfillment and logistics by Coupang offering in Korea (“FLC”) empowers merchants by offering them access to our industry-leading fulfillment, logistics, and customer network services.
The Farfetch marketplace connects luxury sellers with customers and offers brands direct-to-consumer distribution.
Advertising
We also have offerings for our suppliers and merchants to advertise on our websites and mobile applications.
Our Competition
We compete with: (1) offline, online, and omnichannel retailers, suppliers, distributors, manufacturers, and producers of the products we offer and sell to consumers and businesses; (2) online search engines, comparison shopping websites, social networks, web portals, AI shopping tools, and other online and app-based means of discovering, using, or acquiring goods and services, either directly or in collaboration with other retailers; (3) companies that provide retail merchant services; (4) companies that sell grocery products online and offline; (5) on-demand food delivery services; (6) companies that provide fulfillment and logistics services for themselves or for third parties; (7) companies that provide online advertising products and services; (8) on-demand streaming entertainment services; (9) financial services companies, including credit card issuers and payment platforms; and (10) companies that sell luxury goods.
Seasonality
Our overall operating results may fluctuate from quarter to quarter as a result of a variety of factors, including seasonal factors, weather conditions, economic cycles that influence consumer spend, our ability to attract and retain new customers, and the impact and timing of holidays. For additional information, see the risk factors herein in Part I, Item 1A. “Risk Factors” in this Form 10-K, including those under the sub-caption “The seasonality of our business affects our quarterly results and places an increased strain on our operations.”
Human Capital
Our global team of employees is the driving force in creating a one-of-a-kind experience for millions of customers. In the same way our employees aim to go above and beyond for our customers, we aim to go above and beyond for them. As of December 31, 2025, we directly employ approximately 108,000 employees, the majority of which are located in Korea, making us one of the largest private sector employers in the country. We believe our direct employment model, along with competitive wages, training and safety programs, and a broad range of comprehensive benefits, empowers our diverse set of employees to deliver the “wow” experiences for our customers we strive to create every day.
Most of our employees are frontline workers in our fulfillment and logistics operations, and we make their health, safety, and wellness a top priority. We've made significant investments in health and safety initiatives that helped strengthen our leading safety record, which is one of the best in the Korean logistics industry and globally1. These investments include Coupang Care, the first paid health promotion program of its kind at scale for logistics workers in Korea. Coupang has also launched several Coupang Care initiatives in Taiwan, including mobile health checkups and a comprehensive employee assistance program. We believe the well-being of our employees is directly tied to the success of our business, and most importantly, our impact on our customers.
Intellectual Property
We rely on a combination of patents, trademarks, copyrights, trade secrets, license agreements, confidentiality procedures, non-disclosure agreements, employee non-disclosure and invention assignment agreements, and other legal and contractual rights to establish and protect our intellectual property and proprietary rights.
We have trademark rights in our name and other brand indicia and have trademark registrations for select marks in Korea, the United States, Taiwan, the United Kingdom, and various European countries, and other jurisdictions around the world. We also have registered domain names for websites that we use in our business, such as https://www.aboutcoupang.com and similar variations.
We control access to and use of our proprietary technology and other confidential information through internal and external controls, including technical and administrative security controls and contractual protections with employees, contractors, customers, partners, and other third parties. It is our practice to enter into confidentiality and invention assignment agreements (or similar agreements) with our employees, consultants, and contractors involved in the development of intellectual property on our behalf. We also enter into confidentiality agreements with third parties in order to limit access to, and disclosure and use of, our confidential information and proprietary information. We further control the use of our proprietary technology and intellectual property through provisions in our website terms of service.
1 Measured using work-related and accident-related fatalities.
| Coupang, Inc. | 2025 Form 10-K | 5 | ||||||||||
Our design logos, “Coupang,” and our other registered or common law trademarks, service marks, or trade names appearing in this Form 10-K are our property or our affiliates’ property. Other trade names, trademarks, and service marks used in this Form 10-K are the property of their respective owners.
Government Regulation
Government regulation impacts key aspects of our business. In particular, we are subject to numerous national, state/regional, and local laws, legal requirements, standards and regulations in Korea, the United States, Taiwan, Japan, China, the United Kingdom, various European countries, and other jurisdictions where we operate. These laws and regulations, which are subject to change, involve matters that are often central to our business, including our interactions with customers, suppliers, and merchants. They regulate fair trade and pricing, competition, labor and employment, workplace safety, privacy, data protection, data use, intellectual property, consumer safety and protection, advertising, import, export and international trade, payments, tax, shares of our Class A common stock, and other subjects. These regulations are often complex and subject to varying interpretations, in many cases due to their lack of specificity, and as a result, their application in practice may change or develop over time through judicial decisions or as new guidance or interpretations are provided by regulatory and governing bodies, such as federal, state/regional, and local administrative agencies.
For additional information, see the risk factors in Part I, Item 1A. “Risk Factors” in this Form 10-K including those under the sub-caption “Risks Related to Laws, Regulation, Intellectual Property, and Technology”.
Company Website, Social Media, and Availability of SEC Filings
Our corporate website address is https://www.aboutcoupang.com, our investor relations website is https://ir.aboutcoupang.com, and we also provide updates on https://news.coupang.com. Information on our websites is not incorporated by reference herein and is not a part of this Form 10-K. We promptly make available on our investor relations website, free of charge, the reports that we file or furnish with the Securities and Exchange Commission (the “SEC”), corporate governance information (including our Code of Business Conduct and Ethics) and select press releases. We file with the SEC annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy, and information statements and amendments to reports filed or furnished pursuant to Sections 13(a), 14, and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements and other information regarding Coupang and other issuers that file electronically with the SEC.
Investors and others should note that we may announce material business and financial information using our investor relations website (https://ir.aboutcoupang.com) and through https://news.coupang.com, our filings with the SEC, webcasts, press releases (including those on our investor relations website and https://news.coupang.com), conference calls, and social media. We use these mediums to communicate with investors and the general public about our company, our products, and other matters. It is possible that the information that we make available on our investor relations website and https://news.coupang.com may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our investor relations website and https://news.coupang.com. Notwithstanding the foregoing, the information contained on our investor relations website and https://news.coupang.com as referenced in this paragraph are not incorporated by reference into this Form 10-K or any other report or document we file with the SEC.
Any updates to the list of disclosure channels through which we will announce information will be posted on our investor relations website or https://news.coupang.com.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes appearing elsewhere in this Form 10-Q, as well as our audited consolidated financial statements included in our 2025 Form 10-K. This discussion, particularly information with respect to our future results of operations or financial condition, business strategy and plans, and objectives of management for future operations, includes forward-looking statements that involve risks and uncertainties as described under the heading “Special Note Regarding Forward-Looking Statements” in this Form 10-Q. As a result of many factors, including, without limitation, those factors set forth in the “Risk Factors” section of our 2025 Form 10-K and the “Risk Factors” section of subsequent Form 10-Qs, our actual results or timing of certain events could differ materially from the results or timing described in, or implied by, these forward-looking statements. In the following discussion and analysis, amounts may not foot due to rounding.
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Overview
Coupang is a technology and Fortune 150 company listed on the New York Stock Exchange (NYSE: CPNG) that provides retail, restaurant delivery, video streaming, and fintech services to customers around the world under brands that include Coupang, Eats, Play, Rocket Now, and Farfetch. Headquartered in the United States, Coupang has operations and support services in geographies including Korea, Taiwan, Singapore, China, India, Japan, and Europe. Coupang’s mission is to revolutionize the everyday lives of its customers and create a world where people wonder, “How did I ever live without Coupang?”
We believe that we are a preeminent retail destination because of our broad selection, low prices, and exceptional delivery and customer experience across our owned inventory selection as well as products offered by third-party merchants. Our unique end-to-end integrated fulfillment, logistics, and technology network enables Rocket Delivery, which provides free, next-day delivery for orders placed anytime of the day, even seconds before midnight—for millions of products across Korea and Taiwan. Our structural advantages from complete end-to-end integration, investments in technology, and scale economies generate higher efficiencies that allow us to pass savings to customers in the form of lower prices. The capabilities we have built provide us with opportunities to expand into other offerings and geographies.
Data Incident and Customer Compensation Program
In November 2025, Coupang became aware of the Incident. For additional information, see Part I, Item 1A. “Risk Factors,” Part I, Item 1C. “Cybersecurity,” and Note 14 — "Commitments and Contingencies" to the consolidated financial statements included in Part II, Item 8 of our 2025 Form 10-K.
In December 2025, Coupang Corp. announced a customer compensation program to issue approximately $1.2 billion worth of vouchers, beginning in January 2026, to customers who were notified of the Incident at the end of November 2025 that may be applied towards future Coupang purchases. These vouchers are reflected as reductions to the selling price and revenue recognized on each corresponding transaction as they are redeemed. Voucher redemption occurred primarily in the first quarter of 2026 and concluded in mid-April 2026.
We believe that the Incident has increased and may further increase the Korean government’s focus on our business and could result in additional expenses, including from remediation, inquiries, enforcement actions, and litigation.
Segment Information
Our segments reflect the way we evaluate our business performance and manage operations. See Note 3 — "Segment Reporting" to the condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.
Product Commerce primarily includes our core Korean retail (owned inventory) and marketplace offerings (third-party merchants) and Rocket Fresh, as well as advertising products associated with these offerings. Revenues from Product Commerce are derived primarily from online product sales of owned inventory to customers in Korea, commissions and logistics and fulfillment fees from merchants that sell products through our mobile application and website, and from our Korean WOW membership program.
| Coupang, Inc. | Q1 2026 Form 10-Q | 20 | ||||||||||
Developing Offerings includes more nascent offerings and services, including Eats, Rocket Now, Play, fintech, our retail operations in Taiwan, as well as advertising products associated with these offerings, and also includes Farfetch. Revenues from Developing Offerings are primarily generated from Farfetch, Eats, and retail operations in Taiwan.
| Coupang, Inc. | Q1 2026 Form 10-Q | 21 | ||||||||||
Key Financial and Operating Highlights:
(in millions) | Three Months Ended March 31, | % Change | ||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||
| Total net revenues | $ | 8,504 | $ | 7,908 | 8 | % | ||||||||||||||||||||||||
Total net revenues, constant currency(1) | $ | 8,536 | 8 | % | ||||||||||||||||||||||||||
Gross profit(2) | $ | 2,297 | $ | 2,316 | (1) | % | ||||||||||||||||||||||||
Net (loss) income | $ | (266) | $ | 114 | NM(3) | |||||||||||||||||||||||||
Net (loss) income margin | (3.1) | % | 1.4 | % | ||||||||||||||||||||||||||
Adjusted EBITDA(1) | $ | 29 | $ | 382 | (92) | % | ||||||||||||||||||||||||
Adjusted EBITDA margin(1) | 0.3 | % | 4.8 | % | ||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 184 | $ | 354 | (48) | % | ||||||||||||||||||||||||
Free cash flow(1) | $ | (110) | $ | 116 | NM(3) | |||||||||||||||||||||||||
| Segment adjusted EBITDA: | ||||||||||||||||||||||||||||||
| Product Commerce | $ | 358 | $ | 550 | (35) | % | ||||||||||||||||||||||||
| Developing Offerings | $ | (329) | $ | (168) | 96 | % | ||||||||||||||||||||||||
Trailing Twelve Months Ended March 31, | % Change | |||||||||||||||
(in millions) | 2026 | 2025 | ||||||||||||||
Net cash provided by operating activities | $ | 1,603 | $ | 2,028 | (21) | % | ||||||||||
Free cash flow(1) | $ | 301 | $ | 1,025 | (71) | % | ||||||||||
(1)Total net revenues, constant currency; total net revenues growth, constant currency; adjusted EBITDA; adjusted EBITDA margin; and free cash flow are non-GAAP measures. See “Non-GAAP Financial Measures” below for the reconciliation of the non-GAAP measures with their comparable amounts prepared in accordance with U.S. GAAP.
(2)Gross profit is calculated as total net revenues minus cost of sales.
(3)Non-meaningful.
Key Business Metrics
| Three Months Ended | |||||||||
| Net revenues per Product Commerce Active Customer | March 31, | ||||||||
2026 | $ | 300 | |||||||
2026 - constant currency | $ | 303 | |||||||
| 2025 | $ | 294 | |||||||
Percentage change | 2 | % | |||||||
Percentage change - constant currency | 3 | % | |||||||
| (in millions) | Three Months Ended | ||||||||
| Product Commerce Active Customers | March 31, | ||||||||
| 2026 | 23.9 | ||||||||
| 2025 | 23.4 | ||||||||
Percentage change | 2 | % | |||||||
We experienced a lower growth rate in Product Commerce Active Customers in the first quarter of 2026 primarily due to the impact of the Incident.
Net Revenues per Product Commerce Active Customer and Constant Currency Net Revenues per Product Commerce Active Customer
Net revenues per Product Commerce Active Customer is the total Product Commerce net revenues generated in a period divided by the total number of Product Commerce Active Customers in that period. A key driver of growth is increasing the frequency and the level of spend of customers who are shopping on our Product Commerce apps or websites. We therefore view net revenues per Product Commerce Active Customer as a key indicator of engagement and retention of our customers and our ability to drive future revenue growth, though there may be a short-term dilutive impact when a large number of new Product Commerce Active Customers are added in a recent period.
| Coupang, Inc. | Q1 2026 Form 10-Q | 22 | ||||||||||
Constant currency net revenues per Product Commerce Active Customer is the total Product Commerce net revenues generated in a period translated using the prior period exchange rate to exclude the effect of foreign exchange rate movements divided by the total number of Product Commerce Active Customers in that period. Constant currency net revenues per Product Commerce Active Customer is a key indicator to evaluate net revenues per Product Commerce Active Customer between periods as it excludes the effects of foreign currency volatility that are not indicative of customer engagement and retention.
Product Commerce Active Customers
A customer is anyone who has created an account on our apps or websites, identified by a unique email address. As of the last date of each quarterly reported period, we determine our number of Product Commerce Active Customers by counting the total number of individual customers who have ordered at least once directly from our Product Commerce apps or websites during the relevant quarterly period. The change in Product Commerce Active Customers in a reported period captures both the inflow of new customers who have made a purchase in the period as well as the outflow of existing customers who have not made a purchase in the period. We view the number of Product Commerce Active Customers as an indicator of future growth in our net revenue, the reach of our network, the awareness of our brand, and the engagement of our customers.
Results of Operations
| Three Months Ended March 31, | |||||||||||||||||||||||
| (in millions) | 2026 | 2025 | % Change | ||||||||||||||||||||
| Net retail sales | $ | 6,476 | $ | 6,088 | 6 | % | |||||||||||||||||
| Net other revenue | 2,028 | 1,820 | 11 | % | |||||||||||||||||||
| Total net revenues | 8,504 | 7,908 | 8 | % | |||||||||||||||||||
| Cost of sales | 6,207 | 5,592 | 11 | % | |||||||||||||||||||
| Operating, general and administrative | 2,539 | 2,162 | 17 | % | |||||||||||||||||||
| Total operating cost and expenses | 8,746 | 7,754 | 13 | % | |||||||||||||||||||
| Operating (loss) income | (242) | 154 | NM(1) | ||||||||||||||||||||
| Interest income | 44 | 49 | (10) | % | |||||||||||||||||||
| Interest expense | (13) | (23) | (43) | % | |||||||||||||||||||
| Other (expense) income, net | (44) | 36 | NM(1) | ||||||||||||||||||||
| (Loss) income before income taxes | (255) | 216 | NM(1) | ||||||||||||||||||||
| Income tax expense | 11 | 102 | (89) | % | |||||||||||||||||||
| Net (loss) income | $ | (266) | $ | 114 | NM(1) | ||||||||||||||||||
(1)Non-meaningful.
Total Net Revenues
We categorize our total net revenues as (1) net retail sales and (2) net other revenue. Total net revenues incorporate reductions for estimated returns, promotional discounts, and earned loyalty rewards and exclude amounts collected on behalf of third parties, such as value added taxes. We periodically provide customers with promotional discounts to retail prices, such as percentage discounts and other similar offers, to incentivize increased customer spending and loyalty. These promotional discounts are discretionary and are reflected as reductions to the selling price and revenue recognized on each corresponding transaction. Loyalty rewards are offered as part of revenue transactions to all retail customers, whereby rewards are earned as a percentage of each purchase, for the customer to apply towards the purchase price of a future transaction. We defer a portion of revenue from each originating transaction, based on the estimated standalone selling price of the loyalty reward earned, and then recognize the revenue as the loyalty reward is redeemed in a future transaction, or when the reward expires. The amount of the deferred revenue related to these loyalty rewards is not material.
| Three Months Ended March 31, | % Change | |||||||||||||||||||||||
| (in millions) | 2026 | 2025 | As Reported | Constant Currency | ||||||||||||||||||||
| Net retail sales | $ | 6,476 | $ | 6,088 | 6 | % | 7 | % | ||||||||||||||||
| Net other revenue | 2,028 | 1,820 | 11 | % | 12 | % | ||||||||||||||||||
| Total net revenues | $ | 8,504 | $ | 7,908 | 8 | % | 8 | % | ||||||||||||||||
| Coupang, Inc. | Q1 2026 Form 10-Q | 23 | ||||||||||
Net retail sales represent the majority of our total net revenues which we earn from online product sales of our owned inventory to customers. Net other revenue includes revenue from commissions from merchants that sell their products through our apps or websites. We are not the merchant of record in these transactions, nor do we take possession of the related inventory. Net other revenue also includes consideration from online restaurant ordering and delivery services performed by us, as well as advertising services provided on our apps or websites. We also earn subscription revenue from memberships to our WOW membership programs, which is also included in net other revenue.
The following table presents our total net revenues by segment.
| Three Months Ended March 31, | % Change | |||||||||||||||||||||||
| (in millions) | 2026 | 2025 | As Reported | Constant Currency | ||||||||||||||||||||
| Product Commerce | $ | 7,176 | $ | 6,870 | 4 | % | 5 | % | ||||||||||||||||
| Developing Offerings | 1,328 | 1,038 | 28 | % | 25 | % | ||||||||||||||||||
| Total net revenues | $ | 8,504 | $ | 7,908 | 8 | % | 8 | % | ||||||||||||||||
The increase in Product Commerce net revenues for the three months ended March 31, 2026 is primarily due to a 3% growth in total net revenues per Product Commerce Active Customer, excluding effects of foreign exchange rates, driven by increased customer engagement within and across more product categories and a 2% increase in our Product Commerce Active Customers. The growth rate for the three months ended March 31, 2026 was negatively affected by the Incident’s impact on the growth rate in Product Commerce Active Customers, as well as 1% from the negative effect of foreign exchange rates.
The increase in Developing Offerings net revenues for the three months ended March 31, 2026 is primarily due to an increase in total net revenues from our growth initiatives, as we are seeing greater levels of customer engagement in these early-stage offerings.
Cost of Sales
| Three Months Ended March 31, | Change | |||||||||||||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||||||||||||
Cost of sales | $ | 6,207 | $ | 5,592 | $ | 615 | ||||||||||||||||||
As a percentage of revenues | 73.0 | % | 70.7 | % | 2.3 | % | ||||||||||||||||||
Cost of sales primarily consists of the purchase price of products sold directly to customers where we record revenue gross, and includes logistics costs. Inbound shipping and handling costs to receive products from suppliers are included in inventory and recognized in cost of sales as products are sold. Additionally, cost of sales includes outbound shipping and logistics related expenses, delivery costs from our restaurant delivery business, and depreciation and amortization expense.
Cost of sales increased mainly due to higher volume from increased sales and customer demand. Cost of sales as a percentage of revenue increased primarily due to an increase for Product Commerce from 68.7% for the three months ended March 31, 2025 to 69.7% for the three months ended March 31, 2026, primarily from the impact of the Incident, including the customer compensation program and increased costs in supply chain management. Also contributing to the increase in cost of sales as a percentage of revenue is the increase for Developing Offerings from 84.1% for the three months ended March 31, 2025 to 90.7% for the three months ended March 31, 2026, which is primarily driven by an increase in costs of sales relative to the growth in revenue as well as growth in certain Developing Offerings initiatives that currently operate with lower margins.
Operating, General and Administrative Expenses
| Three Months Ended March 31, | Change | |||||||||||||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||||||||||||
Operating, general and administrative expenses | $ | 2,539 | $ | 2,162 | $ | 377 | ||||||||||||||||||
As a percentage of revenues | 29.9 | % | 27.3 | % | 2.6 | % | ||||||||||||||||||
Operating, general and administrative expenses include all our operating costs excluding cost of sales, as described above. More specifically, these expenses include costs incurred in operating and staffing our fulfillment centers (including costs attributed to receiving, inspecting, picking, packaging, and preparing customer orders), customer service related costs, payment processing fees, costs related to the design, execution, and maintenance of our technology infrastructure and online offerings, advertising costs, general corporate function costs, and depreciation and amortization expense.
The increase in operating, general and administrative expenses for the three months ended March 31, 2026 primarily reflects increases in fulfillment, technology, and marketing costs to support our continued growth and these cost increases resulted in higher operating, general and administrative expenses as a percentage of revenue due to the lower rate of revenue growth as a result of the Incident.
| Coupang, Inc. | Q1 2026 Form 10-Q | 24 | ||||||||||
Interest Expense
Interest expense primarily consists of interest on our short-term borrowings and long-term debt.
Interest expense decreased $10 million compared to the three months ended March 31, 2025, due to higher interest rates in the prior year period associated with the syndicated term loans assumed as part of the Farfetch acquisition.
Interest Income
Interest income primarily consists of interest earned on our deposits held with financial institutions.
Interest income for the three months ended March 31, 2026 remained relatively flat when compared with the prior year period.
Income Taxes
| Three Months Ended March 31, | ||||||||||||||||
| (in millions) | 2026 | 2025 | Change | |||||||||||||
| Income tax expense | $ | 11 | $ | 102 | $ | (91) | ||||||||||
| Effective tax rate | (4.3) | % | 47.2 | % | (51.5) | % | ||||||||||
Our tax provision for income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. No income tax benefit was accrued for certain jurisdictions where we anticipate incurring a loss during the full fiscal year as the related deferred tax assets were fully offset by a valuation allowance. Our resulting effective tax rate differs from the applicable statutory rate, primarily due to tax credits, U.S. taxes on foreign earnings such as the inclusion of the GILTI provisions, the valuation allowance against deferred tax assets in loss making jurisdictions, and other permanent differences.
Our tax provision for income taxes for the three months ended March 31, 2026 was unfavorably impacted by losses before income taxes in certain jurisdictions for which we receive no tax benefit, resulting in a negative effective tax rate.
The realization of our deferred tax assets primarily depends on the generation of future taxable income. Based on our current assessment, it is possible that our future results of operations in the U.S. could result in the need to record an additional valuation allowance against our U.S. deferred tax assets within the next 12 months. We continue to monitor the realizability of our deferred tax assets on a quarterly basis and will adjust the valuation allowance in the period where evidence indicates that it is more likely than not that these assets will not be realized.
Segment Gross Profit and Adjusted EBITDA
Segment gross profit is defined as net revenues less cost of sales attributable to each reportable segment.
Segment Adjusted EBITDA is defined as income (loss) before income taxes for a period before depreciation and amortization, equity-based compensation expense, interest expense, interest income, and other income (expense), net. Segment adjusted EBITDA also excludes impairments and other items that we do not believe are reflective of our ongoing operations.
| Three Months Ended March 31, | |||||||||||||||||||||||
| (in millions) | 2026 | 2025 | % Change | ||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||
| Product Commerce | $ | 2,174 | $ | 2,151 | 1 | % | |||||||||||||||||
| Developing Offerings | 123 | 165 | (25) | % | |||||||||||||||||||
| Gross profit | $ | 2,297 | $ | 2,316 | (1) | % | |||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||
| Product Commerce | $ | 358 | $ | 550 | (35) | % | |||||||||||||||||
| Developing Offerings | (329) | (168) | 96 | % | |||||||||||||||||||
Adjusted EBITDA(1) | $ | 29 | $ | 382 | (92) | % | |||||||||||||||||
(1)See “Non-GAAP Financial Measures” below for the reconciliation of the non-GAAP measures with their comparable amounts prepared in accordance with U.S. GAAP.
| Coupang, Inc. | Q1 2026 Form 10-Q | 25 | ||||||||||
Product Commerce
The increase in gross profit for the three months ended March 31, 2026 is primarily due to an increase in revenue of $306 million, compared to the prior year period. Gross profit grew at a slower rate than net revenues due to the impact of the Incident, including the customer compensation program and increased costs in supply chain management.
The decrease in Product Commerce adjusted EBITDA for the three months ended March 31, 2026 is primarily due to a slower gross profit growth rate due to the impacts of the Incident described above and increases in fulfillment, technology, and marketing costs to support our continued growth.
Developing Offerings
The decrease in gross profit for the three months ended March 31, 2026 resulted from an increase in costs of sales relative to the growth in revenue as well as growth in certain Developing Offerings initiatives that currently operate with lower margins.
The increased loss for the three months ended March 31, 2026 in Developing Offerings adjusted EBITDA is primarily the result of the decrease in gross profit described above as well as increased investments in our Developing Offerings initiatives, including Taiwan, Play, and Rocket Now.
| Coupang, Inc. | Q1 2026 Form 10-Q | 26 | ||||||||||
Non-GAAP Financial Measures
We report our financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures provide investors with additional useful information in evaluating our performance. These non-GAAP financial measures may be different than similarly titled measures used by other companies.
Our non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with U.S. GAAP. Non-GAAP measures have limitations in that they do not reflect all the amounts associated with our results of operations as determined in accordance with U.S. GAAP. These measures should only be used to evaluate our results of operations in conjunction with the corresponding U.S. GAAP measures.
| Non-GAAP Measure | Definition | How We Use The Measure | ||||||
| Free Cash Flow | • Net cash provided by (used in) operating activities Less: purchases of property and equipment, Plus: proceeds from sale of property and equipment. | • Provides information to management and investors about the amount of cash generated from our ongoing operations that, after purchases and sales of property and equipment, can be used for strategic initiatives, including investing in our business and strengthening our balance sheet, including paying down debt, repurchasing shares of our Class A common stock, and paying dividends to stockholders. | ||||||
| Adjusted EBITDA | • Net income (loss), excluding the effects of: - depreciation and amortization, - interest expense, - interest income, - other income (expense), net, - income tax expense (benefit), - equity-based compensation, - acquisition and restructuring related costs, - impairments, and - other items not reflective of our ongoing operations. | • Provides information to management to evaluate and assess our performance and allocate internal resources. • We believe Adjusted EBITDA and Adjusted EBITDA Margin are frequently used by investors and other interested parties in evaluating companies in the retail industry for period-to-period comparisons as they remove the impact of certain items that are not representative of our ongoing business, such as material non-cash items, acquisition-related transaction and restructuring costs, significant costs related to certain non-ordinary course legal and regulatory matters, and certain variable charges. | ||||||
| Adjusted EBITDA Margin | • Adjusted EBITDA as a percentage of total net revenues. | |||||||
| Total Net Revenues, Constant Currency | • Constant currency information compares results between periods as if exchange rates had remained constant. • We define total net revenues, constant currency as total revenue excluding the effect of foreign exchange rate movements and use it to determine the total net revenues growth, constant currency on a comparative basis. • Total net revenues, constant currency is calculated by translating current period total net revenues using the prior period exchange rate. | • The effect of currency exchange rates on our business is an important factor in understanding period-to-period comparisons. Our financial reporting currency is the USD and changes in foreign exchange rates can significantly affect our reported results and consolidated trends. For example, our business generates sales predominantly in KRW, which are favorably affected as the USD weakens relative to the KRW, and unfavorably affected as the USD strengthens relative to the KRW. • We use total net revenues, constant currency and total net revenues growth, constant currency for financial and operational decision-making and as a means to evaluate comparisons between periods. We believe the presentation of our results on a constant currency basis in addition to U.S. GAAP results helps improve the ability to understand our performance because they exclude the effects of foreign currency volatility that are not indicative of our actual results of operations. | ||||||
| Total Net Revenues Growth, Constant Currency | • Total net revenues growth, constant currency (as a percentage) is calculated by determining the increase in current period revenue over prior period revenue, where current period foreign currency revenue is translated using prior period exchange rates. |
| Coupang, Inc. | Q1 2026 Form 10-Q | 27 | ||||||||||
Reconciliation of GAAP to Non-GAAP Measures
Free Cash Flow
| Three Months Ended March 31, | Trailing Twelve Months Ended March 31, | ||||||||||||||||||||||||||||||
(in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 184 | $ | 354 | $ | 1,603 | |||||||||||||||||||||||||
Next expected filings
- ~2026-08-03 10-Q expected by 2026-08-06 (in 49 days)
- ~2026-11-02 10-Q expected by 2026-11-05 (in 140 days)
- ~2027-02-24 10-K expected by 2027-02-25 (in 254 days)
- ~2027-05-03 10-Q expected by 2027-05-06 (in 322 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-06-11 8-K Other Events
- 2026-05-14 8-K/A Officer/Director Change
- 2026-05-05 8-K Earnings Release; Financial Statements and Exhibits
- 2026-05-05 10-Q Quarterly Report
- 2026-04-27 DEF 14A Proxy Statement
- 2026-02-26 10-K Annual Report
- 2026-02-26 8-K Earnings Release; Financial Statements and Exhibits
- 2026-02-06 8-K Officer/Director Change
- 2025-12-29 8-K/A Cybersecurity Incident; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-12-16 8-K Cybersecurity Incident
- 2025-11-04 10-Q Quarterly Report
- 2025-11-04 8-K Earnings Release; Financial Statements and Exhibits
- 2025-10-20 8-K Officer/Director Change
- 2025-08-05 10-Q Quarterly Report
- 2025-08-05 8-K Earnings Release; Financial Statements and Exhibits