10-KPeriod: FY2025

Coupang, Inc. Annual Report, Year Ended Dec 31, 2025

Filed February 26, 2026For Securities:CPNG

Summary

Coupang, Inc. reported its 2025 Form 10-K, highlighting a substantial increase in total net revenues to $34.5 billion, a 14% increase year-over-year (18% in constant currency). The company achieved net income of $214 million, a significant improvement from the $66 million recorded in 2024, though net income margin remained modest at 0.6%. Key drivers for revenue growth included an increase in net revenues per Product Commerce Active Customer and a growing customer base, alongside strong performance in its Developing Offerings segment, notably boosted by the Farfetch acquisition. Despite revenue growth, free cash flow saw a notable decline of 48% to $527 million due to increased capital expenditures. A significant event impacting the company was a data incident in November 2025, involving unauthorized access to approximately 33 million customer accounts. This incident has led to increased government scrutiny, ongoing investigations, and customer compensation programs totaling approximately $1.2 billion in vouchers, which will impact future revenue recognition. The company is also navigating various legal proceedings and regulatory investigations, particularly in Korea, related to trade practices and data security. Coupang continues to invest heavily in its infrastructure, technology, and expanding offerings, which contributes to increased operating expenses. The company's outlook indicates continued investment in growth initiatives, particularly within the Developing Offerings segment, while managing the impacts of past incidents and ongoing regulatory oversight. The stock repurchase program authorized in May 2025 reflects management's confidence and commitment to returning value to shareholders.

Financial Statements
Beta
Revenue$34.53B
Cost of Revenue$24.39B
Gross Profit$10.14B
Operating Expenses$34.06B
Operating Income$473.00M
Net Income$208.00M
EPS (Basic)$0.11
EPS (Diluted)$0.11
Shares Outstanding (Basic)1.82B
Shares Outstanding (Diluted)1.85B

Key Highlights

  • 1Total net revenues reached $34.5 billion in 2025, a 14% increase from 2024, demonstrating robust top-line growth.
  • 2Net income improved significantly to $214 million in 2025, compared to $66 million in 2024, indicating a path towards increased profitability.
  • 3The company experienced a 48% decrease in free cash flow to $527 million, primarily due to substantial investments in fulfillment and logistics infrastructure.
  • 4A significant data incident in November 2025 affected approximately 33 million customer accounts, leading to increased regulatory scrutiny and a $1.2 billion customer compensation program.
  • 5The Farfetch acquisition, completed in January 2024, is integrated into the Developing Offerings segment, contributing to its revenue growth.
  • 6Coupang's core Product Commerce segment showed strong performance with a 11% revenue increase and a 24% rise in Segment Adjusted EBITDA.
  • 7The company faces ongoing legal and regulatory challenges, including investigations and potential fines, particularly in Korea related to data security and trade practices.

Frequently Asked Questions

In 2025, Coupang reported total net revenues of $34.5 billion, an increase of 14% from the prior year. Net income was $214 million, a significant improvement from $66 million in 2024. However, free cash flow decreased by 48% to $527 million due to increased investments in infrastructure and operations.

Key risks include the impact of a major data incident in November 2025 affecting 33 million customer accounts, leading to increased government scrutiny and a substantial customer compensation program. Other risks involve intense competition, regulatory challenges and investigations in Korea, the successful integration and performance of the Farfetch acquisition, operational challenges in managing growth, and potential impacts of macroeconomic conditions.

The Farfetch acquisition, completed in January 2024, has been integrated into Coupang's Developing Offerings segment. It contributed to the segment's revenue growth, though the segment's overall Adjusted EBITDA remained negative ($995 million loss in 2025). Coupang has undertaken restructuring actions related to Farfetch's operations.

Coupang continues to invest heavily in its fulfillment and logistics infrastructure, technology, and expanding its product and service offerings, particularly in the Developing Offerings segment. The company anticipates significant capital expenditures over the next several years to support growth and planned service expansions.