10-QPeriod: Q2 FY2025

Coupang, Inc. Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 5, 2025For Securities:CPNG

Summary

Coupang, Inc. reported its second quarter 2025 financial results, showcasing significant revenue growth and a return to profitability. Total net revenues increased by 16% year-over-year to $8.5 billion, driven by strong performance in both its core Product Commerce segment and its Developing Offerings. Notably, the company has transitioned from a net loss in the prior year period to a net income of $31 million, demonstrating improved operational efficiency and strategic execution. The acquisition of Farfetch continues to be integrated, with ongoing restructuring efforts aimed at optimizing its performance. While the Developing Offerings segment still operates at a loss, the Product Commerce segment continues to be the primary driver of profitability, with increased gross profit and adjusted EBITDA. Coupang's robust liquidity position, bolstered by a strong cash balance and access to credit facilities, provides flexibility for future investments and growth initiatives, including a recently authorized $1 billion stock repurchase program.

Financial Highlights

50 data points
Beta

Revenue

$8.52B

30.0% Gross Margin

Net Income

$32.00M

0.4% Net Margin

EPS (Diluted)

$0.02

Total Assets

$17.83B

Cash & Equivalents

$6.80B

Free Cash Flow

$246.00M

Financial Statements
Beta
Revenue$8.52B
Cost of Revenue$5.96B
Gross Profit$2.56B
Operating Expenses$8.38B
Operating Income$149.00M
Net Income$32.00M
EPS (Basic)$0.02
EPS (Diluted)$0.02
Shares Outstanding (Basic)1.82B
Shares Outstanding (Diluted)1.85B

Key Highlights

  • 1Total net revenues for Q2 2025 increased 16% year-over-year to $8.5 billion, with constant currency growth of 19%.
  • 2The company achieved net income of $31 million in Q2 2025, a significant improvement from a net loss of $105 million in Q2 2024.
  • 3Product Commerce segment revenue grew 14% (17% in constant currency) year-over-year, driven by increased active customers and revenue per customer.
  • 4Developing Offerings segment revenue surged 33% (33% in constant currency) year-over-year, fueled by growth in initiatives including Farfetch.
  • 5Adjusted EBITDA increased by 30% to $428 million, with an Adjusted EBITDA margin of 5.0%, up from 4.5% in the prior year period.
  • 6Coupang ended the quarter with a strong liquidity position, holding $6.9 billion in cash, cash equivalents, and restricted cash.
  • 7A new $1 billion stock repurchase program was authorized in May 2025, indicating management's confidence in the company's financial health and future prospects.

Frequently Asked Questions

Coupang's revenue growth in Q2 2025 was driven by a 16% increase in total net revenues to $8.5 billion. This growth was supported by strong performance in its Product Commerce segment, which saw a 14% year-over-year increase in revenue, and its Developing Offerings segment, which experienced a 33% surge in revenue. Key contributing factors included growth in Product Commerce Active Customers and increased revenue per customer, as well as expansion in newer initiatives under the Developing Offerings segment, including the contribution from Farfetch.

Coupang has shown a significant improvement in profitability. In Q2 2025, the company reported a net income of $31 million, a substantial turnaround from a net loss of $105 million in the same period of 2024. This improvement is also reflected in the Adjusted EBITDA, which rose by 30% to $428 million, with the Adjusted EBITDA margin increasing to 5.0% from 4.5% year-over-year, indicating better operational efficiency.

Coupang completed the acquisition of Farfetch in January 2024, and efforts are ongoing to integrate and restructure its operations. While the Developing Offerings segment, which includes Farfetch, still incurred a loss, its revenues saw substantial growth of 33% year-over-year. Management is actively undertaking restructuring actions to optimize Farfetch's performance, including exiting certain contractual obligations. The integration is expected to contribute to Coupang's long-term growth strategy, particularly in the luxury fashion market.

Coupang maintains a strong liquidity position, with $6.9 billion in cash, cash equivalents, and restricted cash as of June 30, 2025. The company also has access to a $1.5 billion revolving credit facility. In addition to funding ongoing operations and investments in infrastructure and technology, Coupang's Board of Directors authorized a $1 billion stock repurchase program in May 2025. This reflects management's confidence and provides flexibility for returning capital to shareholders.