10-QPeriod: Q1 FY2026

Coupang, Inc. Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 5, 2026For Securities:CPNG

Summary

Coupang, Inc. reported a net loss of $266 million for the first quarter of 2026, a significant shift from the $114 million net income in the prior year's first quarter. This downturn was primarily driven by the "Incident," a data breach discovered in November 2025, which led to a substantial customer compensation program ($1.2 billion in vouchers) and increased operational costs. Total net revenues grew 8% year-over-year to $8.5 billion, with Product Commerce revenues up 4% and Developing Offerings revenues up 28%. However, the cost of sales and operating expenses grew faster than revenues, particularly impacted by the Incident's fallout and investments in growth initiatives. Adjusted EBITDA significantly decreased by 92% to $29 million, with Product Commerce Adjusted EBITDA down 35% and Developing Offerings seeing a wider loss. The company's liquidity remains strong with $6.4 billion in cash and cash equivalents, though free cash flow turned negative at $(110) million, compared to $116 million in the prior year. The company also repurchased $391 million of its Class A common stock during the quarter.

Financial Highlights

49 data points
Beta

Revenue

$8.50B

27.0% Gross Margin

Net Income

-$266.00M

-3.1% Net Margin

EPS (Diluted)

$-0.15

Total Assets

$17.40B

Cash & Equivalents

$6.30B

Free Cash Flow

-$112.00M

Financial Statements
Beta
Revenue$8.50B
Cost of Revenue$6.21B
Gross Profit$2.30B
Operating Expenses$8.75B
Operating Income-$242.00M
Net Income-$266.00M
EPS (Basic)$-0.15
EPS (Diluted)$-0.15
Shares Outstanding (Basic)1.82B
Shares Outstanding (Diluted)1.82B

Key Highlights

  • 1Q1 2026 net loss of $266 million, a reversal from a $114 million profit in Q1 2025.
  • 2Total net revenues increased 8% to $8.5 billion, driven by growth in both Product Commerce and Developing Offerings segments.
  • 3Adjusted EBITDA plummeted 92% to $29 million, reflecting increased costs and the impact of the data incident.
  • 4The "Incident" (data breach) significantly impacted operations, leading to a $1.2 billion customer compensation program.
  • 5Product Commerce Active Customers grew 2%, but Net Revenues per Active Customer saw a lower growth rate due to the Incident.
  • 6Free Cash Flow turned negative at $(110) million, down from $116 million in the prior year.
  • 7Coupang repurchased $391 million of its Class A common stock in Q1 2026, with an additional $1 billion repurchase program authorized in May 2026.

Frequently Asked Questions

The primary driver for the net loss of $266 million in Q1 2026 was the "Incident," a data breach discovered in November 2025. This incident necessitated a customer compensation program of approximately $1.2 billion in vouchers, increased operational costs related to supply chain management, and likely impacted customer trust and spending patterns, contributing to higher cost of sales and operating expenses relative to revenue growth.

The "Incident" has had a material adverse effect. The $1.2 billion customer compensation program, which largely concluded in Q1 2026, was reflected as a reduction in selling price and revenue recognized on redeemed transactions. Furthermore, increased costs in supply chain management and broader operational impacts associated with the data breach contributed to a higher cost of sales as a percentage of revenue and an increase in operating, general, and administrative expenses as a percentage of revenue, ultimately leading to significantly lower Adjusted EBITDA and a net loss.

The company reported a net loss and negative free cash flow of $(110) million in Q1 2026, indicating near-term profitability challenges. While total revenues are growing, the increased cost structure, particularly due to the "Incident" and ongoing investments in "Developing Offerings," is pressuring margins. Management believes its current liquidity is sufficient for the next 12 months, but future strategic investments and potential unforeseen costs related to ongoing investigations and litigation could necessitate additional financing.

The "Product Commerce" segment, which includes core retail and marketplace offerings, saw a 4% revenue increase but a 35% decrease in Adjusted EBITDA. This segment's performance was negatively impacted by the "Incident." The "Developing Offerings" segment experienced stronger revenue growth (28%), driven by initiatives like Farfetch and operations in Taiwan, but its Adjusted EBITDA loss widened significantly due to increased costs and lower margins, reflecting ongoing investment in these newer businesses.