Coupang (NYSE: CPNG) grows Q1 sales to $8.5B but posts $266M loss
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Coupang, Inc. reported first quarter 2026 net revenues of $8.5 billion, up 8% year over year on both a reported and constant currency basis. Despite this growth, the company posted an operating loss of $242 million and a net loss attributable to stockholders of $266 million, reversing profits from the prior year.
Gross profit slipped to $2.3 billion and margin narrowed to 27.0%, while Adjusted EBITDA fell sharply to $29 million, a 0.3% margin. Free cash flow for the quarter was -$110 million. Product Commerce revenues grew modestly to $7.2 billion, while Developing Offerings revenues rose to $1.3 billion but generated larger adjusted EBITDA losses of $329 million.
The company repurchased 20.4 million Class A shares for $391 million, and the board approved an additional $1 billion for the stock repurchase program. Trailing twelve-month operating cash flow was $1.6 billion and free cash flow was $301 million, both down versus last year.
Positive
- None.
Negative
- Profitability deterioration: Q1 2026 operating results flipped from a $154 million operating profit to a $242 million operating loss, and net (loss) income attributable to stockholders moved from $107 million profit to a $266 million loss, with diluted EPS dropping from $0.06 to $(0.15).
- Sharp drop in Adjusted EBITDA and margins: Adjusted EBITDA declined from $382 million to $29 million, and Adjusted EBITDA margin compressed from 4.8% to 0.3%, indicating materially weaker underlying earnings.
- Free cash flow and segment loss pressure: Quarterly free cash flow fell from $116 million to $(110) million, while Developing Offerings segment adjusted EBITDA losses widened from $168 million to $329 million, putting additional pressure on overall results.
Insights
Coupang delivers 8% revenue growth but swings to losses as profitability and cash generation weaken.
Coupang generated $8.5 billion in Q1 2026 net revenues, up 8% year over year, with Product Commerce up 4% and Developing Offerings up 28%. However, higher operating, general and administrative costs pushed the company from a $154 million operating profit to a $242 million operating loss.
Net (loss) income attributable to stockholders moved from a $107 million profit to a $266 million loss, and diluted EPS declined from $0.06 to $(0.15). Adjusted EBITDA fell to $29 million, versus $382 million a year earlier, compressing margin from 4.8% to 0.3%, indicating materially weaker underlying profitability.
Cash generation also softened. Free cash flow for the quarter declined to $(110) million, and trailing twelve-month free cash flow dropped from $1,025 million to $301 million. At the same time, Coupang repurchased $391 million of stock in Q1 and expanded its repurchase authorization by $1 billion, while maintaining a cash and cash equivalents balance of $6,301 million as of March 31, 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total net revenues: $8,504 million
Net (loss) income attributable to stockholders: $(266) million
Diluted EPS: $(0.15)
+5 more
8 metrics
Total net revenues
$8,504 million
Q1 2026, up 8% year over year
Net (loss) income attributable to stockholders
$(266) million
Q1 2026, versus $107 million in Q1 2025
Diluted EPS
$(0.15)
Q1 2026, down from $0.06 in Q1 2025
Adjusted EBITDA
$29 million
Q1 2026, versus $382 million in Q1 2025
Free cash flow
$(110) million
Q1 2026, versus $116 million in Q1 2025
Developing Offerings net revenues
$1,328 million
Q1 2026, up 28% year over year
Developing Offerings segment adjusted EBITDA
$(329) million
Q1 2026, loss widened from $(168) million
Share repurchases
$391 million
Q1 2026, 20.4 million Class A shares repurchased
Key Terms
Adjusted EBITDA, free cash flow, constant currency, Product Commerce Active Customers, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA for the quarter was $29 million with a margin of 0.3%, down 449 bps versus last year."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow for the trailing twelve months was $301 million, a decrease of $724 million YoY."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
constant currency financial
"Total net revenues were $8.5 billion, up 8% YoY on both a reported and constant currency basis."
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
Product Commerce Active Customers financial
"Product Commerce Active Customers grew to 23.9 million, up 2% YoY."
non-GAAP financial measures financial
"Total net revenues growth, constant currency, gross profit growth, constant currency, adjusted EBITDA, and free cash flow are non-GAAP financial measures as defined by the Securities and Exchange Commission."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Total net revenues: $8,504 million
Q1 2026
Total net revenues
$8,504 million
8% YoY
Net (loss) income attributable to Coupang stockholders
$(266) million
NM YoY from $107 million
Diluted EPS
$(0.15)
NM YoY from $0.06
Adjusted EBITDA
$29 million
-92% YoY from $382 million
Free cash flow
$(110) million
NM YoY from $116 million
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||||||||
(Address of principal executive offices, including zip code)
(206 ) 333-3839
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| (Title of Each Class) | (Trading Symbol) | (Name of Each Exchange on Which Registered) | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 5, 2026, Coupang, Inc. released its financial results for the first quarter 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in Item 2.02 and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Description of Exhibit | |||||||
| 99.1 | Press Release dated May 5, 2026 announcing Coupang, Inc.’s First Quarter 2026 Financial Results. | |||||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| COUPANG, INC. (REGISTRANT) | |||||
| By: | /s/ Jonathan Lee | ||||
| Jonathan Lee | |||||
| Chief Accounting Officer | |||||
Dated: May 5, 2026
Exhibit 99.1
Coupang Announces Results for First Quarter 2026
Net Revenues of $8.5 billion, up 8% YoY and 8% on a constant currency basis
Product Commerce Segment Net Revenues of $7.2 billion, up 4% YoY and 5% on a constant currency basis
Developing Offerings Segment Net Revenues of $1.3 billion, up 28% YoY and 25% on a constant currency basis
SEATTLE - (BUSINESS WIRE) May 5, 2026—Coupang, Inc. (NYSE: CPNG) today announced financial results for its first quarter ended March 31, 2026.
Q1 2026 Consolidated Highlights:
•Total net revenues were $8.5 billion, up 8% YoY on both a reported and constant currency basis.
•Gross profit was $2.3 billion, decreasing 1% YoY and flat on a constant currency basis. Gross profit margin was 27.0%, a decrease of 228 bps YoY.
•Operating (loss) income was $(242) million, a decrease of $396 million from the operating income last year.
•Net (loss) income attributable to Coupang stockholders was $(266) million, a decrease of $373 million from the net income last year.
•Diluted EPS was $(0.15), down $0.21 YoY.
•Adjusted EBITDA for the quarter was $29 million with a margin of 0.3%, down 449 bps versus last year.
•Operating cash flow for the trailing twelve months was $1.6 billion, a decrease of $425 million YoY and free cash flow was $301 million for the trailing twelve months, a decrease of $724 million YoY.
•20.4 million shares of Class A common stock were repurchased during the quarter for an aggregate amount of $391 million. Our Board of Directors have recently approved an additional $1 billion to be added to our stock repurchase program as part of our ongoing capital allocation strategy.
Q1 2026 Segment Highlights:
•Product Commerce segment net revenues were $7.2 billion, up 4% YoY on a reported basis and 5% YoY on a constant currency basis.
•Product Commerce gross profit was $2.2 billion, up 1% YoY and 2% YoY on a constant currency basis. Gross profit margin was 30.3%, a decrease of 101 bps YoY.
•Product Commerce segment adjusted EBITDA was $358 million, down $192 million YoY, with a margin of 5.0%, down 302 bps YoY.
•Product Commerce Active Customers grew to 23.9 million, up 2% YoY.
•Developing Offerings segment net revenues were $1.3 billion, up 28% YoY on a reported basis and 25% YoY on a constant currency basis.
•Developing Offerings segment adjusted EBITDA losses were $329 million, increasing $161 million YoY.
| Coupang, Inc. |  | Q1 2026 Earnings Release | 1 | |||||||||||
First Quarter 2026 Results
Consolidated Financial Summary
(in millions, except net revenues per Product Commerce Active Customer and earnings per share) | Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Total net revenues | $ | 8,504 | $ | 7,908 | 8 | % | |||||||||||
Total net revenues growth, constant currency(1) | 8 | % | |||||||||||||||
Net revenues per Product Commerce Active Customer | $ | 300 | $ | 294 | 2 | % | |||||||||||
Net revenues per Product Commerce Active Customer, constant currency | $ | 303 | 3 | % | |||||||||||||
Product Commerce Active Customers | 23.9 | 23.4 | 2 | % | |||||||||||||
Gross profit(2) | $ | 2,297 | $ | 2,316 | (1) | % | |||||||||||
Gross profit growth, constant currency(1)(2) | — | % | |||||||||||||||
| Operating (loss) income | $ | (242) | $ | 154 | NM(3) | ||||||||||||
| Net (loss) income | $ | (266) | $ | 114 | NM(3) | ||||||||||||
| Net (loss) income attributable to Coupang stockholders | $ | (266) | $ | 107 | NM(3) | ||||||||||||
Adjusted EBITDA(1) | $ | 29 | $ | 382 | (92) | % | |||||||||||
Earnings per share, basic and diluted | $ | (0.15) | $ | 0.06 | NM(3) | ||||||||||||
| Net cash provided by operating activities | $ | 184 | $ | 354 | (48) | % | |||||||||||
Free cash flow(1) | $ | (110) | $ | 116 | NM(3) | ||||||||||||
| 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) | % | |||||||||||
Segment Information
| Three Months Ended March 31, | |||||||||||||||||
(in millions) | 2026 | 2025 | % Change | ||||||||||||||
| Product Commerce | |||||||||||||||||
| Net revenues | $ | 7,176 | $ | 6,870 | 4 | % | |||||||||||
Net revenues growth, constant currency(1) | 5 | % | |||||||||||||||
Gross profit(2) | $ | 2,174 | $ | 2,151 | 1 | % | |||||||||||
Gross profit growth, constant currency(1)(2) | 2 | % | |||||||||||||||
| Segment adjusted EBITDA | $ | 358 | $ | 550 | (35) | % | |||||||||||
| Developing Offerings | |||||||||||||||||
| Net revenues | $ | 1,328 | $ | 1,038 | 28 | % | |||||||||||
Net revenues growth, constant currency(1) | 25 | % | |||||||||||||||
Gross profit(2) | $ | 123 | $ | 165 | (25) | % | |||||||||||
Gross profit growth, constant currency(1)(2) | (32) | % | |||||||||||||||
| Segment adjusted EBITDA | $ | (329) | $ | (168) | 96 | % | |||||||||||
_________
(1)Total net revenues growth, constant currency, gross profit growth, constant currency, adjusted EBITDA, and free cash flow are non-GAAP financial measures as defined by the Securities and Exchange Commission (the “SEC”). See the “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures” sections herein for more information regarding our use of these measures and reconciliations to the most directly comparable financial measures calculated in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
(2)Gross profit is calculated as total net revenues minus cost of sales.
(3)Non-meaningful.
| Coupang, Inc. | | Q1 2026 Earnings Release | 2 | |||||||||||
Webcast and Conference Call
Coupang, Inc. will host a conference call to discuss first quarter results on May 5, 2026 at 2:30 PM PT/ 5:30 PM ET. A live webcast of the conference call will be available on our Investor Relations website, ir.aboutcoupang.com, and a replay of the conference call will be available for at least three months. This press release, including the reconciliations of certain non-GAAP financial measures to their nearest comparable U.S. GAAP financial measures, as well as our first quarter earnings presentation, are also available on that site.
About Coupang
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. It operates in over 190 countries and territories around the world.
| Investor Contact: | Media Contact: | |||||||||||||
| Coupang IR | Coupang PR | |||||||||||||
| ir@coupang.com | press@coupang.com | |||||||||||||
| Coupang, Inc. | | Q1 2026 Earnings Release | 3 | |||||||||||
FORWARD-LOOKING STATEMENTS
This earnings release and related management commentary may contain statements that may be deemed to be "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (together, the “Act”), that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws.
We have based the forward-looking statements contained in this earnings release and related management commentary on our current expectations and projections about future events and trends that we believe may affect our industry, business, financial condition, and results of operations. All statements other than statements of historical facts contained in this earnings release and related management commentary, including statements about our business and growth strategies, anticipated or target revenues, growth rates, margins, cash flows, and other operating or financial results, our planned investments in new products and offerings, and their anticipated outcomes, as well as our beliefs and expectations related to the impact of the recent data incident and our efforts to prevent future incidents, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "may," "plan," "long-term," "potential," "predict," "project," "should," "target," "toward," "think," "will," "shall," "goal," "objective," "seek," "strategy," "future," "opportunity," "runway," "trajectory," "continue," "pace," "restore," "on-going," "momentum," "prevent," "commit," "want," "can," or "would," or the negative of these words or other similar terms or expressions. Actual results and outcomes could differ materially from those expressed or contemplated by the forward-looking statements for a variety of reasons, including, among others, risks and uncertainties regarding the nature and scope of any data incidents, ongoing investigations regarding such incident, the impact of such incident on Coupang, its customers, operations, and financial results, the continued growth of the retail market, changes in consumer preferences and spending patterns, the increased acceptance of online transactions by potential customers, competition in our industry, managing our growth, investment, and expansion into new markets and offerings, risks associated with current and future acquisitions, mergers, dispositions, joint ventures or investments, potential fluctuations in our financial performance, the extent to which we owe income or other taxes, our ability to retain existing suppliers and to add new suppliers, our market position, our operation and management of our fulfillment and delivery infrastructure, legal and regulatory developments, risks and uncertainties related to past and any future data incidents, the outcomes of any claims, litigation, audits, inspections and investigations, and the impact of global economic factors including inflation, foreign currency exchange rates, geopolitical events (including the ongoing conflict in the Middle East), and tariffs and other trade barriers. The forward-looking statements contained in this earnings release and related management commentary are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted. For additional information on other potential risks and uncertainties that could cause actual results to differ from the results predicted, please see our most recent Annual Report on Form 10-K and subsequent SEC filings. All forward-looking statements in this earnings release and related management commentary are based on information available to Coupang and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
Additional information relating to certain of our financial measures contained herein, including non-GAAP financial measures, is available in this earnings release, including under “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures” below, and at our website at ir.aboutcoupang.com.
Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (ir.aboutcoupang.com), our filings with the SEC, webcasts, press releases, and conference calls. We use these mediums, including our investor relations website, to communicate with investors and the general public about our company, our offerings, and other issues. It is possible that the information that we make available on our investor relations website 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.
| Coupang, Inc. | | Q1 2026 Earnings Release | 4 | |||||||||||
COUPANG, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended March 31, | |||||||||||
(in millions, except per share amounts) | 2026 | 2025 | |||||||||
| Net retail sales | $ | 6,476 | $ | 6,088 | |||||||
| Net other revenue | 2,028 | 1,820 | |||||||||
| Total net revenues | 8,504 | 7,908 | |||||||||
| Cost of sales | 6,207 | 5,592 | |||||||||
| Operating, general and administrative | 2,539 | 2,162 | |||||||||
| Total operating cost and expenses | 8,746 | 7,754 | |||||||||
| Operating (loss) income | (242) | 154 | |||||||||
| Interest income | 44 | 49 | |||||||||
| Interest expense | (13) | (23) | |||||||||
| Other (expense) income, net | (44) | 36 | |||||||||
| (Loss) income before income taxes | (255) | 216 | |||||||||
| Income tax expense | 11 | 102 | |||||||||
| Net (loss) income | $ | (266) | $ | 114 | |||||||
| Net income attributable to noncontrolling interests | — | 7 | |||||||||
| Net (loss) income attributable to Coupang stockholders | $ | (266) | $ | 107 | |||||||
| Earnings per share | |||||||||||
Basic and diluted | $ | (0.15) | $ | 0.06 | |||||||
| Weighted-average shares outstanding | |||||||||||
| Basic | 1,825 | 1,806 | |||||||||
| Diluted | 1,825 | 1,840 | |||||||||
| Coupang, Inc. | | Q1 2026 Earnings Release | 5 | |||||||||||
COUPANG, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in millions) | March 31, 2026 | December 31, 2025 | |||||||||
Assets | |||||||||||
| Cash and cash equivalents | $ | 6,301 | $ | 6,318 | |||||||
| Restricted cash | 90 | 94 | |||||||||
| Accounts receivable, net | 351 | 363 | |||||||||
| Inventories | 2,037 | 2,256 | |||||||||
| Prepaids and other current assets | 584 | 660 | |||||||||
| Total current assets | 9,363 | 9,691 | |||||||||
| Property and equipment, net | 3,632 | 3,722 | |||||||||
| Operating lease right-of-use assets | 2,844 | 2,765 | |||||||||
| Intangible assets, net | 178 | 190 | |||||||||
| Deferred tax assets | 597 | 596 | |||||||||
| Long-term lease deposits and other | 785 | 823 | |||||||||
| Total assets | $ | 17,399 | $ | 17,787 | |||||||
Liabilities and equity | |||||||||||
| Accounts payable | $ | 5,965 | $ | 6,298 | |||||||
| Accrued expenses | 406 | 515 | |||||||||
| Deferred revenue | 183 | 188 | |||||||||
| Short-term borrowings | 1,672 | 960 | |||||||||
| Current portion of long-term operating lease obligations | 557 | 545 | |||||||||
| Other current liabilities | 840 | 851 | |||||||||
| Total current liabilities | 9,623 | 9,357 | |||||||||
| Long-term debt | 617 | 648 | |||||||||
| Long-term operating lease obligations | 2,550 | 2,482 | |||||||||
| Defined severance benefits and other | 679 | 677 | |||||||||
| Total liabilities | 13,469 | 13,164 | |||||||||
Commitments and contingencies | |||||||||||
Equity | |||||||||||
Common stock | — | — | |||||||||
Class A — shares authorized 10,000, outstanding 1,651 and 1,665 Class B — shares authorized 250, outstanding 158 and 158 | |||||||||||
| Additional paid-in capital | 8,757 | 9,025 | |||||||||
| Accumulated other comprehensive loss | (540) | (381) | |||||||||
| Accumulated deficit | (4,287) | (4,021) | |||||||||
| Total equity | 3,930 | 4,623 | |||||||||
| Total liabilities and equity | $ | 17,399 | $ | 17,787 | |||||||
| Coupang, Inc. | | Q1 2026 Earnings Release | 6 | |||||||||||
COUPANG, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Three Months Ended March 31, | |||||||||||
(in millions) | 2026 | 2025 | |||||||||
| Operating activities | |||||||||||
| Net (loss) income | $ | (266) | $ | 114 | |||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 143 | 122 | |||||||||
| Provision for severance benefits | 67 | 56 | |||||||||
| Equity-based compensation | 122 | 121 | |||||||||
| Non-cash operating lease expense | 143 | 116 | |||||||||
| Deferred income taxes | (28) | 11 | |||||||||
| Other | 98 | 1 | |||||||||
| Change in operating assets and liabilities, net of acquisition: | |||||||||||
| Accounts receivable, net | (8) | (80) | |||||||||
| Inventories | 128 | (18) | |||||||||
| Other assets | (41) | (111) | |||||||||
| Accounts payable | 53 | 111 | |||||||||
| Accrued expenses | (97) | (93) | |||||||||
| Other liabilities | (130) | 4 | |||||||||
| Net cash provided by operating activities | 184 | 354 | |||||||||
| Investing activities | |||||||||||
| Purchases of property and equipment | (296) | (239) | |||||||||
| Proceeds from sale of property and equipment | 2 | 1 | |||||||||
| Other investing activities | (8) | 25 | |||||||||
| Net cash used in investing activities | (302) | (213) | |||||||||
| Financing activities | |||||||||||
| Proceeds from issuance of common stock, equity-based compensation plan | 1 | — | |||||||||
| Repurchase of Class A common stock | (391) | — | |||||||||
| Proceeds from short-term borrowings and long-term debt | 1,936 | 295 | |||||||||
| Repayment of short-term borrowings and long-term debt | (1,198) | (267) | |||||||||
| Other financing activities | — | (12) | |||||||||
| Net cash provided by financing activities | 348 | 16 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (251) | 12 | |||||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash | (21) | 169 | |||||||||
| Cash and cash equivalents and restricted cash, as of beginning of period | 6,412 | 6,031 | |||||||||
| Cash and cash equivalents and restricted cash, as of end of period | $ | 6,391 | $ | 6,200 | |||||||
| Coupang, Inc. | | Q1 2026 Earnings Release | 7 | |||||||||||
Supplemental Financial Information
Share Information
As of March 31, | |||||||||||
(in millions) | 2026 | 2025 | |||||||||
Outstanding common stock | 1,809 | 1,807 | |||||||||
Outstanding equity-based awards | 69 | 76 | |||||||||
| Outstanding common stock and equity-based awards | 1,878 | 1,883 | |||||||||
Key Business Metrics and Non-GAAP Financial Measures
We review the key business and financial metrics discussed below. We use these measures to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.
Key Business Metrics
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.
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.
| Three Months Ended March 31, | |||||||||||||||||
(in millions, except net revenues per Product Commerce Active Customer) | 2026 | 2025 | % Change | ||||||||||||||
| Net revenues per Product Commerce Active Customer | $ | 300 | $ | 294 | 2 | % | |||||||||||
| Net revenues per Product Commerce Active Customer (Constant Currency) | $ | 303 | 3 | % | |||||||||||||
| Product Commerce Active Customers | 23.9 | 23.4 | 2 | % | |||||||||||||
| Coupang, Inc. | | Q1 2026 Earnings Release | 8 | |||||||||||
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 financial 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 | ||||||
| Total Net Revenues, Constant Currency and Gross Profit, Constant Currency | • Constant currency information compares results between periods as if exchange rates had remained constant. • We define total net revenues, constant currency and gross profit, constant currency as total revenue and gross profit, respectively, excluding the effect of foreign exchange rate movements, and use it to determine the total net revenues growth, constant currency and gross profit growth, constant currency on a comparative basis. • Total net revenues, constant currency and gross profit, constant currency are calculated by translating current period total net revenues and gross profit 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 U.S. dollar (“USD”) and changes in foreign exchange rates can significantly affect our reported results and consolidated trends. For example, our business generates sales predominantly in Korean Won (“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, gross profit, constant currency and gross profit 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 and Gross Profit Growth, Constant Currency | • Total net revenues growth, constant currency and gross profit growth, constant currency (as percentages) are calculated by determining the increase in current period revenue and gross profit, respectively, over prior period revenue and gross profit, respectively, where current period foreign currency revenue and gross profit are translated using prior period exchange rates. | |||||||
| 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, net, - 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. | |||||||
| Coupang, Inc. | | Q1 2026 Earnings Release | 9 | |||||||||||
Reconciliations of Non-GAAP Measures
In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, we have not provided the most directly comparable forward-looking GAAP measure to our total net revenues growth, constant currency guidance and adjusted EBITDA guidance or a reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable GAAP measures as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation, income tax, and currency exchange rates. Accordingly, a reconciliation is not available without unreasonable effort due to the uncertainty of these reconciling items. Because these adjustments are inherently variable and uncertain and depend on various factors that are beyond our control, we are also unable to predict their probable significance. However, it is important to note that these factors could be material to Coupang’s results computed in accordance with GAAP. Certain amounts may not foot due to rounding.
The following tables present the reconciliations from each U.S. GAAP measure to its corresponding non-GAAP measure for the periods noted.
Total Net Revenues, Constant Currency and Total Net Revenues Growth, Constant Currency
| Three Months Ended March 31, | Year over Year Growth | |||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
(in millions) | As Reported | Exchange Rate Effect | Constant Currency Basis | As Reported | As Reported | Constant Currency Basis | ||||||||||||||
| Consolidated | ||||||||||||||||||||
| Net retail sales | $ | 6,476 | $ | 24 | $ | 6,500 | $ | 6,088 | 6 | % | 7 | % | ||||||||
| Net other revenue | 2,028 | 8 | 2,036 | 1,820 | 11 | % | 12 | % | ||||||||||||
| Total net revenues | $ | 8,504 | $ | 32 | $ | 8,536 | $ | 7,908 | 8 | % | 8 | % | ||||||||
| Net Revenues by Segment | ||||||||||||||||||||
| Product Commerce | $ | 7,176 | $ | 61 | $ | 7,237 | $ | 6,870 | 4 | % | 5 | % | ||||||||
| Developing Offerings | 1,328 | (28) | 1,300 | 1,038 | 28 | % | 25 | % | ||||||||||||
| Total net revenues | $ | 8,504 | $ | 32 | $ | 8,536 | $ | 7,908 | 8 | % | 8 | % | ||||||||
Gross Profit, Constant Currency and Gross Profit Growth, Constant Currency
| Three Months Ended March 31, | Year over Year Growth | |||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| (in millions) | As Reported | Exchange Rate Effect | Constant Currency Basis | As Reported | As Reported | Constant Currency Basis | ||||||||||||||
Gross Profit by Segment | ||||||||||||||||||||
Product Commerce | $ | 2,174 | $ | 18 | $ | 2,192 | $ | 2,151 | 1 | % | 2 | % | ||||||||
Developing Offerings | 123 | (10) | 113 | 165 | (25) | % | (32) | % | ||||||||||||
Gross profit | $ | 2,297 | $ | 8 | $ | 2,305 | $ | 2,316 | (1) | % | — | % | ||||||||
| Coupang, Inc. | | Q1 2026 Earnings Release | 10 | |||||||||||
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 | $ | 2,028 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Purchases of land and buildings | (63) | (49) | (250) | (284) | |||||||||||||||||||
| Purchases of equipment | (233) | (190) | (1,058) | (727) | |||||||||||||||||||
| Total purchases of property and equipment | (296) | (239) | (1,308) | (1,011) | |||||||||||||||||||
| Proceeds from sale of property and equipment | 2 | 1 | 6 | 8 | |||||||||||||||||||
| Total adjustments | $ | (294) | $ | (238) | $ | (1,302) | $ | (1,003) | |||||||||||||||
| Free cash flow | $ | (110) | $ | 116 | $ | 301 | $ | 1,025 | |||||||||||||||
| Net cash used in investing activities | $ | (302) | $ | (213) | $ | (1,343) | $ | (915) | |||||||||||||||
Net cash provided by (used in) financing activities | $ | 348 | $ | 16 | $ | 85 | $ | (105) | |||||||||||||||
Adjusted EBITDA and Adjusted EBITDA Margin
| Three Months Ended March 31, | Trailing Twelve Months Ended March 31, | ||||||||||||||||||||||
(in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Total net revenues | $ | 8,504 | $ | 7,908 | $ | 35,130 | $ | 31,062 | |||||||||||||||
Net (loss) income attributable to Coupang stockholders | (266) | 107 | (165) | 256 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | — | 7 | (1) | (52) | |||||||||||||||||||
Net (loss) income | (266) | 114 | (166) | 204 | |||||||||||||||||||
Net (loss) income margin | (3.1) | % | 1.4 | % | (0.5) | % | 0.7 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Depreciation and amortization | 143 | 122 | 538 | 460 | |||||||||||||||||||
| Interest expense | 13 | 23 | 76 | 136 | |||||||||||||||||||
| Interest income | (44) | (49) | (194) | (210) | |||||||||||||||||||
Income tax expense | 11 | 102 | 292 | 426 | |||||||||||||||||||
Other expense (income), net | 44 | (36) | 69 | (6) | |||||||||||||||||||
Acquisition and restructuring related (gains) and losses, net | — | (15) | 40 | 54 | |||||||||||||||||||
KFTC administrative fine | — | — | — | 121 | |||||||||||||||||||
| Fulfillment Center Fire insurance gain | — | — | — | (175) | |||||||||||||||||||
| Equity-based compensation | 128 | 121 | 482 | 466 | |||||||||||||||||||
| Adjusted EBITDA | $ | 29 | $ | 382 | $ | 1,137 | $ | 1,476 | |||||||||||||||
| Adjusted EBITDA margin | 0.3 | % | 4.8 | % | 3.2 | % | 4.8 | % | |||||||||||||||
| Coupang, Inc. | | Q1 2026 Earnings Release | 11 | |||||||||||
FAQ
How did Coupang (CPNG) perform financially in Q1 2026?
Coupang generated $8.5 billion in net revenues in Q1 2026, up 8% year over year. Despite this growth, it reported a net loss attributable to stockholders of $266 million and diluted EPS of $(0.15), reversing profitability from the prior-year quarter.
What happened to Coupang (CPNG) profitability and margins in Q1 2026?
Coupang’s gross profit was $2.3 billion with a 27.0% gross margin, down 228 basis points year over year. Operating results shifted to a $242 million loss, and Adjusted EBITDA dropped to $29 million with a 0.3% margin, down from 4.8%.
How did Coupang’s Product Commerce and Developing Offerings segments perform in Q1 2026?
Product Commerce net revenues reached $7.2 billion, up 4%, with gross profit of $2.2 billion and segment adjusted EBITDA of $358 million. Developing Offerings net revenues rose to $1.3 billion, up 28%, but segment adjusted EBITDA losses widened to $329 million.
What were Coupang’s cash flow trends and liquidity as of Q1 2026?
For Q1 2026, net cash from operating activities was $184 million and free cash flow was $(110) million. On a trailing twelve-month basis, operating cash flow was $1.6 billion and free cash flow was $301 million. Cash and cash equivalents totaled $6.3 billion.
How are Coupang’s key customer metrics trending in Q1 2026?
Product Commerce Active Customers increased to 23.9 million, up 2% year over year. Net revenues per Product Commerce Active Customer were $300, up 2%, and on a constant currency basis were $303, representing 3% growth compared to the prior-year quarter.