Coupang, Inc.

Consolidated total net revenues were $8.9 billion, up 4% reported and 10% in constant currency. Product commerce segment net revenues were $7.4 billion, up 1% reported and 8% in constant currency; product commerce gross profit was $2.3 billion with a 30.5% gross margin, down about 210 basis points year over year; and product commerce adjusted EBITDA was $382 million with a 5.1% margin, down about 390 basis points year over year. Consolidated gross profit was $2.5 billion with a 28.2% gross margin, consolidated adjusted EBITDA was $163 million with a 1.8% margin, and diluted loss per share was $0.32, or about $0.09 excluding the $410 million in Korean regulatory fines. Free cash flow was $105 million over the trailing 12 months, operating cash flow was $1.4 billion, and the company repurchased 23 million shares for about $459 million. For Q3, management guided constant-currency revenue growth of 8% to 9% and consolidated adjusted EBITDA margin contraction of 300 to 400 basis points year over year; full-year developing offerings adjusted EBITDA losses are still expected to be between $950 million and $1 billion.

Bom Kim framed the quarter as evidence that the core customer base is still compounding despite the data incident, saying the vast majority of customer spend never moved and that most of the disrupted spend has now returned. He emphasized that the company is choosing to preserve capacity and customer experience rather than cut fixed costs aggressively, even though that is weighing on near-term margins. His tone was confident and long-term oriented, repeatedly stressing that the margin pressure is temporary, that Taiwan and Eats are following the same playbook at different stages, and that AI, automation, and selection expansion continue to broaden the opportunity.

Gaurav Anand said the quarter benefited from momentum but was reported through two major distortions: a weaker Korean won and the $410 million in administrative fines booked in OG&A. He cited product commerce gross margin of 30.5%, consolidated gross margin of 28.2%, adjusted EBITDA of $163 million, and noted that excluding fines, OG&A was about $2.6 billion, or 29.8% of revenue. He said the year-over-year margin compression came mainly from supply chain headwinds, elevated marketing, and capacity/fixed-cost absorption against a pre-incident demand curve, while trailing-12-month operating cash flow and free cash flow were $1.4 billion and $105 million, respectively. He also said the company bought back 23 million shares for about $459 million and reiterated that full-year developing offerings losses should remain within the $950 million to $1 billion range.

Analysts focused on three issues: whether product commerce margins truly recover to pre-incident levels by mid-2027, why 16% underlying spend growth translated into only 8% reported revenue growth, and whether Taiwan losses can structurally improve. Management said the 2027 recovery target applies to product commerce margins, that the gap is largely due to a small cohort of lower-spending customers who have not yet returned plus calendar effects, and that Q3 growth is being temporarily distorted by Chuseok timing and seasonal/weather factors. On Taiwan and AI, Bom Kim said Taiwan is still in the foundational build stage and that AI is already deployed across operations and customer service, while agentic AI is still exploratory and not yet a settled winner in the industry. Management also clarified that the July Korea fulfillment center fire has not significantly affected demand fulfillment, though any financial impact and insurance recoveries will be recognized in future quarters starting in Q3.