Coupang Swings to Loss as Revenue Growth Slows
Gross margin narrowed 188 basis points to 28.2% despite higher sales.
Coupang Inc. (CPNG), the South Korean e-commerce company, swung to a $570 million second-quarter net loss as Korean administrative fines compounded weakening Product Commerce profitability. Diluted earnings fell to negative $0.32 a share from positive $0.02 a share a year earlier.
The quarter marked another slowdown in Coupang’s top-line trajectory. Net revenue rose 4% from a year earlier to $8.856 billion, compared with growth of 8% in the first quarter and 11% in the fourth quarter of 2024. Constant-currency growth was 10%.
Profitability deteriorated more sharply than sales. Coupang recorded a $556 million operating loss, compared with $149 million of operating income a year earlier. The quarter included about $410 million of Korean administrative fines; excluding those charges, it posted a $146 million adjusted operating loss and an adjusted net loss of $160 million, or negative $0.09 a share.
Product Commerce revenue increased 1%, or 8% on a constant-currency basis, as active customers recovered to 24.7 million from 23.9 million in the first quarter. Revenue per active customer was $301, down 2% as reported and up 5% in constant currency.
The core segment’s adjusted EBITDA rose sequentially to $382 million from $358 million, while its margin edged up to 5.1%. Adjusted EBITDA remained 42% below the year-earlier period, and the segment’s year-over-year gross-margin contraction widened to 204 basis points.
Developing Offerings provided a counterweight. Revenue grew 20% to $1.431 billion, while gross profit rose 32% and more than recovered from the first quarter’s decline. The segment’s adjusted EBITDA loss narrowed to $219 million from $329 million in the preceding quarter and improved by $16 million from a year earlier.
Companywide adjusted EBITDA rebounded to $163 million from $29 million in the first quarter but remained 62% below the prior-year quarter. Trailing-12-month free cash flow fell 87% to $105 million even as Coupang accelerated repurchases, buying 23.2 million shares for $459 million during the quarter.