Coupang 2025 Q2 Earnings Returns to Profitability with 129.5% Net Income Surge

Coupang (CPNG) reported fiscal 2025 Q2 earnings on Aug 05th, 2025. The results exceeded expectations, with the company posting a net income of $31 million, a 129.5% positive swing from a $-105 million loss in 2024 Q2. The company also improved gross margins and revenue, indicating a strong turnaround.

Revenue
Coupang's total revenue rose 12.6% year-over-year to $6.51 billion in 2025 Q2, driven by robust performance in its core retail and logistics operations. The Product Commerce segment, which includes net retail sales, reported $7.3 billion in revenue, reflecting a 14% increase compared to the previous year. This segment also contributed a gross profit of $2.4 billion, up 23% year-over-year, with a notable 32.6% gross profit margin. The Developing Offerings segment, which includes third-party merchant services and other revenue streams, generated $1.2 billion in revenue, marking a 33% increase. Other revenue, such as digital and streaming services, added $262 million to the total net revenues of $8.52 billion.

Earnings/Net Income
Coupang returned to profitability with earnings per share (EPS) of $0.02 in 2025 Q2, reversing from a loss of $0.04 per share in 2024 Q2. The company reported a net income of $31 million, representing a 129.5% positive swing from the net loss of $-105 million in the prior year. The company also achieved adjusted EBITDA of $428 million, with a margin of 5.0%, up 51 bps from last year. The EPS result was a positive indicator for the company's financial health, signaling a strong turnaround and improved operational efficiency.

Price Action
The stock price of Coupang has edged up 1.22% during the latest trading day, has edged up 0.23% during the most recent full trading week, and has edged down 1.29% month-to-date.

Post-Earnings Price Action Review
The strategy of buying CPNG when its earnings beat expectations and selling after 30 days resulted in a -30.41% return, significantly underperforming the benchmark, which had a 0.00% return. The strategy's CAGR was -8.76%, with a maximum drawdown of 0.00% and a Sharpe ratio of -0.41, indicating a high-risk approach with negative returns.

CEO Commentary
Bom Suk Kim, CEO, highlighted strong Q2 performance with 16% revenue growth to $8.5 billion and margin expansion in the Product Commerce segment, achieving 32.6% gross profit margin and over 9% adjusted EBITDA margin. He emphasized the early stage of Coupang’s multi-decade mission to transform commerce, driven by continuous improvements in selection, price, and service, which fuel customer engagement and lower costs. Kim noted rapid growth in categories like Fresh and FLC, as well as expanding Rocket selection and delivery speed. He underscored investments in AI and automation to enhance customer experience and operational efficiency, with a particularly optimistic outlook for Taiwan, which saw 54% quarter-over-quarter revenue growth. Kim expressed confidence in the company’s long-term growth trajectory, driven by disciplined capital allocation and customer-centric innovation.

Guidance
Coupang expects continued margin expansion in the Product Commerce segment, with potential for adjusted EBITDA margins to exceed 10%, and reiterated a full-year consolidated revenue growth target of roughly 20% in constant currency. The company anticipates adjusted EBITDA losses for Developing Offerings in 2025 to range between $900 million and $950 million, driven by accelerated investments in Taiwan. While not providing specific CAPEX figures, Coupang emphasized disciplined investment in AI, automation, and infrastructure, with a focus on high-return opportunities. The company expects to maintain growth driven by customer engagement and operational improvements, with a long-term effective tax rate normalized to around 25%.

Additional News
No non-earnings related news was disclosed within the specified timeframe.