Coupang 2025 Q3 Earnings Net Income Surges 48.4% to $95M

Coupang (CPNG) reported fiscal 2025 Q3 earnings on Nov 5, 2025, with revenue rising 15.3% to $7.08 billion and EPS climbing 25% to $0.05. The company exceeded Wall Street expectations for both revenue and adjusted EBITDA but did not provide explicit guidance, focusing instead on operational execution and strategic reinvestment.

Revenue

Coupang’s total revenue for Q3 2025 reached $9.27 billion, driven by robust performance across segments. Net retail sales formed the core at $7.08 billion, while third-party merchant services added $1.89 billion. Other revenue, including logistics and services, contributed $293 million. The company’s Product Commerce segment, representing its core business, generated $8.0 billion in net revenues, up 18% year-over-year.

Earnings/Net Income

Coupang’s net income surged 48.4% to $95 million in Q3 2025, marking a six-year high. EPS rose to $0.05, a 25% increase from $0.04 in the prior-year period. The company’s profitability strengthened, with a 212-basis-point improvement in Product Commerce gross profit margin to 32.1%.

Post-Earnings Price Action Review

Coupang’s stock price edged up 2.26% on the latest trading day, 0.66% over the week, but declined 0.71% month-to-date. Post-earnings, shares fell 6.24% despite beating revenue and EPS estimates, reflecting investor caution over stagnant profitability. Analysts noted mixed sentiment, with Zacks Research downgrading to “Strong Sell” and Nomura upgrading to “Buy.” The stock’s 12-month range of $19.02–$34.08 and average price target of $33.50 highlight ongoing volatility.

CEO Commentary

CEO Bom Kim highlighted strong active customer growth (24.7 million, up 10% YoY) and margin expansion in Product Commerce. However, the Developing Offerings segment reported a $292 million adjusted EBITDA loss, widening by $165 million YoY, due to strategic investments in high-growth markets like Taiwan. Leadership emphasized balancing short-term profitability with long-term market expansion.

Guidance

Coupang did not provide forward-looking financial guidance, citing uncertainties in currency fluctuations and competitive pressures. Management reiterated commitments to reinvestment in high-potential segments and operational efficiency.

Additional News

1. Buyback Activity: Coupang repurchased 2.8 million shares for $81 million in Q3, signaling confidence in long-term growth.

2. Analyst Downgrade: Zacks Research cut its rating to “Strong Sell” amid concerns over stagnant profitability and margin pressures.

3. Insider Sales: CFO Gaurav Anand sold 75,350 shares for $2.09 million, while Director Pedro Franceschi sold 21,428 shares for $686,767.

Key Risks and Opportunities

Coupang faces intensified competition from AliExpress and Temu in South Korea, prompting expansion into groceries and beauty. While Product Commerce’s 24% gross profit growth underscores operational strength, Developing Offerings’ losses highlight the cost of strategic bets. Investors should monitor margin sustainability and capital allocation as the company navigates market expansion and margin pressures.