Coupang Achieves Q2 Profit, Revenue Surpasses Estimates

Coupang reported Q2 revenue of $8.52B, exceeding FactSet's estimate of $8.38B. The company swung to a profit, driven by strong sales growth in South Korea. Coupang's revenue rose 13% YoY, with gross merchandise volume increasing 15%. The company's net income reached $1.07B, compared to a net loss of $1.08B in the same period last year.

Title: Coupang Posts Strong Q2 2025 Results, Exceeding Analyst Estimates

Coupang, Inc. (NYSE: CPNG) announced its financial results for the second quarter of 2025, reporting a significant increase in revenue and a swing to profitability. The company's net revenue for the period reached $8.5 billion, surpassing FactSet's estimate of $8.38 billion. This marks a 16% year-over-year (YoY) increase on a reported basis and a 19% YoY increase on an FX-neutral basis [1].

The company's strong performance was driven by robust sales growth, particularly in South Korea. Net revenues in the Product Commerce segment grew by 14% YoY on a reported basis and 17% YoY on an FX-neutral basis, reaching $7.3 billion. The gross merchandise volume (GMV) also saw a significant increase of 15% YoY, contributing to the overall revenue growth [1].

Coupang's gross profit margin improved to 30.0%, up by 79 basis points (bps) YoY, indicating a more efficient cost structure. The operating income for the quarter was $149 million, an increase of $174 million over the same period last year, excluding the impact of the KFTC administrative fine recorded last year. Net income reached $31 million, compared to a net loss of $105 million in the same period last year [1].

The company's adjusted EBITDA for the quarter was $428 million, up 51 bps from last year, with a margin of 5.0%. Operating cash flow for the trailing twelve months was $1.9 billion, a decrease of $297 million YoY, while free cash flow was $784 million for the trailing twelve months, a decrease of $729 million YoY. The decrease in free cash flow was primarily driven by timing of capital expenditures and working capital fluctuations [1].

The Developing Offerings segment also showed growth, with net revenues increasing by 33% YoY on both a reported basis and FX-neutral basis, reaching $1.2 billion. However, the segment reported an adjusted EBITDA loss of $235 million, an increase of $35 million YoY [1].

Coupang will host a conference call to discuss the second quarter results on August 5, 2025, at 2:30 PM PT/5:30 PM ET. A live webcast and a replay will be available on the company's Investor Relations website [1].

References:
[1] https://www.marketscreener.com/news/coupang-announces-results-for-second-quarter-2025-ce7c5ed8df8df720