Coupang Announces Results for First Quarter 2025
Coupang, Inc. (NYSE: CPNG) today announced financial results for its first quarter ended March 31, 2025. Q1 2025 Consolidated Highlights: Net revenues were $7.9 billion, up 11% YoY on a reported ba...
Net Revenues of $7.9 billion, up 11% YoY and 21% on an FX-neutral basis
Gross Profit of $2.3 billion, up 20% YoY and 31% on an FX-neutral basis
Operating income of $154 million, up $114 million
Operating Cash Flow of $2.0 billion and Free Cash Flow of $1.0 billion for the trailing twelve months
SEATTLE: Coupang, Inc. (NYSE: CPNG) today announced financial results for its first quarter ended March 31, 2025.
Q1 2025 Consolidated Highlights:
- Net revenues were $7.9 billion, up 11% YoY on a reported basis and 21% YoY on an FX-neutral basis.
- Gross profit increased 20% YoY and 31% YoY on an FX-neutral basis to $2.3 billion. Gross profit margin was 29.3%, an improvement of 217 bps YoY.
- Operating income was $154 million, an increase of $114 million from last year.
- Net income was $114 million and net income attributable to Coupang stockholders was $107 million, an increase of $102 million from last year.
- Diluted EPS was $0.06, an increase of $0.06 over last year.
- Adjusted EBITDA for the quarter was $382 million with a margin of 4.8%, up 88 bps from last year.
- Operating cash flow for the trailing twelve months was $2.0 billion, a decrease of $335 million YoY. This is primarily due to certain non-recurring working capital benefits in the prior period.
- Free cash flow was $1.0 billion for the trailing twelve months, a decrease of $450 million YoY. This is primarily due to certain non-recurring working capital benefits in the prior period.
Q1 2025 Segment Highlights:
- Product Commerce segment net revenues were $6.9 billion, up 6% YoY on a reported basis and 16% YoY on an FX-neutral basis.
- Product Commerce Active Customers reached 23.4 million, growing 9% YoY.
- Product Commerce gross profit was $2.2 billion, up 17% YoY on a reported basis and 28% YoY on an FX-neutral basis. Gross profit margin was 31.3%, an increase of over 300 bps YoY.
- Product Commerce segment adjusted EBITDA was $550 million, up $83 million YoY, with a margin of 8.0%, up 81 bps YoY.
- Developing Offerings segment (including International, Eats, Play, Fintech and Farfetch) net revenues were $1.0 billion, up 67% YoY on a reported basis and 78% YoY on an FX-neutral basis.
- Developing Offerings segment adjusted EBITDA was negative $168 million, an improvement of $18 million YoY.
Stock Repurchase Plan:
Today we are announcing that our Board of Directors has recently authorized a stock repurchase program for up to $1 billion of our outstanding shares of our Class A common stock, as part of our broader capital allocation strategy allowing us to generate meaningful returns for the shareholders.
First Quarter 2025 Results
Consolidated Financial Summary | ||||||||||
(in millions, except net revenues per Product Commerce Active Customer and earnings per share) | Three Months Ended March 31, |
|
| |||||||
2025 |
| 2024(3) |
| % Change | ||||||
Total net revenues | $ | 7,908 |
| $ | 7,114 |
|
| 11 | % | |
Total net revenues growth, constant currency(1) |
|
|
|
| 21 | % | ||||
Net revenues per Product Commerce Active Customer | $ | 294 |
| $ | 302 |
|
| (3 | )% | |
Net revenues per Product Commerce Active Customer, constant currency(1) | $ | 321 |
|
|
| 6 | % | |||
Product Commerce Active Customers |
| 23.4 |
|
| 21.5 |
|
| 9 | % | |
Gross profit(2) | $ | 2,316 |
| $ | 1,929 |
|
| 20 | % | |
Gross profit growth, constant currency(1)(2) |
|
|
|
| 31 | % | ||||
Net income (loss) | $ | 114 |
| $ | (24 | ) |
| NM(4) | ||
Net income attributable to Coupang stockholders | $ | 107 |
| $ | 5 |
|
| NM(4) | ||
Adjusted EBITDA(1) | $ | 382 |
| $ | 281 |
|
| 36 | % | |
Earnings per share, basic | $ | 0.06 |
| $ | — |
|
| 100 | % | |
Earnings per share, diluted | $ | 0.06 |
| $ | — |
|
| 100 | % | |
Net cash provided by operating activities | $ | 354 |
| $ | 212 |
|
| 67 | % | |
Free cash flow(1) | $ | 116 |
| $ | 107 |
|
| 8 | % | |
Segment Information | |||||||||||
| Three Months Ended March 31, |
|
| ||||||||
(in millions) | 2025 |
| 2024(3) |
| % Change | ||||||
Product Commerce |
|
|
|
|
| ||||||
Net revenues | $ | 6,870 |
|
| $ | 6,494 |
|
| 6 | % | |
Net revenues growth, constant currency(1) |
|
|
|
| 16 | % | |||||
Gross profit | $ | 2,151 |
|
| $ | 1,836 |
|
| 17 | % | |
Gross profit growth, constant currency(1) |
|
|
|
| 28 | % | |||||
Segment adjusted EBITDA | $ | 550 |
|
| $ | 467 |
|
| 18 | % | |
Developing Offerings |
|
|
|
|
| ||||||
Net revenues | $ | 1,038 |
|
| $ | 620 |
|
| 67 | % | |
Net revenues growth, constant currency(1) |
|
|
|
| 78 | % | |||||
Gross profit | $ | 165 |
|
| $ | 93 |
|
| 77 | % | |
Gross profit growth, constant currency(1) |
|
|
|
| 87 | % | |||||
Segment adjusted EBITDA | $ | (168 | ) |
| $ | (186 | ) |
| (10 | )% | |
(1) | Total net revenues growth, constant currency, net revenues per Product Commerce Active Customer, constant currency, gross profit growth, constant currency, adjusted EBITDA, and free cash flow are non-GAAP financial measures as defined by the Securities and Exchange Commission (the “SEC”). See the “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures” sections herein for more information regarding our use of these measures and reconciliations to the most directly comparable financial measures calculated in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | ||
(2) | Gross profit is calculated as total net revenues minus cost of sales. | ||
(3) | We completed the acquisition of the assets of Farfetch at the end of January in Q1 2024. | ||
(4) | Non-meaningful. | ||
Webcast and Conference Call
Coupang, Inc. will host a conference call to discuss first quarter results on May 6, 2025 at 2:30 PM PT/ 5:30 PM ET. A live webcast of the conference call will be available on our Investor Relations website, ir.aboutcoupang.com, and a replay of the conference call will be available for at least three months. This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable U.S. GAAP measures, as well as our first quarter earnings presentation, are also available on that site.
About Coupang
Coupang is a technology and Fortune 200 company listed on the New York Stock Exchange (NYSE: CPNG) that provides retail, restaurant delivery, video streaming, and fintech services to customers around the world under brands that include Coupang, Coupang Eats, Coupang Play and Farfetch.
FORWARD-LOOKING STATEMENTS
This earnings release or related management commentary may contain statements that may be deemed to be "forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Act”), that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws.
All statements other than statements of historical facts contained in this earnings release and related management commentary, including statements about our business and growth strategies, anticipated or target margins, cash flows, and other operating or financial results, our planned investments in new products and offerings, and their anticipated outcomes, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "toward," "will," "shall," "goal," "objective," "seek," "strategy," "future," "continue," or "would," or the negative of these words or other similar terms or expressions. We have based the forward-looking statements contained in this earnings release and related management commentary on our current expectations and projections about future events and trends that we believe may affect our industry, business, financial condition, and results of operations. Actual results and outcomes could differ materially for a variety of reasons, including, among others, risks and uncertainties regarding the continued growth of the retail market and the increased acceptance of online transactions by potential customers, competition in our industry, managing our growth and expansion into new markets and offerings, risks associated with current and future acquisitions, mergers, dispositions, joint ventures or investments, our financial performance, the extent to which we owe income or other taxes, our ability to retain existing suppliers and to add new suppliers, our market position, our operation and management of our fulfillment and delivery infrastructure, legal and regulatory developments, and the outcomes of any claims, litigation, audits, inspections and investigations, and the impact of global economic factors including inflation, foreign currency exchange rates, geopolitical events, and tariffs and other trade barriers. The forward-looking statements contained in this release are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted. For additional information on other potential risks and uncertainties that could cause actual results to differ from the results predicted, please see our most recent Annual Report on Form 10-K and subsequent SEC filings. All forward-looking statements in this earnings release or related management commentary are based on information available to Coupang and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (ir.aboutcoupang.com), our filings with the SEC, webcasts, press releases, and conference calls. We use these mediums, including our website, to communicate with investors and the general public about our company, our offerings, and other issues. It is possible that the information that we make available on our website may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our website.
COUPANG, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||
| Three Months Ended | |||||||
(in millions, except per share amounts) | 2025 |
| 2024 | |||||
Net retail sales | $ | 6,088 |
|
| $ | 5,895 |
| |
Net other revenue |
| 1,820 |
|
|
| 1,219 |
| |
Total net revenues |
| 7,908 |
|
|
| 7,114 |
| |
|
|
|
| |||||
Cost of sales |
| 5,592 |
|
|
| 5,185 |
| |
Operating, general and administrative |
| 2,162 |
|
|
| 1,889 |
| |
Total operating cost and expenses |
| 7,754 |
|
|
| 7,074 |
| |
|
|
|
| |||||
Operating income |
| 154 |
|
|
| 40 |
| |
|
|
|
| |||||
Interest income |
| 49 |
|
|
| 55 |
| |
Interest expense |
| (23 | ) |
|
| (27 | ) | |
Other income (expense), net |
| 36 |
|
|
| (9 | ) | |
Income before income taxes |
| 216 |
|
|
| 59 |
| |
|
|
|
| |||||
Income tax expense |
| 102 |
|
|
| 83 |
| |
|
|
|
| |||||
Net income (loss) |
| 114 |
|
|
| (24 | ) | |
Net income (loss) attributable to noncontrolling interests |
| 7 |
|
|
| (29 | ) | |
Net income attributable to Coupang stockholders |
| 107 |
|
|
|
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