Coupang (CPNG) Q1 2025 earnings summary

Executive summary

• Net revenues for Q1 2025 increased 11% year-over-year to $7.91 billion (21% FX-neutral), with strong growth in both Product Commerce and Developing Offerings segments and robust margin expansion.

• Net income was $114 million, reversing a net loss of $24 million in Q1 2024, with diluted EPS of $0.06.

• Adjusted EBITDA rose to $382 million, up 36% year-over-year, with a margin of 4.8%.

• Product Commerce active customers grew 9% year-over-year to 23.4 million, with net revenues per active customer up 6% on a constant currency basis.

• The Farfetch acquisition expanded the luxury retail footprint and contributed to Developing Offerings revenue growth.

Financial highlights

• Gross profit reached $2.32 billion, up 20% year-over-year, with gross margin improving to 29.3% (up 217 bps).

• Operating income was $154 million, up nearly 300% year-over-year.

• Free cash flow for the trailing twelve months was $1.0 billion, down $450 million year-over-year due to prior period non-recurring working capital benefits.

• Cash, cash equivalents, and restricted cash totaled $6.2 billion at quarter-end.

• Net cash provided by operating activities for the quarter was $354 million, up 67% year-over-year.

Outlook and guidance

• Full-year constant currency consolidated revenue growth is expected to be about 20%.

• Adjusted EBITDA losses for Developing Offerings are projected at $650–$750 million for the full year.

• Management expects continued investment in Developing Offerings and fulfillment/logistics infrastructure, with capital expenditures projected to exceed several billion dollars over the next several years.

• OG&A expenses as a percentage of revenue are expected to decline in the near to medium term.

• Long-term margin target remains above 10%.