Coupang (CPNG) Q1 2026 earnings summary

Executive summary

• Net revenues grew 8% year-over-year to $8.5 billion in Q1 2026, with constant currency growth also at 8%.

• A significant data incident in late Q4 2025 led to a $1.2 billion customer voucher program, impacting Q1 results and causing temporary margin pressures.

• Net loss attributable to shareholders was $266 million, a swing from net income in the prior year, with diluted EPS of $(0.15).

• Adjusted EBITDA dropped sharply to $29 million (0.3% margin), down 449 basis points year-over-year.

• Customer engagement rebounded, with WOW membership recovering nearly 80% of the post-incident decline by end of April and spend compounding at double-digit rates.

Financial highlights

• Product Commerce net revenues were $7.2 billion, up 4% year-over-year; Developing Offerings net revenues were $1.3 billion, up 28% year-over-year.

• Gross profit was $2.3 billion, down 1% year-over-year, with gross margin at 27.0%, down 228 basis points.

• Operating loss was $242 million; net loss attributable to shareholders was $266 million (diluted loss per share of $0.15).

• Consolidated Adjusted EBITDA was $29 million (0.3% margin), down 449 basis points year-over-year.

• Trailing 12-month operating cash flow was $1.6 billion; free cash flow was $301 million.

Outlook and guidance

• Q2 consolidated constant currency revenue growth expected at 9%-10%.

• Q2 Adjusted EBITDA margin contraction of 300-400 bps year-over-year anticipated, mainly due to lingering effects of the data incident.

• Annual margin expansion expected to resume in 2027 as temporary inefficiencies subside.

• Developing Offerings segment Adjusted EBITDA losses guided to $950 million-$1 billion for the year.

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