Coupang (CPNG) Q2 2025 earnings summary

Executive summary

• Net revenues reached $8.5 billion in Q2 2025, up 16% year-over-year and 19% in constant currency, with trailing twelve months revenues at $32.3 billion.

• Gross profit increased 20% year-over-year to $2.6 billion, with gross margin improving by 79 bps to 30.0%.

• Net income attributable to stockholders was $32 million, a $109 million improvement year-over-year, with diluted EPS of $0.02.

• Adjusted EBITDA rose 30% year-over-year to $428 million, with a 5.0% margin, up 51 bps.

• Product Commerce segment drove most of the growth, with active customers up 10% to 23.9 million and net revenues per active customer up 6% year-over-year (constant currency).

Financial highlights

• Operating income was $149 million, up 55% year-over-year.

• Free cash flow for the trailing twelve months was $784 million, down $729 million due to capital expenditures timing and working capital fluctuations.

• Operating cash flow for the trailing twelve months was $1.9 billion, down $297 million year-over-year.

• Product Commerce adjusted EBITDA was $663 million, margin of 9.0%, up $133 million year-over-year.

• Developing Offerings segment net revenues were $1.2 billion, up 33% year-over-year; adjusted EBITDA loss was $235 million, with Farfetch contributing $460 million in revenue and a net loss of $108 million.

Outlook and guidance

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

• Full-year Developing Offerings adjusted EBITDA losses expected between $900 million and $950 million, mainly due to increased investment in Taiwan.

• Effective tax rate anticipated to be temporarily high (65%-70%) for the year, normalizing to 25% long-term.

• Growth outlook for the full year remains at a constant currency consolidated growth rate of roughly 20%.

• Liquidity needs expected to be met by cash flow from operations and available credit facilities for at least the next 12 months.