Coupang Q3 2026: A $248 Million Fire Wiped Out the Quarter
As seen on the 24/7 Wall St. homepage on November 3, 2026.
A July fire at Coupang's Incheon fulfillment center wiped out quarterly profitability at a cost of $248 million, even as revenue topped expectations. Management kept buying back stock through it.
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A July 2026 fire at Coupang's leased Incheon fulfillment center inflicted $248 million in losses, split between $95 million charged to cost of sales and $153 million absorbed in operating, general, and administrative expenses. That single event swung the company to an operating loss of $450 million and a net loss of $501 million for the quarter.
Adjusted EPS of negative $0.18 came in far below a consensus estimate of negative $0.0055, missing expectations by a wide margin. Gross margin fell to 25.7% and consolidated adjusted EBITDA collapsed 72% to $116 million.
The $9.96 billion top line grew 7.5% year over year, beating expectations. The faster-growing Developing Offerings segment, which includes Coupang Eats, Coupang Play, Rocket Now, and Farfetch, expanded revenue 23%, while the core Product Commerce segment grew 5% to $8.37 billion.
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Cash generation deteriorated sharply alongside profitability. Quarterly operating cash flow fell to $212 million from $792 million a year earlier, and free cash flow turned negative at minus $72 million.
Despite the financial damage, management kept repurchasing shares, buying back 12.7 million Class A shares for $201 million during the quarter, with $1,051 million repurchased across the first nine months of 2026. That continuing commitment to buybacks in the face of negative free cash flow is the signal investors will be weighing against the fire's one-time nature as they assess whether Q3 represents an anomaly or the beginning of a more difficult stretch.
Mentioned: CPNG