Coupang Inc - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
Did CPNG Beat Earnings? Q2 2025 Results
Coupang delivered a mixed second quarter for 2025, posting revenue that edged past expectations while earnings fell well short of what Wall Street had penciled in. The South Korean e-commerce giant reported net revenues of $8.52 billion, up 16.4% year-over-year and narrowly ahead of the $8.38 billion consensus estimate, yet diluted EPS of $0.02 missed the $0.05 forecast by 60.00%, weighed down by an unusually elevated effective tax rate on pre-tax income of $194.00 million against a $163.00 million tax bill. The headline profit story was still a genuine improvement, with net income of $31.00 million reversing a $105.00 million loss a year ago. Gross profit expanded 20% to $2.56 billion, and adjusted EBITDA climbed 30% to $428.00 million, reflecting operational efficiencies in the core Product Commerce segment, where active customers grew 10% to 23.9 million. Free cash flow declined 49% to $247.00 million due to higher capital expenditures, though management expects those working capital dynamics to normalize by year-end, even as the company continues expanding its global technology footprint.
- Product Commerce Active Customers grew 10% YoY to 23.9 million
- Net revenues per Product Commerce Active Customer increased 4% YoY to $307 (6% on constant currency)
- Product Commerce gross profit margin expanded 227 bps YoY to 32.6%
- Developing Offerings revenue grew 33% YoY driven by restaurant delivery, streaming, fintech, and Farfetch
- Adjusted EBITDA margin improved 51 bps YoY to 5.0%
- Constant currency revenue growth of 19% versus 16% reported growth reflecting FX headwinds from Korean Won
Forward Guidance & Outlook
Management noted that the decrease in trailing twelve-month free cash flow was primarily driven by timing of capital expenditures as well as impacts of certain working capital fluctuations in the current and previous trailing twelve-month periods, which they expect to normalize by the end of the year.
CPNG YoY Financials
CPNG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.