UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: March 31, 2026
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File No. 001-40115
COUPANG, INC.
(Exact name of Registrant as specified in its charter)
Delaware | 27-2810505 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||||||||
720 Olive Way, Suite 600
Seattle, Washington 98101
(206) 333-3839
(Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Class A Common Stock, par value $0.0001 per share | CPNG | New York Stock Exchange | ||||||||||||
(Title of each class) | (Trading Symbol) | (Name of each exchange on which registered) | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||
| Non-accelerated filer | ☐ | Small reporting company | ☐ | |||||||||||
| Emerging growth company | ☐ | |||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of April 30, 2026, there were 1,637,261,211 shares of the registrant’s Class A common stock and 157,802,990 shares of the registrant’s Class B common stock, each with a par value of $0.0001 per share, outstanding.
COUPANG, INC.
Form 10-Q
For the Quarterly Period Ended March 31, 2026
TABLE OF CONTENTS
Page | ||||||||
| Coupang, Inc. |  | Q1 2026 Form 10-Q | 1 | |||||||||||
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Form 10-Q contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Form 10-Q, including statements regarding our future results of operations or financial condition, business strategy and plans, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “toward,” “goal,” “objective,” “seek,” “strategy,” “future,” “opportunity,” “runway,” “trajectory,” “restore,” “will,” or “would,” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following:
•our expectations regarding, and potential fluctuations in, our future operating and financial performance including our ability to maintain profitability and achieve long-term and future profitability;
•our ability to successfully execute our business and growth strategy;
•the continued growth of the retail market, changes in consumer preferences and spending patterns, and the increased acceptance of online and app-based transactions by potential customers;
•the size of our addressable market segments, market share, and market trends;
•the nature and scope of any cybersecurity or data incidents (including the data incident discussed in Item 1C. “Cybersecurity” of our Form 10-K) and the impact of such incidents on us, our customers, operations, relationships with governmental authorities, and financial results;
•our ability to compete in our industry;
•our ability to maintain and improve our market position;
•our ability to manage expansion into new geographies and offerings;
•our ability to effectively manage the continued growth of our workforce and operations;
•our anticipated investments in new products, offerings, and geographies, and the effect of these investments on our results of operations;
•our ability to effectively integrate acquisitions and realize the anticipated benefits of such transactions;
•the sufficiency of our cash and cash equivalents, and investments, to meet our liquidity needs;
•our ability to retain existing suppliers and merchants and to add new suppliers and merchants;
•our suppliers’ and merchants’ ability to supply high-quality and compliant merchandise to our customers;
•our relationship with our employees and the status of our workers;
•our ability to operate and manage the expansion of our fulfillment and logistics infrastructure;
•the effects of seasonal trends on our results of operations;
•our ability to implement, maintain, and improve our internal control over financial reporting;
•our ability to effectively manage our exposure to fluctuations in foreign currency exchange rates;
•our estimates and assumptions related to our effective tax rate, future cash taxes, and realization of certain deferred tax assets;
•the impact of world events such as natural disasters, acts of war or geopolitical conflicts (including the ongoing conflict in the Middle East), terrorism or disease outbreaks;
•the effects of global macroeconomic conditions, including, but not limited to, inflationary pressures, a general economic slowdown or recession, interest rate fluctuations, the imposition of additional or increased tariffs or other trade barriers, and changes in monetary policy;
•our ability to attract, retain, and motivate skilled personnel, including key members of our senior management;
•our ability to stay in compliance with laws and regulations, including tax laws, that currently apply or may become applicable to our business both in Korea and internationally and our expectations regarding various laws, regulations, and restrictions that relate to our business;
•the outcomes of any claims, litigation, governmental audits, inspections, and investigations; and
•the other factors set forth in Part I, Item 1A, under the caption “Risk Factors,” of our 2025 Form 10-K.
We caution you that the foregoing list may not contain all of the forward-looking statements made in this Form 10-Q.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 2 | |||||||||||
You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in Part I, Item 1A, under the section titled “Risk Factors,” of our 2025 Form 10-K and elsewhere in this Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Form 10-Q. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.
In addition, statements such as “we believe,” “we expect,” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Form 10-Q. While we believe such information provides a reasonable basis for these statements, such information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
The forward-looking statements made in this Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Form 10-Q to reflect events or circumstances after the date of this Form 10-Q or to reflect new information, actual results, revised expectations, or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments.
Company Website
Investors and others should note that we may announce material business and financial information using our investor relations website (https://ir.aboutcoupang.com) and through https://news.coupang.com, our filings with the SEC, webcasts, press releases (including those on our investor relations website and https://news.coupang.com), and conference calls. We use these mediums to communicate with investors and the general public about our company, our products, and other matters. It is possible that the information that we make available on our investor relations website, https://news.coupang.com, may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our investor relations website, https://news.coupang.com. Notwithstanding the foregoing, the information contained on our investor relations website, https://news.coupang.com, as referenced in this paragraph are not incorporated by reference into this Form 10-Q or any other report or document we file with the SEC.
Any updates to the list of disclosure channels through which we will announce information will be posted on our investor relations website or https://news.coupang.com.
Except where expressly noted or the context otherwise requires, all references in this Form 10-Q to “Coupang, Inc.,” “Coupang,” “the Company,” “our Company,” “we,” “us,” and “our” are to the Delaware corporation named “Coupang, Inc.” and, where appropriate, its subsidiaries.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 3 | |||||||||||
Part I. Financial Information
| Item 1. Financial Statements (Unaudited) | ||||||||||||||
COUPANG, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three Months Ended March 31, | |||||||||||
(in millions, except per share amounts) | 2026 | 2025 | |||||||||
| Net retail sales | $ | 6,476 | $ | 6,088 | |||||||
| Net other revenue | 2,028 | 1,820 | |||||||||
| Total net revenues | 8,504 | 7,908 | |||||||||
| Cost of sales | 6,207 | 5,592 | |||||||||
| Operating, general and administrative | 2,539 | 2,162 | |||||||||
| Total operating cost and expenses | 8,746 | 7,754 | |||||||||
| Operating (loss) income | (242) | 154 | |||||||||
| Interest income | 44 | 49 | |||||||||
| Interest expense | (13) | (23) | |||||||||
| Other (expense) income, net | (44) | 36 | |||||||||
| (Loss) income before income taxes | (255) | 216 | |||||||||
| Income tax expense | 11 | 102 | |||||||||
| Net (loss) income | $ | (266) | $ | 114 | |||||||
| Net income attributable to noncontrolling interests | — | 7 | |||||||||
| Net (loss) income attributable to Coupang stockholders | $ | (266) | $ | 107 | |||||||
| Earnings per share | |||||||||||
| Basic | $ | (0.15) | $ | 0.06 | |||||||
| Diluted | $ | (0.15) | $ | 0.06 | |||||||
| Weighted-average shares outstanding | |||||||||||
| Basic | 1,825 | 1,806 | |||||||||
| Diluted | 1,825 | 1,840 | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 4 | |||||||||||
COUPANG, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited)
| Three Months Ended March 31, | |||||||||||
| (in millions) | 2026 | 2025 | |||||||||
| Net (loss) income | $ | (266) | $ | 114 | |||||||
| Other comprehensive loss: | |||||||||||
| Foreign currency translation adjustments, net of tax | (160) | (5) | |||||||||
| Actuarial gain on defined severance benefits, net of tax | 1 | 2 | |||||||||
| Total other comprehensive loss | (159) | (3) | |||||||||
| Comprehensive (loss) income | (425) | 111 | |||||||||
| Comprehensive income attributable to noncontrolling interests | — | 4 | |||||||||
| Comprehensive (loss) income attributable to Coupang stockholders | $ | (425) | $ | 107 | |||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 5 | |||||||||||
COUPANG, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in millions) | March 31, 2026 | December 31, 2025 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 6,301 | $ | 6,318 | |||||||
| Restricted cash | 90 | 94 | |||||||||
| Accounts receivable, net | 351 | 363 | |||||||||
| Inventories | 2,037 | 2,256 | |||||||||
| Prepaids and other current assets | 584 | 660 | |||||||||
| Total current assets | 9,363 | 9,691 | |||||||||
| Property and equipment, net | 3,632 | 3,722 | |||||||||
| Operating lease right-of-use assets | 2,844 | 2,765 | |||||||||
| Intangible assets, net | 178 | 190 | |||||||||
| Deferred tax assets | 597 | 596 | |||||||||
| Long-term lease deposits and other | 785 | 823 | |||||||||
| Total assets | $ | 17,399 | $ | 17,787 | |||||||
| Liabilities and equity | |||||||||||
| Accounts payable | $ | 5,965 | $ | 6,298 | |||||||
| Accrued expenses | 406 | 515 | |||||||||
| Deferred revenue | 183 | 188 | |||||||||
| Short-term borrowings | 1,672 | 960 | |||||||||
| Current portion of long-term operating lease obligations | 557 | 545 | |||||||||
| Other current liabilities | 840 | 851 | |||||||||
| Total current liabilities | 9,623 | 9,357 | |||||||||
| Long-term debt | 617 | 648 | |||||||||
| Long-term operating lease obligations | 2,550 | 2,482 | |||||||||
| Defined severance benefits and other | 679 | 677 | |||||||||
| Total liabilities | 13,469 | 13,164 | |||||||||
| Commitments and contingencies (Note 10) | |||||||||||
| Equity | |||||||||||
| Common stock | — | — | |||||||||
Class A — shares authorized 10,000, outstanding 1,651 and 1,665 Class B — shares authorized 250, outstanding 158 and 158 | |||||||||||
| Additional paid-in capital | 8,757 | 9,025 | |||||||||
| Accumulated other comprehensive loss | (540) | (381) | |||||||||
| Accumulated deficit | (4,287) | (4,021) | |||||||||
| Total equity | 3,930 | 4,623 | |||||||||
| Total liabilities and equity | $ | 17,399 | $ | 17,787 | |||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 6 | |||||||||||
COUPANG, INC.
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
(unaudited)
| Redeemable Noncontrolling Interests | Class A and Class B Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2024 | $ | 75 | 1,801 | $ | — | $ | 8,736 | $ | (404) | $ | (4,229) | $ | (1) | $ | 4,102 | |||||||||||||||||||||||||||||||||||
Net income | 4 | — | — | — | — | 107 | 3 | 110 | ||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments, net of tax | (3) | — | — | — | (2) | — | — | (2) | ||||||||||||||||||||||||||||||||||||||||||
| Actuarial gain on defined severance benefits, net of tax | — | — | — | — | 2 | — | — | 2 | ||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock upon settlement of restricted stock units | — | 6 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Re-measurement of noncontrolling interest | 3 | — | — | (3) | — | — | — | (3) | ||||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation | — | — | — | 121 | — | — | — | 121 | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition of noncontrolling interest | (51) | — | — | 44 | — | — | — | 44 | ||||||||||||||||||||||||||||||||||||||||||
| Dividends paid to noncontrolling interest | (4) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Balance as of March 31, 2025 | $ | 24 | 1,807 | $ | — | $ | 8,898 | $ | (404) | $ | (4,122) | $ | 2 | $ | 4,374 | |||||||||||||||||||||||||||||||||||
| Class A and Class B Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Equity | |||||||||||||||||||||||||||||||
| (in millions) | Shares | Amount | |||||||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | 1,823 | $ | — | $ | 9,025 | $ | (381) | $ | (4,021) | $ | 4,623 | ||||||||||||||||||||||||
| Net loss | — | — | — | — | (266) | (266) | |||||||||||||||||||||||||||||
| Foreign currency translation adjustments, net of tax | — | — | — | (160) | — | (160) | |||||||||||||||||||||||||||||
| Actuarial gain on defined severance benefits, net of tax | — | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||
| Issuance of common stock upon exercise of stock options | — | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||
| Issuance of common stock upon settlement of restricted stock units | 6 | — | — | — | — | — | |||||||||||||||||||||||||||||
| Repurchase of Class A common stock | (20) | — | (391) | — | — | (391) | |||||||||||||||||||||||||||||
| Equity-based compensation | — | — | 122 | — | — | 122 | |||||||||||||||||||||||||||||
| Balance as of March 31, 2026 | 1,809 | $ | — | $ | 8,757 | $ | (540) | $ | (4,287) | $ | 3,930 | ||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 7 | |||||||||||
COUPANG, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Three Months Ended March 31, | |||||||||||
| (in millions) | 2026 | 2025 | |||||||||
| Operating activities | |||||||||||
Net (loss) income | $ | (266) | $ | 114 | |||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 143 | 122 | |||||||||
| Provision for severance benefits | 67 | 56 | |||||||||
| Equity-based compensation | 122 | 121 | |||||||||
| Non-cash operating lease expense | 143 | 116 | |||||||||
| Deferred income taxes | (28) | 11 | |||||||||
| Other | 98 | 1 | |||||||||
| Change in operating assets and liabilities, net of acquisition: | |||||||||||
| Accounts receivable, net | (8) | (80) | |||||||||
| Inventories | 128 | (18) | |||||||||
| Other assets | (41) | (111) | |||||||||
| Accounts payable | 53 | 111 | |||||||||
| Accrued expenses | (97) | (93) | |||||||||
| Other liabilities | (130) | 4 | |||||||||
| Net cash provided by operating activities | 184 | 354 | |||||||||
| Investing activities | |||||||||||
| Purchases of property and equipment | (296) | (239) | |||||||||
| Proceeds from sale of property and equipment | 2 | 1 | |||||||||
| Other investing activities | (8) | 25 | |||||||||
| Net cash used in investing activities | (302) | (213) | |||||||||
| Financing activities | |||||||||||
| Proceeds from issuance of common stock, equity-based compensation plan | 1 | — | |||||||||
| Repurchase of Class A common stock | (391) | — | |||||||||
| Proceeds from short-term borrowings and long-term debt | 1,936 | 295 | |||||||||
| Repayment of short-term borrowings and long-term debt | (1,198) | (267) | |||||||||
| Other financing activities | — | (12) | |||||||||
| Net cash provided by financing activities | 348 | 16 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (251) | 12 | |||||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash | (21) | 169 | |||||||||
| Cash and cash equivalents and restricted cash, as of beginning of period | 6,412 | 6,031 | |||||||||
| Cash and cash equivalents and restricted cash, as of end of period | $ | 6,391 | $ | 6,200 | |||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 8 | |||||||||||
COUPANG, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. Basis of Presentation and Summary of Significant Accounting Policies
The accompanying unaudited condensed consolidated financial statements of Coupang (collectively, “we,” “us,” or “our”) have been prepared in accordance with U.S. GAAP and applicable rules and regulations of SEC regarding interim financial reporting. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. We based our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates.
The unaudited interim financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for fair statement of the results of the interim period. Certain information and note disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our 2025 Form 10-K.
Recent Accounting Pronouncements Yet To Be Adopted
In November 2024, the FASB issued ASU 2024-03 “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)”, which requires public entities to disaggregate significant expense categories within functional line items to enhance transparency and comparability in financial reporting. In January 2025, the FASB issued ASU 2025-01, which clarifies the effective date and provides additional implementation guidance for ASU 2024-03 to ensure consistent application. Both standards are effective for annual reporting periods beginning with the fiscal year ending December 31, 2027, and interim reporting periods beginning with the period ending March 31, 2028, with early adoption permitted. We are evaluating the effect of adopting these standards on our financial reporting and disclosures.
In December 2025, the FASB issued ASU 2025-11 “Interim Reporting (Topic 207) - Narrow-Scope Improvements”, which clarifies interim disclosure requirements and the applicability of Topic 270. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact of adopting the standard on our financial reporting and disclosures.
2. Net Revenues
Details of total net revenues were as follows:
| Three Months Ended March 31, | |||||||||||
(in millions) | 2026 | 2025 | |||||||||
| Net retail sales | $ | 6,476 | $ | 6,088 | |||||||
| Third-party merchant services | 1,767 | 1,562 | |||||||||
| Other revenue | 261 | 258 | |||||||||
| Total net revenues | $ | 8,504 | $ | 7,908 | |||||||
This level of revenue disaggregation takes into consideration how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Net retail sales are recognized from owned inventory product sales to consumers. Third-party merchant services represent commissions, advertising, and delivery fees earned from merchants and restaurants that sell their products through our online businesses. Other revenue includes revenue earned from our WOW membership programs and various other offerings.
Contract liabilities consist of payments in advance of delivery and customer loyalty credits, which are included in “Deferred revenue” on the condensed consolidated balance sheets. We recognized revenue of $170 million and $136 million for the three months ended March 31, 2026 and 2025, respectively, which were included in “Deferred revenue” on the consolidated balance sheets as of the beginning of the respective years.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 9 | |||||||||||
3. Segment Reporting
We own and operate a retail business that primarily serves the Korean retail market along with other international markets. The CODM is our CEO. We have two operating and reportable segments: Product Commerce and Developing Offerings. These segments are based on how the CODM manages the business, allocates resources, makes operating decisions and evaluates operating performance.
Product Commerce primarily includes our core Korean retail (owned inventory) and marketplace offerings (third-party merchants) and Rocket Fresh, as well as advertising products associated with these offerings. Revenues from Product Commerce are derived primarily from online product sales of owned inventory to customers in Korea, commissions and logistics and fulfillment fees from merchants that sell products through our mobile application and website, and from our Korean WOW membership program.
Developing Offerings includes our more nascent offerings and services, including Eats, Rocket Now, Play, fintech, our retail operations in Taiwan, as well as advertising products associated with these offerings, and also includes Farfetch. Revenues from Developing Offerings are primarily generated from Farfetch, Eats, and retail operations in Taiwan.
The CODM uses two profitability measures, Segment Gross Profit and Segment Adjusted EBITDA, in assessing segment performance and allocating resources to each segment. Segment Gross Profit and Segment Adjusted EBITDA are evaluated on a monthly basis by our CODM by monitoring actual results versus prior periods. This comparison is performed to make strategic assessments and decisions regarding segment profitability, resource allocation, pricing strategies and cost optimization, and whether to reinvest profits into each of these segments or into other initiatives.
Segment Gross Profit is defined as total net revenues less cost of sales attributable to each reportable segment.
Segment Adjusted EBITDA is defined as income (loss) before income taxes for a period before depreciation and amortization, equity-based compensation expense, interest expense, interest income, and other income (expense), net. Segment adjusted EBITDA also excludes impairments and other items that we do not believe are reflective of our ongoing operations.
We generally allocate operating expenses to the respective segments based on usage. The CODM does not evaluate segments using asset information and, accordingly, we do not report asset information by segment.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 10 | |||||||||||
Reportable segment financial information is as follows:
| Three Months Ended March 31, | |||||||||||
(in millions) | 2026 | 2025 | |||||||||
| Net revenues | |||||||||||
| Product Commerce | $ | 7,176 | $ | 6,870 | |||||||
| Developing Offerings | 1,328 | 1,038 | |||||||||
| Total net revenues | $ | 8,504 | $ | 7,908 | |||||||
| Cost of sales | |||||||||||
| Product Commerce | $ | 5,002 | $ | 4,719 | |||||||
| Developing Offerings | 1,205 | 873 | |||||||||
| Total cost of sales | $ | 6,207 | $ | 5,592 | |||||||
| Gross profit | |||||||||||
| Product Commerce | $ | 2,174 | $ | 2,151 | |||||||
| Developing Offerings | 123 | 165 | |||||||||
| Total gross profit | $ | 2,297 | $ | 2,316 | |||||||
Other segment items (1) | |||||||||||
| Product Commerce | $ | 1,816 | $ | 1,601 | |||||||
| Developing Offerings | 452 | 333 | |||||||||
| Total other segment items | $ | 2,268 | $ | 1,934 | |||||||
| Segment adjusted EBITDA | |||||||||||
| Product Commerce | $ | 358 | $ | 550 | |||||||
| Developing Offerings | (329) | (168) | |||||||||
| Total segment adjusted EBITDA | $ | 29 | $ | 382 | |||||||
(1)Other segment items relate to operating, general and administrative expense, excluding depreciation and amortization, equity-based compensation expense, impairments and other items that we do not believe are reflective of our ongoing operations. The CODM does not regularly review disaggregated expense information included within “Other segment Items” for any individual segment.
Reconciliations of segment profit or loss:
| Three Months Ended March 31, | |||||||||||
| (in millions) | 2026 | 2025 | |||||||||
| Total gross profit | $ | 2,297 | $ | 2,316 | |||||||
| Operating, general and administrative | (2,539) | (2,162) | |||||||||
| Interest expense | (13) | (23) | |||||||||
| Interest income | 44 | 49 | |||||||||
| Other (expense) income, net | (44) | 36 | |||||||||
| (Loss) income before income taxes | $ | (255) | $ | 216 | |||||||
| Three Months Ended March 31, | |||||||||||
| (in millions) | 2026 | 2025 | |||||||||
Total segment adjusted EBITDA | $ | 29 | $ | 382 | |||||||
| Depreciation and amortization | (143) | (122) | |||||||||
| Equity-based compensation | (128) | (121) | |||||||||
Acquisition and restructuring related gains, net | — | 15 | |||||||||
| Interest expense | (13) | (23) | |||||||||
| Interest income | 44 | 49 | |||||||||
| Other (expense) income, net | (44) | 36 | |||||||||
| (Loss) income before income taxes | $ | (255) | $ | 216 | |||||||
Note: Amounts may not foot due to rounding.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 11 | |||||||||||
4. Defined Severance Benefits
Net periodic benefit costs consist of the following:
| Three Months Ended March 31, | ||||||||||||||
(in millions) | 2026 | 2025 | ||||||||||||
| Current service costs | $ | 60 | $ | 50 | ||||||||||
| Interest cost | 6 | 4 | ||||||||||||
| Amortization of: | ||||||||||||||
| Net actuarial loss | 1 | 2 | ||||||||||||
| Net periodic benefit cost | $ | 67 | $ | 56 | ||||||||||
5. Income Taxes
Our tax provision for income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. No income tax benefit was accrued for certain jurisdictions where we anticipate incurring a loss during the full fiscal year as the related deferred tax assets were fully offset by a valuation allowance. Our resulting effective tax rate differs from the applicable statutory rate, primarily due to tax credits, U.S. taxes on foreign earnings such as the inclusion of the GILTI provisions, the valuation allowance against deferred tax assets in loss making jurisdictions, and other permanent differences.
Our tax provision for income taxes for the three months ended March 31, 2026 was unfavorably impacted by losses before income taxes in certain jurisdictions for which we receive no tax benefit, resulting in a negative effective tax rate.
The realization of our deferred tax assets primarily depends on the generation of future taxable income. Based on our current assessment, it is possible that our future results of operations in the U.S. could result in the need to record an additional valuation allowance against our U.S. deferred tax assets within the next 12 months. We continue to monitor the realizability of our deferred tax assets on a quarterly basis and will adjust the valuation allowance in the period where evidence indicates that it is more likely than not that these assets will not be realized.
6. Earnings per Share
Basic earnings per share is computed by dividing net income attributable to Coupang stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to Coupang stockholders by the weighted-average number of shares of common stock and potentially dilutive common stock outstanding during the period.
We have two classes of common stock outstanding, Class A common stock and Class B common stock, with equal rights to dividends and income. Earnings per share attributable to Coupang stockholders are therefore the same for Class A and Class B common stock, both on an individual and combined basis.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 12 | |||||||||||
The following table presents the calculation of basic and diluted earnings per share attributable to Coupang stockholders:
| Three Months Ended March 31, | |||||||||||
(in millions, except per share amounts) | 2026 | 2025 | |||||||||
| Numerator: | |||||||||||
Net (loss) income attributable to Coupang stockholders | $ | (266) | $ | 107 | |||||||
| Denominator: | |||||||||||
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: | |||||||||||
| Basic | 1,825 | 1,806 | |||||||||
| Dilutive effect of equity compensation awards | — | 34 | |||||||||
| Diluted | 1,825 | 1,840 | |||||||||
Earnings per share: | |||||||||||
| Basic | $ | (0.15) | $ | 0.06 | |||||||
| Diluted | $ | (0.15) | $ | 0.06 | |||||||
| Anti-dilutive shares | 25 | — | |||||||||
Note: Amounts may not foot due to rounding.
7. Fair Value Measurement
Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are reported in one of the three levels reflecting the significant inputs used to determine fair value.
The following table summarizes our financial assets and financial liabilities that are measured at fair value on a recurring basis:
(in millions) | Classification | Measurement Level | March 31, 2026 | December 31, 2025 | |||||||||||||||||||
| Financial assets | |||||||||||||||||||||||
| Money market trust | Cash and cash equivalents | Level 1 | $ | 2,197 | $ | 2,262 | |||||||||||||||||
| Money market fund | Cash and cash equivalents | Level 1 | $ | 587 | $ | 548 | |||||||||||||||||
| Money market trust | Restricted cash | Level 1 | $ | 85 | $ | 90 | |||||||||||||||||
8. Supplemental Financial Information
Supplemental Disclosure of Cash Flow Information
| Three Months Ended March 31, | |||||||||||
| (in millions) | 2026 | 2025 | |||||||||
| Supplemental disclosure of cash flow information | |||||||||||
| Cash paid for income taxes, net of refunds | $ | 15 | $ | 12 | |||||||
| Cash paid for the amount used to measure the operating lease liabilities | $ | 178 | $ | 134 | |||||||
| Operating lease assets obtained in exchange for lease obligations | $ | 322 | $ | 290 | |||||||
| Net increase to operating lease right-of-use assets resulting from remeasurements of lease obligations | $ | 23 | $ | 118 | |||||||
| Non-cash investing and financing activities | |||||||||||
| (Decrease) increase in property and equipment-related accounts payable | $ | (70) | $ | 15 | |||||||
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown within the consolidated statements of cash flows:
| (in millions) | March 31, 2026 | December 31, 2025 | |||||||||
Current assets | |||||||||||
| Cash and cash equivalents | $ | 6,301 | $ | 6,318 | |||||||
| Restricted cash | 90 | 94 | |||||||||
| Total cash, cash equivalents, and restricted cash | $ | 6,391 | $ | 6,412 | |||||||
| Coupang, Inc. | | Q1 2026 Form 10-Q | 13 | |||||||||||
Supplier Financing Arrangements
Confirmed invoices owed to financial institutions under supplier financing arrangements were as follows:
| (in millions) | March 31, 2026 | December 31, 2025 | |||||||||
| Amounts included in accounts payable | $ | 430 | $ | 485 | |||||||
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) includes all changes in equity during a period that have yet to be recognized in income. The major components are foreign currency translation adjustments and actuarial gains (losses) on our defined severance benefits. As of March 31, 2026 and December 31, 2025, the ending balance in accumulated other comprehensive income (loss) related to foreign currency translation adjustments was $(457) million and $(297) million, respectively, and the amount related to actuarial losses on defined severance benefits was $(83) million and $(84) million, respectively.
Stock Repurchase Program
In May 2025, our Board of Directors authorized a stock repurchase program for up to $1 billion of our outstanding shares of Class A common stock, and in May 2026, our Board of Directors authorized an additional increase of up to $1 billion under the stock repurchase program. We may repurchase shares of Class A common stock from time to time through open market purchases, in privately negotiated transactions, or by other means in accordance with applicable securities laws and other restrictions. The program has no expiration date, and we are not obligated to repurchase any portion of our total authorization. During the three months ended March 31, 2026, we repurchased 20.4 million shares of Class A common stock for an aggregate amount of $391 million. As of March 31, 2026, we had $366 million remaining under the stock repurchase program.
9. Short-term Borrowings and Long-term Debt
Short-term Borrowings
Revolving Credit Facility
Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to the applicable benchmark rate, including but not limited to , plus an applicable margin ranging from 0.75% to 1.25%. The Revolving Credit Facility contains customary affirmative and negative covenants, including certain financial covenants. During the three months ended March 31, 2026, we borrowed $750 million under the Revolving Credit Facility for general operating purposes and $750 million was outstanding as of March 31, 2026 and is included in “Short-term borrowings”.
Other Credit Facilities
During the three months ended March 31, 2026, we entered into various unsecured borrowings under other revolving credit facilities, the majority of which are due in 2026. These credit facilities contain customary affirmative and negative covenants, including certain financial covenants. As of March 31, 2026, aggregate outstanding borrowings under all other credit facilities totaled $928 million with a weighted average interest rate of 3.01%.
Long-term Debt
Our long-term debt is recorded at amortized cost. The fair value is estimated using Level 2 inputs based on our current interest rates for similar types of borrowing arrangements. The carrying amount of long-term debt approximates its fair value as of March 31, 2026 and December 31, 2025 due primarily to the interest rates approximating market interest rates.
We were in compliance with the financial covenants for each of our borrowings and debt agreements as of March 31, 2026.
10. Commitments and Contingencies
Commitments
Long-term contractual commitments primarily include operating leases, long-term debt, and unconditional purchase obligations. Unconditional purchase obligations include legally binding contracts with terms in excess of one year that are not reflected on the consolidated balance sheets. These contractual commitments primarily relate to purchases of technology related services, fulfillment center construction contracts, content, and software licenses. For contracts with variable terms, we do not estimate the total obligation beyond any minimum pricing as of the reporting date.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 14 | |||||||||||
Legal Matters
From time to time, we may become party to litigation incidents and other legal proceedings, including regulatory proceedings, tax and other government inquiries, and investigations that arise in the ordinary course of business. Certain of these matters include speculative claims for substantial or indeterminate amounts of damages. Additionally, we are required to comply with laws and regulations, including tax laws, that currently apply or may become applicable to our operations in the United States, Korea, and other international jurisdictions, and we regularly become subject to new laws and regulations in the jurisdictions in which we operate. The requirements for complying with these obligations may be uncertain and subject to interpretation and enforcement by regulatory and other authorities, and any failure or perceived failure to comply with such obligations could eventually lead to asserted legal or regulatory action.
We assess the likelihood of any adverse judgments or outcomes with respect to these matters and determine loss contingency assessments on a gross basis after assessing the probability of incurrence of a loss and whether a loss is reasonably estimable. In addition, we consider other relevant factors that could impact our ability to reasonably estimate a loss. A determination of the amount of reserves required, if any, for these contingencies is made after analyzing each matter. Our reserves may change in the future due to new developments or changes in strategy in handling these matters. We recognize estimated losses from contingencies when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. We disclose material contingencies when we believe that a loss is at least reasonably possible.
The ultimate outcome of these matters, such as whether the likelihood of loss is remote, reasonably possible, or probable or if and when the possible range of loss is reasonably estimable, is inherently uncertain. Therefore, if one or more of these matters were resolved against us for amounts that materially differ from management's estimates of losses, it could have a favorable or unfavorable impact on our results of operations and financial condition. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.
Unless otherwise noted, with respect to the matters described below that do not include an estimate of the amount of loss or range of possible loss, such losses or range of possible losses either cannot be estimated or are not individually material, but we believe there is a reasonable possibility that they may be material in the aggregate.
Litigation
On August 26, 2022, a putative class action was filed on behalf of all purchasers of Coupang Class A common stock pursuant and/or traceable to Coupang’s registration statement issued in connection with our initial public offering. New York City Public Pension Funds v. Coupang, Inc. et al., formerly Choi v. Coupang, Inc. et al. was brought against Coupang and certain of its former and current directors, current officers, and certain underwriters of the offering. The action was filed in the United States District Court for the Southern District of New York alleging inaccurate and misleading or omitted statements of material fact in Coupang's Registration Statement in violation of Sections 11, 12, and 15 of the Securities Act. The action was amended in May 2023, and added allegations of securities fraud under Sections 10 and 20 of the Exchange Act. The action seeks unspecified compensatory damages, attorneys’ fees, and reasonable costs and expenses. Between August and December 2023, three separate stockholders’ derivative actions were filed in the United States District Court for the Southern District of New York and in December 2024 and March 2025, derivative actions were filed in Delaware Chancery Court, in each case against certain of Coupang’s former and current directors and current officers. Coupang was named as a nominal defendant in the various derivative actions. Aside from the aforementioned actions, there have been additional Delaware Section 220 records inspection demands. These derivative actions and related demands purport to assert claims on behalf of Coupang and make substantially similar factual allegations to New York City Public Pension Funds v. Coupang, Inc. et al., bringing claims for, among other things, breach of fiduciary duty, unjust enrichment, and violations of securities laws. The actions seek compensatory damages, governance reforms, and other relief. On September 10, 2025, the Court dismissed New York City Public Pension Funds v. Coupang, Inc. et al. in its entirety without leave to amend. The plaintiffs filed a notice of appeal on October 10, 2025, and the appeal is awaiting the court’s decision. We intend to continue to vigorously defend the claims and the appeal. A reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time. Accordingly, we can provide no assurances as to the scope and outcome of these matters and no assurances as to whether our business, financial position, results of operations or cash flows will not be materially adversely affected. In February and March 2025, we received demands on our Board of Directors alleging claims similar to those in the class and derivative actions and demanding civil actions by the Board against certain current and former directors and officers. Those demands have been provided to the Board of Directors to evaluate.
In November 2025, Coupang became aware of a data incident involving unauthorized access to customer accounts by a former employee (the “Incident”). On January 6, 2026, a putative securities class action was filed against Coupang and certain of its officers and directors, as well as Coupang Corp., in the United States District Court for the Western District of Washington on behalf of persons who purchased or acquired shares of Coupang Class A common stock between May 7, 2025 and December 16, 2025. This action, Lee and Park v. Coupang, Inc., alleges false and misleading statements related to the Incident in violation of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 of the Exchange Act. The action seeks unspecified damages, attorney’s fees, and other costs and expenses. On January 6, 2026, a stockholder derivative action, Warga v. Bom Kim, et. al., was filed in the United States District Court for the Northern District of California and on March 24, 2026, a derivative action, Wilson v. Coupang was filed in the Western District of Washington. The derivative actions, which are based on the Incident, were filed
| Coupang, Inc. | | Q1 2026 Form 10-Q | 15 | |||||||||||
against Coupang’s directors and certain of its officers, and against Coupang as a nominal defendant. They assert claims for breach of fiduciary duty and violations of securities laws and seek various remedies, including damages and improvements to governance and procedures. On February 6, 2026, a putative class action was filed in the United States District Court for the Eastern District of New York. This action, Lee and Park, v. Coupang, Inc. and Bom Kim, was also based on the Incident but alleges negligence, unjust enrichment, and violations of New York law on the part of Coupang and Mr. Kim related to allegedly being responsible for and overseeing data security for Coupang. The action seeks damages for all U.S. and Korean residents whose data was compromised. A reasonable estimate of the amount of any possible loss or range of loss resulting from the putative class action or the stockholder derivative action cannot be made at this time. Accordingly, we can provide no assurances as to the scope and outcome of these matters and no assurances as to whether our business, financial position, results of operations or cash flows will not be materially adversely affected. We intend to vigorously defend against these related actions. Aside from the aforementioned actions, there have been additional demands on our Board of Directors and a Delaware Section 220 records inspection demand based on the Incident. These demands are currently being evaluated.
Korean Fair Trade Commission Investigations
In June 2021, the KFTC initiated an investigation into a potential violation of the Monopoly Regulation and Fair Trade Act by two of our Korean subsidiaries, Coupang Corp. and CPLB, including certain alleged treatment of private labelled products provided by CPLB. In June 2024, the KFTC publicly announced that as a result of their investigation, they determined that Coupang Corp.’s product rankings disclosure violated Korean law (a regulatory finding subject to judicial review), and that they would impose an administrative fine on Coupang Corp., direct Coupang Corp. and CPLB to take certain related corrective actions, and refer the matter for criminal prosecution. In the second quarter of 2024, we accrued an administrative fine of approximately $121 million. Coupang Corp. will pay the administrative fine in six installments over two years and made the first payment in October 2024 and will make the last payment in June 2026.
In August 2024, Coupang Corp. and CPLB received the KFTC’s formal written decision, and in September 2024, Coupang Corp. and CPLB appealed such decision. That appeal is pending. Hearings of the administrative litigation action were held in November 2024, March 2025, June 2025, July 2025, September 2025, November 2025, April 2026, and an eighth hearing is scheduled for June 2026. Coupang Corp. and CPLB also filed a preliminary injunction with the Seoul High Court to stay the fine and corrective orders during the pendency of the appeal. In October 2024, the Seoul High Court granted Coupang Corp.’s and CPLB’s request for suspension of the KFTC’s corrective orders, but dismissed the request for a stay of the KFTC’s administrative fine. The KFTC subsequently appealed the Seoul High Court’s decision to grant a suspension of the corrective orders and in February 2025, the Supreme Court of Korea dismissed the KFTC’s appeal. In November 2024, in response to the KFTC’s criminal referral, the Seoul Eastern District Prosecutors’ Office initiated a criminal investigation into Coupang Corp. and CPLB. The Seoul Eastern District Prosecutors’ Office issued an indictment dated May 1, 2025, on the same underlying facts as the administrative case. The criminal trial proceedings have begun at the Seoul Eastern District Court. Hearings for the criminal trial proceedings occurred in October 2025, December 2025, March 2026, and the next hearing is set for May 2026. The maximum penalty under the indictment is a fine of approximately $200,000. We intend to vigorously defend against these charges in court.
In September 2024, the KFTC began an investigation of Coupang Corp. related to potential violations of Korea’s Fair Trade Act concerning the bundling Eats benefits with the WOW membership. The KFTC issued an examiner’s report in October 2025 arguing that such bundling is impermissible under the Fair Trade Act. In the event Coupang is ultimately found to have acted in violation of the law, a fine could be imposed and Coupang may be required to separate the Eats benefit of the WOW membership and customers would need to purchase this benefit separately. Coupang submitted its response to the examiner’s report and a hearing has not yet been scheduled.
The KFTC and other regulators are also investigating Coupang Corp. and its subsidiaries on other matters. In December 2025, the NTS commenced an audit of income tax and value added tax filings with respect to the 2021 to 2025 tax years, which is still open. We are diligently cooperating with these investigations and actively defending our practices as appropriate.
Under Korean law, if violations are identified in the investigations, these can be resolved through civil, administrative, or criminal proceedings. The ultimate case resolution could include fines, orders to alter our processes or procedures, and criminal investigations or charges against individuals or us. We cannot reasonably estimate any penalties, loss, or range of loss that may arise from these investigations. Accordingly, we can provide no assurance as to the scope and outcome of these matters and no assurance as to whether our business, financial position, results of operations, or cash flows will not be materially adversely affected.
Data Incident
In connection with the Incident, Coupang completed its investigation with the support of external forensic experts and shared the results of the investigation with Korean regulators. Korean regulators have also initiated ongoing investigations with which Coupang is fully cooperating.
We believe that the Incident has increased and may further increase the Korean government’s focus on our business and could result in additional inquiries, enforcement actions, and litigation. Investigations by Korean authorities into the Incident have resulted in criminal complaints against certain of our current and former executives and employees. While one or more regulators may
| Coupang, Inc. | | Q1 2026 Form 10-Q | 16 | |||||||||||
potentially impose financial penalties or take other actions, at this time we cannot determine the outcome of any inquiries, enforcement actions, or litigation, or reasonably estimate any amount of losses or range of losses that may result from such actions. We can provide no assurance as to the scope and outcome of these matters relating to the Incident and no assurance as to whether our business, financial position, results of operations, or cash flows will not be materially adversely affected.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 17 | |||||||||||
Glossary | ||||||||||||||
We use terms throughout this Form 10-Q that are specific to Coupang or that are abbreviations that may not be commonly known or used. Below is a list of these terms used in this Form 10-Q and our 2025 Form 10-K.
Term | Definition | |||||||
2021 Plan* | Our 2021 Equity Incentive Plan | |||||||
AI | Artificial intelligence | |||||||
ASU | Accounting Standards Update | |||||||
Brand* | Our Coupang brand or our associated brands and marks | |||||||
CEO | Chief Executive Officer | |||||||
CFO | Chief Financial Officer | |||||||
CISO | Chief Information Security Officer | |||||||
CODM | Chief Operating Decision Maker | |||||||
common stock | Class A common stock and Class B common stock, collectively | |||||||
Coupang* | Coupang, Inc. together with its consolidated subsidiaries | |||||||
Coupang Corp.* | Our wholly-owned Korean subsidiary | |||||||
CPLB* | Coupang Private Label Brands | |||||||
Eats* | Our restaurant order and delivery services in Korea | |||||||
EBITDA | Earnings before interest, taxes, depreciation, and amortization | |||||||
EFTA | Korea’s Electronic Financial Transactions Act | |||||||
Exchange Act | Securities Exchange Act of 1934, as amended | |||||||
Farfetch* | Our global luxury fashion marketplace | |||||||
FASB | Financial Accounting Standards Board | |||||||
FC Fire* | A fire extensively damaged our Deokpyeong fulfillment center in June 2021 | |||||||
FLC* | Our fulfillment and logistics by Coupang offering | |||||||
| Form 10-K | Annual Report on Form 10-K | |||||||
Form 10-Q | Quarterly Report on Form 10-Q | |||||||
| GILTI | Global intangible low-taxed income | |||||||
Incident* | A data incident involving unauthorized access to customer accounts that we became aware of in November 2025 | |||||||
IP | Intellectual property | |||||||
KFTC | Korea Fair Trade Commission | |||||||
Korea | Republic of Korea | |||||||
KRW | Korean Won | |||||||
LP | Limited Partnership | |||||||
NOL | Net operating loss | |||||||
NTS | Korea National Tax Service | |||||||
NYSE | New York Stock Exchange | |||||||
OECD | Organization for Economic Co-operation and Development | |||||||
Pay* | Our digital financial services offering in Korea that provides our customers with convenient payment processing | |||||||
PIPA | Korea’s Personal Information Protection Act | |||||||
Play* | Our online content streaming service in Korea | |||||||
Revolving Credit Facility* | Our five-year revolving credit agreement entered into in June 2025 | |||||||
Rocket Delivery* | Our free next-day delivery service | |||||||
Rocket Fresh* | Our fresh grocery delivery services | |||||||
Rocket Now* | Our restaurant order and delivery services in Japan | |||||||
ROU | Right-of-use | |||||||
| RSU | Restricted stock unit | |||||||
| SEC | U.S. Securities and Exchange Commission | |||||||
Serious Accidents Act | Korea’s Act on Punishment for Serious Accidents | |||||||
Securities Act | Securities Act of 1933, as amended | |||||||
| Coupang, Inc. | | Q1 2026 Form 10-Q | 18 | |||||||||||
Term SOFR | Term secured overnight financing rate | |||||||
U.S. | United States of America | |||||||
USD | U.S. dollar | |||||||
U.S. GAAP | Accounting principles generally accepted in the U.S. | |||||||
_____________
* | Indicates company-specific terms | ||||
| Coupang, Inc. | | Q1 2026 Form 10-Q | 19 | |||||||||||
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||||||||||||
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes appearing elsewhere in this Form 10-Q, as well as our audited consolidated financial statements included in our 2025 Form 10-K. This discussion, particularly information with respect to our future results of operations or financial condition, business strategy and plans, and objectives of management for future operations, includes forward-looking statements that involve risks and uncertainties as described under the heading “Special Note Regarding Forward-Looking Statements” in this Form 10-Q. As a result of many factors, including, without limitation, those factors set forth in the “Risk Factors” section of our 2025 Form 10-K and the “Risk Factors” section of subsequent Form 10-Qs, our actual results or timing of certain events could differ materially from the results or timing described in, or implied by, these forward-looking statements. In the following discussion and analysis, amounts may not foot due to rounding.
Overview
Coupang is a technology and Fortune 150 company listed on the New York Stock Exchange (NYSE: CPNG) that provides retail, restaurant delivery, video streaming, and fintech services to customers around the world under brands that include Coupang, Eats, Play, Rocket Now, and Farfetch. Headquartered in the United States, Coupang has operations and support services in geographies including Korea, Taiwan, Singapore, China, India, Japan, and Europe. Coupang’s mission is to revolutionize the everyday lives of its customers and create a world where people wonder, “How did I ever live without Coupang?”
We believe that we are a preeminent retail destination because of our broad selection, low prices, and exceptional delivery and customer experience across our owned inventory selection as well as products offered by third-party merchants. Our unique end-to-end integrated fulfillment, logistics, and technology network enables Rocket Delivery, which provides free, next-day delivery for orders placed anytime of the day, even seconds before midnight—for millions of products across Korea and Taiwan. Our structural advantages from complete end-to-end integration, investments in technology, and scale economies generate higher efficiencies that allow us to pass savings to customers in the form of lower prices. The capabilities we have built provide us with opportunities to expand into other offerings and geographies.
Data Incident and Customer Compensation Program
In November 2025, Coupang became aware of the Incident. For additional information, see Part I, Item 1A. “Risk Factors,” Part I, Item 1C. “Cybersecurity,” and Note 14 — "Commitments and Contingencies" to the consolidated financial statements included in Part II, Item 8 of our 2025 Form 10-K.
In December 2025, Coupang Corp. announced a customer compensation program to issue approximately $1.2 billion worth of vouchers, beginning in January 2026, to customers who were notified of the Incident at the end of November 2025 that may be applied towards future Coupang purchases. These vouchers are reflected as reductions to the selling price and revenue recognized on each corresponding transaction as they are redeemed. Voucher redemption occurred primarily in the first quarter of 2026 and concluded in mid-April 2026.
We believe that the Incident has increased and may further increase the Korean government’s focus on our business and could result in additional expenses, including from remediation, inquiries, enforcement actions, and litigation.
Segment Information
Our segments reflect the way we evaluate our business performance and manage operations. See Note 3 — "Segment Reporting" to the condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.
Product Commerce primarily includes our core Korean retail (owned inventory) and marketplace offerings (third-party merchants) and Rocket Fresh, as well as advertising products associated with these offerings. Revenues from Product Commerce are derived primarily from online product sales of owned inventory to customers in Korea, commissions and logistics and fulfillment fees from merchants that sell products through our mobile application and website, and from our Korean WOW membership program.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 20 | |||||||||||
Developing Offerings includes more nascent offerings and services, including Eats, Rocket Now, Play, fintech, our retail operations in Taiwan, as well as advertising products associated with these offerings, and also includes Farfetch. Revenues from Developing Offerings are primarily generated from Farfetch, Eats, and retail operations in Taiwan.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 21 | |||||||||||
Key Financial and Operating Highlights:
(in millions) | Three Months Ended March 31, | % Change | |||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Total net revenues | $ | 8,504 | $ | 7,908 | 8 | % | |||||||||||
Total net revenues, constant currency(1) | $ | 8,536 | 8 | % | |||||||||||||
Gross profit(2) | $ | 2,297 | $ | 2,316 | (1) | % | |||||||||||
Net (loss) income | $ | (266) | $ | 114 | NM(3) | ||||||||||||
Net (loss) income margin | (3.1) | % | 1.4 | % | |||||||||||||
Adjusted EBITDA(1) | $ | 29 | $ | 382 | (92) | % | |||||||||||
Adjusted EBITDA margin(1) | 0.3 | % | 4.8 | % | |||||||||||||
Net cash provided by operating activities | $ | 184 | $ | 354 | (48) | % | |||||||||||
Free cash flow(1) | $ | (110) | $ | 116 | NM(3) | ||||||||||||
| Segment adjusted EBITDA: | |||||||||||||||||
| Product Commerce | $ | 358 | $ | 550 | (35) | % | |||||||||||
| Developing Offerings | $ | (329) | $ | (168) | 96 | % | |||||||||||
Trailing Twelve Months Ended March 31, | % Change | ||||||||||||||||
(in millions) | 2026 | 2025 | |||||||||||||||
Net cash provided by operating activities | $ | 1,603 | $ | 2,028 | (21) | % | |||||||||||
Free cash flow(1) | $ | 301 | $ | 1,025 | (71) | % | |||||||||||
(1)Total net revenues, constant currency; total net revenues growth, constant currency; adjusted EBITDA; adjusted EBITDA margin; and free cash flow are non-GAAP measures. See “Non-GAAP Financial Measures” below for the reconciliation of the non-GAAP measures with their comparable amounts prepared in accordance with U.S. GAAP.
(2)Gross profit is calculated as total net revenues minus cost of sales.
(3)Non-meaningful.
Key Business Metrics
| Three Months Ended | |||||
| Net revenues per Product Commerce Active Customer | March 31, | ||||
2026 | $ | 300 | |||
2026 - constant currency | $ | 303 | |||
| 2025 | $ | 294 | |||
Percentage change | 2 | % | |||
Percentage change - constant currency | 3 | % | |||
| (in millions) | Three Months Ended | ||||
| Product Commerce Active Customers | March 31, | ||||
| 2026 | 23.9 | ||||
| 2025 | 23.4 | ||||
Percentage change | 2 | % | |||
We experienced a lower growth rate in Product Commerce Active Customers in the first quarter of 2026 primarily due to the impact of the Incident.
Net Revenues per Product Commerce Active Customer and Constant Currency Net Revenues per Product Commerce Active Customer
Net revenues per Product Commerce Active Customer is the total Product Commerce net revenues generated in a period divided by the total number of Product Commerce Active Customers in that period. A key driver of growth is increasing the frequency and the level of spend of customers who are shopping on our Product Commerce apps or websites. We therefore view net revenues per Product Commerce Active Customer as a key indicator of engagement and retention of our customers and our ability to drive future revenue growth, though there may be a short-term dilutive impact when a large number of new Product Commerce Active Customers are added in a recent period.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 22 | |||||||||||
Constant currency net revenues per Product Commerce Active Customer is the total Product Commerce net revenues generated in a period translated using the prior period exchange rate to exclude the effect of foreign exchange rate movements divided by the total number of Product Commerce Active Customers in that period. Constant currency net revenues per Product Commerce Active Customer is a key indicator to evaluate net revenues per Product Commerce Active Customer between periods as it excludes the effects of foreign currency volatility that are not indicative of customer engagement and retention.
Product Commerce Active Customers
A customer is anyone who has created an account on our apps or websites, identified by a unique email address. As of the last date of each quarterly reported period, we determine our number of Product Commerce Active Customers by counting the total number of individual customers who have ordered at least once directly from our Product Commerce apps or websites during the relevant quarterly period. The change in Product Commerce Active Customers in a reported period captures both the inflow of new customers who have made a purchase in the period as well as the outflow of existing customers who have not made a purchase in the period. We view the number of Product Commerce Active Customers as an indicator of future growth in our net revenue, the reach of our network, the awareness of our brand, and the engagement of our customers.
Results of Operations
| Three Months Ended March 31, | ||||||||||||||
| (in millions) | 2026 | 2025 | % Change | |||||||||||
| Net retail sales | $ | 6,476 | $ | 6,088 | 6 | % | ||||||||
| Net other revenue | 2,028 | 1,820 | 11 | % | ||||||||||
| Total net revenues | 8,504 | 7,908 | 8 | % | ||||||||||
| Cost of sales | 6,207 | 5,592 | 11 | % | ||||||||||
| Operating, general and administrative | 2,539 | 2,162 | 17 | % | ||||||||||
| Total operating cost and expenses | 8,746 | 7,754 | 13 | % | ||||||||||
| Operating (loss) income | (242) | 154 | NM(1) | |||||||||||
| Interest income | 44 | 49 | (10) | % | ||||||||||
| Interest expense | (13) | (23) | (43) | % | ||||||||||
| Other (expense) income, net | (44) | 36 | NM(1) | |||||||||||
| (Loss) income before income taxes | (255) | 216 | NM(1) | |||||||||||
| Income tax expense | 11 | 102 | (89) | % | ||||||||||
| Net (loss) income | $ | (266) | $ | 114 | NM(1) | |||||||||
(1)Non-meaningful.
Total Net Revenues
We categorize our total net revenues as (1) net retail sales and (2) net other revenue. Total net revenues incorporate reductions for estimated returns, promotional discounts, and earned loyalty rewards and exclude amounts collected on behalf of third parties, such as value added taxes. We periodically provide customers with promotional discounts to retail prices, such as percentage discounts and other similar offers, to incentivize increased customer spending and loyalty. These promotional discounts are discretionary and are reflected as reductions to the selling price and revenue recognized on each corresponding transaction. Loyalty rewards are offered as part of revenue transactions to all retail customers, whereby rewards are earned as a percentage of each purchase, for the customer to apply towards the purchase price of a future transaction. We defer a portion of revenue from each originating transaction, based on the estimated standalone selling price of the loyalty reward earned, and then recognize the revenue as the loyalty reward is redeemed in a future transaction, or when the reward expires. The amount of the deferred revenue related to these loyalty rewards is not material.
| Three Months Ended March 31, | % Change | |||||||||||||
| (in millions) | 2026 | 2025 | As Reported | Constant Currency | ||||||||||
| Net retail sales | $ | 6,476 | $ | 6,088 | 6 | % | 7 | % | ||||||
| Net other revenue | 2,028 | 1,820 | 11 | % | 12 | % | ||||||||
| Total net revenues | $ | 8,504 | $ | 7,908 | 8 | % | 8 | % | ||||||
| Coupang, Inc. | | Q1 2026 Form 10-Q | 23 | |||||||||||
Net retail sales represent the majority of our total net revenues which we earn from online product sales of our owned inventory to customers. Net other revenue includes revenue from commissions from merchants that sell their products through our apps or websites. We are not the merchant of record in these transactions, nor do we take possession of the related inventory. Net other revenue also includes consideration from online restaurant ordering and delivery services performed by us, as well as advertising services provided on our apps or websites. We also earn subscription revenue from memberships to our WOW membership programs, which is also included in net other revenue.
The following table presents our total net revenues by segment.
| Three Months Ended March 31, | % Change | |||||||||||||
| (in millions) | 2026 | 2025 | As Reported | Constant Currency | ||||||||||
| Product Commerce | $ | 7,176 | $ | 6,870 | 4 | % | 5 | % | ||||||
| Developing Offerings | 1,328 | 1,038 | 28 | % | 25 | % | ||||||||
| Total net revenues | $ | 8,504 | $ | 7,908 | 8 | % | 8 | % | ||||||
The increase in Product Commerce net revenues for the three months ended March 31, 2026 is primarily due to a 3% growth in total net revenues per Product Commerce Active Customer, excluding effects of foreign exchange rates, driven by increased customer engagement within and across more product categories and a 2% increase in our Product Commerce Active Customers. The growth rate for the three months ended March 31, 2026 was negatively affected by the Incident’s impact on the growth rate in Product Commerce Active Customers, as well as 1% from the negative effect of foreign exchange rates.
The increase in Developing Offerings net revenues for the three months ended March 31, 2026 is primarily due to an increase in total net revenues from our growth initiatives, as we are seeing greater levels of customer engagement in these early-stage offerings.
Cost of Sales
| Three Months Ended March 31, | Change | |||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||
Cost of sales | $ | 6,207 | $ | 5,592 | $ | 615 | ||||||||
As a percentage of revenues | 73.0 | % | 70.7 | % | 2.3 | % | ||||||||
Cost of sales primarily consists of the purchase price of products sold directly to customers where we record revenue gross, and includes logistics costs. Inbound shipping and handling costs to receive products from suppliers are included in inventory and recognized in cost of sales as products are sold. Additionally, cost of sales includes outbound shipping and logistics related expenses, delivery costs from our restaurant delivery business, and depreciation and amortization expense.
Cost of sales increased mainly due to higher volume from increased sales and customer demand. Cost of sales as a percentage of revenue increased primarily due to an increase for Product Commerce from 68.7% for the three months ended March 31, 2025 to 69.7% for the three months ended March 31, 2026, primarily from the impact of the Incident, including the customer compensation program and increased costs in supply chain management. Also contributing to the increase in cost of sales as a percentage of revenue is the increase for Developing Offerings from 84.1% for the three months ended March 31, 2025 to 90.7% for the three months ended March 31, 2026, which is primarily driven by an increase in costs of sales relative to the growth in revenue as well as growth in certain Developing Offerings initiatives that currently operate with lower margins.
Operating, General and Administrative Expenses
| Three Months Ended March 31, | Change | |||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||
Operating, general and administrative expenses | $ | 2,539 | $ | 2,162 | $ | 377 | ||||||||
As a percentage of revenues | 29.9 | % | 27.3 | % | 2.6 | % | ||||||||
Operating, general and administrative expenses include all our operating costs excluding cost of sales, as described above. More specifically, these expenses include costs incurred in operating and staffing our fulfillment centers (including costs attributed to receiving, inspecting, picking, packaging, and preparing customer orders), customer service related costs, payment processing fees, costs related to the design, execution, and maintenance of our technology infrastructure and online offerings, advertising costs, general corporate function costs, and depreciation and amortization expense.
The increase in operating, general and administrative expenses for the three months ended March 31, 2026 primarily reflects increases in fulfillment, technology, and marketing costs to support our continued growth and these cost increases resulted in higher operating, general and administrative expenses as a percentage of revenue due to the lower rate of revenue growth as a result of the Incident.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 24 | |||||||||||
Interest Expense
Interest expense primarily consists of interest on our short-term borrowings and long-term debt.
Interest expense decreased $10 million compared to the three months ended March 31, 2025, due to higher interest rates in the prior year period associated with the syndicated term loans assumed as part of the Farfetch acquisition.
Interest Income
Interest income primarily consists of interest earned on our deposits held with financial institutions.
Interest income for the three months ended March 31, 2026 remained relatively flat when compared with the prior year period.
Income Taxes
| Three Months Ended March 31, | ||||||||||||||
| (in millions) | 2026 | 2025 | Change | |||||||||||
| Income tax expense | $ | 11 | $ | 102 | $ | (91) | ||||||||
| Effective tax rate | (4.3) | % | 47.2 | % | (51.5) | % | ||||||||
Our tax provision for income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. No income tax benefit was accrued for certain jurisdictions where we anticipate incurring a loss during the full fiscal year as the related deferred tax assets were fully offset by a valuation allowance. Our resulting effective tax rate differs from the applicable statutory rate, primarily due to tax credits, U.S. taxes on foreign earnings such as the inclusion of the GILTI provisions, the valuation allowance against deferred tax assets in loss making jurisdictions, and other permanent differences.
Our tax provision for income taxes for the three months ended March 31, 2026 was unfavorably impacted by losses before income taxes in certain jurisdictions for which we receive no tax benefit, resulting in a negative effective tax rate.
The realization of our deferred tax assets primarily depends on the generation of future taxable income. Based on our current assessment, it is possible that our future results of operations in the U.S. could result in the need to record an additional valuation allowance against our U.S. deferred tax assets within the next 12 months. We continue to monitor the realizability of our deferred tax assets on a quarterly basis and will adjust the valuation allowance in the period where evidence indicates that it is more likely than not that these assets will not be realized.
Segment Gross Profit and Adjusted EBITDA
Segment gross profit is defined as net revenues less cost of sales attributable to each reportable segment.
Segment Adjusted EBITDA is defined as income (loss) before income taxes for a period before depreciation and amortization, equity-based compensation expense, interest expense, interest income, and other income (expense), net. Segment adjusted EBITDA also excludes impairments and other items that we do not believe are reflective of our ongoing operations.
| Three Months Ended March 31, | ||||||||||||||
| (in millions) | 2026 | 2025 | % Change | |||||||||||
| Gross profit | ||||||||||||||
| Product Commerce | $ | 2,174 | $ | 2,151 | 1 | % | ||||||||
| Developing Offerings | 123 | 165 | (25) | % | ||||||||||
| Gross profit | $ | 2,297 | $ | 2,316 | (1) | % | ||||||||
| Adjusted EBITDA | ||||||||||||||
| Product Commerce | $ | 358 | $ | 550 | (35) | % | ||||||||
| Developing Offerings | (329) | (168) | 96 | % | ||||||||||
Adjusted EBITDA(1) | $ | 29 | $ | 382 | (92) | % | ||||||||
(1)See “Non-GAAP Financial Measures” below for the reconciliation of the non-GAAP measures with their comparable amounts prepared in accordance with U.S. GAAP.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 25 | |||||||||||
Product Commerce
The increase in gross profit for the three months ended March 31, 2026 is primarily due to an increase in revenue of $306 million, compared to the prior year period. Gross profit grew at a slower rate than net revenues due to the impact of the Incident, including the customer compensation program and increased costs in supply chain management.
The decrease in Product Commerce adjusted EBITDA for the three months ended March 31, 2026 is primarily due to a slower gross profit growth rate due to the impacts of the Incident described above and increases in fulfillment, technology, and marketing costs to support our continued growth.
Developing Offerings
The decrease in gross profit for the three months ended March 31, 2026 resulted from an increase in costs of sales relative to the growth in revenue as well as growth in certain Developing Offerings initiatives that currently operate with lower margins.
The increased loss for the three months ended March 31, 2026 in Developing Offerings adjusted EBITDA is primarily the result of the decrease in gross profit described above as well as increased investments in our Developing Offerings initiatives, including Taiwan, Play, and Rocket Now.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 26 | |||||||||||
Non-GAAP Financial Measures
We report our financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures provide investors with additional useful information in evaluating our performance. These non-GAAP financial measures may be different than similarly titled measures used by other companies.
Our non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with U.S. GAAP. Non-GAAP measures have limitations in that they do not reflect all the amounts associated with our results of operations as determined in accordance with U.S. GAAP. These measures should only be used to evaluate our results of operations in conjunction with the corresponding U.S. GAAP measures.
| Non-GAAP Measure | Definition | How We Use The Measure | ||||||
| Free Cash Flow | • Net cash provided by (used in) operating activities Less: purchases of property and equipment, Plus: proceeds from sale of property and equipment. | • Provides information to management and investors about the amount of cash generated from our ongoing operations that, after purchases and sales of property and equipment, can be used for strategic initiatives, including investing in our business and strengthening our balance sheet, including paying down debt, repurchasing shares of our Class A common stock, and paying dividends to stockholders. | ||||||
| Adjusted EBITDA | • Net income (loss), excluding the effects of: - depreciation and amortization, - interest expense, - interest income, - other income (expense), net, - income tax expense (benefit), - equity-based compensation, - acquisition and restructuring related costs, - impairments, and - other items not reflective of our ongoing operations. | • Provides information to management to evaluate and assess our performance and allocate internal resources. • We believe Adjusted EBITDA and Adjusted EBITDA Margin are frequently used by investors and other interested parties in evaluating companies in the retail industry for period-to-period comparisons as they remove the impact of certain items that are not representative of our ongoing business, such as material non-cash items, acquisition-related transaction and restructuring costs, significant costs related to certain non-ordinary course legal and regulatory matters, and certain variable charges. | ||||||
| Adjusted EBITDA Margin | • Adjusted EBITDA as a percentage of total net revenues. | |||||||
| Total Net Revenues, Constant Currency | • Constant currency information compares results between periods as if exchange rates had remained constant. • We define total net revenues, constant currency as total revenue excluding the effect of foreign exchange rate movements and use it to determine the total net revenues growth, constant currency on a comparative basis. • Total net revenues, constant currency is calculated by translating current period total net revenues using the prior period exchange rate. | • The effect of currency exchange rates on our business is an important factor in understanding period-to-period comparisons. Our financial reporting currency is the USD and changes in foreign exchange rates can significantly affect our reported results and consolidated trends. For example, our business generates sales predominantly in KRW, which are favorably affected as the USD weakens relative to the KRW, and unfavorably affected as the USD strengthens relative to the KRW. • We use total net revenues, constant currency and total net revenues growth, constant currency for financial and operational decision-making and as a means to evaluate comparisons between periods. We believe the presentation of our results on a constant currency basis in addition to U.S. GAAP results helps improve the ability to understand our performance because they exclude the effects of foreign currency volatility that are not indicative of our actual results of operations. | ||||||
| Total Net Revenues Growth, Constant Currency | • Total net revenues growth, constant currency (as a percentage) is calculated by determining the increase in current period revenue over prior period revenue, where current period foreign currency revenue is translated using prior period exchange rates. | |||||||
| Coupang, Inc. | | Q1 2026 Form 10-Q | 27 | |||||||||||
Reconciliation of GAAP to Non-GAAP Measures
Free Cash Flow
| Three Months Ended March 31, | Trailing Twelve Months Ended March 31, | |||||||||||||||||||||||||
(in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 184 | $ | 354 | $ | 1,603 | $ | 2,028 | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Purchases of land and buildings | (63) | (49) | (250) | (284) | ||||||||||||||||||||||
| Purchases of equipment | (233) | (190) | (1,058) | (727) | ||||||||||||||||||||||
| Total purchases of property and equipment | (296) | (239) | (1,308) | (1,011) | ||||||||||||||||||||||
| Proceeds from sale of property and equipment | 2 | 1 | 6 | 8 | ||||||||||||||||||||||
| Total adjustments | $ | (294) | $ | (238) | $ | (1,302) | $ | (1,003) | ||||||||||||||||||
| Free cash flow | $ | (110) | $ | 116 | $ | 301 | $ | 1,025 | ||||||||||||||||||
| Net cash used in investing activities | $ | (302) | $ | (213) | $ | (1,343) | $ | (915) | ||||||||||||||||||
| Net cash provided by (used in) financing activities | $ | 348 | $ | 16 | $ | 85 | $ | (105) | ||||||||||||||||||
Adjusted EBITDA and Adjusted EBITDA Margin
| Three Months Ended March 31, | ||||||||||||||
(in millions) | 2026 | 2025 | ||||||||||||
| Total net revenues | $ | 8,504 | $ | 7,908 | ||||||||||
Net (loss) income | (266) | 114 | ||||||||||||
Net (loss) income margin | (3.1) | % | 1.4 | % | ||||||||||
| Adjustments: | ||||||||||||||
| Depreciation and amortization | 143 | 122 | ||||||||||||
| Interest expense | 13 | 23 | ||||||||||||
| Interest income | (44) | (49) | ||||||||||||
| Income tax expense | 11 | 102 | ||||||||||||
Other expense (income), net | 44 | (36) | ||||||||||||
| Acquisition and restructuring related gains, net | — | (15) | ||||||||||||
| Equity-based compensation | 128 | 121 | ||||||||||||
| Adjusted EBITDA | $ | 29 | $ | 382 | ||||||||||
| Adjusted EBITDA margin | 0.3 | % | 4.8 | % | ||||||||||
Total Net Revenues, Constant Currency and Total Net Revenues Growth, Constant Currency
| Three Months Ended March 31, | Year over Year Growth | |||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
(in millions) | As Reported | Exchange Rate Effect | Constant Currency Basis | As Reported | As Reported | Constant Currency Basis | ||||||||||||||
| Consolidated | ||||||||||||||||||||
| Net retail sales | $ | 6,476 | $ | 24 | $ | 6,500 | $ | 6,088 | 6 | % | 7 | % | ||||||||
| Net other revenue | 2,028 | 8 | 2,036 | 1,820 | 11 | % | 12 | % | ||||||||||||
| Total net revenues | $ | 8,504 | $ | 32 | $ | 8,536 | $ | 7,908 | 8 | % | 8 | % | ||||||||
| Net Revenues by Segment | ||||||||||||||||||||
| Product Commerce | $ | 7,176 | $ | 61 | $ | 7,237 | $ | 6,870 | 4 | % | 5 | % | ||||||||
| Developing Offerings | 1,328 | (28) | 1,300 | 1,038 | 28 | % | 25 | % | ||||||||||||
| Total net revenues | $ | 8,504 | $ | 32 | $ | 8,536 | $ | 7,908 | 8 | % | 8 | % | ||||||||
| Coupang, Inc. | | Q1 2026 Form 10-Q | 28 | |||||||||||
Liquidity and Capital Resources
Liquidity
Liquidity is a measure of our ability to access sufficient cash flows to meet the short-term and long-term cash requirements of our business operations. Our primary sources of liquidity are cash on hand, supplemented through various debt financing arrangements and sales of our equity securities. We had total cash, cash equivalents, and restricted cash of $6.4 billion as of March 31, 2026, the majority of which was held by foreign subsidiaries and may not be freely transferable to the United States due to local laws or other restrictions. Additionally, as of March 31, 2026, we had $750 million available under our Revolving Credit Facility.
The ability of certain subsidiaries to transfer funds or pay dividends to Coupang, Inc. is also restricted due to terms in our credit agreements which require the subsidiaries to meet certain financial covenants, including requirements to maintain a positive net equity balance or having current period income.
As of March 31, 2026 and December 31, 2025, we had stockholders’ equity of $3.9 billion and $4.6 billion, respectively. We may incur losses in the future. We expect that our investment into our growth strategy will continue to be significant, particularly with respect to our Developing Offerings segment, which will continue to focus on our newer offerings and entrance into new geographies, as well as overall expansion of our fulfillment, logistics, and technology capabilities. As part of this expansion to fulfill anticipated future customer demand and planned expansion of services, we plan to acquire and build new fulfillment centers. We have entered into various new construction contracts for capital projects which are expected to be completed over the next two years. These contracts have remaining capital expenditures commitments of $236 million as of March 31, 2026. We expect that our future expenditures for both infrastructure and workforce-related costs will exceed several billion dollars over the next several years.
Changes in our cash flows were as follows:
| Three Months Ended March 31, | |||||||||||||||||
(in millions) | 2026 | 2025 | Change | ||||||||||||||
| Net cash provided by operating activities | $ | 184 | $ | 354 | $ | (170) | |||||||||||
| Net cash used in investing activities | (302) | (213) | (89) | ||||||||||||||
Net cash provided by financing activities | 348 | 16 | 332 | ||||||||||||||
Operating Activities
| Three Months Ended March 31, | |||||||||||||||||
(in millions) | 2026 | 2025 | Change | ||||||||||||||
Net (loss) income | $ | (266) | $ | 114 | $ | (380) | |||||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities | 545 | 427 | 118 | ||||||||||||||
Change in operating assets and liabilities | (95) | (187) | 92 | ||||||||||||||
| Net cash provided by operating activities | $ | 184 | $ | 354 | $ | (170) | |||||||||||
The year-over-year change in operating cash flow was driven by a $380 million decrease in net income. Cash provided by operating activities was also impacted by certain working capital fluctuations in operating assets and liabilities, including a decrease in inventory of $146 million and a decrease in other assets of $70 million due to decreases in deposits and contract assets, partially offset by a decrease from accounts payable of $58 million due to the timing of inventory purchases and vendor payments.
Investing Activities
The increase in cash outflow was mainly driven by a $57 million increase in purchases of property and equipment, primarily related to investments made in our fulfillment and logistics infrastructure.
Financing Activities
The year-over-year change in financing cash flow was primarily driven by a net increase of $710 million from proceeds from debt and short-term borrowings, net of repayments. During the three months ended March 31, 2026, we borrowed $750 million under the Revolving Credit Facility for general operating purposes. This was partially offset by our repurchase of 20.4 million shares of Class A common stock for an aggregate amount of $391 million during the three months ended March 31, 2026.
As of March 31, 2026, we had $366 million remaining under the stock repurchase program. In May 2026, our Board of Directors authorized an additional increase of up to $1 billion under the stock repurchase program.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 29 | |||||||||||
We believe that our sources of liquidity will be sufficient to meet our anticipated cash requirements for at least the next 12 months. However, we may need additional cash resources in the future if we find and pursue other opportunities for investment, acquisition, strategic cooperation, or other similar actions, which may include investing in technology, our logistics and fulfillment infrastructure, or related talent. If we determine that our cash requirements exceed our amounts of cash on hand or if we decide to change our capital structure, we may seek to issue additional debt or equity securities or obtain credit facilities or other sources of financing. This financing may not be available on favorable terms, or at all.
Capital Resources
We have entered into material unconditional purchase obligations. These contractual commitments primarily relate to technology related service contracts, fulfillment center construction contracts, and software licenses. For contracts with variable terms, we do not estimate the total obligation beyond any minimum pricing as of the reporting date.
We generally enter into term loan facility agreements to finance the construction or purchase of our fulfillment centers. These agreements may require that we provide collateral equal to or greater than the amount borrowed under the arrangement. As we continue to build or purchase additional fulfillment centers, we expect our borrowings under debt financing arrangements to continue to increase.
Refer to Note 14 — "Commitments and Contingencies", Note 5 — "Defined Severance Benefits", and Note 11 — "Leases" of our consolidated financial statements in Part II, Item 8 of our 2025 Form 10-K for disclosure of our future commitments.
Our short-term and long-term borrowings generally include lines of credit with financial institutions available to be drawn upon for general operating purposes.
Revolving Credit Facility
Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to the applicable benchmark rate, including but not limited to Term SOFR, plus an applicable margin ranging from 0.75% to 1.25%. The Revolving Credit Facility contains customary affirmative and negative covenants, including certain financial covenants. During the three months ended March 31, 2026, we borrowed $750 million under the Revolving Credit Facility for general operating purposes and $750 million was outstanding as of March 31, 2026 and is included in “Short-term borrowings”.
Other Credit Facilities
During 2026, we entered into various unsecured borrowings under other revolving credit facilities, the majority of which are due in 2026. These credit facilities contain customary affirmative and negative covenants, including certain financial covenants. As of March 31, 2026, aggregate outstanding borrowings under all other credit facilities totaled $928 million with a weighted average interest rate of 3.01%.
Refer to Note 13 — "Short-Term Borrowings and Long-Term Debt" of our consolidated financial statements in Part II, Item 8 of our 2025 Form 10-K for disclosure of our debt obligations and collateral.
Critical Accounting Estimates
We prepare our financial statements in accordance with U.S. GAAP. Preparing these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could differ from these estimates. For a discussion of our critical accounting policies and estimates, refer to the section entitled “Critical Accounting Estimates” in our 2025 Form 10-K.
Other significant accounting policies are also discussed in Note 1 — “Description of Business and Summary of Significant Accounting Policies” to the consolidated financial statements in Part II, Item 8 of our 2025 Form 10-K.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 30 | |||||||||||
| Item 3. Quantitative and Qualitative Disclosures about Market Risk | ||||||||||||||
In addition to the risks inherent in our operations, we are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of fluctuations in interest rates, foreign currency, and credit.
Interest Rate Risk
As of March 31, 2026, we had cash, cash equivalents, and restricted cash of $6.4 billion. Interest-earning instruments carry a degree of interest rate risk. We do not enter into investments for trading or speculative purposes and do not use any derivative financial instruments to manage our interest rate risk exposure. Our interest rate risk arises primarily from some of our variable rate debt as well as our undrawn revolving credit agreements. Borrowings issued at variable rates expose us to variability in cash flows. Our policy, in the management of interest rate risk, is to structure a reasonable balance between fixed and floating rate financial instruments as well as our cash and cash equivalents and any short-term investments we may hold. The balance struck by our management is dependent on prevailing interest rate markets at any point in time.
Our borrowings generally include lines of credit with financial institutions, some of which carry variable interest rates. As of March 31, 2026, there was a balance of $982 million outstanding under the Revolving Credit Facility and other credit facilities with variable interest rates. An assumed hypothetical 10% change in prevailing interest rates would not have a material impact on our results of operations. Any future borrowings incurred under the Revolving Credit Facility or other revolving credit facilities with variable interest rates would accrue interest at rates subject to current market conditions.
Foreign Currency Risk
We have accounts on our foreign subsidiaries’ ledgers, which are maintained in the respective subsidiary’s local currency and translated into USD for reporting of our consolidated financial statements. As a result, we are exposed to fluctuations in the exchange rates of various currencies against the USD and other currencies, predominantly the KRW.
Transactional
We generate the majority of our revenue from customers within Korea. Typically, we aim to align costs with revenue denominated in the same currency, but we are not always able to do so. As a result of the geographic spread of our operations and due to our reliance on certain products and services priced in currencies other than KRW, our business, results of operations, and financial condition have been and will continue to be impacted by the volatility of the KRW against foreign currencies.
Translational
Coupang, Inc.’s functional currency and reporting currency is the USD. The local and functional currency for our Korean subsidiary, Coupang Corp., which is our primary operating subsidiary, is the KRW. Our other subsidiaries predominantly utilize their local currencies as their functional currencies. Increases or decreases in the value of the USD affect the value of these items with respect to the non-USD-denominated businesses on the consolidated financial statements, even if their value has not changed in their original currency. For example, a stronger USD will reduce the reported results of operations of non-USD-denominated businesses and conversely a weaker USD will increase the reported results of operations of non-USD-denominated businesses. An assumed hypothetical 10% adverse change in average exchange rates used to translate foreign currencies to USD would have resulted in a decline in total net revenues of approximately $742 million and an immaterial impact on net income for the three months ended March 31, 2026.
At this time, we do not, but we may in the future, enter into derivatives or other financial instruments in an attempt to hedge our foreign currency risk. It is difficult to predict the impact hedging activities would have on our results of operations.
Credit Risk
Our cash and cash equivalents, deposits, and loans with banks and financial institutions are potentially subject to concentration of credit risk. We place cash and cash equivalents with financial institutions that management believes are of high credit quality. The degree of credit risk will vary based on many factors, including the duration of the transaction and the contractual terms of the agreement. As appropriate, management evaluates and approves credit standards and oversees the credit risk management function related to investments.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 31 | |||||||||||
| Item 4. Controls and Procedures | ||||||||||||||
Evaluation of Disclosure Controls and Procedures
As of March 31, 2026, our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were evaluated, under the supervision and with the participation of our CEO and CFO, to assess whether they are effective in providing reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure and to provide reasonable assurance that such information is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms.
Based on this evaluation, our CEO and CFO have concluded that, as of March 31, 2026, our disclosure controls and procedures were effective at a reasonable assurance level.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the quarter ended March 31, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Limitations on Effectiveness of Controls and Procedures
Our management, including our CEO and CFO, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 32 | |||||||||||
Part II. Other Information
| Item 1. Legal Proceedings | ||||||||||||||
The information set forth under Note 10 — "Commitments and Contingencies" in our accompanying notes to the condensed consolidated financial statements under the caption “Legal Matters” is incorporated herein by reference.
| Item 1A. Risk Factors | ||||||||||||||
Investing in our securities involves a high degree of risk. You should consider and read carefully all of the risks and uncertainties disclosed in Part I, Item 1A, under the caption “Risk Factors,” of our 2025 Form 10-K, which risks could materially and adversely affect our business, results of operations, financial condition, and liquidity. No material change in the risk factors discussed in such Form 10-K has occurred. Such risk factors may not be the only ones that we face because our business operations could also be affected by additional factors that are not presently known to us or that we currently consider to be immaterial to our operations. Our business operations could also be affected by additional factors that apply to all companies operating globally.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | ||||||||||||||
Issuer Purchases of Equity Securities
The following table summarizes our stock repurchases for the three months ended March 31, 2026:
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) (1) | ||||||||||
January 1 — January 31, 2026 | — | $ | — | — | $ | 757 | ||||||||
February 1 – February 28, 2026 | — | $ | — | — | $ | 757 | ||||||||
March 1 – March 31, 2026 | 20,447,123 | $ | 19.14 | 20,447,123 | $ | 366 | ||||||||
Total | 20,447,123 | 20,447,123 | ||||||||||||
(1)On May 6, 2025, we announced that our Board of Directors authorized a stock repurchase program for up to $1 billion of our outstanding shares of Class A common stock (exclusive of brokers’ commissions and expenses), and on May 5, 2026, we announced that our Board of Directors authorized an additional increase of up to $1 billion under the stock repurchase program (exclusive of brokers’ commissions and expenses). We may repurchase shares of Class A common stock from time to time through open market purchases, in privately negotiated transactions, or by other means in accordance with applicable securities laws and other restrictions. The program has no expiration date, and we are not obligated to repurchase any portion of our total authorization.
| Item 3. Defaults Upon Senior Securities | ||||||||||||||
None.
| Item 4. Mine Safety Disclosures | ||||||||||||||
Not applicable.
| Item 5. Other Information | ||||||||||||||
c) Trading Plans
Gaurav Anand, our CFO, adopted a pre-arranged stock trading plan (the “Anand Plan”) in accordance with the SEC guidelines specified under Rule 10b5-1(c) under the Exchange Act and the policies of Coupang regarding stock transactions, to sell up to 300,000 shares of Coupang Class A Common Stock (the “Anand Shares”), subject to certain terms and conditions, beginning no earlier than June 15, 2026. The Anand Plan, which was entered into on March 12, 2026, will terminate upon the earlier of the sale of all 300,000 Anand Shares pursuant to the Anand Plan or March 12, 2027. Mr. Anand entered into the Anand Plan to primarily satisfy certain tax obligations.
Harold Rogers, our General Counsel and Chief Administrative Officer, adopted a pre-arranged stock trading plan (the “Rogers Plan”) in accordance with the SEC guidelines specified under Rule 10b5-1(c) under the Exchange Act and the policies of Coupang
| Coupang, Inc. | | Q1 2026 Form 10-Q | 33 | |||||||||||
regarding stock transactions, to sell up to 352,602 shares of Coupang Class A Common Stock (the “Rogers Shares”), subject to certain terms and conditions, beginning no earlier than June 15, 2026. The Rogers Plan, which was entered into on March 12, 2026, will terminate upon the earlier of the sale of all 352,602 Rogers Shares pursuant to the Rogers Plan or March 12, 2027. Mr. Rogers entered into the Rogers Plan to primarily satisfy certain tax obligations.
| Coupang, Inc. | | Q1 2026 Form 10-Q | 34 | |||||||||||
| Item 6. Exhibits | ||||||||||||||
Exhibit Number | Description of Exhibit | Provided Herewith | Incorporated by Reference | |||||||||||||||||||||||||||||||||||
| Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||||||||||||||||
| 3.1 | 10-Q | 001-40115 | 3.1 | November 12, 2021 | ||||||||||||||||||||||||||||||||||
| 3.2 | 8-K | 001-40115 | 3.1 | June 27, 2024 | ||||||||||||||||||||||||||||||||||
| 31.1 | X | |||||||||||||||||||||||||||||||||||||
| 31.2 | X | |||||||||||||||||||||||||||||||||||||
| 32.1* | X | |||||||||||||||||||||||||||||||||||||
| 32.2* | X | |||||||||||||||||||||||||||||||||||||
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||||||||||||||||||||||
| 101.SCH | XBRL Taxonomy Extension Schema Document. | |||||||||||||||||||||||||||||||||||||
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||||||||||||||||||||||||||||||
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||||||||||||||||||||||||||||||||
| 101.LAB | XBRL Taxonomy Extension Labels Linkbase Document. | |||||||||||||||||||||||||||||||||||||
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||||||||||||||||||||||||||||||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |||||||||||||||||||||||||||||||||||||
_____________
| * | The certifications attached as Exhibit 32.1 and 32.2 that accompany this Form 10-Q are deemed furnished and not filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Coupang, Inc. under the Securities Act or the Exchange Act whether made before or after the date of this Form 10-Q, irrespective of any general incorporation language contained in such filing. | ||||
| Coupang, Inc. | | Q1 2026 Form 10-Q | 35 | |||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| COUPANG, INC. (REGISTRANT) | |||||
| By: | /s/ Jonathan Lee | ||||
Jonathan Lee | |||||
Chief Accounting Officer (Principal Accounting Officer) | |||||
Dated: May 5, 2026
| Coupang, Inc. | | Q1 2026 Form 10-Q | 36 | |||||||||||