A U.S. judge on Wednesday dismissed a lawsuit accusing Coupang , an e-commerce company sometimes referred to as the Amazon of South Korea, of defrauding shareholders during and after its 2021 initial ... ...

This business is putting up steady growth for shareholders.Investors hunting for the next great technology stock can look for replication of the "Magnificent Seven" business models around the world. Amazon has many copycat businesses in other countries. None more so than Coupang (CPNG 2.78%) and its "everything store" that dominates the retail landscape in South Korea.With ultra-fast delivery, subscription add-ons, and everyday low prices, Coupang is pulling far ahead of the pack in South Korean online shop ...

Core Insights - The article provides a comprehensive analysis of Amazon.com in comparison to its major competitors in the Broadline Retail industry, focusing on financial metrics, market position, and growth potential to offer valuable insights for investors [1] Company Overview - Amazon is the leading online retailer, with retail-related revenue accounting for approximately 75% of total revenue, followed by Amazon Web Services (15%), advertising services (5% to 10%), and other segments [2] - International sales contribute 25% to 30% of Amazon's non-AWS revenue, with Germany, the United Kingdom, and Japan being the leading markets [2] Financial Metrics Comparison - Amazon's Price to Earnings (P/E) ratio is 35.95, which is lower than the industry average by 0.74x, indicating potential value [5] - The Price to Book (P/B) ratio of 7.54 exceeds the industry average by 1.02x, suggesting the stock may be trading at a premium [5] - Amazon's Price to Sales (P/S) ratio of 3.79 is 1.65x higher than the industry average, indicating possible overvaluation [5] - The Return on Equity (ROE) stands at 5.68%, slightly above the industry average, reflecting efficient equity utilization [5] - Amazon's EBITDA is $36.6 billion, which is 5.91x above the industry average, indicating strong profitability [5] - The gross profit of $86.89 billion is 5.24x above the industry average, showcasing robust earnings from core operations [5] - Revenue growth of 13.33% surpasses the industry average of 11.18%, indicating strong demand for products or services [5] Debt-to-Equity Ratio Insights - Amazon's debt-to-equity (D/E) ratio is 0.4, indicating a favorable balance between debt and equity compared to its top 4 peers [10] - The D/E ratio analysis aids in evaluating the company's financial health and risk profile [8] - Overall, Amazon demonstrates strong financial health and growth prospects compared to industry peers, with a low P/E ratio suggesting potential undervaluation and high P/B and P/S ratios indicating overvaluation [8]

Core Insights - The summit "Breaking the Growth: Practical Strategies for Brand Going Global" was successfully held, focusing on new opportunities for cross-border e-commerce and brand growth strategies [1][11] - Experts discussed the importance of adapting to new market conditions and leveraging platforms like Amazon, Coupang, and SHEIN for international expansion [1][11] Group 1: Market Trends and Opportunities - The current landscape of cross-border e-commerce shows a polarization in sales among independent sellers, highlighting the advantages of the DTC model in enhancing brand autonomy and customer satisfaction [3] - The Korean e-commerce market is valued at nearly $170 billion and is experiencing rapid growth, particularly among female consumers aged 40 and above, presenting significant opportunities for Chinese sellers [7] - SHEIN's strategy emphasizes the importance of selecting products based on market trends and optimizing listings to enhance visibility and sales conversion [8] Group 2: Strategic Approaches - A "Seven-Step Methodology" for Chinese factories going global was proposed, covering aspects from product development to brand building, emphasizing the need for a flexible supply chain [5] - The importance of utilizing Amazon's KPI management tools and FBA services was highlighted to improve operational efficiency and consumer reach [5] - The summit aimed to provide actionable insights on market positioning, platform selection, and logistics to help cross-border sellers develop a comprehensive growth strategy [11]

Group 1 - Coupang, Inc. (NYSE: CPNG) is rated as a Buy, indicating a positive outlook for the company's stock performance [1] - The company reported impressive earnings numbers, although the market's reaction has been muted due to tariff-related headlines dominating the news [1] - The analyst emphasizes a fundamental bottom-up approach with a macroeconomic overlay to identify stocks benefiting from global trends, particularly focusing on Financials, Industrials, and Consumer Discretionary sectors [1] Group 2 - The article aims to highlight Asian equities listed in US markets, which are often overlooked and under-allocated in investor portfolios [1] - The author expresses a desire to expand the investment universe for readers by providing insights into these equities [1]

Core Insights - Coupang, Inc. reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.07 per share, representing an earnings surprise of -71.43% [1] - The company posted revenues of $8.52 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.37%, compared to $7.32 billion in the same quarter last year [2] - Coupang shares have increased by approximately 34.8% since the beginning of the year, outperforming the S&P 500's gain of 7.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $9.05 billion, and for the current fiscal year, it is $0.30 on revenues of $34.75 billion [7] - The estimate revisions trend for Coupang was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Commerce industry, to which Coupang belongs, is currently in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Consolidated revenue grew 16% year over year or 19% in constant currency to $8.5 billion [6][16] - Adjusted EBITDA reached $428 million, growing margins by over 50 basis points [6][20] - Consolidated gross profit margin improved to 30%, up 79 basis points year over year [18] - Operating income was $149 million, representing a growth of 55% over last year [20] - Net income attributable to stockholders was $32 million, resulting in $0.02 diluted earnings per share [20] Business Line Data and Key Metrics Changes - Product Commerce segment revenues grew 14% year over year or 17% in constant currency [17] - Developing Offerings segment revenues increased by 33% year over year [17] - Product Commerce gross profit was $2.4 billion, growing 23% or 26% in constant currency [18] - Fresh category revenues grew 25% in constant currency year over year [10] Market Data and Key Metrics Changes - Taiwan's revenue surged 54% quarter over quarter, with year-over-year growth in triple digits [12][13] - Active customer additions in Product Commerce accelerated, with significant revenue per active customer increases [9] Company Strategy and Development Direction - The company is focused on transforming commerce and enhancing customer engagement through improved selection, price, and service [7] - Investments in automation and AI are expected to drive operational excellence and enhance customer experience [11][29] - The company aims to broaden selection and improve inventory availability, particularly in Taiwan [12] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term potential in Taiwan, drawing parallels to early growth in Korea [13][38] - The company expects to continue outpacing retail market growth through enhanced customer experience [48] - A temporarily high effective tax rate is anticipated due to losses in early-stage operations in Taiwan [24] Other Important Information - The company is making significant investments in developing offerings, particularly in Taiwan, with expected adjusted EBITDA losses for the full year between $900 million and $950 million [21][22] - The effective income tax rate for the quarter was 84%, driven by early-stage losses [24] Q&A Session Summary Question: Margin expectations and AI strategies - Management expects further product commerce margin improvement in the second half, leveraging technology and AI [27][31] - AI has been integral to operations, with applications in customer experience and operational efficiency [28][29] Question: Developing offerings investment outlook - Investments in developing offerings are managed as a pool, with no specific guidance on future levels beyond this year [40][41] Question: Taiwan's gross profit margin and unit economics - Management is confident in Taiwan's growth trajectory, with repeat customers driving the majority of growth [38] Question: Government project involvement and consumer growth trends - The company is developing its own AI computing infrastructure and exploring external enterprise opportunities [46] - Growth outlook remains aligned with previous guidance, driven by deepening customer engagement [48] Question: Last mile delivery initiatives and gross margin drivers - Investments in Taiwan are at various stages, with a focus on customer experience and operational excellence [55] - Gross profit margin expansion is attributed to increased efficiency and margin-accretive offerings [57]

Financial Data and Key Metrics Changes - Consolidated revenue grew 16% year over year or 19% in constant currency to $8.5 billion [5][15] - Adjusted EBITDA reached $428 million, growing margins by over 50 basis points [5][20] - Consolidated gross profit was $2.6 billion, growing 20% year over year or 22% in constant currency, resulting in a gross profit margin of 30% [18][19] - Operating income was $149 million, representing a growth of 55% over last year [20] - Net income attributable to stockholders was $32 million, resulting in $0.02 diluted earnings per share [20] Business Line Data and Key Metrics Changes - Product Commerce segment revenues grew 14% year over year or 17% in constant currency, driven by higher spend levels per active customer and a 10% increase in active customers [16] - Developing Offerings segment revenues grew 33% year over year on both a reported and constant currency basis, primarily due to triple-digit growth in Taiwan and high double-digit growth in Eats [17][18] - Fresh category revenues grew 25% in constant currency year over year, with significant expansion in assortment [8] Market Data and Key Metrics Changes - Taiwan's revenue surged 54% quarter over quarter, with year-over-year revenue growth in triple digits [11][12] - Customer engagement in Taiwan is primarily driven by repeat customers, indicating strong product-market fit [12][38] Company Strategy and Development Direction - The company is focused on transforming commerce and enhancing customer engagement through improvements in selection, price, and service [6][13] - Significant investments are being made in automation and AI to enhance customer experience and operational excellence [10][29] - The company aims to broaden selection and improve inventory availability, particularly in Taiwan, which is seen as a key growth opportunity [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of Taiwan, drawing parallels to early growth stages in Korea [12][38] - The company anticipates continued revenue growth driven by existing customer spending and engagement [48] - Management expects consolidated operating expenses to decline as a percentage of revenue in the near to medium term [20][32] Other Important Information - The effective income tax rate was 84% this quarter, primarily due to losses in early-stage operations in Taiwan [23] - The company generated $1.9 billion in operating cash flow and $784 million in free cash flow, a decrease from the previous year [22][23] Q&A Session Summary Question: Margin expectations for the second half and AI strategies - Management expects further product commerce margin improvement in the second half, leveraging technology and automation [27][31] - AI has been integral to operations, with applications in customer experience and operational efficiency, and is seen as a long-term enabler of growth [28][29] Question: Developing offerings investment guidance and Taiwan's unit economics - Investments in developing offerings are expected to continue, with a focus on Taiwan's growth potential [36][40] - Taiwan's growth is driven by repeat customers, and management is confident in achieving positive unit economics over time [38][39] Question: Government project involvement and domestic consumer growth trends - The company is developing its own AI computing infrastructure and exploring external enterprise opportunities [44][46] - Growth outlook remains aligned with previous guidance, driven by deepening customer engagement [47][48] Question: Last mile delivery initiatives and gross margin drivers - Investments in last mile delivery are ongoing, with a focus on customer experience and operational excellence [52][56] - Gross profit margin expansion is attributed to increased efficiency and margin-accretive offerings [58][59] Question: Selection growth in Taiwan and food delivery margin trends - Selection growth in Taiwan is expected to continue, with strong customer response [61][63] - Food delivery initiatives are aimed at enhancing customer value, with ongoing improvements in engagement [64][66]

[Special Note Regarding Forward-Looking Statements](index=4&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) Defines forward-looking statements, outlines associated risks and uncertainties, and clarifies no obligation to update them - Forward-looking statements involve **substantial risks and uncertainties** and are **not predictions of future events**[10](index=10&type=chunk)[12](index=12&type=chunk) - The company does not undertake any **obligation to update** forward-looking statements to reflect events or circumstances after the report date, **except as required by law**[15](index=15&type=chunk) - Key areas of forward-looking statements include future operating and financial performance, business and growth strategy, market trends, competition, expansion, investments, acquisitions (including Farfetch), liquidity, supplier relationships, cybersecurity, employee relations, logistics, seasonal trends, internal controls, foreign currency exposure, tax rates, global events, macroeconomic conditions, personnel, regulatory compliance, and legal outcomes[13](index=13&type=chunk) [PART I. FINANCIAL INFORMATION](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents Coupang's unaudited financial statements, management's discussion, market risk, and controls, highlighting financial performance [Item 1. Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Provides unaudited consolidated financial statements, including operations, balance sheets, equity, cash flows, and detailed notes [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | Metric (in millions, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total net revenues | **$8,524** | **$7,323** | **$16,432** | **$14,437** | | Operating income (loss) | **$149** | **$(25)** | **$303** | **$15** | | Net income (loss) | **$31** | **$(105)** | **$145** | **$(129)** | | Net income (loss) attributable to Coupang stockholders | **$32** | **$(77)** | **$139** | **$(72)** | | Basic EPS | **$0.02** | **$(0.04)** | **$0.08** | **$(0.04)** | | Diluted EPS | **$0.02** | **$(0.04)** | **$0.08** | **$(0.04)** | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | **$31** | **$(105)** | **$145** | **$(129)** | | Foreign currency translation adjustments, net of tax | **$153** | **$(79)** | **$148** | **$(184)** | | Total other comprehensive income (loss) | **$156** | **$(77)** | **$153** | **$(181)** | | Comprehensive income (loss) | **$187** | **$(182)** | **$298** | **$(310)** | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric (in millions) | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Cash and cash equivalents | **$6,796** | **$5,879** | | Total current assets | **$10,176** | **$8,994** | | Total assets | **$17,831** | **$15,344** | | Total current liabilities | **$9,369** | **$7,716** | | Total liabilities | **$13,146** | **$11,167** | | Total equity | **$4,685** | **$4,102** | [Condensed Consolidated Statements of Redeemable Noncontrolling Interests and Equity](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Redeemable%20Noncontrolling%20Interests%20and%20Equity) - **Total equity increased** from **$4,102 million** as of December 31, 2024, to **$4,685 million** as of June 30, 2025[28](index=28&type=chunk) - **Key drivers of equity changes** include net income (**$107 million** for Q1 2025, **$32 million** for Q2 2025), **positive foreign currency translation adjustments** (**$153 million** for Q2 2025), and equity-based compensation (**$113 million** for Q2 2025)[28](index=28&type=chunk) - The company **acquired noncontrolling interest**, resulting in a **decrease of redeemable noncontrolling interests** from **$75 million** to **$0** by June 30, 2025[28](index=28&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | **$145** | **$(129)** | | Net cash provided by operating activities | **$899** | **$876** | | Net cash used in investing activities | **$(512)** | **$(295)** | | Net cash provided by (used in) financing activities | **$108** | **$(80)** | | Net increase in cash and cash equivalents and restricted cash | **$858** | **$197** | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations for financial statements, covering accounting policies, revenue, segment performance, and the Farfetch acquisition [Note 1. Basis of Presentation and Summary of Significant Accounting Policies](index=13&type=section&id=Note%201.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) - **Financial statements are prepared under U.S. GAAP and SEC interim reporting rules**, requiring **management estimates**[34](index=34&type=chunk)[35](index=35&type=chunk) - The company **acquired Farfetch Holdings plc in January 2024**, **expanding into the luxury fashion industry**[36](index=36&type=chunk) - **New accounting standards** ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03/2025-01 (Expense Disaggregation Disclosures) are **effective for fiscal years** 2025 and 2027, respectively, and are **being evaluated for impact**[37](index=37&type=chunk)[38](index=38&type=chunk) [Note 2. Net Revenues](index=13&type=section&id=Note%202.%20Net%20Revenues) | Revenue Category (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net retail sales | **$6,507** | **$5,779** | **$12,595** | **$11,674** | | Third-party merchant services | **$1,755** | **$1,374** | **$3,317** | **$2,421** | | Other revenue | **$262** | **$170** | **$520** | **$342** | | Total net revenues | **$8,524** | **$7,323** | **$16,432** | **$14,437** | - **Revenue recognized from contract liabilities** (deferred revenue) was **$139 million** for the six months ended June 30, 2025, **up from** **$92 million** in the prior year[40](index=40&type=chunk)[41](index=41&type=chunk) [Note 3. Segment Reporting](index=15&type=section&id=Note%203.%20Segment%20Reporting) - Coupang has **two reportable segments**: **Product Commerce** (core retail, marketplace, Rocket Fresh) and **Developing Offerings** (Eats, Play, fintech, Taiwan retail, Farfetch)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Net revenues:** | | | | | | Product Commerce | **$7,334** | **$6,431** | **$14,204** | **$12,925** | | Developing Offerings | **$1,190** | **$892** | **$2,228** | **$1,512** | | **Gross profit:** | | | | | | Product Commerce | **$2,390** | **$1,950** | **$4,541** | **$3,786** | | Developing Offerings | **$171** | **$192** | **$336** | **$285** | | **Segment adjusted EBITDA:** | | | | | | Product Commerce | **$663** | **$530** | **$1,213** | **$997** | | Developing Offerings | **$(235)** | **$(200)** | **$(403)** | **$(386)** | [Note 4. Defined Severance Benefits](index=17&type=section&id=Note%204.%20Defined%20Severance%20Benefits) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Current service costs | **$52** | **$39** | **$102** | **$79** | | Interest cost | **$4** | **$4** | **$8** | **$8** | | Amortization of net actuarial loss | **$3** | **$1** | **$5** | **$2** | | Net periodic benefit cost | **$59** | **$45** | **$115** | **$90** | [Note 5. Income Taxes](index=17&type=section&id=Note%205.%20Income%20Taxes) - **Decrease in effective tax rate** for Q2 and H1 2025 **attributed to Farfetch losses** (prior year), **non-deductible KFTC fine** (prior year), and **lower U.S. taxes on foreign earnings**[54](index=54&type=chunk) - The company is **assessing the impact of the 'One Big Beautiful Bill Act'** (OBBBA), enacted in July 2025, which **introduces tax reform provisions** effective 2025[55](index=55&type=chunk) [Note 6. Earnings per Share](index=17&type=section&id=Note%206.%20Earnings%20per%20Share) | Metric (in millions, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to Coupang stockholders | **$32** | **$(77)** | **$139** | **$(72)** | | Basic EPS | **$0.02** | **$(0.04)** | **$0.08** | **$(0.04)** | | Diluted EPS | **$0.02** | **$(0.04)** | **$0.08** | **$(0.04)** | | Weighted-average shares outstanding (Basic) | 1,817 | 1,789 | 1,812 | 1,791 | | Weighted-average shares outstanding (Diluted) | 1,855 | 1,789 | 1,847 | 1,791 | [Note 7. Fair Value Measurement](index=18&type=section&id=Note%207.%20Fair%20Value%20Measurement) | Financial Asset (in millions) | Classification | Measurement Level | June 30, 2025 | December 31, 2024 | | :---------------------------- | :---------------------- | :---------------- | :------------ | :---------------- | | Money market trust | Cash and cash equivalents | **Level 1** | **$1,837** | **$1,755** | | Money market fund | Cash and cash equivalents | **Level 1** | **$1,548** | **$828** | | Money market trust | Restricted cash | **Level 1** | **$91** | **$83** | [Note 8. Supplemental Financial Information](index=18&type=section&id=Note%208.%20Supplemental%20Financial%20Information) | Supplemental Cash Flow (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Cash paid for operating lease liabilities | **$291** | **$274** | | Operating lease assets obtained | **$368** | **$663** | - **Confirmed invoices owed to financial institutions** under supplier financing arrangements **totaled $467 million** as of June 30, 2025[63](index=63&type=chunk) - **Accumulated other comprehensive loss was $(250) million** as of June 30, 2025, **primarily due to foreign currency translation adjustments**[64](index=64&type=chunk) - In May 2025, the **Board authorized a $1 billion Class A common stock repurchase program**, with **no repurchases made** during the three and six months ended June 30, 2025[65](index=65&type=chunk) [Note 9. Short-term Borrowings and Long-term Debt](index=19&type=section&id=Note%209.%20Short-term%20Borrowings%20and%20Long-term%20Debt) - **A new five-year revolving credit facility of up to $1.5 billion was established** in June 2025, with **no outstanding balance** as of June 30, 2025[66](index=66&type=chunk) - In July 2025, **$425 million was borrowed under the new facility to fully redeem the $392 million Farfetch Term Loans**[67](index=67&type=chunk)[68](index=68&type=chunk) - The company was **in compliance with all financial covenants** for its borrowings and debt agreements as of June 30, 2025[69](index=69&type=chunk) [Note 10. Commitments and Contingencies](index=21&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) - **Long-term contractual commitments include $668 million in new unrecognized obligations** through 2033 for technology services, fulfillment center construction, content, and software licenses[70](index=70&type=chunk) - The company **faces a putative class action and derivative lawsuits alleging securities fraud and breach of fiduciary duty**, with an **unestimable potential loss**[72](index=72&type=chunk) - The **KFTC imposed a $121 million administrative fine** in Q2 2024 on Coupang Corp. for product ranking disclosure violations, which is **under appeal**. A **criminal investigation is also ongoing** with a **maximum fine of $200,000**[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) [Note 11. Business Combinations – Farfetch](index=22&type=section&id=Note%2011.%20Business%20Combinations%20–%20Farfetch) - **Coupang acquired Farfetch in January 2024 for $208 million to expand into luxury retail**[79](index=79&type=chunk)[80](index=80&type=chunk) | Purchase Price Allocation (in millions) | Estimated Fair Value | | :------------------------------------ | :------------------- | | Net assets assumed | **$147** | | Noncontrolling interests | **$(78)** | | Goodwill on acquisition | **$139** | | Total consideration | **$208** | | Acquired Intangible Assets (in millions, except years) | Weighted Average Useful Life | Estimated Fair Value | | :--------------------------------------------------- | :--------------------------- | :------------------- | | Brand trademarks | 5 years | **$130** | | Customer relationships | 5 years | **$34** | | Supplier relationships | 15 years | **$61** | | Developed technology | 3 years | **$38** | | Brand licenses | 8 years | **$62** | | Total intangible assets | | **$325** | - **Farfetch contributed $460 million in total net revenues and a net loss of $108 million** for the three months ended June 30, 2024[82](index=82&type=chunk) - **Restructuring actions post-acquisition included terminating a license agreement, saving $264 million** in guaranteed minimum royalty payments over eight years[84](index=84&type=chunk)[92](index=92&type=chunk) - **Coupang acquired Greenoaks' 19.9% equity interest** in the Limited Partnership (formed for the Farfetch acquisition) **for $122 million** in April 2025, consisting of cash and Class A Common Stock[85](index=85&type=chunk)[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Coupang's financial performance, business overview, key metrics, results, non-GAAP measures, liquidity, and accounting policies [Overview](index=27&type=section&id=Overview) - Coupang is a **technology and Fortune 150 company** offering **diverse services** (retail, delivery, streaming, fintech) across multiple geographies, including South Korea, Taiwan, and Europe[91](index=91&type=chunk) - The company's **integrated fulfillment, logistics, and technology network** supports '**Rocket Delivery**' in Korea, offering **free, next-day delivery** for millions of products[91](index=91&type=chunk) - The January 2024 acquisition of Farfetch **expanded Coupang into the global luxury fashion industry**, leading to **subsequent restructuring actions to reduce headcount and exit leases/licensing agreements**[92](index=92&type=chunk) - The business is **managed and evaluated through two segments**: **Product Commerce** (core Korean retail, marketplace, Rocket Fresh) and **Developing Offerings** (Eats, Play, fintech, Taiwan retail, Farfetch)[94](index=94&type=chunk)[95](index=95&type=chunk) [Key Business Metrics](index=28&type=section&id=Key%20Business%20Metrics) | Metric (in millions, except %) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :----------------------------- | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Total net revenues | **$8,524** | **$7,323** | **16 %** | **$16,432** | **$14,437** | **14 %** | | Total net revenues, constant currency | **$8,705** | N/A | **19 %** | **$17,314** | N/A | **20 %** | | Gross profit | **$2,561** | **$2,142** | **20 %** | **$4,877** | **$4,071** | **20 %** | | Net income (loss) | **$31** | **$(105)** | NM | **$145** | **$(129)** | NM | | Adjusted EBITDA | **$428** | **$330** | **30 %** | **$810** | **$611** | **33 %** | | Product Commerce Adjusted EBITDA | **$663** | **$530** | **25 %** | **$1,213** | **$997** | **22 %** | | Developing Offerings Adjusted EBITDA | **$(235)** | **$(200)** | **18 %** | **$(403)** | **$(386)** | **4 %** | | Metric (in millions, except $) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------------- | :------------ | :------------- | :------------ | | Product Commerce Active Customers | 23.9 | 23.4 | 21.7 | | Net revenues per Product Commerce Active Customer | **$307** | **$294** | **$296** | | Net revenues per Product Commerce Active Customer (constant currency) | **$315** | **$321** | N/A | - **Product Commerce Active Customers increased by 10% year-over-year** to **23.9 million** as of June 30, 2025[99](index=99&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :------------------- | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Net retail sales | **$6,507** | **$5,779** | **13 %** | **$12,595** | **$11,674** | **8 %** | | Net other revenue | **$2,017** | **$1,544** | **31 %** | **$3,837** | **$2,763** | **39 %** | | Total net revenues | **$8,524** | **$7,323** | **16 %** | **$16,432** | **$14,437** | **14 %** | | Cost of sales | **$5,963** | **$5,181** | **15 %** | **$11,555** | **$10,366** | **11 %** | | Operating, general and administrative | **$2,412** | **$2,167** | **11 %** | **$4,574** | **$4,056** | **13 %** | | Operating income (loss) | **$149** | **$(25)** | NM | **$303** | **$15** | NM | - **Product Commerce net revenues increased 14%** (**17% constant currency**) for Q2 2025, driven by **10% growth in active customers** and **6% constant currency growth in net revenues per active customer**[108](index=108&type=chunk) - **Developing Offerings net revenues increased 33%** (**33% constant currency**) for Q2 2025 due to **greater customer engagement in early-stage offerings**[109](index=109&type=chunk) - **Cost of sales as a percentage of revenue decreased from 70.7% to 70.0%** for Q2 2025, **primarily due to higher-margin revenue categories and operational efficiencies** in Product Commerce[111](index=111&type=chunk) - **Operating, general and administrative expenses as a percentage of revenue decreased from 29.6% to 28.3%** for Q2 2025, partly due to the **absence of the $121 million KFTC administrative fine** from the prior year[113](index=113&type=chunk) | Segment Profitability (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :---------------------------------- | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | **Gross profit:** | | | | | | | | Product Commerce | **$2,390** | **$1,950** | **23 %** | **$4,541** | **$3,786** | **20 %** | | Developing Offerings | **$171** | **$192** | **(11)%** | **$336** | **$285** | **18 %** | | **Adjusted EBITDA:** | | | | | | | | Product Commerce | **$663** | **$530** | **25 %** | **$1,213** | **$997** | **22 %** | | Developing Offerings | **$(235)** | **$(200)** | **18 %** | **$(403)** | **$(386)** | **4 %** | - **Product Commerce gross profit and Adjusted EBITDA increased** due to **higher revenue**, increased percentage of higher-margin categories (e.g., FLC), and **operational efficiencies**[121](index=121&type=chunk)[122](index=122&type=chunk) - **Developing Offerings gross profit decreased** for Q2 2025 due to revenue growth from offerings with negative gross profit margins, and **Adjusted EBITDA loss increased due to continued investments**, particularly in Taiwan[123](index=123&type=chunk)[124](index=124&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) - **Non-GAAP measures** (Free Cash Flow, Adjusted EBITDA, Constant Currency Revenue) **provide additional useful information** for **evaluating performance** and are **used for financial and operational decision-making**[125](index=125&type=chunk)[127](index=127&type=chunk) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Trailing Twelve Months Ended June 30, 2025 | Trailing Twelve Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | :----------------------------------------- | :----------------------------------------- | | Net cash provided by operating activities | **$545** | **$664** | **$899** | **$876** | **$1,909** | **$2,206** | | Total purchases of property and equipment | **$(299)** | **$(178)** | **$(538)** | **$(285)** | **$(1,132)** | **$(709)** | | Proceeds from sale of property and equipment | **$1** | **$2** | **$2** | **$4** | **$7** | **$16** | | Free cash flow | **$247** | **$488** | **$363** | **$595** | **$784** | **$1,513** | | Metric (in millions, except %) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | **$31** | **$(105)** | **$145** | **$(129)** | | Adjusted EBITDA | **$428** | **$330** | **$810** | **$611** | | Adjusted EBITDA margin | **5.0 %** | **4.5 %** | **4.9 %** | **4.2 %** | | Metric (in millions) | Three Months Ended June 30, 2025 (As Reported) | Three Months Ended June 30, 2025 (Constant Currency Basis) | Three Months Ended June 30, 2024 (As Reported) | Year over Year Growth (Constant Currency Basis) | | :------------------- | :--------------------------------------------- | :--------------------------------------------------------- | :--------------------------------------------- | :---------------------------------------------- | | Total net revenues | **$8,524** | **$8,705** | **$7,323** | **19 %** | | Product Commerce | **$7,334** | **$7,517** | **$6,431** | **17 %** | | Developing Offerings | **$1,190** | **$1,188** | **$892** | **33 %** | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, Coupang **had $6.9 billion in cash, cash equivalents, and restricted cash**, and **$1.5 billion available under its revolving credit facilities**[131](index=131&type=chunk) - The company **plans significant investments in its growth strategy**, particularly in the **Developing Offerings segment** and **expansion of fulfillment, logistics, and technology capabilities**, with **future expenditures expected to exceed several billion dollars**[133](index=133&type=chunk) - **Remaining capital expenditure commitments** for fulfillment center construction contracts **totaled $374 million** as of June 30, 2025[133](index=133&type=chunk) - In May 2025, the **Board authorized a stock repurchase program for up to $1 billion** of Class A common stock, with **no repurchases made** in Q2 2025[134](index=134&type=chunk) | Cash Flow (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :---------------------- | :----------------------------- | :----------------------------- | :----- | | Net cash provided by operating activities | **$899** | **$876** | **$23** | | Net cash used in investing activities | **$(512)** | **$(295)** | **$(217)** | | Net cash provided by (used in) financing activities | **$108** | **$(80)** | **$188** | - The **increase in operating cash flow was driven by a $274 million increase in net income**, offset by working capital fluctuations[136](index=136&type=chunk) - **Investing cash outflow increased by $217 million**, mainly due to a **$253 million increase in purchases of property and equipment** for fulfillment and logistics infrastructure[137](index=137&type=chunk) - **Financing cash flow turned positive due to a $677 million increase in debt proceeds**, partially offset by **$587 million in repayments**, and the **absence of a $178 million share repurchase** from the prior year[138](index=138&type=chunk) - The company **believes current liquidity and cash flow will meet requirements for at least the next 12 months**, but **may seek additional financing for future opportunities**[139](index=139&type=chunk) - **A new five-year revolving credit facility of up to $1.5 billion was entered into** in June 2025, and **$425 million was borrowed in July 2025 to redeem Farfetch Term Loans**[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) [Critical Accounting Policies and Estimates](index=40&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - **Critical accounting policies and estimates are discussed** in the 'Critical Accounting Policies and Estimates' section of the 2024 Form 10-K[146](index=146&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Coupang is exposed to market risks from interest rates, foreign currency, and credit, with details on variable rate debt and KRW impact - **Market risk exposure primarily includes interest rate risk, foreign currency risk, and credit risk**[150](index=150&type=chunk) - **Interest rate risk arises from variable rate debt**, with **$648 million outstanding on variable interest rate credit facilities** as of June 30, 2025[151](index=151&type=chunk)[152](index=152&type=chunk) - **Foreign currency risk, predominantly from KRW fluctuations, impacts transactional and translational results**; a **hypothetical 10% adverse change in exchange rates would reduce total net revenues by approximately $748 million** for the three months ended June 30, 2025[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) - **Credit risk is managed by placing cash and cash equivalents with high-credit-quality financial institutions**[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Coupang's disclosure controls were effective, and Farfetch's material weakness is believed not to result in material misstatement - **Disclosure controls and procedures were effective at a reasonable assurance level** as of June 30, 2025[159](index=159&type=chunk)[160](index=160&type=chunk) - The **previously identified material weakness in Farfetch's internal control over financial reporting** (related to New Guards business) is now **believed not to result in a material misstatement due to ongoing restructuring and divestiture activities**[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) - **No material changes in internal control over financial reporting occurred** during the quarter ended June 30, 2025[164](index=164&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II.%20OTHER%20INFORMATION) Addresses legal proceedings, risk factors, equity sales, defaults, and other information, concluding with exhibits and signatures [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) Incorporates legal proceedings details by reference from Note 10, 'Commitments and Contingencies' - **Legal proceedings information is incorporated by reference from Note 10, 'Commitments and Contingencies'**[168](index=168&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) Investing in Coupang's securities involves high risk, with no material changes since the 2024 Form 10-K filing - **Investing in the company's securities involves a high degree of risk**[169](index=169&type=chunk) - **No material changes in the risk factors discussed in the 2024 Form 10-K have occurred**[169](index=169&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no unregistered sales of equity securities or use of proceeds for the period - **No unregistered sales of equity securities or use of proceeds occurred**[170](index=170&type=chunk) [Item 3. Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) States no defaults upon senior securities occurred during the reporting period - **No defaults upon senior securities occurred**[170](index=170&type=chunk) [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Indicates that this item is not applicable to the company - **This item is not applicable**[171](index=171&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) Reports no director or Section 16 officer adopted or terminated trading arrangements during Q2 2025 - **No director or Section 16 officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025**[172](index=172&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) Lists comprehensive exhibits filed with the Form 10-Q, including organizational documents, agreements, and certifications - The report **includes exhibits such as the Certificate of Incorporation, Amended and Restated Bylaws, Credit Agreement, RSU/PSU Award Notices, Employment/Separation Agreements, and CEO/CFO Certifications**[173](index=173&type=chunk) [Signatures](index=46&type=section&id=Signatures) Contains required signatures, confirming the report's due authorization and filing by Coupang, Inc. on August 5, 2025 - The report was **duly signed on behalf of Coupang, Inc. by Jonathan Lee, Chief Accounting Officer, on August 5, 2025**[175](index=175&type=chunk)[176](index=176&type=chunk)

Exhibit 99.1 Coupang Announces Results for Second Quarter 2025 Net Revenues of $8.5 billion, up 16% YoY and 19% on an FX-neutral basis Gross Profit of $2.6 billion, up 20% YoY and 22% on an FX-neutral basis Operating income of $149 million, up $174 million YoY SEATTLE - (BUSINESS WIRE) August 5, 2025—Coupang, Inc. (NYSE: CPNG) today announced financial results for its second quarter ended June 30, 2025. Q2 2025 Consolidated Highlights: Q2 2025 Segment Highlights: Coupang, Inc. Q2 2025 Earnings Release 1 • N ...