Coupang(CPNG) - 2025 Q2 - Quarterly Results

Financial Performance - Net revenues for Q2 2025 were $8.5 billion, representing a 16% increase YoY and a 19% increase on an FX-neutral basis[6] - Gross profit increased to $2.6 billion, up 20% YoY, with a gross profit margin of 30.0%, an improvement of 79 basis points YoY[6] - Operating income was $149 million, an increase of $174 million YoY, while net income attributable to Coupang stockholders rose to $32 million, up $109 million from last year[6] - Adjusted EBITDA for the quarter was $428 million, reflecting a 30% increase YoY, with a margin of 5.0%[7] - Total net revenues for Q2 2025 reached $8,524 million, a 16% increase year-over-year from $7,323 million in Q2 2024[36] - Net retail sales for Q2 2025 were $6,507 million, reflecting a 13% year-over-year growth from $5,779 million in Q2 2024[34] - Total net income attributable to Coupang stockholders for Q2 2025 was $32 million, compared to a loss of $77 million in Q2 2024[36] - The company reported a net income margin of 0.4% for Q2 2025, improving from a margin of (1.4)% in Q2 2024[36] Customer Metrics - Product Commerce segment net revenues reached $7.3 billion, up 14% YoY, with active customers growing to 23.9 million, a 10% increase YoY[8] - Product Commerce Active Customers grew to 23.9 million, a 10% increase from 21.7 million in the previous year[29] - Net revenues per Product Commerce Active Customer increased to $307, a 4% rise YoY[7] - Net revenues per Product Commerce Active Customer increased by 4% to $307 in Q2 2025, compared to $296 in Q2 2024[29] Cash Flow and Liquidity - Operating cash flow for the trailing twelve months was $1.9 billion, a decrease of $297 million YoY, while free cash flow was $784 million, down $729 million YoY[6] - Free cash flow for Q2 2025 was $247 million, down from $488 million in Q2 2024, with trailing twelve months free cash flow at $784 million compared to $1,513 million in the previous year[35] - Net cash provided by operating activities was $899 million for the six months ended June 30, 2025, compared to $876 million in the same period of 2024[23] - Net cash provided by operating activities for Q2 2025 was $545 million, down from $664 million in Q2 2024[35] Assets and Liabilities - Total assets increased to $17,831 million as of June 30, 2025, up from $15,344 million at December 31, 2024, representing a growth of 16.2%[21] - Total liabilities rose to $13,146 million as of June 30, 2025, compared to $11,167 million at the end of 2024, reflecting an increase of 17.7%[21] - The total equity increased to $4,685 million as of June 30, 2025, up from $4,102 million at the end of 2024, indicating a growth of 14.2%[21] - Cash and cash equivalents and restricted cash at the end of the period totaled $6,889 million, up from $5,794 million a year earlier, marking a 18.9% increase[23] - The company reported a net increase in cash and cash equivalents and restricted cash of $858 million for the six months ended June 30, 2025[23] Segment Performance - Developing Offerings segment net revenues were $1.2 billion, up 33% YoY, although adjusted EBITDA showed a loss of $235 million, an increase of $35 million YoY[8] - Developing Offerings segment revenues increased by 33% year-over-year to $1,190 million in Q2 2025, compared to $892 million in Q2 2024[34] Future Outlook - The company anticipates that fluctuations in working capital will normalize by the end of the year, impacting free cash flow[6] - Coupang continues to focus on expanding its market presence and enhancing its product offerings, including technology and service innovations[12] Performance Metrics - Adjusted EBITDA margin is a key metric used to evaluate performance, excluding non-cash items and other expenses not reflective of ongoing operations[32]