CPNG Q2 2025 Earnings

Call Details

• Call Title: Coupang Q2 2025 Earnings Call
• Date: August 5, 2025 at 9:30 PM UTC
• Management Team:
  • Mike Parker (Vice President of Investor Relations)
  • Bom Kim (Chief Executive Officer)
  • Gaurav Anand (Chief Financial Officer)

Call Summary

Financial Performance

• Consolidated revenue was $8.5B, up 16% year-over-year and up 19% in constant currency.
• Consolidated gross profit was $2.6B, up 20% year-over-year and up 22% in constant currency.
• Consolidated gross profit margin was 30%, improving 79 basis points versus last year.
• Consolidated adjusted EBITDA was $428M, up 30% year-over-year, producing an adjusted EBITDA margin of 5%, up over 50 basis points versus last year.
• Operating income was $149M, representing growth of 55% over last year excluding the KFTC administrative fine recorded in Q2 last year.
• Net income attributable to Coupang stockholders was $32M, resulting in $0.02 of diluted earnings per share.
• Product commerce generated $2.4B of gross profit, up 23% year-over-year and up 26% in constant currency, with gross profit margin of 32.6% improving roughly 230 basis points year-over-year.
• Product commerce adjusted EBITDA was $663M, with a margin just over 9%, representing 80 basis points of year-over-year expansion and over 100 basis points improvement quarter-over-quarter.
• Developing offerings revenues grew 33% year-over-year, and developing offerings reported EBITDA losses were $235M in Q2.

Guidance

• Full-year developing offerings adjusted EBITDA loss guidance was revised to a range of $900M to $950M, with the increase driven largely by Taiwan investments.
• Full-year consolidated revenue growth guidance remains roughly 20% in constant currency, consistent with the guidance provided at the start of the year.
• The company expects the pace of margin improvement to be uneven quarter-to-quarter despite multi-year expansion opportunities driven by technology and automation.
• Consolidated OG&A expenses are expected to decline as a percentage of revenue in the near-to-medium term despite elevated tech and developing-offerings spend in the current quarter.
• The company now expects a temporarily high effective tax rate of 65% to 70% for the full year and expects cash tax obligation for the year to be closer to 60%.
• Over the long term, the company expects to normalize to an effective tax rate closer to 25%.
• The company reiterated that it believes eventual adjusted EBITDA margin potential is in excess of 10% over the long term, with product commerce expected to lead.