Table of Contents
a. Key Points
Total active customer levels resumed growth.
Ongoing challenges from the November 2025 data breach.
Taiwan segment progress remains encouraging.
Signs of core business normalization are there.
b. Demand
Missed revenue estimate by 0.5%. Focus on constant currency (CC) growth, especially with ongoing Korean won weakness. Coupang met 10% CC growth estimate & beat 9.5% CC growth guidance.
Beat active customer estimate by 3%. Good to see Coupang register a snap back in net new customers as people return following the data breach. Customer count set new highs once more.
No impact from the mid-quarter fire in Q2 or in the Q3 guide. They’ve been able to route the orders to other fulfillment centers.
As a reminder, gross profit dollar growth is a better gauge of demand for this company than revenue. It’s rapidly shifting to a 3rd-party model where it houses merchant assortment and handles their logistics for them. 3rd-party sales entail commissions that deliver less revenue than if Coupang sold the product directly. That’s a growth drag, but these commissions are virtually all gross profit. That makes gross profit growth a better metric for measuring marketplace demand at this point.
c. Profits & Margins
Missed 28.4% GPM estimate by 20 basis points (bps; 1 basis point = 0.01%).
Product Commerce (PC) is driving the GPM (and other margin) contraction. This is all tied to the ongoing impact from the November 2025 data breach.
Developing Offerings (DO) margin expansion “demonstrates a path to sustainable economics” in leadership’s eyes.
Beat $7M EBITDA estimate by $156M & beat EBITDA margin guidance.
Beat -$0.27 EPS estimate by $0.18.
Missed -$0.27 GAAP EPS estimate by $0.02.
GAAP results included a $410M fine from the Korean government in connection with the aforementioned data breach. Non-GAAP results exclude this, representing the difference between Q2 2026 GAAP net income margin and net income margin seen below.
d. Balance Sheet
$6.1B cash & equivalents.
$2.6B debt.
Diluted share count -3% Y/Y.
e. Guidance & Valuation
Subscribe to our premium content to read the rest.
Become a paying subscriber to get access to this post and a boatload of other subscriber-only content. Read the stock market newsletter read by Fortune 500 CEOs.
Upgrade