CPNG

Coupang’s second quarter results were met with a negative market reaction, as the company’s revenue fell short of Wall Street expectations and margins came under pressure. Management attributed these outcomes primarily to lingering effects from last year’s data incident, which temporarily disrupted customer activity and introduced higher operational costs. CEO Bom Kim explained that while most customers have returned and spending has rebounded, the company continued to carry excess capacity and increased marketing spend to accelerate customer reacquisition. Additionally, regulatory fines and ongoing supply chain challenges further weighed on profitability during the quarter. Is now the time to buy CPNG? Find out in our full research report (it’s free). Revenue: $8.86 billion vs analyst estimates of $9.05 billion (3.9% year-on-year growth, 2.2% miss) Adjusted EPS: -$0.09 vs analyst estimates of -$0.29 (69.1% beat) Adjusted EBITDA: $163 million vs analyst estimates of $6.93 million (1.8% margin, significant beat) Operating Margin: -6.3%, down from 1.7% in the same quarter last year Active Customers: 24.7 million, up 800,000 year on year Market Capitalization: $29.1 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Stanley Yang (JPMorgan) asked about the drivers and timeline for margin recovery, as well as the impact of competition. CFO Gaurav Anand confirmed margins should recover by mid-2027, with the main drivers being normalization of capacity utilization and the fading of temporary pressures. Eric Cha (Goldman Sachs) questioned the underlying customer spend growth versus reported growth and the cadence of margin improvement. CEO Bom Kim clarified that the gap is due to a minority cohort still absent, and that margin recovery will not be linear but should be evident after lapping the disrupted period. Seyon Park (Morgan Stanley) inquired about narrowing losses in developing offerings and AI strategy. Kim explained that Taiwan is still in build-out mode, with investments paced to customer validation, and that AI investments are ongoing, especially in agentic shopping, although no clear winning model has emerged yet. Jiong Shao (Barclays) probed the impact of holiday timing on Q3 guidance and the reasons behind missing customer cohorts. Management pointed to temporary calendar effects and stated that returning customers resume full spending, while some non-returning customers may still harbor trust concerns. Wei Fang (Mizuho) asked about the pace of local brand onboarding in Taiwan. Kim responded that supplier adoption is tracking similarly to early years in Korea, with expanding local selection a top priority but still at an early stage. Looking ahead, our analysts will be tracking (1) the pace at which lost customers return and whether WOW membership growth translates into higher revenue, (2) signs of margin normalization as capacity utilization improves and marketing spend moderates, and (3) progress in Taiwan’s logistics and local brand expansion. We will also monitor regulatory developments and the integration of AI into core operations as additional contributors to future performance. Coupang currently trades at $16.17, down from $16.78 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 5:30 p.m. ET Vice President of Investor Relations - Michael Parker Founder and Chief Executive Officer - Bom Kim Chief Financial Officer - Gaurav Anand Operator: Hello, everyone. My name is Emily, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coupang 2026 second quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number five on your telephone keypad. If you'd like to withdraw your question, press star and the number five once again. I'd like to turn the call over to Michael Parker, Vice President of Investor Relations. You may begin your conference. Michael Parker: Thanks, operator. Welcome everyone to Coupang's second quarter 2026 earnings conference call. I'm pleased to be joined on the call today by our Founder and CEO, Bom Kim, and our CFO, Gaurav Anand. The following discussion, including responses to your questions, reflects management's views as of today's date only. We do not undertake any obligation to update or revise this information except as required by law. Certain statements made on today's call may include forward-looking statements, including statements regarding future financial and operational results. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and in our filings with the SEC, including our most recent annual report on Form 10-K, and subsequent filings. As we share our second quarter 2026 results on today's call, the comparisons we make to prior periods will be on a year-over-year basis, unless otherwise noted. We may also present both GAAP and non-GAAP financial measures. Additional disclosures regarding these non-GAAP measures, including reconciliations of these measures to the most comparable GAAP measures, are included in our earnings release, our slides accompanying this webcast, and our SEC filings, which are posted on the company's investor relations website. I'll turn the call over to Bom. Bom Kim: Thanks, everyone, for joining us today. Consolidated revenue grew 10% year-over-year in constant currency. That's a step up from the growth in Q1 and in line with the guidance we provided. Adjusted EBITDA margin also came in within the range of guidance. First, product commerce saw its revenue growth increase to 8% year-over-year in constant currency. Let me spend a moment on the customer behavior behind that number, because the reported rate blends groups moving in different directions. The vast majority of our customer spend never moved. That group is spending at the highest levels in our history and compounding similarly to before last year's data incident. The spend that did leave was a minority of the total, and most of it has already returned. Some of these customers were away for months, long enough to settle in somewhere else. These customers not only came back, they returned to their full prior spend levels and have since gone beyond it, compounding their spend at similar high rates as before. Because the customers who returned were, on average, higher spenders than those who haven't, the picture in spend terms is even clearer than in customer counts. The vast majority of the spend the incident disrupted is back and growing the way it did before. On top of that, new customers keep arriving. Total WOW membership, for example, now exceeds its levels before the incident. New members begin at the early stage of the spend curve, where new members always begin, so record membership shows up in revenue on a lag. Every cohort before them has climbed that curve, and we expect these to do the same. The spend of all customers, excluding just those that left during the incident and haven't returned, is growing around 16% year-over-year, which is closer to the spend growth product commerce delivered in Q2 last year before the incident. Spend growth does outpace revenue growth, but the gap between the 16% and the reported 8% revenue growth is driven mostly by the missing spend of the cohort that hasn't returned. We'll keep chipping away at earning them back. After we lap the affected periods, we expect the spend growth for all of product commerce to reflect the growth rate of this underlying customer base because the cohort that has not returned will no longer be in our year-over-year comparison. On margins, we're continuing to work through the disruption. We plan capacity and fixed costs against the predicted demand curve, and much of that capacity has long lead times. With revenue temporarily below that plan, those costs represent a larger share of revenue today. We could cut them significantly; we've chosen not to because the right long-term decision is to grow into the capacity and support our customer experience that has always been our North Star. There are also meaningful volume-based savings in our supply chain that we're missing this year that we expect to recover next year. We've also deliberately increased marketing spend to reacquire customers; we plan to reduce it next year after we've lapped the period. We run this business with precision on capacity utilization and volume economics. That's what allows us to deliver double-digit growth along with expanding margins in normal times. It's also why a sudden shock is more visible in our numbers than it might be somewhere else. The same discipline that makes the disruption more visible is what will enable us to reverse it. We've seen elements of this before. Coming out of COVID, a sudden shift in the demand curve pressured margins, and we returned to normal levels. The shape of the recovery this year won't move in a straight line. Holiday timing and seasonal cost patterns will affect the reported improvement quarter to quarter. Gaurav will walk through how that shapes the back half. The arc we're managing to runs through next year. After we lap the affected period next year, we expect to work our way back to the growth and margin structure that product commerce ran at before. I want to also note a few trends that we track closely and the broader opportunity we see before us. Our cohorts have continued to increase their spend with us year after year, including through this past year. Our oldest cohorts, the customers we acquired about a decade and a half ago, are still increasing their spend today. They now spend nearly 10 times what they spent in their first year, and climbing. Our newest cohorts are growing fastest of all, at the beginning of the same curve. Each year adds a new cohort at the start of the curve, while every earlier cohort keeps climbing it. All three trends- our oldest cohorts continuing to grow spend, the spend of our subsequent cohorts climbing the curve to convert to higher levels, and new cohorts joining- power our growth. The past year tested us; all three trends held. The spend of our cohorts climbs because spend growth is wallet share growth. As we expand selection, customers find more and more of the things they buy for which we've broken the trade-off between price, selection, and speed. We're saving customers more money and more time with every item we add on Rocket Delivery. Our wallet share, or penetration of the overall retail spend in Korea, remains below the levels of penetration we see from global peers in markets like the U.S. We don't view these levels as our ceiling because penetration follows the strength of the offering. Every trade-off we break brings purchases online that were never in reach before. As the offering improves, the addressable share of retail expands with it. The same logic applies to margins. The long-term margin drivers keep compounding. Automation continues to improve productivity across our fulfillment and logistics network. Margin-accretive offerings like advertising and FLC are still early in their scale. AI raises the ceiling on both. We think of AI as a multiplier, and what it multiplies is a set of assets we've been building for 15 years. The physical network, operating data from billions of orders picked, packed, and delivered, and direct relationships with tens of millions of customers. Applied to the customer experience, AI improves discovery, personalization, and service. Applied to operations, it compounds productivity and lowers the cost to serve. Applied to margin-accretive offerings, it raises the returns for the merchants and brands who use them, which expands the addressable opportunity itself. Turning now to developing offerings, where we're running the playbook I just described in new markets and categories. In Taiwan, we've built out and continue to expand our own end-to-end fulfillment and logistics network that now delivers the vast majority of our shipments next day, seven days a week, the only service in Taiwan, to our knowledge, that does. We also began rolling out our dawn delivery experience, which became a defining part of the customer experience in Korea, to our first neighborhoods in Taiwan. We're building it faster than the first time because Taiwan didn't start from scratch. Taiwan inherits over a decade of technology and process innovation from our Korean operations. The design, the systems, the operational playbook, refined shipment by shipment. It took us four years into our logistics journey in Korea before we were able to launch dawn delivery. Taiwan reached it in just one year. With the network in place, the work shifts to the input we know best: selection. Our selection in Taiwan today is a fraction of Rocket Delivery in Korea. Every item we add is another purchase where our customer saves both money and time, and each of those purchases earns more of their wallet. That's the same dynamic that has our Korean cohorts still climbing 15 years in, and we can already see it taking hold. Our early cohorts in Taiwan are retaining and growing their spend, tracing the curve Korea's cohorts produced at the same age. Taiwan is on the same compounding curve as Korea, just earlier on in it. Two things to keep in mind as this scales. First, the path won't be linear quarter-to-quarter. Sometimes building selection at the right cost structure means stepping back in a category to rebuild it. Second, today's economics reflects the stage of our build-out, not the destination. As we work out the inefficiencies of an early supply chain and our volumes grow into the network, volume economics engage, and we expect Taiwan's P&L to follow the path that Korea paved. Let me turn to our on-demand delivery service, which includes both Eats in Korea and Rocket Now in Japan. We've shared in the past our approach to developing offerings. We make disciplined initial investments where we see the potential for meaningful long-term cash flows. We look for early proof points in customer behavior, and we scale investments only as results validate the opportunity. The cycle is complete when an offering stops drawing on the portfolio and starts funding it. Eats has traveled that entire arc. We entered a category most considered settled with a modest investment and a simple thesis that the same propositions that customers valued in commerce- price, selection, and service- would matter just as much in food delivery. Customers responded at every stage, and we invested behind that response. Today, Eats has grown to serve millions of customers, and the category itself has grown with us. Food delivery in Korea has more than quadrupled in size since we launched Eats, now reaching a meaningfully higher share of total restaurant spend than when we entered, and we've been a significant driver of that expansion. The capital story has come full circle. Rocket Now, our on-demand delivery offering in Japan, is in its early investment stage. Eats and Rocket Now are today sustainable on a combined basis. That is the model working end to end: disciplined entry, validation, scale, then an offering that carries its successors. We're also extending what Eats built. We've begun rolling out non-food on-demand delivery. The same network and speed customers already trust apply to new use cases, offering customers even more opportunities to save time and money. What I've covered today is one model running at three different stages. Product commerce is farthest ahead, with years of investment in infrastructure and selection, customer cohorts still compounding 15 years in, and the margin expansion that follows scale. Eats has now run that same cycle in a second category. Taiwan is midway through it, building the network, filling in the selection, moving through the same stages that Korea moved through. They represent the same playbook at three different points on the same curve. I'm proud of our teams for continuing to build for our customers at every stage. Our ambition from the very beginning has been to build an experience that wows customers so much that they ask themselves, "How did I ever live without Coupang?" Every item we add, every offering we build, and every market we enter is another chance to build to that standard. With that, I'll turn the call over to Gaurav. Gaurav Anand: Thanks, Bom. Our Q2 results demonstrate a continuation of the momentum we started to see last quarter. Before I walk through the numbers, I should highlight two items that shaped the reported numbers this quarter. First, the Korean won weakened significantly versus the US dollar during the quarter, reaching its weakest level in more than 15 years. As a result, our reported growth rates in US dollars understate the underlying growth of our business, and we believe it is especially important to evaluate our results on a constant currency basis this quarter. Second, our product commerce results this quarter include $410 million in administrative fines recently imposed by Korean regulatory authorities. While these fines are still subject to judicial review and we plan to appeal them through the courts, we recorded the expense this quarter within OG&A in the P&L. Where relevant, I'll explain our results both with and without the fines. Let me now walk through the segment results and then cover our consolidated performance. Product commerce segment net revenues were $7.4 billion for the quarter, growing 1% on a reported basis and 8% in constant currency. This represents a sequential improvement from the 5% constant currency growth rate we reported last quarter. Product commerce active customers for the quarter were 24.7 million, growing 3% year-over-year and up from 23.9 million last quarter. As we noted, the sequential decline last quarter reflected the lag effect of the data incident on our trailing three-month active customer definition. This quarter, we saw the dynamic reverse driven by the number of returning customers and new customer additions. As Bom noted, WOW memberships now exceed the level we saw prior to the data incident, and returning members are spending today at higher levels than they did before the incident and increasing their spend at similar high rates as prior to the incident. Product commerce gross profit for the quarter was $2.3 billion, with a gross profit margin of 30.5%. This represents a contraction of approximately 210 basis points year-over-year, but an improvement of 25 basis points quarter-over-quarter. The year-over-year contraction is driven primarily by supply chain headwinds and temporarily elevated levels of promotional activities to accelerate customer reacquisition. Segment adjusted EBITDA for product commerce was $382 million for the quarter, which excludes the fines I mentioned earlier, resulting in an adjusted EBITDA margin of 5.1%. This represents a contraction of approximately 390 basis points year-over-year, resulting from the gross profit margin impacts I just described, as well as the headwinds from our current capacity and fixed cost structure built against a pre-incident demand curve. We believe the margin pressure we are experiencing to be relatively short-term in nature and not representative of a structural change. Our conviction of the drivers of our long-term margin expansion potential- operational efficiencies, supply chain optimization, continued investment in automation and technology, and the scaling of our margin-accretive categories and offerings remains firmly in place. Within Developing offerings, we reported segment net revenue of $1.4 billion, growing 20% on a reported basis and 24% in constant currency. Growth continues to be led by Taiwan, Eats, and Farfetch, driven by increasing levels of customer adoption of these emerging initiatives. Developing offerings generated $226 million in gross profit for the quarter, with a gross profit margin of 15.8%, expanding both year-over-year and quarter-over-quarter as these offerings continue to demonstrate a path to sustainable economics. Segment-adjusted EBITDA losses were $219 million, an improvement of $110 million versus last quarter, and over 440 basis points of margin improvement over last year. At the consolidated level, we reported total net revenues of $8.9 billion for the quarter, growing 4% on a reported basis and 10% in constant currency. This is in line with the constant currency growth range we guided to last quarter. Consolidated gross profit was $2.5 billion with a gross profit margin of 28.2%. This represents a contraction of 188 basis points year-over-year, but an expansion of 115 basis points quarter-over-quarter. As with product commerce, the year-over-year margin compression continues to reflect the near-term headwinds we have discussed. OG&A expense was $3.1 billion for the quarter, or 34.4% of total net revenues, representing an increase of approximately 610 basis points year-over-year. Excluding the $410 million in fines, OG&A expense was approximately $2.6 billion, or 29.8% of total net revenues, an increase of approximately 150 basis points year-over-year, and down slightly quarter-over-quarter. This underlying year-over-year increase primarily reflects temporarily elevated marketing spend, our continued investments in Developing offerings, and a cost-based position against an expected demand curve from prior to the data incident. We view the elevated marketing and promotional spend as a deliberate near-term investment to accelerate growth, not a structural change in our cost base. Operating loss for the quarter was $556 million. Excluding the fines, the adjusted operating loss was approximately $146 million, representing a quarter-over-quarter improvement in operating loss margin of approximately 120 basis points. Loss before income taxes was $533 million, or $123 million excluding the fines. We incurred income tax expense of $37 million this quarter. Our tax dynamics continue to reflect the fact that losses in our early-stage operations in Taiwan and Japan do not generating offsetting tax benefits at the consolidated level. In addition, the fines recorded this quarter are not deductible for tax purposes in Korea, which further impacted our reported effective tax rate this quarter. Net loss attributable to Coupang stockholders was $570 million, or approximately $160 million excluding the fines. This resulted in a diluted loss per share of $0.32, or approximately $0.09 excluding the fines. We generated $163 million in consolidated adjusted EBITDA this quarter, which excludes the $410 million in fines recorded this quarter, resulting in an adjusted EBITDA margin of 1.8%. This represents a contraction of approximately 320 basis points year-over-year at the low end of the guidance range we provided. The vast majority of this year-over-year contraction is attributable to three temporary items: supply chain dislocation, elevated levels of marketing investments, our primary fixed cost base sized to a pre-incident demand curve, each of which we expect to work through over the next few quarters. On cash flow, on a trailing 12-month basis, we generated operating cash flow of $1.4 billion and free cash flow of $105 million. The decreases versus prior periods reflect the lower profitability resulting from the data incident, increased level of investment in developing offerings, and elevated levels of capital expenditures. During the quarter, we repurchased an additional 23 million shares of our Class A common stock for approximately $459 million. We continue to be opportunistic in our capital allocation as we identify opportunities to generate long-term returns for our shareholders. A few comments on our outlook. We expect Q3 consolidated constant currency revenue growth to be 8%-9%, with the year-over-year comparison pressured by the timing of the Chuseok holiday season in Korea, which negatively impacts Q3 of this year compared to Q3 of the prior year. As Bom indicated, excluding the portion of customers that left during the data incident period and not yet returned, we are seeing growth in customer spend at 16% year-over-year. After we fully lap the affected periods in Q2 next year, the cohort that has not returned will no longer be in our year-over-year comparison, and we expect the spend growth rates of product commerce to reflect the spend growth rates of the underlying customer base. On margins, we expect underlying improvements in product commerce to continue their progress in Q3. However, we expect these to be offset by higher weather-related seasonality and the timing of Chuseok holiday that is different from last year. As a result, despite our expectation of making meaningful improvements in the underlying drivers we noted this quarter, we anticipate consolidated year-over-year adjusted EBITDA margin contraction in Q3 of 300 to 400 basis points, similar to the contraction we guided to for Q2. Looking beyond Q3, we expect the improvements to become increasingly more evident, with product commerce-adjusted EBITDA margins by mid-2027 returning to margin levels approximating those we generated prior to the data incident. We plan to provide more detailed guidance on the 2027 margin expectations towards the end of this year. We continue to estimate full-year developing offerings adjusted EBITDA losses of between $950 million and $1 billion. The largest contributor of the developing offering losses this year remains the long-term investments we are making into building our retail offering in Taiwan. As always, our investment in developing offerings is anchored by our commitment to rigorous analysis, operational excellence, and disciplined capital allocation. Operator, we are now ready to begin the Q&A. Operator: At this time, I would like to remind everyone, in order to ask a question, press star, then the number five on your telephone keypad. If you would like to withdraw your question, press star, then the number five once again. Please limit your questions to two per person. We'll pause for just a moment to compile the Q&A roster. The first question is from Stanley Yang from JPMorgan. Your line is now open. Stanley Yang: Thank you for your opportunity to ask two questions. I have two questions. First, on the margin guidance, I couldn't hear very clearly about this new point. Did you guide your EBITDA margin of the product commerce will recover to 2025 level in 2027? Can you confirm that? If that is the case, what will be the major margin expansion drivers? Related to this margin outlook, have you seen a more competitive environment post-data accidents that cause cost pressure? That was my first question. My second question is about this Taiwan. Do you have any visibility into a potential structural decline in developing offering loss in Taiwan over time? If so, what will be the major drivers? Thank you. Gaurav Anand: Thanks for your question, Stanley. We did guide that we'll recover our margins by middle of 2027. Specifically in Q3, we guided that the underlying drivers of our margin are improving. Some of the drivers haven't fully recovered yet, and won't recover until next year because of the scale. We are on trend to benefit from high utilization as the volume grows. Second, in the projected numbers for Q3, this progress is masked by holidays, timing, and seasonal cost patterns, which is why we guided 300 to 400 basis points of year-over-year contraction, similar to Q2. Bom Kim: Yeah. Go ahead. Gaurav Anand: Beyond Q3, the improvement will become increasingly evident in the reported numbers as we expect this product commerce margin to return to approximately pre-incident levels by mid 2027. We will provide detailed guidance towards the end of the year. The reason for our confidence is that nothing has structurally changed. The pressure is from some temporary items that we chose to carry rather than cut and trade away the customer experience. We have also seen this play out before. Coming out of COVID, a sudden shift in demand pressured margins the same way, and the same discipline brought them back. Bom Kim: Yeah. Just to quickly touch on that a little bit. Yes, Stanley, we have guided margins to recover fully in 2027. The drivers of that margin expansion are the opposite of what led to the compression. The large majority of the compression traces back to volume coming in softer than our demand trajectory. As Gaurav mentioned, we run a business with very tight execution, and so when demand deviates meaningfully from below that trajectory, we get capacity being stranded, and we miss out on some of the volume-based savings that affect our economics. All of that is reversible, and it's not structural, but the bulk of it is mechanical, and we expect to recover it in 2027. We have seen more elevated competitive activities, but we think the past year has given us an unusually direct test. Customers who paused during the incident had a lot of time to try alternatives- months to try alternatives. When they came back, and most of them did, they came back not splitting their prior spend with us. They're back, as Gaurav mentioned, spending at the highest levels ever, and growing that spend now as fast as they did before. We also have membership now at an all-time high. These customers who never left are also spending at record levels, growing as fast as they did before. We feel very confident about the position that our service, the value proposition that we're providing for our customers. We'll keep focusing on widening the experience gap with broader selection, lower prices, and faster service. On developing offerings. I think we've typically talked about developing offerings as a whole. Taiwan is a big part of it. As I mentioned earlier, Eats has really come full circle and completed the cycle. We're talking about Taiwan, which is in the middle of that cycle. It's on the same curve that Korea's on, just earlier. The economics there reflect the stage of the build-out that it's at. Its priority right now is building that foundation for durable growth and economics at scale. We're encouraged by the signals we look for in customer behavior and response that we invest behind. Our guidance for developing offerings we typically provide at the end of the year. We look forward to sharing that with you later this year. Stanley Yang: Thank you. Operator: Our last question will be from Eric Cha from Goldman Sachs. Your line is now open. Eric Cha: Yes, thank you. Thank you for the opportunity. I have two questions, also related to the guidance you provided today. The first question is on actually your commentary around the product commerce revenue growth. I think you mentioned that without the WOW members that have left, the spending growth was about 16%, which compares to the 8% growth on a reported basis as a whole. Just wanted to understand the gap between these two numbers, because I think you mentioned that the people that have left are a minority. It does seem like this minority seems to have a bit of an outsized impact. Just wanted to just get a sense why the gap seems a bit large. Also, when we head into the fourth quarter, obviously we'll be lapping a quarter where it's post the incident. Given that you mentioned that the existing WOW members are growing at 16% level, can we expect a meaningful step-up in growth by the time we reach fourth quarter this year? That's my first question. The second question relates to the margin. I think, as Stanley mentioned, you commented that the margin will be down 300 to 400 basis points year-over-year. Does that include your sort of expectation around a material impact or some impact from the fire incident? As I believe it does cause a bit of inefficiency around logistics. Was just wondering how much of that was baked into the guidance. Also, you mentioned the margin will be fully recovered by the midpoint next year. Just wanted to understand the cadence of that improvement. I'm not sure how you will answer the first question, if by fourth quarter we do have a bit of a improvement in the year-over-year for the top line, can we expect a bit of a step-up in the fourth quarter, seeing the evidence of that sort of reversal kicking in? Largely sort of a linear fashion. I know you mentioned linear is not the way you see it, but moving from 5% margin to probably around 8% margin for PC, product commerce margin, should we expect a step-up in fourth quarter and then continuously move up to the 8% level? Or do we expect a rather compressed level and then step up in the midpoint next year to around 8% level? Just wanted to get color around that. Thank you. Bom Kim: Hi, Eric. Thanks for your question. For clarification, the data incident was closer to the end of which began in the end of Q4. The affected periods extended into part of Q1, actually most of Q1. I think that's one point of clarification. The cleanest way to understand the picture is, as I mentioned, to set aside that small group that's still missing. The customers who left during that period and haven't yet come back. Everyone else is growing at about 16% year-over-year. As I mentioned, that's close to the rate product commerce was compounding before the incident. There are three groups that make up that 16%, all of whom are healthy. The largest is customers who never left. They're spending more with us than at any point in our history, compounding at their old pace. Second group is the group that left, came back. As I mentioned, they came back, are spending now at record levels. They represent an even larger share of spend that left because the returnees skew towards the higher spenders. Now spending at record levels, growing as fast as they did before the incident. The third is new customers who are joining us actually even faster than they did before the incident. The gap, as you point out, between the 16% and the reported 8%, is primarily driven by that small group of lower-spending customers who haven't returned yet. There is, of course, this factor of spend growth outpacing revenue growth as well. Really, the majority of that gap is really driven by that small group that is in the base of the year-over-year comp, and is really distorting or obscuring the growth rate of the underlying customer base, the customers who are with us. As I mentioned, next year, the mechanics work as such, as we lap the period. The group that won't have returned to us by that point will drop out of our year-over-year comp base. This product commerce spend growth naturally converges to the spend growth of the customers who are with us, our customer base at that point, which will be then compared against a comp base that no longer includes that missing cohort. Hopefully, the mechanics of that are clear. As to your question of how that reflects in our growth rate, as you might imagine, we had varying levels of disruption that began at the end of Q4, that extended into Q1. After we fully lap that affected period, or as we lap that period, you might see some of the absent customers drop out of the base, but you'll see the full effect of that after we fully lapped the affected period. Gaurav Anand: Yeah. Eric, let me take your question on the margins. We highlighted that the margin contraction were primarily driven by the supply chain headwinds, elevated levels of marketing activities to re-accelerate or accelerate the customer reacquisition, and the headwinds from current capacity and fixed cost structure built against the pre-incident demand curve. We expect to make meaningful progress in mitigating these impacts over the next several quarters, including in Q3. Q3 has this specific timing issue of holidays and seasonal cost patterns. The whole margin step-down and recovery is driven by our volumes that came in softer than our planned trajectory since the incident. The mechanics going forward are clear. As the demand rebuilds, capacity and fixed cost utilization come back into balance, and the volume-based supply chain savings that we are missing this year come back, and the incremental marketing we have deliberately deployed this year begins to normalize. As you also pointed out, it may not be linear, or at least we're not forecasting or giving any guidance on that. We are confident that we should be able to make the whole recovery. Operator: The next question is from Seyon Park from Morgan Stanley. Your line is now open. Seyon Park: Hi. Thank you for the opportunity. I'll ask a question on developing offerings. I think there were many questions asked on product commerce margins already, so I'll skip that. Just on, first of all, on developing offerings, we did see the losses narrow meaningfully in the second quarter. Can you maybe provide us a little bit of context as to what part of the business saw lowered losses and how we should think about the losses for the third quarter and the fourth quarter? That's my first question. Second question, I guess, is a little bit going beyond the core. A lot of talk about agentic AI and how AI could change how we purchase items online. I know Coupang is already using a lot of AI, especially for demand forecasting, delivery, and the like. Does the company have plans to maybe utilize AI from an agentic side of things? Is that something that's kind of in one of the research pieces that we can kind of expect going forward? That's my second question. Thank you. Bom Kim: Hi, Seyon. Thanks for your question. On developing offering losses, as I mentioned, Taiwan is in the middle of that cycle. It is where we're primarily investing. I wouldn't read too much into investment levels quarter to quarter. We provide guidance on an annual basis. As I mentioned, we currently remain in line with the full-year guidance we're providing for developing offerings. We're still at a very exciting phase of building that foundation for both durable growth and economics. In Korea, we saw the power of building that underlying infrastructure that really powers the quality of customer experience that leads to both compounding growth and attractive economics in the long term. We saw the benefits of that, of building the network, the last-mile capability, the full supply chain. These things take time to build, but they compound for a very long time aftewards, as you've seen. The economics of Taiwan and the growth of Taiwan actually reflects the stage that we're at in the build-out. Again, the build-out is still under progress, and we don't manage to a quarter. We provided annual guidance. We see that the build-out is happening in some ways even faster in Taiwan than in Korea. As I mentioned, it took Korea four years of logistics build-out to reach dawn delivery. Taiwan's reached it in just one. We still have a lot of work to reach the quality of experience we're striving for. Taiwan does benefit from over a decade of systems and operating processes that it's inheriting. We scale our investment as customers validate it. We're especially encouraged by the cohort response that we're tracking. The customer behavior we see in Taiwan at this stage looks very much like product commerce did in its early years. That's the signal we invest behind. We look forward to updating our guidance with you at the end of the year around developing offerings. On AI, as you point out, we have already deployed AI in many parts of our business. It's already contributing across operations, fulfillment, logistics, supply chain, pricing, advertising, customer service. It's providing meaningful improvements in service levels and cost to serve where it's been deployed. We have active investments on the customer-facing side as well, for example, in search and discovery, where the industry's direction, we think, is clear. AI has the potential, as we've mentioned earlier, to really multiply the asset base that we have underneath it, the physical network, our operating assets, our customer experience. We've already seen, and we'll expect it to improve customer engagement and compound productivity and lower cost to serve and all the benefits that we've mentioned earlier. Margin-accretive offerings, we think it actually has the potential to expand the addressable market itself, the opportunity itself, because we've seen signs of it. We see the potential for it to raise the return of the merchant brand customers who use them. On the agentic AI part that you've brought up specifically, we think this is still a work in progress. We think the industry's direction or the- it's not clear that the winning experience has emerged. We're investing. We are investing in teams, in the research, as you mentioned, to explore it while being thoughtful about it, and investing with the same discipline that we do in all the other initiatives that we have on the exploration front. Whatever form agentic shopping takes, we believe we'll be in the best position to provide the winning experience, which we believe will combine AI with all the other aspects of customer experience to provide a complete and seamless buying experience that customers trust. To build that complete and seamless buying experience, you need more than AI. AI is one input, but there are many other assets that will be part of it, and we believe we should be in the position to provide the best of all worlds on that front. We'll continue to invest in exploring this opportunity thoughtfully. When a winning approach emerges, we'll be positioned to execute with the same operational excellence and capital discipline we apply everywhere else. Gaurav Anand: Yeah, let me jump in. I had missed a question regarding fire impact in Q3 guidance. Let me address that. From Eric. Let me just address that. Regarding the recent fire at one of our fulfillment centers in Korea in July, this fire has not had a significant impact on revenue generation or our ability to meet customer demand. Nor do we expect significant disruption to our ability to meet future customer demand. While we experienced disruption at the affected facility, we have been leveraging the flexibility of our broader logistics network to continue serving customers. It's still far too early for us to assess any financial impact that may result from the fire, but we are working very closely with the relevant stakeholders to assess the level of damage to our assets. We currently estimate the total carrying value of our owned inventory and fixed assets at the facility prior to the fire, as well as our obligation to sellers relating to their inventory stored in the facility, to be approximately $246 million. We maintain insurance coverage for fire and intend to pursue the available claims. Any losses associated with the FC fire, and the corresponding insurance recoveries, would be recognized in future quarters beginning in Q3. Yeah. Bom Kim: While we're on the note of addressing questions that we missed, I think I missed a question from Stanley about how competition has affected our marketing spend, and I want to quickly touch on that question. The step-up in marketing so far this year isn't a response to any competitive activity. It's primarily a one-time investment to accelerate reacquisition of customers after the exceptional event of the incident. It's deliberate. We plan to bring it back down next year. Nothing about our long-term approach around marketing has changed. We've always been disciplined on that front and focused on generating attractive returns on investment. Operator: The next question is from Jiong Shao from Barclays. Your line is now open. Jiong Shao: Thank you for taking my questions. Just so you know, in the spirit of not making you miss another question, I'm going to ask one at a time- if that's okay. The first question is on your Q3 revenue guidance. I mean, for Q2, your group revenue was up 10% year-over-year, and PC revenue growth was up 8%. There's a two-point gap. If you had to take your Q3 rev guide of 8% to 9%, and the implied PC may be 6% to 7%, let's say, that's a deceleration of Q2. I know you talked about holiday timing the shift. I was wondering if you can guesstimate or give us some help on how to estimate the impact from that Chuseok shift. Is there any estimate you can give us on apple-to-apple comparison basis in terms of the product commerce growth? That's the first question. Gaurav Anand: Thanks, Jiong, for the question. At this time, we're not giving estimates by reason, but at a high level, there are a couple of factors impacting it. Our cohort strength exiting the quarter remains growth strength. For product commerce, exiting the quarter remains really strong. This is primarily a temporary calendarization impact and weather seasonal-related impact, which we expect in Q3. Getting into Q4 and Q1, we expect to see stronger growth as our customer, who have left us, as Bom was talking earlier, as we start to overlap those customers. Bom Kim: I think the point to communicate clearly is that the underlying base we see continuing to grow very fast. As I mentioned, the underlying base grew 16% year-over-year, the customers who are with us. We expect that trend to stay strong in Q3. Q3 carries this added calendar effect that Gaurav mentioned, which is that the Chuseok holiday's timing this year creates a headwind against last year's Q3. Underlying the trend of the headwind of the Q3 holidays timing, the seasonal timing, as well as the absent cohort that creates that year-over-year comp distortion, we believe the underlying customer base will continue to compound at very strong rates in Q3, similar to what we saw this quarter. As I mentioned also, the record WOW membership numbers- the new members are really a leading indicator. They don't quite show up in the revenues, or they show up on a lagging basis. You'll see that in future quarters and years to come. The Q3 guidance isn't a reflection of the underlying growth. It's really a residual math of that one missing cohort and a holiday period shift this year. Jiong Shao: Okay, thank you for your comments. My second question is I just want to confirm your margin guidance because all the other drivers you talked about are reversing after the data leak. I would imagine when you talk about the margins in mid 2027, going back to the data leak incident applies to product commerce, not just to the group. I just want to confirm that point. Bom Kim: That's correct. We're talking about margin recovery for product commerce next year. Jiong Shao: Okay. Perfect. Great. My last question is also a follow-up to what you mentioned about that missing cohort. I was just wondering, what may be some of the reasons you feel that this missing cohort may not come back to Coupang, given the obvious value we're providing to these consumers? Maybe tie into what's going on with the competitors are doing. Our competitors are adding more value to not only attract these cohorts, appear to be keeping them for a bit longer than what we hope. Bom Kim: Yeah, Jiong, it's difficult to say with absolute certainty why some customers haven't returned. We think the data lets us rule some things out. I don't think it's a change in the value proposition or a structural shift in the market. I say that because when customers from this group come back, even after months away, they return to their full prior spend levels and have grown from there. These returning customers, as I've mentioned, are now spending at record levels, growing as fast as they did before the incident. If the value proposition or the relative value proposition had weakened for them, that's not the behavior you'd see. We understand that there may be some leftover sentiment and trust factors in play for customers who have still not returned. Our plan is to keep earning their trust every day, keep winning them back over time. Operator: We will now take our last question from Wei Fang from Mizuho. Your line is now open. Wei Fang: Great. Thank you for taking my question. I have one regarding your supply expansion in Taiwan. We've seen some of the local Taiwan brands onboarding recently, and particularly in those high-volume categories like pet supply, personal care, et cetera. I believe the success is part of the drivers for your gross margin expansion in the quarter. I was wondering if management can comment on the pace of local brand onboarding, compared to your home country, Korea, at a similar stage of development. If possible, can you also help provide any examples so far in terms of Taiwan local brands onboarded? Thank you. Bom Kim: Hi, Wei. We're such an early stage right now. The supplier adoption is following a trajectory similar to what we experienced during the early years in Korea. That's been an encouraging sign. Expanding local selection is one of our top priorities, but we're very early in that journey. We're still at a fraction of the overall selection that we plan to get to, that we will have at a later stage. While it's exciting and we're making progress, we're just getting started in building that out right now. Before you buy stock in Coupang, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coupang wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy. Coupang (CPNG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $877 million, up 47% year-over-year. Adjusted EBITDA: $54 million, up 54% year-over-year. Net Revenue Retention (NRR): Record 129%, up from 127% in Q1 and 118% a year ago. International Revenue: $110 million, up 87% year-over-year, first quarter above $100 million. Non-Amazon Revenue: Up 93% year-over-year, with strength across Tmall, TikTok Shop, Walmart, and Coupang. SaaS, Logistics, and Other Revenue: $17 million, up 123% year-over-year. R&D Expense (excl. stock-based compensation): $12 million, up 89% year-over-year. Operating Cash Flow (TTM): $136 million, up 76% year-over-year. Free Cash Flow (TTM): $106 million, up 92% year-over-year. Cash and Cash Equivalents: $346 million, with no outstanding debt and $150 million of borrowing capacity. Q3 2026 Outlook: Revenue expected between $840 million-$860 million (31%-34% growth); Adjusted EBITDA expected between $51 million-$53 million (25%-29% growth). Full-Year 2026 Outlook: Revenue expected between $3.4 billion-$3.5 billion (37%-38% growth); Adjusted EBITDA expected between $211 million-$213 million (38%-40% growth). Warning! GuruFocus has detected 2 Warning Sign with PTRN. Is PTRN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 revenue of $877 million, up 47% year-over-year, with adjusted EBITDA up 54% to $54 million. Net revenue retention (NRR) hit a record 129%, up from 127% in Q1 and 118% a year ago, exceeding the long-term target of 115%. International revenue grew 87% year-over-year to $110 million, surpassing $100 million for the first time. Non-Amazon revenue grew 93% year-over-year, with strong performance across Tmall, TikTok Shop, Walmart, and Coupang. SaaS, logistics, and other revenue grew 123% year-over-year to $17 million, providing additional optionality. Raised full-year revenue outlook to $3.4-$3.5 billion (37-38% growth) and adjusted EBITDA to $211-$213 million (38-40% growth). Strong cash flow generation: trailing 12-month operating cash flow up 76% to $136 million and free cash flow up 92% to $106 million. Awarded a U.S. patent for True ROAS methodology, enhancing measurement capabilities. Named TikTok Shop's Strategic Partner of the Year, with over 100 brand partners now selling on the platform. Expanded advertising capabilities to ChatGPT through ROI Hunter, reaching consumers across multiple platforms. Q3 revenue growth is expected to moderate to 31-34% year-over-year due to tougher comparables and the shift of marketplace promotional events from Q3 to Q2. Q3 adjusted EBITDA growth is expected to be 25-29% year-over-year, lower than recent quarters, partly due to the event shift and seasonal pressures. NRR is expected to moderate to approximately 123-124% by year-end, down from the record 129% in Q2. R&D investment increased 89% year-over-year to $12 million, which is growing faster than revenue and could pressure margins. The company faces potential risks from brand acquisitions, such as P&G's acquisition of Thorne, which could lead to changes in partnerships, though no change of control provisions exist. Amazon still represents over 90% of total revenue, indicating high concentration risk despite diversification efforts. Q4 typically sees seasonal EBITDA margin pressure due to higher costs during the holiday period. Q: With P&G's announced acquisition of Thorne, does a change of control create any considerations for your relationship with Thorne, and how do you think about customer retention when brands are acquired by larger strategic owners?A: Jason Beesley (CFO) confirmed there is no change of control provision in the agreement and that it is "business as usual" with Thorne, noting Pattern already works with other P&G portfolio brands. Dave Wright (CEO) added that this is a positive outcome, as Pattern has historically built some of its best and longest partnerships inside large CPG conglomerates, either through brands starting there or being acquired, and expects the acquisition to bring more resources and investment to the Thorne brand. Q: Given the record net revenue retention (NRR) results, what is the signal on any ceiling for NRR among existing cohorts, and how should we think about faster growth in newer cohorts or verticals potentially diluting NRR while contributing to overall revenue growth?A: Dave Wright (CEO) attributed the 129% NRR to the company's technology roadmap, which has "approximately doubled" expectations from 12 months ago, driven by AI leverage in its Software Factory. Jason Beesley (CFO) added that even long-tenured brands can significantly outgrow the market due to technology optimizations and expansion levers, and while newer cohorts could theoretically dilute NRR, the company is not seeing any meaningful impact. Q: Non-Amazon revenue still implies over 90% of total revenue runs through Amazon. Where do you see that non-Amazon share going in one to two years?A: Jason Beesley (CFO) noted that while Pattern loves operating on Amazon, the global GMV split is lower for Amazon than Pattern's current concentration, making diversification a natural progression. He highlighted that non-Amazon revenue has grown from 7% to 9% of total business in just one year, with growth rates double or triple that of Amazon. Dave Wright (CEO) added that Walmart's business is up 3.4 times from two years ago, and the company remains channel-agnostic, focusing on brand outcomes as the ecosystem evolves. Q: Can you walk through where you're seeing the strong outperformance across the growth categories (technology, geography/marketplaces, selection), and what infrastructure needs are required to support continued rapid growth?A: Dave Wright (CEO) stated that the bulk of performance comes from the technology stack, as millions of daily actions cannot be manually executed. On infrastructure, he highlighted the new Bethlehem, Pennsylvania facility with hardware and software innovations increasing throughput by 2x, and emphasized the company's measured approach to avoid overbuilding. He also noted the complex problem of returns (19.3% of global goods) and the company's investment in commerce infrastructure as a service to address future agentic shopping needs. Q: Can you provide more color on the investments in commerce infrastructure as a service and agentic commerce acceleration capabilities?A: Dave Wright (CEO) explained that commerce infrastructure involves solving natural problems like inventory placement, delivery speed, redirects, exchanges, and returns, which will be more broadly used in the future. For agentic commerce, he highlighted Pattern's data advantages in mapping semantic intent, using the example of a blanket search where product descriptions must include dimensions to avoid being skipped in an LLM world. The company's SEO data is incredibly useful for understanding intent mapping, positioning Pattern well to help brands accelerate on LLM surfaces. Q: Given four consecutive quarters of margin expansion, the Q3 guidance implies year-over-year margin contraction. What are the specific drivers of those trends?A: Jason Beesley (CFO) explained that the calendar shift of marketplace promotional events (Prime Day, Walmart Deals, Target Circle) from Q3 to Q2 caused approximately four points of growth shift, creating noise between quarters. He also noted that Q4 typically has seasonal pressure on EBITDA margins due to higher costs during the holiday period. The only real year-over-year drag is increased R&D investment growing faster than revenue, but on a full-year basis, the company still expects margin accretion with adjusted EBITDA growing faster than revenue. Q: The number of data points on the platform has increased about 38% year-to-date to 91 trillion. How does that drive the pace of A/B tests and feed into product philosophy? Also, how is the health and wellness category comparing versus other verticals?A: Dave Wright (CEO) stated that Pattern is possibly best in the world at building frameworks for measurement, and the growing data moat creates a virtuous cycle where brand success leads to expansion, attracting more brands and more data. Jason Beesley (CFO) noted that the company doesn't manage category mix, but highlighted beauty growth of 85% and pet supplies growth of over 100%. He added that health and wellness as a percentage of new business is lower than the overall business, but the same flywheel of reputation and expertise that drove success in that category is happening across many others. Q: Amazon discussed positive performance of their first-party AI interface. Are you able to take advantage of that on the marketplace, and what's the near-term roadmap for Pattern Intelligence (Pi) to drive more brand engagement?A: Dave Wright (CEO) confirmed Pattern's data aligns with Amazon's results, noting that AI interfaces provide better consumer understanding. He emphasized that brands focused on quality will be rewarded in a world of higher transparency, as LLMs narrow down search results to the most relevant products. Jason Beesley (CFO) added that Pi is built on 13 years of data with a better interface layer for brands, providing more transparency, and while the focus is on effectiveness and revenue growth, efficiencies will naturally emerge as automation increases. Q: How are brands balancing marketplace participation versus DTC investment, and what does that imply for long-term client attrition or channel shift risk?A: Dave Wright (CEO) stated that Pattern hasn't seen cannibalization between channels, and the company generally encourages collaboration across all channels. He noted that when brands are successful in any channel, it tends to raise marketplace awareness and benefit the overall business. Pattern's goal is to support what's best for each brand's outcomes, which typically also benefits Pattern. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Pattern Group Inc.? Here are five stocks we like better. Record Q2 performance: Revenue rose 47% year over year to $877 million, while adjusted EBITDA increased 54% to $54 million. Net revenue retention reached 129%, well above Pattern’s 115% long-term target. Growth is diversifying beyond Amazon: International revenue jumped 87% to $110 million, and non-Amazon revenue increased 93%, led by marketplaces including Tmall, TikTok Shop, Walmart and Coupang. Outlook raised: Pattern now expects full-year revenue of $3.4 billion to $3.5 billion and adjusted EBITDA of approximately $211 million to $213 million, supported by strong cash flow, technology investments and momentum in AI-driven commerce tools. Pattern Group (NASDAQ:PTRN) reported record second-quarter results, with revenue rising 47% year over year to $877 million and adjusted EBITDA increasing 54% to $54 million. Chief Executive Officer Dave Wright said the company’s adjusted EBITDA growth exceeded revenue growth for the fourth consecutive quarter. The company also reported net revenue retention of 129%, up from 127% in the first quarter and 118% a year earlier. Pattern uses the metric to measure expansion among existing brand partners. Wright said the result exceeded the company’s long-term target of 115% and reflected brand partners expanding across marketplaces, geographies and product lines. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control International revenue increased 87% from a year earlier to $110 million, marking the first quarter in which that business surpassed $100 million in revenue. Non-Amazon revenue rose 93%, supported by activity on Tmall, TikTok Shop, Walmart and Coupang. Chief Financial Officer Jason Beesley said Pattern operates in 20 marketplaces across China, Hong Kong, Korea, Malaysia, Japan and Singapore. He noted that Pattern was the only non-China-based company named a Gold Star service provider for the health category by Tmall. → 3 Drone Stocks That Should Soar After the Summer Slump SaaS, logistics and other monetization revenue grew 123% to $17 million. Wright said the category remains a small portion of total revenue but provides additional ways to deepen relationships with brands and offers business optionality. During the question-and-answer session, Beesley said non-Amazon revenue represented 9% of total business, up from 7% a year earlier. While the company did not provide a forecast for that mix, he said diversification should continue as Pattern follows consumers across global marketplaces. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Wright highlighted Walmart’s progress, saying Pattern’s business on the marketplace was 3.4 times its level of two years ago. He also said the company expects its channel mix to evolve as commerce expands to new marketplace and agentic-shopping surfaces. Wright said Pattern’s technology platform is built around an e-commerce ontology with a data layer, semantic layer and execution layer. The company said it has accumulated 91 trillion data points over 13 years and has 44 patents issued or pending across those layers. Pattern launched its Pattern Intelligence, or Pi, platform in May. According to Wright, Pi uses a sensor-and-actor framework to take governed actions across marketplaces on behalf of brand partners, while allowing partners to review, approve and modify inputs. The company also said it received a U.S. patent during the quarter for its True ROAS methodology, which seeks to measure advertising-generated sales after accounting for organic conditions, competition and long-term incrementality. The technology works alongside Destiny, Pattern’s advertising technology platform. Pattern said it was named TikTok Shop’s Strategic Partner of the Year in April and now has more than 100 brand partners selling through TikTok Shop. Wright said social commerce has become a meaningful source of new brand acquisition, particularly in beauty and fashion. Through ROI Hunter, which Pattern acquired in December, brand partners can now advertise through ChatGPT in addition to Meta, Google, Snap and TikTok. Management also discussed investments related to large language models and agentic commerce. Wright said Pattern is developing commerce infrastructure services involving real-time inventory, fulfillment, returns and customer interactions, while also building capabilities to help brands optimize their presence for LLM-driven shopping experiences. Pattern generated $136 million in operating cash flow during the trailing 12 months ended June 30, up 76% year over year, and $106 million in free cash flow, up 92%. The company ended the quarter with $346 million in cash and cash equivalents, no outstanding debt and $150 million of borrowing capacity. Beesley said adjusted EBITDA growth came despite expenses associated with Pattern’s annual Accelerate e-commerce summit, startup costs for an East Coast fulfillment facility and higher research and development spending. The East Coast facility is now operational, with early throughput in line with company targets. R&D expense, excluding stock-based compensation and related taxes, rose 89% to $12 million. Pattern said it is investing ahead of revenue in data infrastructure, the expansion of Pi and AI capabilities, while seeking leverage in other operating areas. Based on second-quarter results and momentum entering the second half, Pattern raised its full-year outlook. The company now expects: Revenue of $3.4 billion to $3.5 billion, representing approximately 37% to 38% year-over-year growth. Adjusted EBITDA of approximately $211 million to $213 million, representing approximately 38% to 40% growth. Ending net revenue retention for the year of approximately 123% to 124%. For the third quarter, Pattern forecast revenue of $840 million to $860 million, or 31% to 34% growth, and adjusted EBITDA of $51 million to $53 million, or growth of 25% to 29%. Beesley said third-quarter comparisons will be affected by the timing of promotional events. Amazon Prime Day, Walmart Deals and Target Circle events moved into the second quarter this year, creating an estimated four percentage-point growth shift from the third quarter to the second quarter and affecting both revenue and adjusted EBITDA. Asked about Procter & Gamble’s announced acquisition of Thorne, Beesley said Pattern learned of the transaction at the same time as the market and would not comment on transaction specifics. He said Pattern already works with other brands in P&G’s portfolio and that its agreement with Thorne does not contain a change-of-control provision. Beesley said Pattern and Thorne management had discussed the transaction and reiterated the importance of their partnership, describing the current relationship as “business as usual.” Wright added that Pattern has worked with brands that were later acquired by larger consumer packaged goods companies, including some of its longest-running partnerships. Management said it has not seen direct-to-consumer investment by brands materially cannibalize marketplace revenue. Wright said success in a brand’s direct channel can increase marketplace awareness, and Pattern’s focus remains on supporting brand outcomes across channels. At Pattern, we are on a mission to help brands accelerate profitable growth on global ecommerce marketplaces. Today, our proprietary technology and on-demand experts operate across more than 60 marketplaces to increase product sales to consumers in more than 100 countries. Utilizing more than 46 trillion data points and sophisticated machine learning and artificial intelligence (“AI”) models, we strive to optimize and automate key levers of ecommerce growth, including advertising, content creation and management, pricing, forecasting and customer service. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Pattern Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Interested in Coupang, Inc.? Here are five stocks we like better. Revenue growth accelerated: Coupang’s Q2 revenue rose 4% year over year to $8.9 billion, or 10% in constant currency, while product-commerce active customers increased 3% to 24.7 million as customers returned after the data incident. Profitability remained pressured: Adjusted EBITDA was $163 million excluding $410 million in Korean regulatory fines, while product-commerce EBITDA margins declined due to supply-chain costs, reacquisition marketing and excess capacity. Management expects margins to return to approximately pre-incident levels by mid-2027. Expansion businesses improved but remain costly: Developing offerings revenue grew 20% to $1.4 billion and losses narrowed, supported by progress in Taiwan’s logistics network. Coupang expects third-quarter constant-currency revenue growth of 8% to 9% but warned of a 300-to-400-basis-point adjusted EBITDA margin contraction. These Insider Trades Look Like Clear Signals—Until You Read the Fine Print Coupang (NYSE:CPNG) reported second-quarter revenue growth that accelerated from the prior quarter on a constant-currency basis, while management said the company continued to recover from a prior data incident that disrupted product-commerce customer activity and pressured margins. Consolidated net revenue reached $8.9 billion, up 4% year over year on a reported basis and 10% in constant currency. CFO Gaurav Anand said the Korean won’s weakness against the U.S. dollar materially reduced reported dollar-denominated growth rates during the quarter. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Is Coupang the Next MercadoLibre? A Playbook for Global Dominance The company generated $163 million in consolidated adjusted EBITDA, excluding $410 million of administrative fines imposed by Korean regulatory authorities. Coupang said it plans to appeal the fines, which were recorded in operating, general and administrative expense during the quarter. Product commerce revenue totaled $7.4 billion, increasing 1% on a reported basis and 8% in constant currency, improving from 5% constant-currency growth in the first quarter. Product commerce active customers rose 3% year over year to 24.7 million, compared with 23.9 million in the prior quarter. → Why Rare Earth Processing Could Be the Real 2027 Opportunity The Future of Innovation: 3 Tech Stocks to Watch Founder and CEO Bom Kim said the reported growth rate included differing customer trends following the data incident. He said most customer spending was unaffected and that customers who returned after leaving during the incident were spending at record levels. However, a smaller group of customers has not returned, weighing on year-over-year comparisons. “The vast majority of the spend the incident disrupted is back and growing the way it did before,” Kim said. He added that customer spend excluding those who left during the incident and had not returned was growing about 16% year over year. → 3 Drone Stocks That Should Soar After the Summer Slump Kim said WOW membership has surpassed its level before the incident. He noted that newer members begin at an earlier point in their spending curve, meaning the benefit of membership growth is expected to show up in revenue over time. Management expects the impact of the remaining absent customer cohort to diminish after the company laps the affected comparison periods next year. Kim said the company will continue efforts to regain those customers, citing potential sentiment and trust considerations rather than a structural deterioration in its value proposition. Product commerce gross profit was $2.3 billion, producing a 30.5% gross margin. The margin contracted about 210 basis points from a year earlier but improved 25 basis points sequentially. Product commerce adjusted EBITDA was $382 million, excluding the Korean regulatory fines, for a 5.1% margin. That represented a year-over-year contraction of roughly 390 basis points. Anand attributed the pressure to supply-chain headwinds, temporarily elevated promotional activity aimed at customer reacquisition, and capacity and fixed costs built for demand expectations that preceded the incident. Kim said the company has chosen not to reduce capacity substantially because it wants to preserve the customer experience and grow into its existing infrastructure. He also said Coupang expects volume-related supply-chain savings to recover next year and plans to reduce reacquisition-focused marketing spending after it laps the affected period. Anand said product-commerce adjusted EBITDA margins are expected to return to approximately pre-incident levels by mid-2027. Management characterized the margin pressure as temporary and said it does not view the issue as a structural change in the business. At the consolidated level, Coupang reported an operating loss of $556 million and a net loss attributable to stockholders of $570 million, or $0.32 per diluted share. Excluding the fines, the adjusted operating loss was approximately $146 million and net loss was approximately $160 million, or about $0.09 per diluted share. Developing offerings, which include Taiwan, Eats, Farfetch and other initiatives, generated $1.4 billion in revenue, up 20% reported and 24% in constant currency. Segment gross profit was $226 million, for a gross margin of 15.8%, which improved both year over year and sequentially. The segment’s adjusted EBITDA loss was $219 million, narrowing by $110 million from the first quarter and improving by more than 440 basis points from a year earlier. Coupang maintained its outlook for full-year developing-offerings adjusted EBITDA losses of $950 million to $1 billion, with Taiwan remaining the largest contributor to those investment losses. Kim said Taiwan is expanding its fulfillment and logistics network, with the majority of shipments now delivered next day, seven days a week. The company has also started rolling out dawn delivery in initial Taiwan neighborhoods. He said Taiwan reached that service milestone after about one year of logistics development, compared with four years in Korea. Management said Taiwan’s selection remains a fraction of Rocket Delivery’s assortment in Korea, but early customer cohorts are retaining customers and increasing spending. Kim said local supplier adoption in Taiwan is following a trajectory similar to Coupang’s early years in Korea, though the company remains at an early stage of building local selection. For the third quarter, Coupang expects consolidated constant-currency revenue growth of 8% to 9%. Anand said the year-over-year comparison will be affected by the timing of Korea’s Chuseok holiday and weather-related seasonal costs. The company expects third-quarter consolidated adjusted EBITDA margin to contract 300 to 400 basis points year over year, despite anticipated improvement in underlying product-commerce margin drivers. Management said reported improvement should become more evident after the third quarter, though it did not provide a quarterly recovery cadence. Anand also addressed a July fire at a Korean fulfillment center. He said the incident has not significantly affected revenue generation or the company’s ability to meet customer demand because Coupang has used the flexibility of its wider logistics network. The company estimated that the carrying value of owned inventory and fixed assets at the facility, along with obligations to sellers for stored inventory, was about $246 million before the fire. Coupang said it maintains fire insurance and that any losses and related insurance recoveries would be recognized in future quarters beginning in the third quarter. On capital allocation, Coupang repurchased 23 million Class A shares for approximately $459 million during the quarter. On a trailing 12-month basis, the company generated $1.4 billion in operating cash flow and $105 million in free cash flow. Coupang, listed on the New York Stock Exchange under the ticker CPNG, is a South Korean e-commerce company headquartered in Seoul. Founded in 2010 by Bom Kim, the company grew rapidly by combining an online marketplace with a large direct-retail business model. Coupang completed a primary listing in the United States in 2021, and it has become one of South Korea's leading online retailers by focusing on convenience, speed and a wide product assortment across consumer categories. The company operates a vertically integrated e-commerce platform that includes a customer-facing marketplace and an extensive logistics and fulfillment network. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Coupang Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth acceleration to 10% in constant currency was driven by the return of high-spending customers and record WOW membership levels following a prior-year data incident. Management attributes the 8% Product Commerce growth to a 'blended' rate where the vast majority of spend has returned to record levels, while a minority cohort remains absent from the year-over-year comparison. Current margin compression reflects a deliberate decision to maintain fixed costs and capacity sized for pre-incident demand trajectories to protect the long-term customer experience. Supply chain efficiencies and volume-based savings are temporarily suppressed due to demand being below planned capacity, a dynamic management expects to reverse as volume grows into the network. Strategic marketing spend was intentionally elevated to accelerate customer reacquisition, viewed as a near-term investment rather than a structural shift in the cost base. AI is being utilized as a 'multiplier' for physical assets, compounding productivity in fulfillment and logistics while enhancing discovery and personalization for customers. Taiwan's expansion is leveraging a decade of Korean operational playbooks, reaching 'dawn delivery' capabilities in one year compared to the four years required in the home market. Product Commerce adjusted EBITDA margins are projected to return to pre-incident levels by mid-2027 as demand rebuilds and capacity utilization normalizes. Q3 revenue growth guidance of 8%-9% includes a headwind from the Chuseok holiday timing, which creates a difficult year-over-year comparison compared to the prior year. Management expects Product Commerce spend growth to converge toward the 16% underlying customer growth rate after fully lapping the affected incident periods in Q2 2027. Developing Offerings adjusted EBITDA losses for the full year are maintained at $950 million to $1 billion, primarily reflecting the ongoing retail build-out in Taiwan. Elevated marketing and promotional spend is expected to normalize in 2027 once the customer reacquisition phase is completed and the affected periods are lapped. A $410 million administrative fine from Korean regulators was recorded as an expense this quarter; the company is currently appealing this through judicial review. A July fire at a Korean fulfillment center resulted in an estimated $246 million in asset and inventory carrying value impact, with insurance claims to be pursued in future quarters. The Korean won reached its weakest level in 15 years, creating a significant gap between reported USD growth and underlying constant currency performance. Developing Offerings losses do not currently generate offsetting tax benefits at the consolidated level, impacting the reported effective tax rate. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Recovery is driven by the reversal of current volume-based headwinds; as demand returns to the planned trajectory, stranded capacity costs will diminish. Management confirmed that the margin pressure is mechanical rather than structural, citing a similar recovery pattern observed following post-COVID demand shifts. The 8% reported growth versus 16% underlying spend growth is primarily due to a small group of lower-spending customers who have not yet returned. Returning customers are spending at higher levels than before the incident, suggesting the value proposition remains intact despite the temporary disruption. AI is currently improving discovery, pricing, and logistics productivity, but 'agentic' AI remains a work in progress for the industry. Management believes their physical network and direct customer relationships will be the critical foundation for whichever AI shopping experience eventually wins. Supplier adoption in Taiwan is following the early Korean trajectory, with a current focus on high-volume categories like pet supplies and personal care. While local selection is growing, it remains a 'fraction' of the eventual target as the company builds out its end-to-end logistics network in the region.

Online platform company Coupang (NYSE:CPNG) fell short of the market’s revenue expectations in Q2 CY2026 as sales rose 3.9% year on year to $8.86 billion. Its non-GAAP loss of $0.09 per share was 68.8% above analysts’ consensus estimates. Is now the time to buy Coupang? Find out in our full research report. Revenue: $8.86 billion vs analyst estimates of $9.05 billion (3.9% year-on-year growth, 2.2% miss) Adjusted EPS: -$0.09 vs analyst estimates of -$0.29 (68.8% beat) Adjusted EBITDA: $163 million vs analyst estimates of $6.93 million (1.8% margin, significant beat) Operating Margin: -6.3%, down from 1.7% in the same quarter last year Free Cash Flow was $51 million, up from -$110 million in the previous quarter Active Customers: 24.7 million, up 800,000 year on year Market Capitalization: $29.47 billion Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea". A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Coupang grew its sales at a solid 17.1% compounded annual growth rate. Its growth beat the average consumer internet company and shows its offerings resonate with customers. This quarter, Coupang’s revenue grew by 3.9% year on year to $8.86 billion, falling short of Wall Street’s estimates. Looking ahead, sell-side analysts expect revenue to grow 13.2% over the next 12 months, a deceleration versus the last three years. We still think its growth trajectory is attractive given its scale and indicates the market is forecasting success for its products and services. WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE. As an online retailer, Coupang generates revenue growth by expanding its number of users and the average order size in dollars. Over the last two years, Coupang’s active customers, a key performance metric for the company, increased by 7.2% annually to 24.7 million in the latest quarter. This growth rate is slightly below average for a consumer internet business and is largely a function of its already massive scale and penetrated market. If Coupang wants to reach the next level, it likely needs to innovate with new products. In Q2, Coupang added 800,000 active customers, leading to 3.3% year-on-year growth. The quarterly print was lower than its two-year result, suggesting its new initiatives aren’t accelerating buyer growth just yet. Average revenue per buyer (ARPB) is a critical metric to track because it measures how much customers spend per order. Coupang’s ARPB growth has been decent over the last two years, averaging 5.1%. Its ability to increase monetization while growing its active customers demonstrates the value of its platform. This quarter, Coupang’s ARPB clocked in at $358.54. It was flat year on year, worse than the change in its active customers. We were impressed by how significantly Coupang blew past analysts’ EBITDA expectations this quarter. On the other hand, its revenue missed. Overall, this quarter could have been better. The stock traded down 2.9% to $16.28 immediately after reporting. Is Coupang an attractive investment opportunity at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Coupang (CPNG) is set to report Q2 2026 results after the close on August 4, with the market watching how a projected 6.2% revenue increase compares with last year’s 16.4% pace. See our latest analysis for Coupang. Coupang’s share price has been under pressure in 2026, with a year to date share price return down 29.74% and a 1 year total shareholder return down 45.08%. However, the 7 day share price return of 6.35% suggests some short term momentum into the Q2 earnings event. If Coupang’s earnings update has you reassessing growth ideas in your portfolio, it can help to compare with other technology enabled platforms using the 55 AI infrastructure stocks Coupang is running a large platform with growing revenue, yet the share price is still down sharply over the past year. Does that recent weakness leave the stock attractively priced, or is it still demanding for what you get today? Coupang’s most followed valuation narrative pegs fair value at $36.00 per share versus the last close of $16.42. This frames a sizable upside gap that hinges on stronger profitability and sustained growth execution. Read the complete narrative. Read the complete narrative. Want to see what is behind that earnings ramp in the Coupang story? The narrative leans on rising revenue, higher margins and a richer future earnings multiple. Curious which mix of growth and profitability assumptions gets to a $36.00 fair value. Result: Fair Value of $36.00 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Coupang still faces real pressure from its dependence on the Korean market and higher operating costs, which could limit future margin gains and challenge the bullish earnings path. Find out about the key risks to this Coupang narrative. If the mixed tone in this Coupang narrative has you on the fence, now is a good time to review the underlying numbers and decide where you stand. A helpful place to start is by checking the 3 key rewards. If Coupang has sharpened your focus on opportunities, do not stop there. Use the Simply Wall St Screener to uncover other stocks that could fit your style. Target potential mispricing by scanning for companies that combine quality fundamentals with attractive valuations using the 53 high quality undervalued stocks. Strengthen your income stream by checking companies that offer higher yields and consistent payouts through the 7 dividend fortresses. Prioritize resilience by focusing on companies with robust balance sheets and solid fundamentals using the solid balance sheet and fundamentals stocks screener (46 results). This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CPNG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Net Revenues of $8.9 billion, up 4% YoY and 10% on a constant currency basis Product Commerce Segment Net Revenues of $7.4 billion, up 1% YoY and 8% on a constant currency basis Developing Offerings Segment Net Revenues of $1.4 billion, up 20% YoY and 24% on a constant currency basis SEATTLE, August 04, 2026--(BUSINESS WIRE)--Coupang, Inc. (NYSE: CPNG) today announced financial results for its second quarter ended June 30, 2026. Q2 2026 Consolidated Highlights: Total net revenues were $8.9 billion, up 4% YoY on a reported basis and 10% YoY on a constant currency basis. Gross profit was $2.5 billion, decreasing 3% YoY on a reported basis and increasing 3% YoY on a constant currency basis. Gross profit margin was 28.2%, a decrease of 188 bps YoY. Operating (loss) income was $(556) million, a decrease of $705 million from the operating income last year. Excluding approximately $410 million of certain administrative fines in Korea, operating (loss) income was $(146) million, a decrease of $295 million from the operating income last year. Net (loss) income attributable to Coupang stockholders was $(570) million, a decrease of $602 million from the same period last year. Excluding the administrative fines in Korea, net (loss) income was $(160) million, a decrease of $192 million from the same period last year. Diluted EPS was $(0.32), down $0.34 YoY. Diluted EPS excluding the administrative fines was $(0.09), down $0.11 YoY. Adjusted EBITDA for the quarter was $163 million with a margin of 1.8%, down 318 bps versus last year. Operating cash flow for the trailing twelve months was $1.4 billion, a decrease of $484 million YoY and free cash flow was $105 million for the trailing twelve months, a decrease of $679 million YoY. 23.2 million shares of Class A common stock were repurchased during the quarter for an aggregate amount of $459 million. Q2 2026 Segment Highlights: Product Commerce segment net revenues were $7.4 billion, up 1% YoY on a reported basis and 8% YoY on a constant currency basis. Product Commerce gross profit was $2.3 billion, down 5% YoY on a reported basis and up 1% YoY on a constant currency basis. Gross profit margin was 30.5%, a decrease of 204 bps YoY. Product Commerce segment adjusted EBITDA was $382 million, down $281 million YoY, with a margin of 5.1%, down 390 bps YoY. Product Commerce Active Customers grew to 24.7 million, up 3% YoY. Developing Offerings segment net revenues were $1.4 billion, up 20% YoY on a reported basis and 24% YoY on a constant currency basis. Developing Offerings segment adjusted EBITDA losses were $219 million, improving $16 million YoY. Webcast and Conference Call Coupang, Inc. will host a conference call to discuss second quarter results on August 4, 2026 at 2:30 PM PT/ 5:30 PM ET. A live webcast of the conference call will be available on our Investor Relations website, ir.aboutcoupang.com, and a replay of the conference call will be available for at least three months. This press release, including the reconciliations of certain non-GAAP financial measures to their nearest comparable U.S. GAAP financial measures, as well as our second quarter earnings presentation, are also available on that site. About Coupang 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. It operates in over 190 countries and territories around the world. FORWARD-LOOKING STATEMENTS This earnings release and related management commentary may contain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (together, the "Act"), that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws. We have based the forward-looking statements contained in this earnings release and related management commentary on our current expectations and projections about future events and trends that we believe may affect our industry, business, financial condition, and results of operations. All statements other than statements of historical facts contained in this earnings release and related management commentary, including statements about our business and growth strategies, anticipated or target revenues, growth rates, margins, cash flows, and other operating or financial results, future customer retention, spend and growth rates or trends, our planned investments in new products and offerings, future marketing spend and cost saving trends, future impacts of AI on our business and operating and financial results, and their anticipated outcomes, as well as our beliefs and expectations related to the impact of the recent data incident on our business and operating or financial results, the pace of recovery from the data incident, and our efforts to prevent future data incidents, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "may," "sustain," "plan," "run," "long-term," "potential," "more," "predict," "view," "project," "guide," "arrive," "manage," "should," "target," "toward," "think," "will," "shall," "keep," "goal," "grow," "generate," "objective," "represent," "seek," "see," "apply," "bring," "strategy," "future," "create," "opportunity," "runway," "trajectory," "roll," "work," "increase," "return," "continue," "expand," "extend," "build," "move," "climb," "pace," "restore," "raise," "improve," "refine," "add," "retain," "make," "on-going," "momentum," "compound," "prevent," "commit," "want," "can," or "would," or the negative of these words or other similar terms or expressions. Actual results and outcomes could differ materially from those expressed or contemplated by the forward-looking statements for a variety of reasons, including, among others, risks and uncertainties regarding the nature and scope of any past or future data incidents, investigations and administrative fines related to such data incidents, the impact of such data incidents on us, our customers, operations, and financial results; the continued growth of the retail market; changes in consumer preferences and spending patterns; the increased acceptance of online transactions by potential customers; competition in our industry; managing our growth, investment, and expansion into new markets and offerings; risks associated with current and future acquisitions, mergers, dispositions, joint ventures or investments; potential fluctuations in our financial performance; the extent to which we owe income or other taxes; our ability to retain existing suppliers and to add new suppliers on terms acceptable to us; our market position; our operation and management of our fulfillment and delivery infrastructure; legal and regulatory developments; the outcomes of any claims, litigation, audits, inspections and investigations; and the impact of global economic factors including inflation, foreign currency exchange rates, geopolitical events (including the ongoing conflict in the Middle East), tariffs and other trade barriers, and outcomes from catastrophic occurrences. The forward-looking statements contained in this earnings release and related management commentary are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted. For additional information on other potential risks and uncertainties that could cause actual results to differ from the results predicted, please see our most recent Annual Report on Form 10-K and subsequent SEC filings. All forward-looking statements in this earnings release and related management commentary are based on information available to Coupang and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, 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. Additional information relating to certain of our financial measures contained herein, including non-GAAP financial measures, is available in this earnings release, including under "Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Measures" below, and at our website at ir.aboutcoupang.com. Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (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 or through 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 and https://news.coupang.com. Notwithstanding the foregoing, the information contained on our investor relations website and https://news.coupang.com, as referenced in this paragraph, are not incorporated by reference into this release 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. Key Business Metrics and Non-GAAP Financial Measures We review the key business and financial metrics discussed below. We use these measures to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions. Key Business Metrics 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. 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. 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 financial 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. Reconciliations of Non-GAAP Measures In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, we have not provided the most directly comparable forward-looking U.S. GAAP measure to our total net revenues growth, constant currency guidance and adjusted EBITDA margin guidance or a reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable U.S. GAAP measures as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation, income tax, and currency exchange rates. Accordingly, a reconciliation is not available without unreasonable effort due to the uncertainty of these reconciling items. Because these adjustments are inherently variable and uncertain and depend on various factors that are beyond our control, we are also unable to predict their probable significance. However, it is important to note that these factors could be material to Coupang’s results computed in accordance with U.S. GAAP. Certain amounts may not foot due to rounding. The following tables present the reconciliations from each U.S. GAAP measure to its corresponding non-GAAP measure for the periods noted. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804778038/en/ Contacts Investor Contact: Coupang [email protected] Media Contact: Coupang [email protected]

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Coupang’s fair value estimate has shifted slightly from US$26.29 to US$25.83, mirroring modest cuts in analyst price targets. The change ties back to recent research where analysts are reworking models for tax and regulatory developments, currency effects and updated earnings assumptions that influence how confident they feel about Coupang’s medium term profile. As you read on, you will see how these price target tweaks fit into the broader bull and bear narrative and what to watch as that story continues to evolve. Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value Coupang. Goldman Sachs keeps a Buy rating on Coupang with a US$31 price target. The firm highlights that while an additional KRW 300b tax assessment adds regulatory noise, it views tax and regulatory scrutiny as a manageable overhang. Morgan Stanley maintains an Overweight rating and a US$28 price target. It views the W624.7b Personal Information Protection Commission fine, which it estimated at about US$400m, as removing a major uncertainty for Coupang now that the amount is finalized. BofA keeps a Buy rating and trims its price target to US$27. The firm updates its FY26 EPS view to reflect an aggregate US$410m fine that is expected to run through Q2 OG&A and not be tax deductible, which it sees as a defined rather than open ended hit. Mizuho lowers its Coupang price target to US$24 and keeps a Neutral rating. This points to more cautious sentiment around valuation as analysts factor in tax, regulatory and currency effects. Barclays cuts its target to US$29 and still rates Coupang Overweight, but the revision and prior downgrades from Deutsche Bank and Citi show concern about execution risks and the earnings impact of fines and back taxes. Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives! See how Coupang's fair value stacks up across multiple valuation models — not just analyst targets. Fair Value has shifted from US$26.29 to US$25.83. Revenue Growth assumption has moved from 10.75% to 10.47%. Net Profit Margin assumption has adjusted from 2.72% to 2.71%. Future P/E multiple has gone from 45.29x to 44.92x. Discount Rate has changed from 9.27% to 9.29%. Narratives connect Coupang's business story to analysts' forecasts and fair value, and they refresh as new data, news and filings come through. Following a narrative helps you see how each new development may affect the long term outlook in one place. Head over to the Simply Wall St Community and follow the Narrative on Coupang to stay up to date on: How Coupang is using automation, AI and logistics technology to improve operational efficiency and support margin expansion over time. The role of Taiwan, Fulfillment and Logistics by Coupang, Coupang Eats and Coupang Play in broadening revenue streams and customer spend. Key risks such as scaling inefficiencies in new markets, reliance on South Korea, higher operating expenses, tax pressures and potential margin compression in logistics heavy offerings. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CPNG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]