What Coupang (CPNG) Said on Its Q3 Earnings Call

Key Points

• Revenue beat expectations: Q3 revenue rose 7% to $10 billion, or 11% in constant currency, above prior guidance of 8%–9%. Coupang forecast 13%–14% constant-currency growth for Q4.
• Margins remain pressured, but recovery is expected: Excluding $248 million in fire-related costs, Product Commerce adjusted EBITDA margin was 4.6%, down 420 basis points year over year. Management expects margins to return to approximately pre-data-incident levels by mid-2027.
• Taiwan investment is increasing: Developing Offerings revenue grew 27% in constant currency, while Coupang raised the high end of its full-year segment loss outlook by $50 million to $100 million to fund accelerated Taiwan infrastructure and supply-chain spending.

Coupang NYSE: CPNG reported third-quarter 2026 revenue growth that exceeded its prior outlook in constant-currency terms, while management said its Product Commerce business remains on track to recover margins to approximately pre-incident levels by the middle of next year.

Consolidated net revenue rose 7% year over year to $10 billion, or 11% in constant currency. That exceeded the company’s prior guidance for 8% to 9% constant-currency growth. CFO Gaurav Anand said the timing shift of the Chuseok holiday reduced both consolidated and Product Commerce constant-currency growth by roughly 1 percentage point during the quarter.

Founder and CEO Bom Kim said the quarter’s momentum reflected continued growth in customer spending, WOW membership and Developing Offerings. He said Product Commerce growth was affected by a cohort of customers that left after a data incident and had not returned, though returning customers had resumed spending at prior levels and continued to grow spending at normalized rates.

Product Commerce Recovery and Margin Pressures

Product Commerce segment revenue totaled $8.4 billion, up 5% on a reported basis and 8% in constant currency. Adjusted for the Chuseok shift, constant-currency growth was approximately 9%, representing an acceleration from the second quarter. Active customers reached 25.2 million, up 2% both year over year and sequentially.

Kim said WOW membership in Korea reached its highest level in company history, with net additions running above historical rates as a result of returning members and new signups. Coupang also began rolling out a “Try Now, Pay Later” fashion benefit for WOW members, allowing customers to try items for seven days before payment.

The company said its Rocket assortment expanded at a strong double-digit rate, while Rocket Fresh volumes grew more than twice as fast as overall Product Commerce. Kim attributed Fresh growth to selection, low prices and nationwide free Dawn or same-day delivery.

Product Commerce gross profit was $2.4 billion, with a reported gross margin of 28.4%. Excluding costs related to a July fire at a fulfillment center, Product Commerce gross margin was 29.5%, down about 260 basis points from a year earlier and 100 basis points from the prior quarter.

Product Commerce adjusted EBITDA was $385 million, excluding fire costs, for a 4.6% margin. The margin declined about 420 basis points year over year and 50 basis points sequentially. Anand cited supply-chain headwinds, elevated promotional spending to support customer recovery, and fixed-cost deleveraging against demand below the pre-incident trajectory. He also said the Chuseok timing shift reduced Product Commerce and consolidated adjusted EBITDA margins by roughly 40 basis points year over year.

Kim said Coupang views these pressures as temporary rather than structural. The company has already started reducing customer reacquisition marketing spending and expects that reduction to continue. Management expects Product Commerce adjusted EBITDA margins to return to levels approximating those before the data incident by mid-2027, although the pace of quarterly improvement may vary because of seasonality and other factors.

Fire Costs Contribute to Quarterly Loss

Coupang recorded approximately $248 million in expenses related to the July fulfillment-center fire, including $95 million in cost of sales and $153 million in operating, general and administrative expenses.

Consolidated gross profit was $2.6 billion, producing a reported gross margin of 25.7%. Excluding fire-related expenses, gross margin was 26.7%, down about 270 basis points year over year and 150 basis points sequentially.

The company posted an operating loss of $450 million, or a $202 million operating loss excluding fire-related costs. Net loss attributable to Coupang stockholders was $501 million, or $321 million excluding the fire’s impact. Diluted loss per share was $0.28, or about $0.18 excluding the fire.

Consolidated adjusted EBITDA was $116 million, representing a 1.2% margin and a year-over-year contraction of roughly 330 basis points. On a trailing 12-month basis, operating cash flow was $845 million and free cash flow was negative $409 million. Anand said the decline reflected lower profitability, increased capital expenditures, fire-related cash outlays and higher tax payments.

During the quarter, Coupang repurchased 13 million Class A shares for approximately $201 million.

Taiwan Investment Accelerates

Developing Offerings revenue increased 23% on a reported basis and 27% in constant currency to $1.6 billion, accelerating from 24% constant-currency growth in the second quarter. The segment generated $185 million in gross profit, up $29 million from a year earlier, while adjusted EBITDA losses totaled $269 million, increasing $50 million from the prior quarter as Coupang increased investment.

Taiwan and Eats were the principal growth drivers in Developing Offerings. In Taiwan, Coupang said its owned last-mile network delivers the vast majority of orders next day, seven days a week. Dawn Delivery is now available to more than half of Taiwan’s population, while WOW membership there rose more than 100% year over year and 14% sequentially.

Management raised the high end of its full-year Developing Offerings loss outlook by $50 million to $100 million, primarily because it is accelerating Taiwan infrastructure and supply-chain investments. Kim said the company is building ahead of demand to support service levels, selection and long-term growth. Anand said Korea and Japan Eats operations continue to run on a combined break-even basis, which the company does not expect to change in the foreseeable future.

Coupang is also testing non-food on-demand delivery through Eats in Korea, including partnerships with convenience stores and local merchants. Kim said the offering is intended to provide faster delivery for smaller-batch purchases and remains at an early stage.

Fourth-Quarter Outlook

For the fourth quarter, Coupang expects consolidated constant-currency revenue growth of 13% to 14%. The company also expects consolidated adjusted EBITDA margin to improve by 50 to 150 basis points sequentially, supported by Product Commerce progress and lower marketing spending.

Management said it will provide full-year 2027 guidance for Developing Offerings when it reports fourth-quarter results.

About Coupang (NYSE:CPNG)

Coupang, Inc is an e-commerce and technology company that operates a large digital retail platform. The company offers a broad selection of merchandise, including electronics, household goods, apparel, beauty products and groceries. Its services include Rocket Delivery, a fast-delivery program; Rocket Fresh, which focuses on fresh food and groceries; and Wow, a membership program that provides delivery and other customer benefits.

Coupang also operates Coupang Eats, a restaurant-ordering and delivery service, as well as Coupang Play, a digital video streaming platform.

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