Coupang Q4 Earnings Miss Estimates, Revenues Increase Y/Y, Stock Down

Coupang, Inc. CPNG reported a fourth-quarter 2025 loss of 1 cent per share, missing the Zacks Consensus Estimate of earnings of 2 cents. The result compares unfavorably with earnings of 4 cents per share in the year-ago quarter.

Total net revenues rose 10.9% year over year to $8.84 billion on a reported basis and increased 14% on a constant-currency (FX-neutral) basis. However, the top line missed the Zacks Consensus Estimate by 3.36%.

CPNG’s shares have dropped 23.5% on a year-to-date basis compared with the Internet-Commerce industry’s decline of 8.6%.

CPNG’s Q4 Segment Detail

Product Commerce segment net revenues rose to $7.41 billion, up 7.6% year over year on a reported basis and 12% on a constant-currency basis. However, the reported figure missed the Zacks Consensus Estimate by 4.93%.

Product Commerce active customers reached 24.6 million, up 8% year over year, though the figure edged down modestly from 24.7 million sequentially.

Coupang, Inc. Price, Consensus and EPS Surprise

Coupang, Inc. price-consensus-eps-surprise-chart | Coupang, Inc. Quote

Developing Offerings segment net revenues were $1.43 billion, increasing 31.9% year over year on a reported basis and 31% on a constant currency basis. The reported figure topped the Zacks Consensus Estimate by 5.67%.

Net Retail Sales refers to the revenues generated from selling products directly to customers, which were $6.64 billion, increasing 9.6% year over year. However, the reported figure missed the Zacks Consensus Estimate by 2.49%.

Net other revenues climbed to $2.20 billion, reflecting 15% year-over-year growth from marketplace services and other non-retail streams. Despite the solid increase, the reported figure missed the Zacks Consensus Estimate by 1.78%.

Coupang’s Q4 Operating Details

In the fourth quarter, gross profit increased 2.1% year over year to $2.54 billion. However, the gross margin contracted 250 basis points (bps) to 28.8% on a year-over-year basis.

Operating income fell sharply to $8 million from $312 million a year ago, reflecting a 97.4% year-over-year decrease. As a result, operating margin compressed 380 bps to 0.1%, indicating significant profitability pressure during the quarter.

Adjusted EBITDA declined 36.6% year over year to $267 million. Adjusted EBITDA margin contracted 230 basis points to 3.0% compared with the prior-year period.

CPNG’s Balance Sheet & Cash Flow Details

As of Dec. 31, 2025, cash and cash equivalents were $6.32 billion, down from $7.23 billion as of Sept. 30, 2025.

Net cash provided by operating activities was $82 million in the fourth quarter, down from $792 million in the previous quarter, reflecting a sequential slowdown in cash generation.

Coupang reported free cash outflow of $278 million in the fourth quarter compared with a cash inflow of $442 million in the previous quarter.

The company repurchased 5.9 million Class A shares for $162 million in the quarter, underscoring management’s commitment to enhancing shareholder value.

CPNG’s Zacks Rank & Stocks to Consider

Currently, Coupang carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Retail-Wholesale sector are American Eagle AEO, Genesco GCO and Ross Stores ROST. While American Eagle currently sports a Zacks Rank #1 (Strong Buy), Genesco and Ross Stores carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

American Eagle shares have surged 90.3% over the past year. AEO is scheduled to report its fourth-quarter fiscal 2025 results on March 4.

Shares of Genesco have declined 24.8% over the past year. GCO is set to report fourth-quarter fiscal 2026 results on March 6.

Ross Stores' shares have risen 45% over the past year. ROST is slated to report its fourth-quarter fiscal 2025 results on March 3.

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This article originally published on Zacks Investment Research (zacks.com).

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