2026.11.04. The Fair Economy — Coupang Inc. swung to an operating loss of 642.3 billion won (about $450 million) in the third quarter of this year, despite revenue of 14.22 trillion won (about $9.96 billion). The company's cumulative operating loss for the first three quarters of the year reached 1.83 trillion won (about $1.28 billion), nearing the combined operating profit of 1.9 trillion won (about $1.33 billion) it posted over the three years from 2023 to 2025.
Coupang Inc. said on Nov. 4 (Korea time) that it filed its third-quarter consolidated earnings report containing these figures with the U.S. Securities and Exchange Commission (SEC).
Coupang Inc. Chairman Kim Beom-seok and other executives discussed the earnings on a conference call the same day. Revenue came to $9.96 billion, up 7% year over year in dollar terms and 11% on a constant-currency basis. Net loss totaled 715.1 billion won (about $501 million), swinging from a net profit of 131.6 billion won (about $92 million) in the third quarter of last year.
Excluding fire-related costs, the operating loss was 288.3 billion won (about $202 million) and the net loss was 458.2 billion won (about $321 million). Coupang Inc. had estimated the loss at $246 million immediately after the July fire when it announced second-quarter earnings, and the amount actually reflected was $248 million. The cost of revenue ratio rose to 74.3% from 70.6% a year earlier. Selling, general and administrative expenses increased 17.7%, while adjusted EBITDA fell 72%.
Coupang Inc.'s cumulative operating loss for the first three quarters of this year exceeded the previous record annual loss of 1.71 trillion won (about $1.2 billion) booked in 2021. The cumulative operating loss through the third quarter of 2021 had been 1.24 trillion won (about $868 million). Even excluding fire-related costs, the third-quarter operating loss was the largest since the fourth quarter of 2021, when the company posted a loss of 469.2 billion won (about $329 million).
Product Commerce generated revenue of $8.374 billion, but its adjusted EBITDA fell to 549.5 billion won (about $385 million). Active customers rose 2% to 25.2 million, up 500,000 from the previous quarter. Revenue per customer was 473,930 won (about $332). The Growth segment's revenue rose 23% to $1.588 billion, but its adjusted EBITDA loss came to $269 million. In the third quarter, Coupang Inc. bought back 12.7 million of its own shares for $201 million.
Coupang Inc. posted its third straight quarterly operating loss, following losses of 354.5 billion won (about $248 million) in the first quarter and 835 billion won (about $585 million) in the second quarter. The second-quarter figure had already factored in a 624.7 billion won (about $438 million) fine from the Personal Information Protection Commission. While revenue exceeded Wall Street expectations, the operating loss was more than double the $194.2 million figure analysts had expected, according to Bloomberg. Coupang Inc.'s after-hours share price fell following the earnings release.
Chairman Kim said the effects of lost customers persist and that it will take time for new customers' spending to rise to existing levels, but added that he does not view this as a structural problem. WOW Membership subscribers rose both from a year earlier and from the previous quarter to a record high, with WOW members in Taiwan more than doubling from a year earlier. Coupang Inc. Chief Financial Officer Gaurav Anand cited high promotional costs and supply chain disruptions as the causes of the deteriorating profitability.
Chairman Kim set a target of restoring growth by the middle of next year, while CFO Anand projected fourth-quarter revenue would rise 13% to 14% on a constant-currency basis. If a fine over allegations that Coupang Eats demanded most-favored-nation treatment and engaged in tying — a case currently under review by the Fair Trade Commission — is factored in and pushes the fourth-quarter operating loss above 168.2 billion won (about $118 million), the annual operating loss would exceed 2 trillion won (about $1.4 billion).
Regarding the recent fire at a Coupang logistics center, the National Fire Agency's Central Fire Joint Investigation Team said on Oct. 29 that the fire appeared to have started on a sixth-floor shelf storing household goods containing lithium-ion batteries, and presumed thermal runaway to be the cause of ignition. The property damage tallied by the National Fire Agency came to 114 billion won (about $80 million), but this differs in scope from Coupang Inc.'s accounting costs, which include amounts such as payment obligations related to sellers' inventory assets.
For the quarter, 135.6 billion won (about $95 million) in costs such as inventory losses were reflected in cost of revenue, while 218.4 billion won (about $153 million) in costs such as impairment losses on tangible assets were reflected in selling, general and administrative expenses. Coupang Inc. said it plans to file an insurance claim, but that the reflection of the payout could come two to three years later. When a fire occurred at the Deokpyeong logistics center in Icheon in 2021, the company included a 244.1 billion won (about $171 million) insurance payout in operating profit in the fourth quarter of 2024.
The 624.68 billion won (about $438 million) fine imposed by the Personal Information Protection Commission consists of 423.575 billion won (about $297 million) over a personal data breach and 201.1 billion won (about $141 million) over the unauthorized collection of online activity records. Coupang filed two cancellation lawsuits and a request to suspend enforcement with the Seoul Administrative Court on Oct. 7, and at a hearing on Oct. 29 argued that paying the fine would deal a major blow to its business. The Personal Information Protection Commission countered that Coupang holds more than 2.6 trillion won (about $1.82 billion) in cash and cash equivalents and could also pay in six installments over two years.
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