Coupang Inc. on Wednesday reported a second-quarter net loss of $570 million, a figure entirely attributable to a $410 million administrative fine imposed by Korean regulators. Beneath that headline number, the e-commerce giant unveiled a far more dynamic picture: the core product-commerce business, stripped of a small cohort of customers who haven’t returned after last year’s data incident, saw spending grow 16% year-over-year — close to the pace it was running before the breach.

“The vast majority of our customer spend never moved,” founder and CEO Bom Kim said on the earnings call. “That group is spending at the highest levels in our history and compounding similarly to before last year’s data incident.”

Kim’s comments, along with a detailed management recovery roadmap, sent a clear signal that the operational disruption unleashed by the data incident is temporary, and that the company is confident it can return margins to pre-incident territory by mid-2027.

Financial overview

Consolidated revenue hit $8.9 billion, up 10% in constant currency but only 4% on a reported basis, as the Korean won weakened to its lowest level in more than 15 years. Adjusted EBITDA came in at $163 million, a 1.8% margin and at the low end of management’s guidance, down 320 basis points from a year ago.

MetricQ2 2026YoY Change (Reported)YoY Change (CC)Revenue$8.9B+4%+10%Gross Profit$2.5BMargin 28.2% (down 188 bps)–Net Loss$570M––EPS (Diluted)-$0.32––Adj. EBITDA$163MMargin 1.8% (down 320 bps)–

Excluding the $410 million in fines, net loss was roughly $160 million, or $0.09 per share, and operating loss narrowed by about 120 basis points sequentially.

The missing cohort that is obscuring real growth

Product commerce revenue grew 8% on a constant-currency basis to $7.4 billion, an acceleration from 5% in the first quarter. Active customers reached 24.7 million, up 3% from the prior year, rebounding from a sequential dip last quarter driven by the trailing definition of active customers.

But Kim spent much of his prepared remarks illuminating the gap between the reported 8% growth and the underlying health of the business. When excluding only those customers who left during the incident and haven’t yet returned, total customer spend expanded roughly 16%. That’s nearly identical to the rate product commerce was delivering before the incident.

“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,” Kim explained. “There are three groups that make up that 16%, all of whom are healthy: the largest is customers who never left… the second group is the group that left, came back… and third is new customers, who are joining us actually even faster than they did before the incident.”

Returning customers, Kim noted, have resumed spending at record levels and are growing their spend at pre-incident rates. WOW membership has now exceeded its level prior to the incident, and new additions are accelerating. Those new members begin at the low end of the spend curve, so the record membership will translate into revenue on a lag.

Margins: a deliberate bet on capacity

Product commerce gross margin contracted 210 basis points year-over-year to 30.5%, though it improved 25 basis points from the first quarter. Segment adjusted EBITDA margin fell 390 basis points to 5.1%, to $382 million. Management attributed the compression to three temporary factors: supply-chain dislocation, elevated marketing spend to reacquire customers, and a fixed-cost base that was sized for a pre-incident demand curve.

Rather than slash capacity and risk damaging the customer experience, Coupang chose to carry the cost, betting that volume will grow back into the infrastructure. “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,” Kim said.

CFO Gaurav Anand added: “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.”

Looking ahead, management guided for year-over-year consolidated adjusted EBITDA margin contraction of 300 to 400 basis points in the third quarter, similar to Q2. That outlook includes underlying sequential improvement that will be masked by the timing of the Chuseok holiday and seasonal cost patterns. Beginning in the fourth quarter, the recovery should become more evident. By mid-2027, product commerce adjusted EBITDA margins are expected to return to levels approximating those generated before the data incident.

“The drivers of that margin expansion are the opposite of what led to the compression,” Kim emphasized. “Volume-based savings that we’re missing this year will return, capacity utilization will improve, and the elevated marketing spend — a deliberate one-time investment — will normalize next year.”

Taiwan builds, Eats completes its arc

Developing offerings — comprising Taiwan, Eats, Farfetch, and Rocket Now in Japan — generated $1.4 billion in revenue, up 24% in constant currency. Gross margin expanded to 15.8%, and segment adjusted EBITDA losses narrowed by $110 million sequentially to $219 million, a 440 basis point improvement year-over-year.

Management highlighted that Eats, the food-delivery unit, has completed its full investment cycle and, together with Rocket Now, is now sustainable on a combined basis. “That is the model working end to end: disciplined entry, validation, scale, then an offering that carries its successors,” Kim said.

The primary investment is Taiwan, where the company is building an end-to-end logistics network that already delivers the majority of shipments next-day, seven days a week. Dawn delivery — the early-morning service that became a hallmark in Korea — was launched in Taiwan after just one year, compared with four years in Korea. Still, selection is only a fraction of what Rocket Delivery offers in Korea, and management stressed that the business is at a build-out stage.

“We’re still at a fraction of the overall selection that we plan to get to,” Kim noted. “The economics reflect the stage of our build-out, not the destination.” Full-year developing-offerings adjusted EBITDA losses are expected to be $950 million to $1 billion, unchanged, with the majority flowing to Taiwan’s infrastructure.

Fire impact and other items

A fire at one Korean fulfillment center in July will not significantly disrupt revenue or customer demand, according to the company. Coupang estimated the carrying value of owned inventory, fixed assets, and obligations to sellers at the facility at $246 million and plans to pursue insurance claims. Any losses and recoveries will be recognized starting in the third quarter.

During the quarter, the company repurchased 23 million Class A shares for about $459 million. Trailing twelve-month operating cash flow was $1.4 billion, with free cash flow of $105 million.

Q&A highlights: Chuseok shift and agentic AI

Analysts pressed on the deceleration implied by third-quarter revenue guidance of 8-9% constant-currency growth, suggesting product commerce would slow to 6-7%. Kim and Anand replied that the shortfall is largely a calendar effect.

“Our cohort strength exiting the quarter remains really strong,” Anand said. “This is primarily a temporary calendarization impact and weather seasonal-related impact.” Kim added that the underlying base continues to grow at about 16%, but the Chuseok holiday shift this year against last year’s Q3 and the absent cohort distort the reported figure.

When asked why the missing cohort hasn’t returned, Kim said: “I don’t think it’s a change in the value proposition or a structural shift in the market. When customers from this group come back, even after months away, they return to their full prior spend levels and have grown from there. We understand that there may be some leftover sentiment and trust factors.”

On agentic AI, management confirmed active investments but no consensus on a winning approach. “We think this is still a work in progress,” Kim said. “Whatever form agentic shopping takes, we believe we’ll be in the best position to provide the winning experience, which will combine AI with all the other aspects of customer experience.”