Coupang’s third quarter performance saw robust revenue growth and a modest profit that exceeded Wall Street’s estimates, but the market reacted negatively, likely reflecting investor concerns about increased investment levels and uneven margin expansion. Management attributed the quarter’s top-line growth to sustained customer engagement, broad-based strength across customer cohorts, and margin improvement within its core Product Commerce segment. CEO Bom Kim detailed ongoing automation and supply chain optimization, noting that margin expansion was supported by scaling higher-margin categories. However, CFO Gaurav Anand acknowledged that increased operational costs, especially linked to investments in new markets like Taiwan, had a dampening effect on consolidated margins this quarter.
Is now the time to buy CPNG? Find out in our full research report (it’s free for active Edge members).
Coupang (CPNG) Q3 CY2025 Highlights:
- Revenue: $9.27 billion vs analyst estimates of $9.02 billion (17.8% year-on-year growth, 2.7% beat)
- Adjusted EPS: $0.05 vs analyst estimates of $0.04 ($0.01 beat)
- Adjusted EBITDA: $413 million vs analyst estimates of $324.4 million (4.5% margin, 27.3% beat)
- Operating Margin: 1.7%, in line with the same quarter last year
- Active Customers: 24.9 million, up 2.22 million year on year
- Market Capitalization: $52.83 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are 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.
Our Top 5 Analyst Questions From Coupang’s Q3 Earnings Call
- Minuh Cha (Goldman Sachs) asked about the impact of a new competitor partnership on Coupang’s Fresh business. CEO Bom Kim emphasized continued growth in Fresh, citing ongoing innovation and customer value.
- Minuh Cha (Goldman Sachs) also queried about the holiday timing effect on Q3 results. CFO Gaurav Anand explained that holiday timing created a temporary benefit but underlying demand remained solid.
- Stanley Yang (JPMorgan) inquired about Coupang’s market share and loss trajectory in Taiwan. CEO Bom Kim said it was too early to quantify but stressed strong customer adoption and a focus on long-term operational excellence.
- Seyon Park (Morgan Stanley) questioned how Coupang is adapting to differences in Taiwan’s retail landscape. CEO Bom Kim responded that, despite differences, core customer expectations are similar and the company is building capabilities accordingly.
- Jiong Shao (Barclays) asked about the scale and pace of first-party logistics in Taiwan and whether margin growth signals a tapering tech investment cycle. CFO Gaurav Anand indicated tech investment is slowing but remains crucial for future margin gains.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of adoption and profitability for Coupang’s Taiwan operations, (2) the impact of automation and AI investments on operating margins, and (3) the effectiveness of expanding first-party brand partnerships and marketplace offerings. We will also watch for sustained customer cohort spend and progress on sustainability initiatives.
Coupang currently trades at $29.07, down from $32.14 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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