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

February 27, 2026 — 12:21 pm EST Written by Zacks Equity Research for Zacks-> 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%.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-eps-surprise-chart | Coupang, Inc. QuoteDeveloping 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%.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.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.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. Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAmerican Eagle Outfitters, Inc. (AEO) : Free Stock Analysis ReportRoss Stores, Inc. (ROST) : Free Stock Analysis ReportGenesco Inc. (GCO) : Free Stock Analysis ReportCoupang, Inc. (CPNG) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.This data feed is not available at this time.