Coupang Inc. reported first-quarter profit that topped analyst estimates as the company’s efforts to boost efficiency and expand its higher-margin businesses paid off. The Seattle-headquartered but Korea-focused retailer announced a $1 billion stock repurchase program, its first major capital return since going public in 2021.
Gross profit rose 20% to $2.3 billion, with margins expanding 217 basis points to 29.3%. Operating income surged to $154 million, more than tripling from $40 million a year earlier as the company continued to benefit from scale and operational improvements.
Net revenues reached $7.9 billion, an 11% increase year-over-year, though currency headwinds masked stronger underlying growth of 21% on an FX-neutral basis. The company’s Product Commerce segment added nearly 2 million active customers, now serving 23.4 million shoppers.
The Developing Offerings segment, which includes Coupang Eats, streaming service Play, and luxury fashion platform Farfetch, saw revenue jump 67% to $1 billion. Despite this growth, the unit remains unprofitable with an adjusted EBITDA loss of $168 million, though this represents an improvement from last year.
While Coupang’s trailing twelve-month free cash flow declined to $1.0 billion from $1.5 billion a year earlier, the company attributed this primarily to non-recurring working capital benefits in the prior period.
Looking at the recent market analysis, Coupang’s Q1 results prompted mixed market reactions, with reports indicating the company missed EPS and revenue forecasts despite showing strong year-over-year growth. The company’s revenue of $7.91 billion fell slightly short of analyst expectations, though earnings per share of $0.06 matched consensus estimates.
Investors appear to be focusing on Coupang’s continued margin improvements and impressive growth in its Developing Offerings segment, which includes international expansion, Eats, Play, and the recently acquired Farfetch. The company maintains its full-year 2025 guidance of approximately 20% revenue growth on a constant currency basis.
Coupang’s newly announced $1 billion share repurchase program signals management’s confidence in the company’s financial position and represents a significant milestone as its first major capital return to shareholders since going public in 2021.
The earnings report reaffirms Coupang’s strategy of balancing growth with improved profitability while expanding beyond its core Korean e-commerce market into new geographies and service categories.
