Coupang Inc. (NYSE:CPNG) reported results on August 4 for the quarter ended June 30, and its two headline numbers point in opposite directions. Net revenues rose 4% year over year to $8.9 billion, or 10% on a constant currency basis, while the company swung to an operating loss of $556 million from a profit a year earlier. Roughly $410 million of that came from administrative fines in South Korea, but even excluding the fines, operating results still fell $295 million short of last year. Growth and profitability moved apart this quarter, and that split now defines the stock's story.
Coupang's newer businesses are growing much faster than its core marketplace. The Developing Offerings segment posted net revenues of $1.4 billion, up 20% year-over-year on a reported basis and 24% on a constant currency basis, and its adjusted EBITDA loss narrowed by $16 million from a year ago, a sign those newer bets are moving toward breakeven rather than away from it. Product Commerce, the core retail and grocery business, still added customers, with active customers reaching 24.7 million, up 3% year over year.
That growth is coming from a strategy built around proprietary logistics rather than a marketplace model borrowed from elsewhere. Coupang runs its own end-to-end infrastructure for its Rocket Fresh grocery service and has pushed into luxury goods through its Farfetch acquisition, layering new categories onto the fast delivery network it already built across South Korea and Taiwan. The company also generated $34.5 billion in revenue for 2025, up roughly 14% from the prior year, a reminder that the growth story predates this particular quarter.
The damage was not confined to the fines. Gross profit fell 3% year-over-year to $2.5 billion, and gross margin slipped 188 basis points to 28.2%. Inside Product Commerce, adjusted EBITDA fell $281 million from last year to $382 million, with margin down 390 basis points to 5.1%. Company-wide adjusted EBITDA margin came in at just 1.8%, down 318 basis points, so even the version of profitability that strips out one-time items is shrinking.
Cash generation is thinning too. Trailing twelve-month operating cash flow fell $484 million to $1.4 billion, and free cash flow dropped to just $105 million, down $679 million from a year earlier. That is a steep decline for a company that still spent $459 million buying back 23.2 million shares during the quarter. Coupang's profitability has historically run thin even in good years, with 2025 net income of about $208 million translating to a net margin near 0.6%, while stock-based compensation made up roughly 26.8% of operating cash flow that year.
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Coupang's newer businesses are growing much faster than its core marketplace. The Developing Offerings segment posted net revenues of $1.4 billion, up 20% year-over-year on a reported basis and 24% on a constant currency basis, and its adjusted EBITDA loss narrowed by $16 million from a year ago, a sign those newer bets are moving toward breakeven rather than away from it. Product Commerce, the core retail and grocery business, still added customers, with active customers reaching 24.7 million, up 3% year over year.
That growth is coming from a strategy built around proprietary logistics rather than a marketplace model borrowed from elsewhere. Coupang runs its own end-to-end infrastructure for its Rocket Fresh grocery service and has pushed into luxury goods through its Farfetch acquisition, layering new categories onto the fast delivery network it already built across South Korea and Taiwan. The company also generated $34.5 billion in revenue for 2025, up roughly 14% from the prior year, a reminder that the growth story predates this particular quarter.
The damage was not confined to the fines. Gross profit fell 3% year-over-year to $2.5 billion, and gross margin slipped 188 basis points to 28.2%. Inside Product Commerce, adjusted EBITDA fell $281 million from last year to $382 million, with margin down 390 basis points to 5.1%. Company-wide adjusted EBITDA margin came in at just 1.8%, down 318 basis points, so even the version of profitability that strips out one-time items is shrinking.
Cash generation is thinning too. Trailing twelve-month operating cash flow fell $484 million to $1.4 billion, and free cash flow dropped to just $105 million, down $679 million from a year earlier. That is a steep decline for a company that still spent $459 million buying back 23.2 million shares during the quarter. Coupang's profitability has historically run thin even in good years, with 2025 net income of about $208 million translating to a net margin near 0.6%, while stock-based compensation made up roughly 26.8% of operating cash flow that year.
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