US-listed e-commerce leader Coupang Inc. announced Wednesday its first-quarter financial results, reporting a significant net loss. This downturn is attributed to the ongoing impact of a massive customer data breach that occurred in South Korea.
For the January-March period, Coupang reported a net deficit of $266 million, a sharp contrast to the $114 million net profit recorded in the same period last year. The e-commerce giant also posted an operating loss of $242 million in the first quarter, shifting from an operating profit of $154 million a year ago. Despite these losses, Coupang’s total sales saw an 8 percent year-on-year increase, reaching $8.5 billion.
Coupang Korea, a critical segment responsible for over 90 percent of the group’s total revenue, continues to grapple with significant public backlash. This follows the revelation in November 2025 of a major data breach impacting approximately 33.6 million customers.
These Q1 results represent Coupang’s largest net and operating losses since the fourth quarter of 2021. Previously, Coupang had demonstrated consistent progress in narrowing its operating losses from 2022, even returning to operating profit in the third quarter of that year, making the current downturn particularly noteworthy.
The company’s core online shopping business, the product commerce segment, reported a 4 percent year-on-year increase in sales, reaching $7.2 billion in the first quarter.
Meanwhile, the developing offerings segment, encompassing its growing Taiwan business and the popular food delivery service Coupang Eats, saw a robust 28 percent revenue jump, reaching $1.3 billion during the same period.
Demonstrating confidence in its long-term outlook, Coupang announced it repurchased $391 million worth of shares in the first quarter. Furthermore, its board recently authorized an additional $1 billion stock buyback program, signaling ongoing commitment to shareholder value.
During an earnings conference call, Bom Kim, Coupang’s esteemed founder and chairman, explained that the first-quarter earnings were significantly impacted by several factors. These included one-time customer vouchers issued as compensation for the data breach and “temporary inefficiencies” stemming from weaker-than-anticipated demand post-incident. Kim assured investors, “The bulk of the impact (of customer vouchers) is contained to the first quarter, with a modest tail into the first part of the second quarter.” He added, “As demand returns to a predictable curve, we expect our capacity and supply chain to come back into balance and the inefficiencies to work their way out,” projecting a path to recovery.
Focusing on customer loyalty, Kim highlighted a strong recovery in Coupang’s paid WOW membership base. “Through the end of April,” Kim stated, “we’ve closed nearly 80 percent of the decline in WOW membership that followed the incident, through a combination of those returning members and strong new sign-ups.” He acknowledged, however, that a full year-over-year growth recovery for the WOW membership program would still require time.
The number of active customers making at least one purchase through Coupang’s core retail business saw a 2 percent year-on-year increase, reaching 23.9 million. However, this figure slightly declined from 24.6 million reported in the fourth quarter of 2025.
Looking ahead, Kim projected a confident and positive long-term profitability outlook for Coupang. He asserted that the company’s margins “remain intact and continue to improve” driven by strategic efforts in operational efficiencies, supply chain optimization, and significant investments in automation and technology. “We expect the annual margin expansion to resume next year,” Kim concluded, “and we have strong conviction in the underlying margin potential of the business over the long term.”
Addressing recent developments, Coupang also responded to the South Korean antitrust watchdog’s designation of Bom Kim as the controlling figure of Coupang’s de facto controlling entity, which subjects the company to stricter regulatory oversight. Last week, the Fair Trade Commission officially designated Kim, a US citizen and Coupang’s chairman, as an individual effectively controlling a conglomerate. Gaurav Anand, Coupang’s Chief Financial Officer, affirmed the company’s commitment during the conference call: “We are aware of the recent designation, and we continue to be committed as always to complying with all the regulatory requirements in all jurisdictions where we operate.” He further stated, “We will continue engaging constructively with all our regulators and work through all our obligations as needed,” underscoring Coupang’s dedication to regulatory compliance.
