Coupang Swings to $501 Million Q3 Loss as Incheon Fire Costs Hit Profit; Revenue Rises 7.5%
Coupang swung to a third-quarter net loss of $501 million as costs from a July fire at one of its fulfillment centers in Korea wiped out most of its profit, even as revenue grew 7.5% to $9.96 billion.
The e-commerce company lost $0.28 per diluted share, compared with net income of $95 million, or $0.05 per share, a year earlier, according to the earnings release it filed with an 8-K on Tuesday. Revenue rose from $9.27 billion, and grew 11% in constant currency, the company said.
The fire at a leased fulfillment center in Incheon weighed heavily on profitability. Coupang said adjusted EBITDA of $116 million, down 71.9% from $413 million, included $248 million of losses tied to the Incheon facility. Adjusted EBITDA margin narrowed to 1.2% from 4.5%.
Profit excluding the fire
Gross profit fell 5.8% to $2.56 billion, and gross margin contracted 364 basis points to 25.7%. Excluding the Incheon fire costs, gross profit was $2.66 billion, a 26.7% margin, the company said.
Operating results swung to a loss of $450 million from operating income of $162 million. Excluding the fire, Coupang said its operating loss would have been $202 million, its net loss $321 million and its loss per share $0.18.
Product Commerce slows, Developing Offerings grow
Product Commerce, the core retail business, grew revenue 4.9% to $8.37 billion from $7.98 billion, or 8% in constant currency. Segment gross profit fell 7.3% to $2.38 billion, a 28.4% margin, or 29.5% excluding the fire. Segment adjusted EBITDA dropped 45.4% to $385 million from $705 million, a 4.6% margin.
Active customers rose 2.0% to 25.2 million from 24.7 million, and revenue per active customer increased to $332 from $323.
Developing Offerings grew revenue 23.4% to $1.59 billion from $1.29 billion, or 27% in constant currency. The segment's gross profit rose to $185 million from $156 million, and its adjusted EBITDA loss narrowed to $269 million from $292 million.
Cash flow and buybacks
Operating cash flow fell to $212 million from $792 million in the quarter, and free cash flow turned negative at $72 million, compared with positive free cash flow of $442 million a year earlier. Over the trailing 12 months, operating cash flow was $845 million, down from $2.37 billion, and free cash flow was negative $409 million, versus positive $1.27 billion.
Coupang repurchased 12.7 million Class A shares for $201 million during the quarter. The release did not include a CEO quote or numeric financial guidance.
By the numbers
- Revenue: $9.96 billion, up 7.5%
- Net loss: $501 million, or $0.28 per share
- Adjusted EBITDA: $116 million, down 71.9%, including $248 million of Incheon fire losses
- Product Commerce revenue: $8.37 billion, up 4.9%
- Developing Offerings revenue: $1.59 billion, up 23.4%
- Buybacks: 12.7 million shares for $201 million
Sources
- Coupang Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001834584-26-000084)
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