Coupang, Inc.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation and Summary of Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements of Coupang (collectively, “we,” “us,” or “our”) have been prepared in accordance with U.S. GAAP and applicable rules and regulations of SEC regarding interim financial reporting. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. We based our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates.

The unaudited interim financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for fair statement of the results of the interim period. Certain information and note disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our 2025 Form 10-K.

Recent Accounting Pronouncements Yet To Be Adopted

In November 2024, the FASB issued ASU 2024-03 “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)”, which requires public entities to disaggregate significant expense categories within functional line items to enhance transparency and comparability in financial reporting. In January 2025, the FASB issued ASU 2025-01, which clarifies the effective date and provides additional implementation guidance for ASU 2024-03 to ensure consistent application. Both standards are effective for annual reporting periods beginning with the fiscal year ending December 31, 2027, and interim reporting periods beginning with the period ending March 31, 2028, with early adoption permitted. We are evaluating the effect of adopting these standards on our financial reporting and disclosures.

In December 2025, the FASB issued ASU 2025-11 “Interim Reporting (Topic 207) - Narrow-Scope Improvements”, which clarifies interim disclosure requirements and the applicability of Topic 270. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact of adopting the standard on our financial reporting and disclosures.

2. Net Revenues

Details of total net revenues were as follows:

This level of revenue disaggregation takes into consideration how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Net retail sales are recognized from owned inventory product sales to consumers. Third-party merchant services represent commissions, advertising, and delivery fees earned from merchants and restaurants that sell their products through our online businesses. Other revenue includes revenue earned from our WOW membership programs and various other offerings.

Contract liabilities consist of payments in advance of delivery and customer loyalty credits, which are included in “Deferred revenue” on the condensed consolidated balance sheets. We recognized revenue of $182 million and $139 million for the six months ended June 30, 2026 and 2025, respectively, which were included in “Deferred revenue” on the consolidated balance sheets as of the beginning of the respective years.

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3. Segment Reporting

We own and operate a retail business that primarily serves the Korean retail market along with other international markets. The CODM is our CEO. We havetwo operating and reportable segments: Product Commerce and Developing Offerings. These segments are based on how the CODM manages the business, allocates resources, makes operating decisions and evaluates operating performance.

Product Commerce primarily includes our core Korean retail (owned inventory) and marketplace offerings (third-party merchants) and Rocket Fresh, as well as advertising products associated with these offerings. Revenues from Product Commerce are derived primarily from online product sales of owned inventory to customers in Korea, commissions and logistics and fulfillment fees from merchants that sell products through our mobile application and website, and from our Korean WOW membership program.

Developing Offerings includes our more nascent offerings and services, including our on-demand delivery service consisting of Eats in Korea and Rocket Now in Japan, Play, fintech, our retail operations in Taiwan, as well as advertising products associated with these offerings, and also includes Farfetch. Revenues from Developing Offerings are primarily generated from Farfetch, Eats, and Taiwan.

The CODM usestwo profitability measures, Segment Gross Profit and Segment Adjusted EBITDA, in assessing segment performance and allocating resources to each segment. Segment Gross Profit and Segment Adjusted EBITDA are evaluated on a monthly basis by our CODM by monitoring actual results versus prior periods. This comparison is performed to make strategic assessments and decisions regarding segment profitability, resource allocation, pricing strategies and cost optimization, and whether to reinvest profits into each of these segments or into other initiatives.

Segment Gross Profit is defined as total net revenues less cost of sales attributable to each reportable segment.

Segment Adjusted EBITDA is defined as income (loss) before income taxes for a period before depreciation and amortization, equity-based compensation expense, interest expense, interest income, and other income (expense), net. Segment adjusted EBITDA also excludes impairments and other items that we do not believe are reflective of our ongoing operations.

We generally allocate operating expenses to the respective segments based on usage. The CODM does not evaluate segments using asset information and, accordingly, we do not report asset information by segment.

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Reportable segment financial information is as follows:

(1)Other segment items relate to operating, general and administrative expense, excluding depreciation and amortization, equity-based compensation expense, impairments and other items that we do not believe are reflective of our ongoing operations. The CODM does not regularly review disaggregated expense information included within “Other segment items” for any individual segment.

Reconciliations of segment profit or loss:

Note: Amounts may not foot due to rounding.

(1)Administrative fines include only certain significant regulatory fines and penalties that Coupang does not consider to be normal operating expenses related to the Company’s ongoing operations, revenue generating activities, business strategy, industry, and regulatory environment, as discussed in Note 10 — “Commitments and Contingencies”.

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4. Defined Severance Benefits

Net periodic benefit costs consist of the following:

5. Income Taxes

Our tax provision for income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. No income tax benefit was accrued for certain jurisdictions where we anticipate incurring a loss during the full fiscal year as the related deferred tax assets were fully offset by a valuation allowance. Our resulting effective tax rate differs from the applicable statutory rate, primarily due to tax credits, U.S. taxes on foreign earnings such as the inclusion of the NCTI provisions, the valuation allowance against deferred tax assets in loss making jurisdictions, and other permanent differences.

Our tax provision for income taxes for the three and six months ended June 30, 2026 was unfavorably impacted by losses before income taxes in certain jurisdictions for which we receive no tax benefit and certain non-deductible administrative fines discussed in Note 10 — "Commitments and Contingencies", resulting in a negative effective tax rate.

The realization of our deferred tax assets primarily depends on the generation of future taxable income. Based on our current assessment, it is possible that our future results of operations in the U.S. could result in the need to record an additional valuation allowance against our U.S. deferred tax assets within the next 12 months. We continue to monitor the realizability of our deferred tax assets on a quarterly basis and will adjust the valuation allowance in the period where evidence indicates that it is more likely than not that these assets will not be realized.

In June 2026, the NTS completed an audit of the income tax and value added tax filings of certain of our Korean operating subsidiaries with respect to the 2021 to 2025 tax years and issued notices of the tax audit results. The notices primarily focused on transfer pricing and transactions between our Korean subsidiaries, Coupang Corp. and CFS. While we file a consolidated corporate income tax return in Korea, the notices propose disallowing income tax deductions for services provided by CFS to Coupang Corp. and other tax adjustments. In the notices, the NTS is seeking an additional tax payment, including penalties and interest, of approximately $208 million. We disagree with the proposed adjustments and intend to vigorously defend our positions through available administrative remedies and, if necessary, judicial proceedings. We concluded, based on the technical and legal merits of our tax positions, that it is more likely than not our tax positions will ultimately be sustained on appeal. Based on the information currently available, we do not anticipate a significant increase or decrease to our income tax contingencies for the issues described in the notices within the next 12 months.

As of June 30, 2026, we believe our allowances for income tax contingencies are adequate. We believe that adequate amounts have been reserved in accordance with ASC 740 for any adjustments to the provision for income taxes or other tax items that may ultimately result from these audits. When performing our evaluation, we consulted with outside advisors, and we reviewed and considered relevant laws, rules, and regulations, including, but not limited to, relevant case law. We also considered our intention to vigorously defend our positions and assert our various well-founded legal claims through every available avenue of appeal.

6. Earnings per Share

Basic earnings per share is computed by dividing net income attributable to Coupang stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to Coupang stockholders by the weighted-average number of shares of common stock and potentially dilutive common stock outstanding during the period.

We have two classes of common stock outstanding, Class A common stock and Class B common stock, with equal rights to dividends and income. Earnings per share attributable to Coupang stockholders are therefore the same for Class A and Class B common stock, both on an individual and combined basis.

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The following table presents the calculation of basic and diluted earnings per share attributable to Coupang stockholders:

Note: Amounts may not foot due to rounding.

7. Fair Value Measurement

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are reported in one of the three levels reflecting the significant inputs used to determine fair value.

The following table summarizes our financial assets and financial liabilities that are measured at fair value on a recurring basis:

8. Supplemental Financial Information

Supplemental Disclosure of Cash Flow Information

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The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown within the consolidated statements of cash flows:

Supplier Financing Arrangements

Confirmed invoices owed to financial institutions under supplier financing arrangements were as follows:

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) includes all changes in equity during a period that have yet to be recognized in income. The major components are foreign currency translation adjustments and actuarial gains (losses) on our defined severance benefits. As of June 30, 2026 and December 31, 2025, the ending balance in accumulated other comprehensive income (loss) related to foreign currency translation adjustments was $(527) million and $(297) million, respectively, and the amount related to actuarial losses on defined severance benefits was $(82) million and $(84) million, respectively.

Stock Repurchase Program

Our Board of Directors authorized a stock repurchase program for our outstanding shares of Class A common stock. We may repurchase shares of Class A common stock from time to time through open market purchases, in privately negotiated transactions, or by other means in accordance with applicable securities laws and other restrictions. The program has no expiration date, and we are not obligated to repurchase any portion of our total authorization. During the three and six months ended June 30, 2026, we repurchased 23.2 million and 43.7 million shares of Class A common stock for an aggregate amount of $459 million and $850 million, excluding excise taxes, respectively. As of June 30, 2026, we had $907 million of availability remaining under the stock repurchase program.

9. Short-term Borrowings and Long-term Debt

Short-term Borrowings

Revolving Credit Facility

The Revolving Credit Facility provides for syndicated, unsecured revolving loans with a total borrowing capacity of up to $1.5 billion. Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to the applicable benchmark rate, including but not limited to Term SOFR, plus an applicable margin ranging from 0.75% to 1.25%. The Revolving Credit Facility contains customary affirmative and negative covenants, including certain financial covenants. During the six months ended June 30, 2026, we borrowed $750 million under the Revolving Credit Facility for general operating purposes and $750 million was outstanding as of June 30, 2026 and is included in “Short-term borrowings”.

Other Credit Facilities

In June 2026, certain of our Korean subsidiaries entered into new unsecured revolving credit facilities with maturity dates in June 2027 and amended an existing credit arrangement with a maturity date in April 2027. The facilities are available for general working capital purposes and provide for aggregate borrowing capacity of approximately $193 million. Borrowings bear interest at floating rates ranging from the Korean certificate of deposit rate plus 1.20% to plus 1.50%. These revolving credit facilities contain customary terms and conditions, including certain affirmative and negative covenants. As of June 30, 2026, there were no amounts outstanding under any of these facilities. During the six months ended June 30, 2026, certain other subsidiaries entered into various unsecured borrowings under other revolving credit facilities, the majority of which mature within twelve months. These credit facilities contain customary affirmative and negative covenants, including certain financial covenants.

Under all other credit facilities, total borrowing capacity at June 30, 2026 was $1.6 billion and aggregate outstanding borrowings totaled $1.2 billion with a weighted average interest rate of 2.89%.

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Long-term Debt

Our long-term debt is recorded at amortized cost. The fair value is estimated using Level 2 inputs based on our current interest rates for similar types of borrowing arrangements. The carrying amount of long-term debt approximates its fair value as of June 30, 2026 and December 31, 2025 due primarily to the interest rates approximating market interest rates.

We were in compliance with the financial covenants for each of our borrowings and debt agreements as of June 30, 2026.

10. Commitments and Contingencies

Commitments

Long-term contractual commitments primarily include operating leases, long-term debt, and unconditional purchase obligations. Unconditional purchase obligations include legally binding contracts with terms in excess of one year that are not reflected on the consolidated balance sheets. These contractual commitments primarily relate to purchases of technology-related services, fulfillment center construction contracts, content, and software licenses. For contracts with variable terms, we do not estimate the total obligation beyond any minimum pricing as of the reporting date.

Legal Matters

From time to time, we may become party to litigation and other legal proceedings, including regulatory proceedings, tax and other government inquiries, and investigations that arise in the ordinary course of business. Certain of these matters include speculative claims for substantial or indeterminate amounts of damages. Additionally, we are required to comply with laws and regulations, including tax laws, that currently apply or may become applicable to our operations in the United States, Korea, and other jurisdictions, and we regularly become subject to new laws and regulations in the jurisdictions in which we operate. The requirements for complying with these obligations may be uncertain and subject to interpretation and enforcement by regulatory and other authorities, and any failure or perceived failure to comply with such obligations could eventually lead to asserted legal or regulatory action.

We assess the likelihood of any adverse judgments or outcomes with respect to these matters and determine loss contingency assessments on a gross basis after assessing the probability of incurrence of a loss and whether a loss is reasonably estimable. In addition, we consider other relevant factors that could impact our ability to reasonably estimate a loss. A determination of the amount of reserves required, if any, for these contingencies is made after analyzing each matter. Our reserves may change in the future due to new developments or changes in strategy in handling these matters. We recognize estimated losses from contingencies when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. We disclose material contingencies when we believe that a loss is at least reasonably possible.

The ultimate outcome of these matters, such as whether the likelihood of loss is remote, reasonably possible, or probable or if and when the possible range of loss is reasonably estimable, is inherently uncertain. Therefore, if one or more of these matters were resolved against us for amounts that materially differ from management's estimates of losses, it could have a favorable or unfavorable impact on our results of operations and financial condition. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.

Unless otherwise noted, with respect to the matters described below that do not include an estimate of the amount of loss or range of possible loss, such losses or range of possible losses either cannot be estimated or are not individually material, but we believe there is a reasonable possibility that they may be material in the aggregate. For information regarding income tax contingencies, see Note 5 — "Income Taxes".

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Securities and Other Actions

On August 26, 2022, a putative class action was filed on behalf of all purchasers of Coupang Class A common stock pursuant and/or traceable to Coupang’s registration statement issued in connection with our initial public offering. New York City Public Pension Funds v. Coupang, Inc. et al., formerly Choi v. Coupang, Inc. et al., was brought against Coupang and certain of its former and current directors, current officers, and certain underwriters of the offering. The action was filed in the United States District Court for the Southern District of New York alleging inaccurate and misleading or omitted statements of material fact in Coupang's Registration Statement in violation of Sections 11, 12, and 15 of the Securities Act. The action was amended in May 2023, and added allegations of securities fraud under Sections 10 and 20 of the Exchange Act. The action seeks unspecified compensatory damages, attorneys’ fees, and reasonable costs and expenses. Between August and December 2023, three separate stockholders’ derivative actions were filed in the United States District Court for the Southern District of New York and in December 2024 and March 2025, derivative actions were filed in Delaware Chancery Court, in each case against certain of Coupang’s former and current directors and current officers. Coupang was named as a nominal defendant in the various derivative actions. Aside from the aforementioned actions, there have been additional Delaware Section 220 records inspection demands. These derivative actions and related demands purport to assert claims on behalf of Coupang and make substantially similar factual allegations to New York City Public Pension Funds v. Coupang, Inc. et al., bringing claims for, among other things, breach of fiduciary duty, unjust enrichment, and violations of securities laws. The actions seek compensatory damages, governance reforms, and other relief. On September 10, 2025, the Court dismissed New York City Public Pension Funds v. Coupang, Inc. et al. in its entirety without leave to amend. The plaintiffs filed a notice of appeal on October 10, 2025, and the appeal is awaiting the court’s decision. We intend to continue to vigorously defend the claims and the appeal. A reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time. Accordingly, we can provide no assurances as to the scope and outcome of these matters and no assurances as to whether our business, financial position, results of operations or cash flows will not be materially adversely affected. In February and March 2025, we received demands on our Board of Directors alleging claims similar to those in the class and derivative actions and demanding civil actions by our Board of Directors against certain current and former directors and officers. Those demands have been provided to our Board of Directors to evaluate.

In November 2025, Coupang became aware of a data incident involving unauthorized access to customer accounts by a former employee (the “Incident”). On January 6, 2026, a putative securities class action was filed against Coupang and certain of its officers and directors, as well as Coupang Corp., in the United States District Court for the Western District of Washington on behalf of persons who purchased or acquired shares of Coupang Class A common stock between May 7, 2025 and December 16, 2025. This action, Lee and Park v. Coupang, Inc., alleges false and misleading statements related to the Incident in violation of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 of the Exchange Act. The action seeks unspecified damages, attorney’s fees, and other costs and expenses. On January 6, 2026, a stockholder derivative action, Warga v. Bom Kim, et. al., was filed in the United States District Court for the Northern District of California and on March 24, 2026, a derivative action, Wilson v. Coupang, was filed in the Western District of Washington. The derivative actions, which are based on the Incident, were filed against Coupang’s directors and certain of its officers, and against Coupang as a nominal defendant. They assert claims for breach of fiduciary duty and violations of securities laws and seek various remedies, including damages and improvements to governance and procedures. On February 6, 2026, a putative class action was filed in the United States District Court for the Eastern District of New York. This action, Lee and Park, v. Coupang, Inc. and Bom Kim, was also based on the Incident but alleges negligence, unjust enrichment, and violations of New York law on the part of Coupang and Mr. Kim related to allegedly being responsible for and overseeing data security for Coupang. The action seeks damages for all U.S. and Korean residents whose data was compromised. A reasonable estimate of the amount of any possible loss or range of loss resulting from the putative class actions or the stockholder derivative actions cannot be made at this time. Accordingly, we can provide no assurances as to the scope and outcome of these matters and no assurances as to whether our business, financial position, results of operations or cash flows will not be materially adversely affected. We intend to vigorously defend against these related actions. Aside from the aforementioned actions, there have been additional demands on our Board of Directors and a Delaware Section 220 records inspection demand based on the Incident. These demands are currently being evaluated.

Competition-Related Matters

In June 2021, the KFTC initiated an investigation into a potential violation of the Monopoly Regulation and Fair Trade Act bytwo of our Korean subsidiaries, Coupang Corp. and CPLB, including certain alleged treatment of private labelled products provided by CPLB. In June 2024, the KFTC publicly announced that as a result of their investigation, they determined that Coupang Corp.’s product rankings disclosure violated Korean law (a regulatory finding subject to judicial review), and that they would impose an administrative fine on Coupang Corp., direct Coupang Corp. and CPLB to take certain related corrective actions, and refer the matter for criminal prosecution. In the second quarter of 2024, we accrued an administrative fine of approximately $121 million. Coupang Corp. will pay the administrative fine insix installments overtwo years and made the first payment in October 2024 and the last payment in June 2026.

In August 2024, Coupang Corp. and CPLB received the KFTC’s formal written decision, and in September 2024, Coupang Corp. and CPLB appealed such decision. That appeal is pending. Hearings of the administrative litigation action were held in November 2024, March 2025, June 2025, July 2025, September 2025, November 2025, April 2026, June 2026, and a ninth hearing is scheduled for September 2026. Coupang Corp. and CPLB also filed a preliminary injunction with the Seoul High Court to stay the fine and corrective orders during the pendency of the appeal. In October 2024, the Seoul High Court granted Coupang Corp.’s and

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CPLB’s request for suspension of the KFTC’s corrective orders, but dismissed the request for a stay of the KFTC’s administrative fine. The KFTC subsequently appealed the Seoul High Court’s decision to grant a suspension of the corrective orders and in February 2025, the Supreme Court of Korea dismissed the KFTC’s appeal. In November 2024, in response to the KFTC’s criminal referral, the Seoul Eastern District Prosecutors’ Office initiated a criminal investigation into Coupang Corp. and CPLB. The Seoul Eastern District Prosecutors’ Office issued an indictment dated May 1, 2025, on the same underlying facts as the administrative case. The criminal trial proceedings have begun at the Seoul Eastern District Court. Hearings for the criminal trial proceedings occurred in October 2025, December 2025, March 2026, May 2026, July 2026, and the next hearing is scheduled for August 2026. The maximum penalty under the indictment is a fine of approximately $200,000. We intend to vigorously defend against these charges in court.

In September 2024, the KFTC began an investigation of Coupang Corp. related to potential violations of Korea’s Fair Trade Act concerning the bundling of Eats benefits with the WOW membership. The KFTC issued an examiner’s report in October 2025 arguing that such bundling is impermissible under the Fair Trade Act. In the event Coupang is ultimately found to have acted in violation of the law, a fine could be imposed and Coupang may be required to separate the Eats benefit from the WOW membership and customers would need to purchase this benefit separately. Coupang submitted its response to the examiner’s report and a KFTC hearing is tentatively scheduled to take place in September 2026.

The KFTC and other regulators are also investigating Coupang Corp. and its subsidiaries on other matters.

Under Korean law, if violations are identified in the investigations, these can be resolved through civil, administrative, or criminal proceedings. The ultimate case resolution could include fines, orders to alter our processes or procedures, and criminal investigations or charges against individuals or us. We cannot reasonably estimate any penalties, loss, or range of loss that may arise from these investigations. Accordingly, we can provide no assurance as to the scope and outcome of these matters and no assurance as to whether our business, financial position, results of operations, or cash flows will not be materially adversely affected.

Privacy-Related Matters

In connection with the Incident, Coupang completed its investigation with the support of external forensic experts and shared the results of the investigation with Korean regulators. Korean regulators have also initiated ongoing investigations with which Coupang is fully cooperating.

On June 10, 2026, the PIPC announced an administrative fine for Coupang Corp. of approximately $278 million, related to the Incident and directed Coupang Corp. to implement certain corrective measures relating to the Incident.

On June 10, 2026, the PIPC also announced a separate administrative fine for Coupang Corp. of approximately $132 million, unrelated to the Incident, alleging that Coupang Corp. violated the PIPA in connection with the collection and storage of data related to a third-party advertising program. The PIPC also directed Coupang Corp. to take certain corrective actions related to this matter.

The PIPC has not yet issued its formal written decisions with respect to the fines, which are expected in due course. Accordingly, the final findings, administrative fine amounts and corrective measures may differ from those reflected in the PIPC’s announcement.

The PIPC’s regulatory findings and penalties are subject to judicial review. Coupang Corp. intends to vigorously pursue judicial relief in the Seoul Administrative Court. Payments to the PIPC are not automatically stayed during an appeal and are not deductible for income tax purposes. During the second quarter of 2026, we recorded a $410 million accrual for the administrative fines announced by the PIPC, included in accrued expenses and recognized within operating, general and administrative expenses.

Other Matters

We believe that the Incident has increased the Korean government’s focus on our business and may continue to result in additional expenses, including from remediation, inquiries, enforcement actions, and litigation. Investigations by Korean authorities have resulted in criminal complaints against certain of our current and former executives and employees. In addition to the fines and corrective actions already imposed, Korean authorities and regulators may potentially impose additional financial penalties or require that we take certain additional corrective actions. At this time, we cannot determine the outcome of any additional inquiries, enforcement actions, or litigation, or reasonably estimate any amount of losses or range of losses that may result from such additional actions. We can provide no assurance as to the scope or outcome of any additional inquiries, enforcement actions, or litigation and no assurance as to whether our business, financial position, results of operations, or cash flows will not be materially adversely affected.

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11. Subsequent Event

Fulfillment Center Fire

In July 2026, a fire occurred at one of our leased fulfillment centers located in Incheon, Korea (the “Incheon FC Fire”), resulting in significant damage to the facility and related leasehold improvements, equipment, and inventory. We currently estimate the total carrying value of owned inventory and fixed assets at the facility prior to the fire, as well as our obligation to sellers relating to their inventory stored in the facility, to be approximately $246 million. We maintain property and liability insurance coverage for various insured events, including fires, and intend to pursue available claims. We may incur additional liabilities and costs related to the fire that are currently unknown or unquantifiable, including, but not limited to, damage to, and loss of use of, the facility, remediation costs, regulatory penalties, litigation, and other losses. We are still evaluating the extent of losses and are unable to reasonably estimate the financial impact at this time. Losses from the Incheon FC Fire will be recognized beginning in the third quarter of 2026.