Coupang, Inc.

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Results of Operations

(1)Non-meaningful.

Total Net Revenues

We categorize our total net revenues as (1) net retail sales and (2) net other revenue. Total net revenues incorporate reductions for estimated returns, promotional discounts, and earned loyalty rewards and exclude amounts collected on behalf of third parties, such as value added taxes. We periodically provide customers with promotional discounts to retail prices, such as percentage discounts and other similar offers, to incentivize increased customer spending and loyalty. These promotional discounts are discretionary and are reflected as reductions to the selling price and revenue recognized on each corresponding transaction. Loyalty rewards are offered as part of revenue transactions to all retail customers, whereby rewards are earned as a percentage of each purchase, for the customer to apply towards the purchase price of a future transaction. We defer a portion of revenue from each originating transaction, based on the estimated standalone selling price of the loyalty reward earned, and then recognize the revenue as the loyalty reward is redeemed in a future transaction, or when the reward expires. The amount of the deferred revenue related to these loyalty rewards is not material.

Net retail sales represent the majority of our total net revenues which we earn from online product sales of our owned inventory to customers. Net other revenue includes revenue from commissions from merchants that sell their products through our apps or websites. We are not the merchant of record in these transactions, nor do we take possession of the related inventory. Net other revenue also includes consideration from online restaurant ordering and delivery services performed by us, as well as advertising services provided on our apps or websites. We also earn subscription revenue from memberships to our WOW membership programs, which is also included in net other revenue.

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The following table presents our total net revenues by segment.

The increase in Product Commerce net revenues for the three and nine months ended September 30, 2026 is primarily due to a 6% growth in total net revenues per Product Commerce Active Customer, excluding effects of foreign exchange rates, driven by increased customer engagement within and across more product categories and a 2% increase in our Product Commerce Active Customers. The growth rates for the three and nine months ended September 30, 2026 were negatively affected by the Incident’s impact on the growth rate in Product Commerce Active Customers, as well as 3% from the negative effect of foreign exchange rates.

The increase in Developing Offerings net revenues for the three and nine months ended September 30, 2026 is primarily due to an increase in total net revenues from our growth initiatives, as we are seeing greater levels of customer engagement in these early-stage offerings.

Cost of Sales

Cost of sales primarily consists of the purchase price of products sold directly to customers where we record revenue gross, and includes logistics costs. Inbound shipping and handling costs to receive products from suppliers are included in inventory and recognized in cost of sales as products are sold. Additionally, cost of sales includes outbound shipping and logistics-related expenses, delivery costs from our restaurant delivery business, and depreciation and amortization expense.

Cost of sales increased mainly due to higher volume from increased sales and customer demand and the $95 million Product Commerce inventory loss from the Incheon FC Fire. Cost of sales as a percentage of revenue increased primarily due to an increase for Product Commerce from 67.9% and 68.0% for the three and nine months ended September 30, 2025 to 71.6% and 70.3% for the three and nine months ended September 30, 2026, primarily from the impact of the Incident, including increased costs in supply chain management and a higher rate of customer discounts. In addition, the inventory losses from the Incheon FC Fire increased Product Commerce cost of sales as a percentage of revenue by approximately 1.1% and 0.4% for the three and nine months ended September 30, 2026, respectively. We expect Product Commerce cost of sales as a percentage of revenue to remain elevated over the near term as we recover from the Incident. Contributing to the increase in cost of sales as a percentage of revenue for the three and nine months ended September 30, 2026 is the increase for Developing Offerings from 87.9% and 86.0% for the three and nine months ended September 30, 2025 to 88.4% and 87.7% for the three and nine months ended September 30, 2026, which is primarily driven by an increase in costs of sales relative to the growth in revenue as well as growth in certain Developing Offerings initiatives operating with lower margins.

Operating, General and Administrative Expenses

Operating, general and administrative expenses include all our operating costs excluding cost of sales, as described above. More specifically, these expenses include costs incurred in operating and staffing our fulfillment centers (including costs attributed to receiving, inspecting, picking, packaging, and preparing customer orders), customer service-related costs, payment processing fees, costs related to the design, execution, and maintenance of our technology infrastructure and online offerings, advertising costs, general corporate function costs, and depreciation and amortization expense.

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The increase in operating, general and administrative expenses for the three and nine months ended September 30, 2026 primarily reflects increases in fulfillment, technology, and marketing costs to support our continued growth, as well as $153 million of losses related to the Incheon FC Fire, including fixed asset impairment losses and other directly-related losses. The increase for the nine months ended September 30, 2026 also reflects the impact of certain administrative fines of approximately $410 million. The Incheon FC Fire losses increased operating, general and administrative expenses as a percentage of revenue by 1.5% and 0.6% for the three and nine months ended September 30, 2026, respectively. In addition, the administrative fines increased operating, general and administrative expenses as a percentage of revenue by 1.5% for the nine months ended September 30, 2026. The remaining increase was primarily attributable to lower revenue growth resulting from the Incident. We expect operating, general and administrative expenses as a percentage of revenue to remain elevated over the near term as we recover from the Incident.

Interest Expense

Interest expense primarily consists of interest on our short-term borrowings and long-term debt.

Interest expense remained flat compared to the three months ended September 30, 2025 and decreased $10 million compared to the nine months ended September 30, 2025, respectively, due to the interest expense in the prior year periods associated with the Farfetch syndicated term loans that were redeemed in July 2025.

Interest Income

Interest income primarily consists of interest earned on our deposits held with financial institutions.

Interest income for the three and nine months ended September 30, 2026 decreased slightly when compared with the prior year periods.

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 nine months ended September 30, 2026 was unfavorably impacted by losses before income taxes in certain jurisdictions for which we receive no tax benefit, resulting in a negative effective tax rate for the nine months ended September 30, 2026. Certain non-deductible administrative fines discussed in Note 10 — "Commitments and Contingencies" to the condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q also negatively impacted our tax provision for income taxes and effective tax rate for the nine months ended September 30, 2026.

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 twelve 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.

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Segment Gross Profit and Adjusted EBITDA

Segment gross profit is defined as 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.

(1)See “Non-GAAP Financial Measures” below for the reconciliation of the non-GAAP measures with their comparable amounts prepared in accordance with U.S. GAAP.

(2)Non-meaningful.

Product Commerce

The decrease in gross profit for the three and nine months ended September 30, 2026 is primarily due to the impact of the Incident, including increased costs in supply chain management and a higher rate of customer discounts, as well as the $95 million inventory losses from the Incheon FC Fire.

The decrease in Product Commerce adjusted EBITDA for the three and nine months ended September 30, 2026 is primarily due to the impacts of the Incident described above and increases in fulfillment, technology, and marketing costs to support our continued growth.

Developing Offerings

The increase in gross profit for the three and nine months ended September 30, 2026 resulted from the growth in revenue described above.

The decreased loss for the three months ended September 30, 2026 in Developing Offerings adjusted EBITDA is primarily the result of the increase in revenue and gross profit described above. The increased loss for the nine months ended September 30, 2026 in Developing Offerings adjusted EBITDA is primarily the result of increased investments in our Developing Offerings initiatives, including Taiwan, Play, and Rocket Now over the nine-month period.