0001834584-25-000158
SEC filingNew $1B stock repurchase authorization and $668M in purchase commitments highlight capital allocation and long-term obligations.
Coupang ended Q2 2025 with $6.8B in cash and cash equivalents, up from $5.9B at year-end 2024, reflecting strong cash generation. Total debt stood at $1.8B, composed of $785M in short-term borrowings, $169M current portion of long-term debt, and $850M long-term debt. The debt-to-equity ratio is 0.39x, well within manageable levels. Inventory increased to $2.3B, in line with revenue growth.
During the six months, the company entered into $668M in unconditional purchase obligations through 2033, primarily for technology services, fulfillment center construction, content, and software licenses. These are legally binding but not recognized on the balance sheet. Additionally, the KFTC administrative fine of ~$121M is being paid in installments through June 2026.
The Board authorized a new $1B stock repurchase program in May 2025, but no shares were repurchased in Q2. No dividends are paid. Net debt increased by $271M from year-end, driven by borrowings to fund the Farfetch acquisition and working capital. Capital expenditures totaled $538M for the first half, representing 3.3% of total net revenues, primarily for fulfillment and technology infrastructure.
Two reportable segments: Product Commerce (core Korean retail and marketplace) and Developing Offerings (nascent businesses including Farfetch). Product Commerce generated $7.3B revenue (+14% YoY) and $663M adjusted EBITDA (9.0% margin). Developing Offerings revenue grew 33% to $1.2B but reported an adjusted EBITDA loss of $235M, reflecting investment in international expansion and Farfetch integration. The segments are evaluated on gross profit and adjusted EBITDA; no geographic breakdown beyond Korea and Taiwan is provided.
Operating cash flow (CFO) of $899M comfortably exceeded net income of $145M, reflecting strong non-cash add-backs (depreciation of $248M, equity-based compensation of $234M, and provision for severance of $115M) and working capital management (accounts payable up $370M). However, capex of $538M was nearly double the prior year's $285M, indicating aggressive investment. Consequently, free cash flow (CFO minus capex) was $361M, though not explicitly stated. The company did not repurchase shares, a shift from $178M in H1 2024. Financing activities provided $108M, driven by net borrowings of $132M. A notable item is the $363M effect of exchange rate changes on cash, reflecting significant currency volatility. Overall, cash generation remains solid, with capex intensity (59.7% of CFO) rising substantially.