CPNG

Coupang's investable strength is its core Product Commerce segment: net revenue of $29.6B (+16% constant currency) with segment adjusted EBITDA up 24% to $2,485M, driven by 8-10% active-customer growth, 3-7% growth in revenue per customer, and a structural margin improvement as Product Commerce cost of sales fell from 69.6% to 68.0% on higher-margin FLC and advertising mix. The balance sheet is genuinely strong — $6.32B cash, long-term debt cut 34% to $648M with zero current debt, and the 2.85x liabilities/equity ratio reflects operating payables, not financial leverage. Group revenue grew 14% as reported (18% constant currency) to $34.5B, and GAAP net income rose to $208M. On price-to-sales (~1x on a ~$34B market cap) the stock is not expensive; the 163.6 P/E is a function of razor-thin 0.6% net margins, not an inflated price.

What keeps this from a buy is a stack of concrete, near-term drags. The biggest is the Korea data breach (the 'Incident'): management is issuing roughly $1.2B of customer-compensation vouchers starting January 2026, recognized as direct reductions to revenue as redeemed and concentrated in Q1 2026 — a mechanical hit to 2026 revenue growth and profitability that is already disclosed but not yet in these FY2025 numbers. The filing also warns the Incident has heightened Korean government scrutiny and could bring remediation costs, enforcement actions and litigation — an unquantifiable regulatory tail — and management already cited weaker Q4 2025 active-customer growth partly from the Incident's impact on demand. Second, Developing Offerings (Farfetch, Eats, Play, fintech, Taiwan) is burning more cash, not less: segment adjusted EBITDA worsened 58% to -$995M, nearly offsetting all the core's gains.