Coupang (NYSE:CPNG) Misses Q4 CY2025 Revenue Estimates

Online platform company Coupang (NYSE:CPNG)

in Q4 CY2025, but sales rose 10.9% year on year to $8.84 billion. Its GAAP loss of $0.01 per share was significantly below analysts’ consensus estimates.

Is now the time to buy Coupang?

Company Overview

Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, Coupang grew its sales at an impressive 18.8% compounded annual growth rate. Its growth beat the average consumer internet company and shows its offerings resonate with customers.

This quarter, Coupang’s revenue grew by 10.9% year on year to $8.84 billion but fell short of Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 14.4% over the next 12 months, a deceleration versus the last three years. We still think its growth trajectory is attractive given its scale and suggests the market is forecasting success for its products and services.

Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming.

Active Customers

Buyer Growth

As an online retailer, Coupang generates revenue growth by expanding its number of users and the average order size in dollars.

Over the last two years, Coupang’s active customers, a key performance metric for the company, increased by 9% annually to 24.6 million in the latest quarter. This growth rate is solid for a consumer internet business and indicates people are excited about its offerings.

In Q4, Coupang added 1.8 million active customers, leading to 7.9% year-on-year growth. The quarterly print was lower than its two-year result, suggesting its new initiatives aren’t accelerating buyer growth just yet.

Revenue Per Buyer

Average revenue per buyer (ARPB) is a critical metric to track because it measures how much customers spend per order.

Coupang’s ARPB growth has been decent over the last two years, averaging 6%. Its ability to increase monetization while effectively growing its active customers demonstrates the value of its platform.

This quarter, Coupang’s ARPB clocked in at $359.15. It grew by 2.8% year on year, slower than its buyer growth.

Key Takeaways from Coupang’s Q4 Results

We struggled to find many positives in these results. Its revenue missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 2.7% to $18.18 immediately after reporting.

Coupang may have had a tough quarter, but does that actually create an opportunity to invest right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy.