South Korean e-commerce leader Coupang reported Q4 revenue of $8.8 billion, up 11% year-over-year but below analyst expectations of $8.9 billion, while swinging to a $26 million net loss compared to $131 million profit in the same period last year, citing data breach costs as a key factor.
Coupang, the South Korean e-commerce giant, delivered mixed Q4 2025 results that highlight both the company's continued growth trajectory and the financial impact of recent cybersecurity challenges. The company reported revenue of $8.8 billion for the quarter, representing an 11% year-over-year increase, but fell short of analyst estimates of $8.9 billion.
The more concerning figure for investors was the company's swing to a net loss of $26 million, compared to a profit of $131 million in Q4 2024. This dramatic reversal in profitability underscores the significant costs associated with a data breach that occurred during the period.
Coupang attributed the net loss primarily to expenses related to the data breach fallout, though specific details about the breach's nature and scope were not disclosed in the earnings release. The company has been working to strengthen its cybersecurity infrastructure and address customer concerns following the incident.
Despite the quarterly loss, Coupang's annual performance shows the e-commerce platform's resilience in a competitive market. The 11% revenue growth demonstrates continued demand for the company's services, which include grocery delivery, streaming content through Coupang Play, and its core e-commerce marketplace.
The earnings miss and profitability decline come at a challenging time for the broader e-commerce sector, which has faced increased scrutiny over data security and operational costs. Coupang's experience serves as a reminder of the financial risks associated with cybersecurity incidents in the digital economy.
Investors reacted to the news with caution, as the combination of missed revenue expectations and the return to unprofitability raises questions about the company's near-term financial trajectory. However, the underlying revenue growth suggests that Coupang's business model remains fundamentally sound, even as it navigates the aftermath of the data breach.
As the company moves forward, its ability to restore profitability while maintaining growth momentum will be critical for long-term shareholder value. The Q4 results highlight the delicate balance between investing in security infrastructure and maintaining financial performance in the digital age.
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