Coupang swings to loss as data breach dents Q4; sees muted near-term growth

South Korean e-commerce giant Coupang swung to a fourth-quarter loss on Thursday, February 26, 2026, reporting revenue below analysts' estimates as fallout from a data breach affecting 34 million customers in November dented its performance. The company's revenue for the October-December period came in at $8.8 billion, falling short of the $8.9 billion forecast from LSEG SmartEstimate, while it posted a loss of $26 million compared to a profit in the same period a year earlier. Coupang Korea, which generates over 90% of the group's total revenue, has faced significant public backlash since disclosing the breach that exposed users' names, phone numbers, and shipping addresses, though payment details or login credentials were not compromised. Despite the challenges, Coupang's New York-listed shares closed up 1.9% as investors reacted positively to management's response plan. The data breach impact was evident in Coupang's customer metrics, with active customers in its product commerce segment falling from 24.7 million in the third quarter to 24.6 million in the fourth quarter, though still up 8% from the previous year. Chief Financial Officer Gaurav Anand reported stabilization since the end of 2025, noting that 'a large number of customers are reactivating their accounts and improving trends in customer growth.' However, the company expects muted growth and profitability over the next few months, projecting first-quarter consolidated constant-currency revenue growth of just 5% to 10%, with Anand indicating that constant-currency growth likely reached its lowest point in January at about 4% before showing signs of improvement in February. The company attributed the breach to a targeted attack carried out by a former employee who leveraged inside knowledge of Coupang's systems, according to a cybersecurity firm's investigation. However, South Korea's Science Ministry countered that the incident stemmed from management failures rather than a sophisticated cyberattack. Adding to Coupang's challenges, competitors have been actively trying to lure customers away from the platform, and the company faces potential regulatory changes that could increase competition in its ultra-fast overnight delivery services—a cornerstone of its market dominance. Separately, on the same day as its earnings report, South Korea's antitrust regulator fined Coupang 2.2 billion won ($1.53 million) for pressuring suppliers to cut prices and for delaying payments to vendors, though this fine was unrelated to the data breach incident.