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Segment Reporting
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We own and operate a retail business that primarily serves the Korean retail market along with other international markets. The Chief Operating Decision Maker (“CODM”) is our Chief Executive Officer. We have two operating and reportable segments: Product Commerce and Developing Offerings. These segments are based on how the CODM manages the business, allocates resources, makes operating decisions and evaluates operating performance.
Product Commerce primarily includes our core Korean retail (owned inventory) and marketplace offerings (third-party merchants) and Rocket Fresh, our fresh grocery category offering, as well as advertising products associated with these offerings. Revenues from Product Commerce are derived primarily from online product sales of owned inventory to customers in Korea, commissions and logistics and fulfillment fees from merchants that sell products through our mobile application and website, and from our Rocket WOW membership program.
Developing Offerings includes our more nascent offerings and services, including Eats, our restaurant ordering and delivery service, Play, our online content streaming service, fintech, our retail operations in Taiwan, as well as advertising products associated with these offerings, and also includes Farfetch, our global luxury fashion marketplace. Revenues from Developing Offerings are primarily generated from Farfetch, Eats, and retail operations in Taiwan.
The CODM uses two profitability measures, Segment Gross Profit and Segment Adjusted EBITDA, in assessing segment performance and allocating resources to each segment. Segment Gross Profit and Segment Adjusted EBITDA are evaluated on a monthly basis by our CODM by monitoring actual results versus prior periods. This comparison is performed to make strategic assessments and decisions regarding segment profitability, resource allocation, pricing strategies and cost optimization, and whether to reinvest profits into each of these segments or into other initiatives.
Segment Gross Profit is defined as total net revenues less cost of sales attributable to each reportable segment.
Segment Adjusted EBITDA is defined as income (loss) before income taxes for a period before depreciation and amortization, equity-based compensation expense, interest expense, interest income, and other income (expense), net. Segment adjusted EBITDA also excludes impairments and other items that we do not believe are reflective of our ongoing operations.
We generally allocate operating expenses to the respective segments based on usage. The CODM does not evaluate segments using asset information and, accordingly, we do not report asset information by segment.
Reportable segment financial information is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)
2025202420252024
Net revenues
Product Commerce$7,980 $6,891 $22,184 $19,816 
Developing Offerings1,287 975 3,515 2,487 
Total net revenues$9,267 $7,866 $25,699 $22,303 
Cost of sales
Product Commerce$5,416 $4,823 $15,079 $13,962 
Developing Offerings1,131 774 3,023 2,001 
Total cost of sales$6,547 $5,597 $18,102 $15,963 
Gross profit
Product Commerce$2,564 $2,068 $7,105 $5,854 
Developing Offerings156 201 492 486 
Total gross profit$2,720 $2,269 $7,597 $6,340 
Other segment items (1)
Product Commerce1,859 1,598 5,187 4,387 
Developing Offerings448 328 1,187 999 
Total other segment items$2,307 $1,926 $6,374 $5,386 
Segment adjusted EBITDA
Product Commerce$705 $470 $1,918 $1,467 
Developing Offerings(292)(127)(695)(513)
Total segment adjusted EBITDA$413 $343 $1,223 $954 
(1)Other segment items relate to operating, general and administrative expense, excluding depreciation and amortization, equity-based compensation expense, impairments and other items that we do not believe are reflective of our ongoing operations. The CODM does not regularly review disaggregated expense information included within “Other segment Items” for any individual segment.
Reconciliations of segment profit or loss:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2025202420252024
Total gross profit2,720 2,269 7,597 6,340 
Operating, general and administrative(2,558)(2,160)(7,132)(6,216)
Interest expense(22)(36)(70)(100)
Interest income52 55 152 163 
Other (expense) income, net(27)4 28 7 
Income before income taxes$165 $132 $575 $194 
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2025202420252024
Total segment adjusted EBITDA
$413 $343 $1,223 $954 
Depreciation and amortization$(133)$(112)$(381)$(313)
Equity-based compensation(118)(114)(352)(311)
Acquisition and restructuring related losses, net— (8)(25)(85)
KFTC administrative fine (see Note 10)— — — (121)
Interest expense(22)(36)(70)(100)
Interest income52 55 152 163 
Other (expense) income, net(27)4 28 7 
Income before income taxes$165 $132 $575 $194 
Note: Amounts may not foot due to rounding.