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Segment Reporting
 12 Months Ended
Dec. 31, 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. Based on the location of the legal entity that earned the revenue, over 90% of our total net revenues are from Korea. The remaining revenue is primarily from entities located in the United States, United Kingdom, Taiwan, and other countries in Europe and the Asia-Pacific region. Long-lived assets primarily consist of property and equipment and operating leases right-of-use assets and are attributed to the United States and international geographies based upon the country in which the asset is located, leased or owned. Our long-lived assets are primarily located in Korea. Long-lived assets in any single country, outside of Korea, were less than 10% of consolidated long-lived assets.
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 Korean 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:
(in millions)
202520242023
Net revenues
Product Commerce$29,592 $26,699 $23,594 
Developing Offerings4,942 3,569 789 
Total net revenues$34,534 $30,268 $24,383 
Cost of sales
Product Commerce$20,126 $18,594 $17,313 
Developing Offerings4,267 2,843 880 
Total cost of sales$24,393 $21,437 $18,193 
Gross profit
Product Commerce$9,466 $8,105 $6,282 
Developing Offerings675 726 (91)
Total gross profit$10,141 $8,831 $6,190 
Other segment items (1)
Product Commerce6,981 6,099 4,741 
Developing Offerings1,670 1,357 375 
Total other segment items$8,651 $7,456 $5,116 
Segment adjusted EBITDA
Product Commerce$2,485 $2,006 $1,540 
Developing Offerings(995)(631)(466)
Total segment adjusted EBITDA$1,490 $1,375 $1,074 
(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:
(in millions)202520242023
Total gross profit$10,141 $8,831 $6,190 
Operating, general and administrative(9,668)(8,395)(5,717)
Interest expense(86)(140)(48)
Interest income199 216 178 
Other income (expense), net11 (39)(19)
Income before income taxes
$597 $473 $584 
(in millions)202520242023
Total segment adjusted EBITDA$1,490 $1,375 $1,074 
Depreciation and amortization(517)(433)(275)
Equity-based compensation(475)(433)(326)
Acquisition and restructuring related costs, net(25)(127)— 
KFTC administrative fine (see Note 14)— (121)— 
FC Fire insurance gain— 175 — 
Interest expense(86)(140)(48)
Interest income199 216 178 
Other income (expense), net11 (39)(19)
Income before income taxes
$597 $473 $584 
Note: Amounts may not foot due to rounding.