v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
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 CODM is our CEO. 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, 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, Rocket Now, Play, fintech, our retail operations in Taiwan, as well as advertising products associated with these offerings, and also includes Farfetch. 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 March 31,
(in millions)
20262025
Net revenues
Product Commerce$7,176 $6,870 
Developing Offerings1,328 1,038 
Total net revenues$8,504 $7,908 
Cost of sales
Product Commerce$5,002 $4,719 
Developing Offerings1,205 873 
Total cost of sales$6,207 $5,592 
Gross profit
Product Commerce$2,174 $2,151 
Developing Offerings123 165 
Total gross profit$2,297 $2,316 
Other segment items (1)
Product Commerce$1,816 $1,601 
Developing Offerings452 333 
Total other segment items$2,268 $1,934 
Segment adjusted EBITDA
Product Commerce$358 $550 
Developing Offerings(329)(168)
Total segment adjusted EBITDA$29 $382 
(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 March 31,
(in millions)20262025
Total gross profit$2,297 $2,316 
Operating, general and administrative(2,539)(2,162)
Interest expense(13)(23)
Interest income44 49 
Other (expense) income, net(44)36 
(Loss) income before income taxes$(255)$216 
Three Months Ended March 31,
(in millions)20262025
Total segment adjusted EBITDA
$29 $382 
Depreciation and amortization(143)(122)
Equity-based compensation(128)(121)
Acquisition and restructuring related gains, net
— 15 
Interest expense(13)(23)
Interest income44 49 
Other (expense) income, net(44)36 
(Loss) income before income taxes$(255)$216 
Note: Amounts may not foot due to rounding.