WEBTOON Entertainment Q1 Outlook Weak, Stock Price Plunges Nearly 13%

LootboxPhobia · 2026-03-03T22:44:05+00:00

WEBTOON Entertainment announced Q4 earnings that exceeded expectations, but the stock fell 12.9% due to Q1 2026 guidance being below analyst estimates. The company's revenue was $330.7 million, down 6.3% year-over-year, with an adjusted EBITDA of $600,000. Net loss for 2025 was $373.4 million, and revenue for 2026 is expected to be below expectations. The CEO stated that the fourth quarter performed well and cash position remains solid.

LootboxPhobia

2026-03-03 22:44:05

Abstract generation in progress

Los Angeles - WEBTOON Entertainment Inc. (NASDAQ: WBTN) reported Q4 earnings that exceeded expectations, but due to disappointing current quarter guidance, which was far below analyst estimates, the stock fell 12.9%.

The digital comic platform reported adjusted earnings per share of $0.00 for Q4, beating analyst expectations of -$0.15. Revenue was $330.7 million, down 6.3% year-over-year from $352.9 million in the same period last year.

At constant currency, revenue was $338.3 million, down 4.1% year-over-year, mainly due to declines in advertising and IP licensing businesses, but growth in paid content offset some of this impact. The company’s adjusted EBITDA was $600,000, compared to -$3.5 million in the same period last year, thanks to effective cost control.

For Q1 2026, WEBTOON Entertainment issued guidance that was significantly below expectations. The company expects revenue between $317 million and $327 million, with a midpoint of $322 million, which is 8% lower than the analyst consensus of $350.2 million. The company expects adjusted EBITDA to be between $0 and $5 million.

For the full year 2025, revenue is projected to grow 2.5% to $1.4 billion, or 3.9% at constant currency. However, the company reported a net loss of $373.4 million, compared to a loss of $152.9 million last year, mainly due to goodwill impairment. Adjusted EBITDA was $19.4 million, down from $68 million in 2024.

Founder and CEO Junkoo Kim stated, “We are pleased to report solid Q4 results, with revenue in line with our expectations and adjusted EBITDA exceeding the upper end of our guidance range. For the full year, we achieved approximately 4% revenue growth and about $19 million in adjusted EBITDA at constant currency, marking our third consecutive year of growth and profitability.”

The company had approximately $581.8 million in cash and cash equivalents at the end of the quarter, with no debt.

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