10-Q · May 11, 2026
WEBTOON Entertainment Inc. reported Q1 2026 results with a revenue of $320.9 million, a decrease of 1.5% year-over-year, missing the consensus estimate. However, EPS of $0.07 exceeded expectations, showcasing…
Earnings analysis · 10-Q
WBTN earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
WEBTOON delivered Q2 revenue of $338.5 million, broadly matching consensus and improving sequentially, with 5.2% constant-currency growth and adjusted EBITDA of $5.5 million above prior guidance. However, GAAP EPS was…
Read full summary
WEBTOON delivered Q2 revenue of $338.5 million, broadly matching consensus and improving sequentially, with 5.2% constant-currency growth and adjusted EBITDA of $5.5 million above prior guidance. However, GAAP EPS was negative $0.11, and the filing indicates continued exposure to losses, cash-flow pressure, litigation uncertainty, and investment risk from entering video games. The Q3 revenue outlook of $358 million to $368 million points to sequential growth, but no explicit EPS guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.11
What stood out
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Revenue Rebounded Sequentially
Q2 revenue was $338.5 million, essentially in line with the $339.3 million consensus estimate and up from $321 million in Q1 2026, although down from $348 million in Q2 2025.
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Adjusted EBITDA Beat Guidance
Adjusted EBITDA was $5.5 million, exceeding the previously provided high end of Q2 guidance, according to the related earnings disclosure.
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Underlying Growth Remained Positive
Constant-currency revenue grew 5.2%, indicating underlying growth despite reported foreign-exchange pressure.
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Strong Liquidity, No Debt
The company reported $1.1 billion of cash and cash equivalents and no debt at June 30, 2026, supporting liquidity for operations and investments.
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Q3 Outlook Calls for Growth
Q3 revenue outlook of $358 million to $368 million implies sequential growth from Q2 revenue of $338.5 million.
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Expansion Into Video Games
Management entered an agreement to acquire a controlling interest in RI Games Holdings, expanding into video-game development and operations based on webcomic intellectual property.
What to watch
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Losses and Cash Flow Deteriorated
GAAP EPS was negative $0.11 in Q2 2026 versus negative $0.07 in Q1 2026 and negative $0.03 in Q2 2025, while the related disclosure noted deterioration in net loss and operating cash flow.
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New-Market Investment Execution Risk
The newly added risk factor states that the company may not realize adequate returns from new markets and business lines. The RI Games transaction expands into video games, an area where the company has little or no prior operating experience.
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IPO Litigation Settlement Uncertain
The IPO securities litigation reached an agreement-in-principle and a settlement was filed on August 7, 2026, with preliminary-approval hearing scheduled for September 8, 2026; the settlement is not yet binding or effective, and the company cannot reasonably estimate the loss contingency.
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Additional Executive Transition Costs
The former CTO's advisory arrangement requires aggregate fees of KRW 320,000,000, approximately $207,590, over 12 months, plus a separation recognition bonus of KRW 320,000,000, approximately $207,590.
Management's outlook
The filing does not provide explicit numeric EPS guidance. The related earnings release provided Q3 2026 revenue guidance of $358 million to $368 million and adjusted EBITDA guidance of $0.0 million to $5.0 million; no comparable prior Q3 outlook was provided.
Earlier filings 4
10-K · March 5, 2026
WEBTOON reported revenue of $1,382,705,000 for 2025, up 2.5% year-over-year, driven by a 31.8% increase in IP Adaptations to $130,952,000 and ARPPU growth to $12.10. Operationally the company narrowed operating loss to…
10-Q · August 13, 2025
WEBTOON reported quarterly revenue of $348,271 (in thousands) for Q2 2025, up from $320,972 in Q2 2024 and up vs Q1 2025, with gross margin roughly stable at ~25.1% and a material operating loss improvement to $(8,763)…
10-Q · May 14, 2025
WEBTOON reported revenue essentially flat at $325.707M for the quarter (vs $326.744M a year ago) while profitability deteriorated: gross margin compressed to 22.0% and the company recorded an operating loss of $26.634M…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.