WEBTOON Entertainment Reports Strong Q1 2025 Results

Webtoon Entertainment Inc. ( (WBTN) ) has released its Q1 earnings. Here is a breakdown of the information Webtoon Entertainment Inc. presented to its investors.

WEBTOON Entertainment Inc. is a leading global entertainment company specializing in mobile webcomics and visual storytelling, with a strong presence in the digital content and media industry. The company is known for its innovative storytelling platforms and partnerships with major content providers.

In its first quarter of 2025, WEBTOON Entertainment reported revenue and adjusted EBITDA at the top end of its guidance range. Despite a slight year-over-year decline in total revenue, the company achieved a 5.3% growth on a constant currency basis, driven by all three revenue streams: Paid Content, Advertising, and IP Adaptations.

The company reported a net loss of $22.0 million, a significant shift from a net income of $6.2 million in the previous year, primarily due to increased general and administrative expenses and higher marketing costs. Adjusted EBITDA also saw a decline to $4.1 million from $22.2 million the previous year. However, the company maintains a strong balance sheet with cash and cash equivalents totaling approximately $550.1 million and no debt.

Looking ahead, WEBTOON Entertainment anticipates revenue growth in the second quarter of 2025 on a constant currency basis, with expectations set between 2.2% and 5.2%. The company’s strategic focus on product enhancements and expanding its content library with major franchises like ‘Godzilla’ and ‘Sonic the Hedgehog’ aims to strengthen its market position and engage more users globally.

The management remains optimistic about the company’s growth prospects, emphasizing continued investment in product innovation and content expansion to connect more fans with diverse storytelling experiences.