WEBTOON Entertainment's Q1 2025 results show strong performance in Japan and growth in advertising and IP adaptation revenues. However, the company faced challenges with a decline in overall MAU, a net loss, and significant issues with the Wattpad platform. While there are positive signs in key markets like Japan, the overall financial metrics indicate a need to address operational challenges.

Company Guidance -

Q2 2025

During the first quarter of 2025, WEBTOON Entertainment reported strong financial results, with revenue and adjusted EBITDA both reaching the upper end of their guidance range due to robust performance in Japan, which contributed over 50% of the total revenue. The company achieved a revenue growth of 5.3% on a constant currency basis, despite a reported revenue being flat year-over-year, influenced by tough comparisons from the previous year. The net loss for the quarter was $22 million, attributed to increased general and administrative expenses and higher marketing costs. Adjusted EBITDA was $4.1 million, down from $22.2 million in the prior year, with adjusted earnings per share at $0.03. The company's metrics showed a 10.5% decrease in total company MAU, primarily driven by declines in the rest of the world, specifically Wattpad, which faced challenges from a security upgrade and a government ban. Despite these challenges, there was a 4.2% increase in webcomic app MAU, particularly in English-speaking markets, with a 19% growth on the English platform. The company also achieved a 13.6% growth in advertising revenue and a 20.7% increase in IP adaptation revenue, with significant growth in Japan across all three revenue streams. Looking ahead, WEBTOON Entertainment expects second-quarter revenue growth of 2.2% to 5.2% on a constant currency basis, with anticipated revenue between $335 million and $345 million. They also foresee an adjusted EBITDA margin between 0.1% and 1.6%, maintaining a focus on marketing investments and infrastructure improvements.

Strong Revenue Performance in Japan

Japan represented over 50% of revenue in Q1 2025, with all three business segments (paid content, advertising, and IP adaptations) experiencing growth. LINE Manga ranked number one in the overall app ranking chart for revenue, including mobile games.

Successful IP Adaptations

The adaptation of the Wattpad key title, Marla Influencia, launched on Netflix, continuing the company's success in Spanish-language content.

Innovative Product Changes

Product changes in the English language platform showed a 9% increase in episodes read by the test group compared to the control group. This included improvements in user onboarding and content discovery.

Growth in Advertising Revenue

Advertising revenue grew by 13.6% year-over-year on a constant currency basis, driven by strong performance in Korea and Japan.

IP Adaptation Revenue Growth

IP adaptation business revenue increased by 20.7% year-over-year on a constant currency basis, with double-digit growth in Korea and triple-digit growth in Japan.

WEBTOON Entertainment Inc (WBTN) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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WBTN Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 12, 2025	2025 (Q2)	-0.17 / -	-0.7	―	―	―
May 13, 2025	2025 (Q1)	-0.15 / -0.17	0.075	-326.67% (-0.24)	―
Feb 25, 2025	2024 (Q4)	-0.18 / -0.72	-0.75	4.00% (+0.03)	―
Nov 07, 2024	2024 (Q3)	-0.45 / 0.15	-0.09	266.67% (+0.24)	―
Aug 08, 2024	2024 (Q2)	-0.72 / -0.70	-0.155	-351.61% (-0.54)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

WBTN Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 13, 2025	$9.85	$8.05	-18.27%
Feb 25, 2025	$10.03	$8.98	-10.47%
Nov 07, 2024	$11.73	$10.83	-7.67%
Aug 08, 2024	$20.63	$12.75	-38.20%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does WEBTOON Entertainment Inc (WBTN) report earnings?

WEBTOON Entertainment Inc (WBTN) is schdueled to report earning on Aug 12, 2025, After Close (Confirmed).

What is WEBTOON Entertainment Inc (WBTN) earnings time?

WEBTOON Entertainment Inc (WBTN) earnings time is at Aug 12, 2025, After Close (Confirmed).

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What is WBTN EPS forecast?

WBTN EPS forecast for the fiscal quarter 2025 (Q2) is -0.17.

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