WEBTOON Entertainment Inc (WBTN) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: N/A
• Average Volume (3M): 306.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: 5.65%
• EPS Growth: 11.52%
• Country: US
• Employees: 1,800
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.09
• Shares Outstanding: 133,432,430
• 10 Day Avg. Volume: 258,554
• 30 Day Avg. Volume: 306,247
• PEG Ratio: -0.37
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 368.87
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: -9.90
• 1Y Price Target: $11.00
• Price Target Upside: -3.42% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.22
• Revenue Forecast (FY): $1.55B

• Rating: 48 Neutral
• Price Target: $11.00 ▼(-3.42% Downside)
• Action: Reiterated Date: 01/09/26
• Date: Action: Reiterated 01/09/26

The score is held back primarily by weak financial performance (steep revenue decline, ongoing losses, and negative operating cash flow). Technicals and the latest earnings call are mixed, while the Disney partnership provides a constructive catalyst but is not yet enough to outweigh current fundamentals and loss-driven valuation metrics.

Positive Factors

Strategic Disney Partnership

A binding equity investment and definitive platform development deal with Disney is a structural shift: it aligns incentives, expands distribution and co‑development resources, and increases long‑term access to IP adaptation and cross‑promotion opportunities that can sustainably raise engagement and monetization.

IP Adaptations Revenue Growth

Very strong IP adaptation growth shows the company's ability to convert serialized content into higher‑value licensing and adaptation revenue. This diversifies income away from core ad/transaction streams, supports higher margin opportunities, and strengthens a durable content‑to‑media monetization engine.

Conservative Balance Sheet

Low leverage provides financial flexibility to sustain investments in creator payouts, marketing and new product features during loss periods. This structural stability reduces refinancing risk, enabling the company to execute strategic partnerships and content initiatives without immediate solvency pressure.

Negative Factors

Severe TTM Revenue Decline

A near‑term 74% TTM revenue drop indicates a material loss of scale and recurring monetization base. Reduced scale weakens network effects, ad inventory value and platform economics, making it harder to fund creator incentives and sustain long‑term growth without structural changes to product, distribution or monetization.

Negative Operating Cash Flow

Sustained negative operating cash flow erodes liquidity and forces reliance on financing or equity raises. That constrains ongoing investments in content, product and marketing essential for user acquisition and retention, and limits the firm's ability to convert strategic partnerships into durable revenue gains.

Declining Ads and User Base

Falling ad revenue and MAU point to weakening engagement and advertiser appeal. Combined with geographic regulatory impacts (Wattpad bans), this reduces ad inventory monetization and raises the bar for product improvements or costly marketing to rebuild reach, pressuring long‑term revenue diversification.

WEBTOON Entertainment Inc Business Overview & Revenue Model

Company Description

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company's platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. operates as a subsidiary of NAVER Corporation.

How the Company Makes Money

WEBTOON generates revenue through several key streams, including advertising, in-app purchases, and subscription services. The platform features a free-to-read model supported by ad placements within the content, providing a source of income based on user engagement and impressions. Additionally, users can purchase 'coins' to unlock premium content or access early releases of specific series, contributing to its in-app purchase revenue. The company also offers subscription services that allow users to access ad-free experiences and exclusive content for a monthly fee. Partnerships with various media companies and creators enhance its revenue potential by facilitating adaptations of popular webcomics into other media formats such as TV shows and movies, further expanding its audience and monetization opportunities.

WEBTOON Entertainment Inc Financial Statement Overview

Summary

Weak fundamentals driven by sharp TTM revenue decline, persistent losses, and negative operating cash flow. A relatively conservative balance sheet (low leverage) provides some stability but does not offset profitability and liquidity pressures.

Income Statement

WEBTOON Entertainment Inc has experienced a significant decline in revenue, with a TTM revenue growth rate of -74.16%. The company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. Despite a slight improvement in gross profit margin over time, the overall financial performance remains weak due to consistent losses.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is stable, suggesting a solid capital structure, but the company needs to improve profitability to enhance shareholder value.

Cash Flow

WEBTOON Entertainment Inc's cash flow situation is challenging, with negative operating cash flow in the TTM period. The free cash flow to net income ratio is positive, indicating some efficiency in converting income to cash, but the overall cash flow growth is negative, highlighting liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.40B	1.35B	1.28B	1.08B
Gross Profit	323.94M	339.07M	295.49M	273.01M
EBITDA	-95.28M	-113.09M	-96.81M	-82.58M
Net Income	-131.41M	-143.91M	-116.45M	-129.87M
Balance Sheet
Total Assets	1.98B	1.94B	1.78B	2.02B
Cash, Cash Equivalents and Short-Term Investments	584.58M	598.73M	251.62M	279.71M
Total Debt	26.30M	17.24M	33.44M	53.56M
Total Liabilities	402.94M	378.87M	429.13M	505.13M
Stockholders Equity	1.49B	1.47B	1.25B	1.38B
Cash Flow
Free Cash Flow	-16.22M	4.73M	-7.54M	-161.80M
Operating Cash Flow	-5.08M	17.88M	14.80M	-140.61M
Investing Cash Flow	-11.07M	-17.28M	-51.98M	-50.70M
Financing Cash Flow	1.61M	353.87M	-6.50M	350.34M

WEBTOON Entertainment Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WBTN, the sentiment is Negative. The current price of 11.39 is above the 20-day moving average (MA) of 11.25, below the 50-day MA of 12.39, and below the 200-day MA of 13.00, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 44.04 is Neutral, neither overbought nor oversold. The STOCH value of 68.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WBTN.

WEBTOON Entertainment Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONTF	66 Neutral	$341.66M	-11.78	-20.20%	―	-6.23%	28.57%
DSP	65 Neutral	$632.45M	383.71	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SMRT	51 Neutral	$287.59M	-4.26	-25.48%	―	-24.30%	-181.62%
BMBL	51 Neutral	$342.73M	-1.60	-25.34%	―	-7.43%	61.36%
WBTN	48 Neutral	$1.50B	-11.04	-8.48%	―	5.65%	11.52%
CXAI	48 Neutral	$6.69M	-0.31	-80.59%	―	-27.47%	83.06%

WEBTOON Entertainment Inc Corporate Events

WEBTOON Forms Strategic Equity and Platform Partnership with Disney

On January 8, 2026, WEBTOON Entertainment Inc. sold 2,666,757 shares of its common stock to a wholly owned indirect subsidiary of The Walt Disney Company in a private placement, giving Disney an approximately 2% equity stake in the company for about $32.8 million and granting Disney certain protective rights over corporate actions affecting its investment and transfer rights aligned with major shareholders NAVER Corporation and LY Corporation. On the same date, WEBTOON entered into a definitive agreement with Disney to jointly develop an all-new digital comics platform, formalizing an earlier non-binding term sheet and strengthening WEBTOON’s strategic partnership with a major global media company, which could enhance its market reach, content offerings and industry positioning in digital comics and entertainment.

The most recent analyst rating on (WBTN) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on WEBTOON Entertainment Inc stock, see the WBTN Stock Forecast page.