WEBTOON Entertainment Inc (WBTN) AI Stock Analysis

• Market Cap: $1.89B
• Dividend Yield: N/A
• Average Volume (3M): 931.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 5.79%
• EPS Growth: 44.42%
• Country: US
• Employees: 1,800
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): -0.03
• Shares Outstanding: 130,608,280
• 10 Day Avg. Volume: 2,347,104
• 30 Day Avg. Volume: 931,877
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: -52.24
• Enterprise Value/Ebitda: -9.86
• 1Y Price Target: $15.75
• Price Target Upside: 9.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: $15.50 ▲(8.09% Upside)

WEBTOON Entertainment Inc.'s overall stock score is primarily impacted by its financial performance challenges, including significant revenue declines and ongoing losses. However, strong technical indicators and positive earnings call highlights, such as strategic partnerships and revenue growth, provide some optimism. The valuation remains a concern due to negative earnings, and while corporate events are positive, they have minimal immediate impact.

Positive Factors

Financial Performance

Solid 2Q results with revenue 2% ahead and EBITDA significantly ahead of expectations, driven by growth in paid content, advertising, and IP adaptations.

Partnerships

WBTN announced a partnership with Disney to bring their owned IP comics to Webtoon, covering titles from Disney, Marvel, 20th Century Studios, and Star Wars.

User Engagement

English language webcomic app MAUs increased by 19% for the second consecutive quarter.

Negative Factors

Market Expansion Risks

WBTN faces downside risks such as slower-than-expected monetization in Japan and North America and inconsistent trajectory of IP adaptation revenue.

Revenue Guidance

EBITDA guidance of $0.5-$5.5mn was $3mn (50%) below us at the midpoint.

User Growth

Total MAUs declined 8% year-over-year, with declines in Korea and the Rest of the World offsetting growth in Japan.

WEBTOON Entertainment Inc Business Overview & Revenue Model

Company Description

WEBTOON Entertainment Inc (WBTN) is a leading digital comics platform that specializes in the creation, distribution, and monetization of web-based comic content. Catering to a global audience, WEBTOON offers a diverse range of genres and stories, making it accessible to readers and creators worldwide. The platform operates primarily through its online portal and mobile application, allowing users to access thousands of comic series from various creators, both amateur and professional.

How the Company Makes Money

WEBTOON Entertainment Inc generates revenue through several key streams. Primarily, the company monetizes its platform through advertising, offering ad placements to businesses targeting its large and engaged user base. Additionally, WEBTOON provides a 'Fast Pass' feature, where users can pay to access episodes of comics ahead of the free release schedule, creating a direct revenue stream from its readers. Another significant revenue source is the partnership with creators, where WEBTOON shares a portion of the advertising and Fast Pass revenue with the content creators, incentivizing high-quality content production. Strategic partnerships and collaborations with other media companies for licensing and adapting popular series into other formats, such as films and merchandise, also contribute to the company's earnings.

WEBTOON Entertainment Inc Financial Statement Overview

Summary

WEBTOON Entertainment Inc. faces significant financial challenges, particularly with its income statement where revenue has fallen dramatically. While the balance sheet remains relatively stable with a strong equity position and low debt levels, the company's profitability metrics are weak. Cash flow generation shows some promise but remains inconsistent.

Income Statement

WEBTOON Entertainment Inc. has faced significant challenges on its income statement. The company reported zero revenue in the latest period, which is a substantial decline from the previous year. The gross profit margin and net profit margin are negative, indicating cost pressures and inefficiencies. Revenue growth is non-existent, and both EBIT and EBITDA margins are deeply negative, reflecting ongoing operational losses.

Balance Sheet

The balance sheet shows a moderate level of stability. The debt-to-equity ratio is low, suggesting limited leverage risk, and the equity ratio is relatively healthy, indicating a strong equity position. However, the return on equity is negative due to the company's losses, which impacts overall attractiveness.

Cash Flow

Cash flow analysis reveals a mixed picture. The company has managed to generate positive free cash flow in the latest period, but the growth rate has been volatile. The operating cash flow to net income ratio indicates some degree of cash generation capability despite net losses, which is a positive sign. However, the free cash flow to net income ratio remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.37B	1.35B	1.28B	1.08B
Gross Profit	-13.73M	339.07M	295.49M	269.71M
EBITDA	-72.71M	-113.09M	-96.81M	-84.47M
Net Income	-100.01M	-143.91M	-116.45M	-129.87M
Balance Sheet
Total Assets	2.01B	1.94B	1.78B	2.02B
Cash, Cash Equivalents and Short-Term Investments	581.55M	598.73M	251.62M	279.71M
Total Debt	27.71M	17.24M	33.44M	53.56M
Total Liabilities	411.80M	378.87M	429.13M	505.13M
Stockholders Equity	1.51B	1.47B	1.25B	1.38B
Cash Flow
Free Cash Flow	-27.56M	4.73M	-7.54M	-161.80M
Operating Cash Flow	-17.46M	17.88M	14.80M	-140.61M
Investing Cash Flow	-4.26M	-17.28M	-51.98M	-76.11M
Financing Cash Flow	18.04M	353.87M	-6.50M	350.34M

WEBTOON Entertainment Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 14.34 is above the 20-day moving average (MA) of 11.58, above the 50-day MA of 10.14, and above the 200-day MA of 10.45, indicating a bullish trend. The MACD of 1.48 indicates Negative momentum. The RSI at 63.25 is Neutral, neither overbought nor oversold. The STOCH value of 59.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WBTN.

WEBTOON Entertainment Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMEO	72 Outperform	$652.90M	55.34	3.26%	―	-1.35%	-59.67%
PRCH	63 Neutral	$1.56B	33.02	75.95%	―	-7.41%	―
SEMR	60 Neutral	$1.15B	182.58	-0.50%	―	22.16%	-107.92%
DSP	59 Neutral	$593.00M	276.49	5.20%	―	30.92%	―
WBTN	58 Neutral	$1.89B	―	-6.61%	―	5.79%	44.42%
Sector *	57 Neutral	HK$14.66B	10.33	-0.76%	4.28%	7.00%	-31.51%
BMBL	50 Neutral	$663.59M	―	-75.71%	―	-5.06%	-2318.18%

WEBTOON Entertainment Inc Corporate Events

WEBTOON Entertainment Expands Board with New Appointment

On June 16, 2025, WEBTOON Entertainment Inc. expanded its Board of Directors by appointing Saeju Jeong, co-founder and Executive Chairman of Noom, as an independent director and member of the Audit Committee. Jeong’s extensive experience in scaling consumer technology businesses is expected to be valuable as WEBTOON continues its global growth and mission to inspire with storytelling and entertainment.

WEBTOON Entertainment Inc Holds Annual Stockholders Meeting

On June 4, 2025, WEBTOON Entertainment Inc. held its Annual Meeting of Stockholders, where key decisions were made regarding the company’s governance and executive compensation. Stockholders approved the election of Nancy Dubuc as a Class I director and endorsed executive compensation policies, including the frequency of advisory votes on executive pay, and ratified the selection of Samil PricewaterhouseCoopers as the independent auditor for 2025.