WEBTOON Entertainment Inc (WBTN) AI Stock Analysis

• Market Cap: $1.63B
• Dividend Yield: N/A
• Average Volume (3M): 595.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• 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: 130,765,670
• 10 Day Avg. Volume: 1,021,097
• 30 Day Avg. Volume: 595,754
• 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: 1.26
• Enterprise Value/Revenue: 5.81
• Enterprise Value/Gross Profit: -2.85
• Enterprise Value/Ebitda: -21.67
• 1Y Price Target: $18.20
• Price Target Upside: 45.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.42
• Revenue Forecast (FY): $1.45B

• Rating: 40 Underperform
• Price Target: $12.00 ▼(-4.08% Downside)

WEBTOON Entertainment Inc's overall stock score reflects significant financial challenges, with declining revenue and persistent losses impacting profitability. Technical indicators suggest bearish momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. Despite promising partnerships and product innovations, the guidance for a revenue decline in Q4 and ongoing operational challenges contribute to a cautious outlook.

Positive Factors

Strategic Partnerships

The partnership with Disney could expand WEBTOON's reach and content offerings, enhancing its competitive position and long-term growth potential.

IP Adaptations Growth

Significant growth in IP adaptations indicates successful diversification of revenue streams, potentially leading to increased brand recognition and monetization opportunities.

New Product Features

Introducing video episodes and new features can attract more users and creators, enhancing engagement and potentially boosting revenue through diversified content offerings.

Negative Factors

Declining Revenue

The anticipated revenue decline reflects challenges in maintaining growth momentum, potentially impacting long-term financial stability and investor confidence.

Net Loss in Q3

The net loss indicates ongoing profitability challenges, which could strain resources and limit the company's ability to invest in growth initiatives.

Decline in Global MAU

A decline in global MAU suggests weakening user engagement, which could adversely affect advertising revenue and the platform's attractiveness to content creators.

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 webcomics and webtoons. The company operates primarily in the entertainment and media sector, providing a wide array of content across various genres to a global audience. WEBTOON offers its services through a mobile app and website, enabling users to access a vast library of comics created by both amateur and professional artists. Its core products include original webcomics, user-generated content, and partnerships with creators to produce exclusive series.

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

WEBTOON Entertainment Inc. faces significant financial challenges, particularly with its income statement where revenue has fallen dramatically. The balance sheet remains relatively stable with a strong equity position and low debt levels, but 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	355.21M	1.35B	1.28B	1.08B
Gross Profit	-725.72M	339.07M	295.49M	273.01M
EBITDA	-95.28M	-113.09M	-96.81M	-82.58M
Net Income	-125.19M	-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	1.57B	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	199.00K	353.87M	-6.50M	350.34M

WEBTOON Entertainment Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 12.51 is below the 20-day moving average (MA) of 15.69, below the 50-day MA of 17.48, and above the 200-day MA of 11.82, indicating a neutral trend. The MACD of -1.32 indicates Positive momentum. The RSI at 37.33 is Neutral, neither overbought nor oversold. The STOCH value of 21.63 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
DSP	64 Neutral	$612.47M	371.59	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONTF	54 Neutral	$230.02M	―	-20.20%	―	-6.23%	28.57%
SMRT	53 Neutral	$266.77M	―	-25.48%	―	-24.30%	-181.62%
BMBL	47 Neutral	$383.31M	―	-25.34%	―	-7.43%	61.36%
CXAI	43 Neutral	$15.07M	-0.82	-80.59%	―	-27.47%	83.06%
WBTN	40 Underperform	$1.63B	―	-8.48%	―	5.65%	11.52%

WEBTOON Entertainment Inc Corporate Events

Webtoon Entertainment’s Earnings Call: Growth Amid Challenges

The recent earnings call for Webtoon Entertainment Inc. revealed a mixed sentiment, reflecting both optimism and caution. While the company reported strong revenue growth and announced promising partnerships with industry giants like Disney and Warner Bros., it also faced challenges such as a decline in advertising revenue, a net loss for the quarter, and a decrease in global monthly active users (MAU). The guidance for a revenue decline in the upcoming quarter further adds to a cautious outlook.

WEBTOON Entertainment’s Q3 2025 Financial Highlights

WEBTOON Entertainment Inc. is a global entertainment company specializing in mobile webcomics and visual storytelling, known for its platforms that empower creators and engage a vast audience worldwide. In its third quarter of 2025, WEBTOON Entertainment reported an 8.7% increase in total revenue, driven by growth in Paid Content and IP Adaptations, despite a decline in advertising revenue. The company recorded a net loss of $11.1 million, contrasting with a net income of $20 million in the previous year, primarily due to lower other income and higher income tax expenses. Adjusted EBITDA stood at $5.1 million, down from $28.9 million the previous year.

WEBTOON Partners with Disney for Digital Comics Platform

On September 15, 2025, WEBTOON Entertainment and The Walt Disney Company announced a non-binding term sheet to develop a new digital comics platform, featuring over 35,000 comics from Disney’s portfolio, including Marvel and Star Wars, available in one subscription service. This collaboration, which includes Disney’s proposed 2% equity investment in WEBTOON, aims to expand digital comic access, deepen fan engagement, and target a wide distribution, including localized content for Korean and Japanese platforms.

The most recent analyst rating on (WBTN) stock is a Hold with a $15.50 price target. To see the full list of analyst forecasts on WEBTOON Entertainment Inc stock, see the WBTN Stock Forecast page.

Webtoon Entertainment’s Earnings Call: Growth Amid Challenges

Webtoon Entertainment Inc.’s recent earnings call revealed a mixed sentiment, showcasing both robust growth and areas of concern. The company reported strong revenue growth and strategic partnerships, alongside reductions in net loss. However, challenges such as declines in global monthly active users (MAU) and issues with Wattpad were also highlighted.