WEBTOON Entertainment Inc (WBTN) AI Stock Analysis

• Market Cap: $2.31B
• Dividend Yield: N/A
• Average Volume (3M): 871.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: 5.79%
• EPS Growth: 44.42%
• Country: US
• Employees: 1,800
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.03
• Shares Outstanding: 130,608,280
• 10 Day Avg. Volume: 393,723
• 30 Day Avg. Volume: 871,576
• 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: 0.31
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: -9.86
• 1Y Price Target: $19.20
• Price Target Upside: 7.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 55 Neutral
• Price Target: $18.50 ▲(3.29% Upside)

WEBTOON Entertainment Inc.'s stock score is primarily impacted by its financial challenges, with significant revenue declines and ongoing losses. Technical indicators provide some positive momentum, but valuation remains unattractive due to negative earnings. The earnings call offers some optimism with strategic partnerships and revenue growth, but challenges with user engagement and profitability persist.

Positive Factors

Strategic Partnerships

These partnerships enhance WEBTOON's content library, attracting more users and increasing engagement, which can drive long-term revenue growth and strengthen its market position.

Revenue Growth

Consistent revenue growth indicates expanding market reach and successful monetization strategies, providing a solid foundation for future financial performance.

IP Adaptations Business Growth

Strong growth in IP adaptations demonstrates WEBTOON's ability to leverage its content into new formats, enhancing revenue streams and brand visibility.

Negative Factors

Decline in Global MAU

A decline in global MAU indicates challenges in user retention and engagement, which could impact future revenue and market competitiveness if not addressed.

Challenges with Wattpad

Ongoing challenges with Wattpad, including government bans, could hinder user growth and content distribution, affecting WEBTOON's overall platform synergy and growth potential.

Decrease in Adjusted EBITDA

A decrease in adjusted EBITDA suggests pressure on operational efficiency and profitability, which may limit financial flexibility and investment capacity in the long term.

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

WEBTOON Entertainment Inc. is facing 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	332.54M	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: 17.91
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 17.91 is above the 20-day moving average (MA) of 17.84, above the 50-day MA of 17.24, and above the 200-day MA of 11.63, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 51.15 is Neutral, neither overbought nor oversold. The STOCH value of 55.70 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
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DSP	―	$568.45M	268.75	5.20%	―	30.92%	―
WBTN	―	$2.31B	―	-6.61%	―	5.79%	44.42%
ONTF	―	$238.18M	―	-22.60%	―	-6.88%	15.83%
SMRT	―	$259.54M	―	-25.48%	―	-28.45%	-224.48%
CXAI	―	$17.25M	―	-89.23%	―	-15.10%	74.63%
BMBL	―	$582.46M	―	-75.71%	―	-5.06%	-2318.18%

WEBTOON Entertainment Inc Corporate Events

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.

Webtoon Entertainment Reports Strong Q2 2025 Results

Webtoon Entertainment Inc. is a leading global entertainment company, renowned for its pioneering role in the mobile webcomic format and its extensive storytelling platforms. The company is at the forefront of transforming comics and visual storytelling for a global audience.