WEBTOON Entertainment Inc (WBTN)
NASDAQ:WBTN
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WEBTOON Entertainment Inc
(NASDAQ:WBTN)
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Rating:50Neutral
Price Target:
$9.00
▼(-8.07% Downside)
Action:ReiteratedDate:03/31/26
The score is held back primarily by weak operating profitability and elevated uncertainty flagged in the financial statements, plus bearish price/momentum signals. Offsetting factors include a strong, low-leverage balance sheet, improved operating cash flow, and a mixed-but-somewhat supportive earnings narrative centered on cost discipline and strategic initiatives (including Disney), though near-term guidance and user-metric pressure cap upside.
Positive Factors
Conservative Balance Sheet
Very low leverage and sizable equity provide durable financial flexibility to fund content investments, absorb cyclical revenue swings, and pursue partnerships or M&A. This reduces solvency risk over the next 2–6 months and supports strategic execution without near-term liquidity strain.
Negative Factors
Large GAAP Losses & Goodwill Impairments
Significant GAAP impairments signal past acquisition goodwill may not yield expected returns and materially weaken reported equity and earnings quality. This elevates structural risk to shareholder value and could constrain capital allocation until operating profitability meaningfully improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage and sizable equity provide durable financial flexibility to fund content investments, absorb cyclical revenue swings, and pursue partnerships or M&A. This reduces solvency risk over the next 2–6 months and supports strategic execution without near-term liquidity strain.
Read all positive factors
WEBTOON Entertainment Inc (WBTN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.31B
Dividend YieldN/A
Average Volume (3M)394.32K
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth5.65%
EPS Growth11.52%
CountryUS
Employees1,800
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-2.36
Shares Outstanding133,482,820
10 Day Avg. Volume378,520
30 Day Avg. Volume394,322
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.45
Price to Sales (P/S)1.23
P/FCF Ratio471.56
Enterprise Value/Market Cap0.57
Enterprise Value/Revenue0.54
Enterprise Value/Gross Profit2.32
Enterprise Value/Ebitda-66.03
Forecast
1Y Price Target
$12.08Price Target Upside23.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.14
Revenue Forecast (FY)$1.46B
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-com...
How the Company Makes Money
WEBTOON Entertainment generates revenue primarily through monetization of digital content and platform-driven transactions. Key revenue streams include: (1) Paid digital content: users purchase access to episodes/chapters (commonly through in-app ...
WEBTOON Entertainment Inc Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: management reported full-year revenue growth and positive adjusted EBITDA, significant strategic progress (Disney partnership and strong IP pipeline), AI-driven personalization gains, cost reductions and a robust cash position. Offsetting these positives are a large GAAP net loss driven by goodwill impairments (largely Wattpad), Q4 revenue declines and volatility in advertising and IP adaptation revenue, MAU deterioration in several regions, and modest near-term guidance. Management expressed confidence in returning to double-digit revenue growth by the end of 2026, but the company faces material near-term financial and metric headwinds.Positive Updates
Full-Year Revenue Growth
Full-year 2025 revenue of $1.4 billion, up 3.9% on a constant currency basis and up 2.5% reported year-over-year.
Negative Updates
Large GAAP Net Loss and Goodwill Impairment
Q4 2025 net loss of $336.5 million (vs. $102.6M prior year Q4) and full-year net loss of $373.4 million (vs. $152.9M prior year), driven primarily by goodwill impairments largely attributable to Wattpad.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth
Full-year 2025 revenue of $1.4 billion, up 3.9% on a constant currency basis and up 2.5% reported year-over-year.
Read all positive updates
Company Guidance
WEBTOON guided that for Q1 2026 it expects constant‑currency revenue growth of -1.5% to +1.5% (implying revenue of $317M–$327M at current FX) and adjusted EBITDA of $0M–$5M (an adjusted EBITDA margin of ~0%–1.5%); management also reiterated a target to return to double‑digit year‑over‑year revenue growth by the end of 2026, expects to complete infrastructure investments by end‑of‑Q1 and redeploy engineering to personalized recommendation work, and plans a 2026 launch of the new Disney digital‑comics platform (context: Q4 revenue was $330.7M and FY2025 revenue was ~$1.4B with FY2025 adjusted EBITDA of $19.4M).WEBTOON Entertainment Inc Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
70
Positive
Cash Flow
44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 1.38B | 1.35B | 1.28B | 1.08B |
| Gross Profit | 322.18M | 339.07M | 295.49M | 273.01M |
| EBITDA | -21.26M | -113.09M | -96.81M | -82.58M |
| Net Income | -345.93M | -143.91M | -116.45M | -129.87M |
Balance Sheet | ||||
| Total Assets | 1.60B | 1.94B | 1.78B | 2.02B |
| Cash, Cash Equivalents and Short-Term Investments | 581.81M | 598.73M | 251.62M | 279.71M |
| Total Debt | 23.67M | 17.24M | 33.44M | 53.56M |
| Total Liabilities | 367.24M | 378.87M | 429.13M | 505.13M |
| Stockholders Equity | 1.17B | 1.47B | 1.25B | 1.38B |
Cash Flow | ||||
| Free Cash Flow | 3.60M | 4.73M | -7.54M | -161.80M |
| Operating Cash Flow | 11.22M | 17.88M | 14.80M | -140.61M |
| Investing Cash Flow | -7.50M | -17.28M | -51.98M | -50.70M |
| Financing Cash Flow | 1.47M | 353.87M | -6.50M | 350.34M |
WEBTOON Entertainment Inc Technical Analysis
Neutral
9.79
Price Trends
10.64
Negative
12.14
Negative
13.08
Negative
Market Momentum
-0.44
Negative
51.74
Neutral
77.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WBTN, the sentiment is Neutral. The current price of 9.79 is above the 20-day moving average (MA) of 9.18, below the 50-day MA of 10.64, and below the 200-day MA of 13.08, indicating a neutral trend. The MACD of -0.44 indicates Negative momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 77.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WBTN.
WEBTOON Entertainment Inc Risk Analysis
WEBTOON Entertainment Inc disclosed 74 risk factors in its most recent earnings report. WEBTOON Entertainment Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WEBTOON Entertainment Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $711.45M | 8.21 | 19.72% | ― | 22.97% | 49.49% | |
66 Neutral | $348.25M | -11.71 | -19.64% | ― | -6.23% | 28.57% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $432.29M | -0.53 | -106.91% | ― | -7.43% | 61.36% | |
54 Neutral | $286.41M | -6.33 | -25.34% | ― | -24.30% | -181.62% | |
50 Neutral | $1.31B | -4.90 | -24.56% | ― | 5.65% | 11.52% | |
44 Neutral | $10.25M | -0.58 | -91.15% | ― | -27.47% | 83.06% |
* Technology Sector Average
WBTN
WEBTOON Entertainment Inc
9.79
1.75
21.77%
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WEBTOON Entertainment Inc Corporate Events
Business Operations and StrategyExecutive/Board Changes
WEBTOON CEO Relocates to U.S. with Housing Support
Positive
Mar 30, 2026
On March 26, 2026, WEBTOON Entertainment Inc.’s Board of Directors approved a housing assistance policy for the Chief Executive Officer tied to the relocation of the CEO’s primary residence from Korea to the United States for business ...
Business Operations and StrategyExecutive/Board Changes
WEBTOON Names Yongsoo Kim President to Drive Expansion
Positive
Mar 5, 2026
WEBTOON Entertainment Inc. announced that on March 2, 2026, its board appointed Chief Strategy Officer and Head of Global WEBTOON Yongsoo Kim as President and expanded the board to nine members, adding him as a Class I director with a term through...
Business Operations and StrategyPrivate Placements and Financing
WEBTOON Forms Strategic Equity and Platform Partnership with Disney
Positive
Jan 8, 2026
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 abo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.