WEBTOON Entertainment Inc (WBTN) AI Stock Analysis

• Market Cap: $1.63B
• Dividend Yield: N/A
• Average Volume (3M): 693.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• 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: 512,664
• 30 Day Avg. Volume: 693,654
• 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: 1.27
• Enterprise Value/Revenue: 5.81
• Enterprise Value/Gross Profit: -2.85
• Enterprise Value/Ebitda: -21.67
• 1Y Price Target: $14.67
• Price Target Upside: 17.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.44
• Revenue Forecast (FY): $1.41B

• Rating: 45 Neutral
• Price Target: $13.50 ▲(8.17% Upside)

WEBTOON Entertainment Inc's overall stock score reflects significant financial challenges, with declining revenue and persistent losses impacting profitability. The technical indicators suggest a bearish trend, and the valuation is unattractive due to negative earnings. However, the partnership with Disney and potential for future growth provide some optimism. The mixed earnings call outlook further tempers the score.

Positive Factors

Strategic Partnerships

The collaboration with Disney enhances WEBTOON's content offerings and market reach, potentially driving long-term growth and brand strength.

Revenue Growth in English Markets

Growth in English-speaking markets indicates successful expansion efforts, supporting revenue diversification and long-term market penetration.

Successful IP Adaptations

Strong IP adaptation growth demonstrates effective content monetization and cross-media opportunities, enhancing revenue streams.

Negative Factors

Declining Revenue

Expected revenue decline reflects challenges in maintaining growth momentum, impacting financial stability and investor confidence.

Net Loss in Q3

Ongoing losses highlight profitability challenges, necessitating operational improvements to ensure long-term financial health.

Decline in Global MAU

A decrease in global MAU suggests potential user engagement issues, affecting future revenue potential and market competitiveness.

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. 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: 12.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 12.48 is below the 20-day moving average (MA) of 13.43, below the 50-day MA of 15.82, and above the 200-day MA of 12.05, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 32.88 is Neutral, neither overbought nor oversold. The STOCH value of 7.96 is Positive, 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	65 Neutral	$729.22M	442.42	4.45%	―	22.97%	49.49%
SMRT	62 Neutral	$391.65M	-5.80	-25.48%	―	-24.30%	-181.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONTF	59 Neutral	$250.73M	―	-20.20%	―	-6.23%	28.57%
BMBL	51 Neutral	$382.19M	-1.78	-25.34%	―	-7.43%	61.36%
WBTN	45 Neutral	$1.63B	-12.24	-8.48%	―	5.65%	11.52%
CXAI	45 Neutral	$11.45M	-0.67	-80.59%	―	-27.47%	83.06%

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.