WEBTOON Entertainment Inc (WBTN) AI Stock Analysis

• Market Cap: $1.78B
• Dividend Yield: N/A
• Average Volume (3M): 317.52K
• 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: 133,432,430
• 10 Day Avg. Volume: 228,022
• 30 Day Avg. Volume: 317,519
• 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: 1.11
• Enterprise Value/Revenue: 1.40
• Enterprise Value/Gross Profit: 6.08
• Enterprise Value/Ebitda: -20.67
• 1Y Price Target: $14.67
• Price Target Upside: 9.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.19
• Revenue Forecast (FY): $1.57B

• Rating: 48 Neutral
• Price Target: $13.50 ▲(1.12% Upside)

The score is held back primarily by weak financial performance (steep revenue decline, ongoing losses, and negative operating cash flow). Technicals and the latest earnings call are mixed, while the Disney partnership provides a constructive catalyst but is not yet enough to outweigh current fundamentals and loss-driven valuation metrics.

Positive Factors

Strategic Disney partnership

A definitive platform development deal and Disney equity stake provide durable strategic validation, distribution reach and co-development resources. This partnership can expand content licensing, cross-promotion and IP monetization, strengthening long-term competitive positioning and audience access.

Strong IP adaptations growth

Rapidly growing IP adaptation revenue demonstrates WEBTOON's ability to monetize content beyond the platform via licensing and media adaptations. Durable revenue diversification into higher-margin adaptations can stabilize top-line and create long-term franchise value and cross-media monetization opportunities.

Conservative capital structure

Low leverage and a stable equity ratio provide financial flexibility to fund product development and weather operating losses. A conservative balance sheet reduces refinancing risk and gives management runway to execute long-term initiatives until monetization from partnerships and adaptations scales.

Negative Factors

Severe TTM revenue decline

A ~74% TTM revenue decline indicates structural revenue loss or one-off recognition shifts that sharply reduce scale. Such erosion weakens fixed-cost absorption, undermines margin sustainability and investor confidence, and complicates reinvestment in product and creator incentives over coming quarters.

Negative operating cash flow

Persistent negative operating cash flow drains liquidity and forces reliance on external funding or equity dilution. This constrains long-term investments in marketing, creator payouts and product development, limiting the company’s ability to execute growth initiatives and monetize partnerships sustainably.

Declining global MAU

An 8.5% MAU decline signals weakening user engagement and reach, reducing ad impressions and in-app purchase potential. Regulatory bans causing user losses highlight structural geographic and compliance risks that can persist, hindering long-term growth and platform monetization in affected markets.

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, with declining revenue and persistent losses impacting profitability. While the balance sheet is relatively stable with low leverage, the negative cash flow trends raise concerns about liquidity. The company needs to focus on improving revenue growth and operational efficiency to enhance its financial health.

Income Statement

WEBTOON Entertainment Inc has experienced a significant decline in revenue, with a TTM revenue growth rate of -74.16%. The company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. Despite a slight improvement in gross profit margin over time, the overall financial performance remains weak due to consistent losses.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is stable, suggesting a solid capital structure, but the company needs to improve profitability to enhance shareholder value.

Cash Flow

WEBTOON Entertainment Inc's cash flow situation is challenging, with negative operating cash flow in the TTM period. The free cash flow to net income ratio is positive, indicating some efficiency in converting income to cash, but the overall cash flow growth is negative, highlighting liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.40B	1.35B	1.28B	1.08B
Gross Profit	323.94M	339.07M	295.49M	273.01M
EBITDA	-95.28M	-113.09M	-96.81M	-82.58M
Net Income	-131.41M	-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	1.49B	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	1.61M	353.87M	-6.50M	350.34M

WEBTOON Entertainment Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.35
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 13.35 is above the 20-day moving average (MA) of 13.28, below the 50-day MA of 13.80, and above the 200-day MA of 12.54, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 32.71 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	65 Neutral	$724.85M	452.27	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONTF	59 Neutral	$338.43M	-10.78	-20.20%	―	-6.23%	28.57%
SMRT	51 Neutral	$336.78M	-4.87	-25.48%	―	-24.30%	-181.62%
BMBL	51 Neutral	$404.73M	-1.92	-25.34%	―	-7.43%	61.36%
WBTN	48 Neutral	$1.78B	-13.10	-8.48%	―	5.65%	11.52%
CXAI	43 Neutral	$9.27M	-0.48	-80.59%	―	-27.47%	83.06%

WEBTOON Entertainment Inc Corporate Events

WEBTOON Forms Strategic Equity and Platform Partnership with Disney

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 about $32.8 million and granting Disney certain protective rights over corporate actions affecting its investment and transfer rights aligned with major shareholders NAVER Corporation and LY Corporation. On the same date, WEBTOON entered into a definitive agreement with Disney to jointly develop an all-new digital comics platform, formalizing an earlier non-binding term sheet and strengthening WEBTOON’s strategic partnership with a major global media company, which could enhance its market reach, content offerings and industry positioning in digital comics and entertainment.

The most recent analyst rating on (WBTN) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on WEBTOON Entertainment Inc stock, see the WBTN Stock Forecast page.