WEBTOON Entertainment (WBTN) investor relations material

Executive summary

• Revenue for Q2 2026 was $338.5 million, down 2.8% year-over-year but up 5.2% on a constant currency basis, with growth in paid content, advertising, and IP adaptations.

• Adjusted EBITDA reached $5.5 million (1.6% margin), exceeding guidance but down from $9.7 million (2.8% margin) in the prior year due to increased marketing investment.

• Net loss widened to $15.2 million from $3.9 million year-over-year, primarily due to higher marketing and tax expenses.

• Strategic focus shifted to AI-powered initiatives, scaling off-platform IP adaptation, and new investments and partnerships, including RI Games Holdings.

• Global monthly active users reached 156.9 million, up 0.5% year-over-year; monthly paying users grew 1.8% to 7.5 million.

Financial highlights

• Gross margin expanded by nearly 100 basis points to 26% in Q2, driven by lower content and transaction costs.

• Paid Content revenue was $263.9 million (down 4.0% YoY), Advertising $47.1 million (up 4.2%), IP Adaptations $27.4 million (down 2.6%).

• Cash and cash equivalents stood at $583.1 million, with no material debt.

• Marketing expenses rose 23.4% to $38.3 million, driven by increased user acquisition spend.

• Adjusted EPS was $0.04, down from $0.07 in the prior year.

Outlook and guidance

• Q3 2026 revenue expected at $358–$368 million, constant currency growth of 0.7%–3.3%.

• Q3 adjusted EBITDA projected between $0–$5 million, with margin of 0%–1.4%.

• Double-digit revenue growth anticipated by end of 2026, driven by AI and IP adaptation initiatives.