WEBTOON Entertainment (WBTN) Q4 2025 earnings summary

Executive summary

• Achieved 3.9% year-over-year revenue growth on a constant currency basis for 2025, with reported revenue up 2.5% to $1.4 billion.

• Adjusted EBITDA for 2025 was $19.4 million, down from $68.0 million in 2024.

• Net loss for 2025 was $373.4 million, primarily due to goodwill impairments.

• Strategic partnerships with Disney, including a 2% equity investment, and Warner Bros. Animation were established.

• Strong cash position with $582 million and no debt at year-end.

Financial highlights

• Q4 2025 revenue was $330.7 million, down 4.1% constant currency and 6.3% reported; full-year revenue was $1.4 billion, up 3.9% constant currency and 2.5% reported.

• Q4 gross margin expanded 100 bps to 24.3%; full-year gross margin was 23.3%, down 180 bps year-over-year.

• Q4 net loss was $336.5 million, mainly due to goodwill impairments; full-year net loss was $373.4 million.

• Q4 Adjusted EBITDA was $0.6 million (vs. -$3.5 million prior year); full-year Adjusted EBITDA was $19.4 million (vs. $68 million prior year).

• Q4 Adjusted EPS was $0.00 (vs. -$0.03 prior year); full-year Adjusted EPS was $0.15 (vs. $0.57 prior year).

Outlook and guidance

• Q1 2026 revenue expected between $317–$327 million, representing -1.5% to +1.5% constant currency growth.

• Q1 2026 Adjusted EBITDA expected between $0–$5 million (margin 0–1.5%).

• Targeting a return to double-digit year-over-year revenue growth by end of 2026, driven by paid content, advertising, and IP adaptations.