WEBTOON Entertainment (NASDAQ:WBTN) Posts Earnings Results, Misses Expectations By $2.82 EPS

by · The Markets Daily

WEBTOON Entertainment (NASDAQ:WBTN – Get Free Report) released its quarterly earnings results on Tuesday. The company reported ($2.86) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.04) by ($2.82), reports. WEBTOON Entertainment had a negative net margin of 9.28% and a negative return on equity of 2.14%. The business had revenue of $330.69 million during the quarter, compared to the consensus estimate of $336.77 million. During the same period in the prior year, the firm earned ($0.03) earnings per share. The business’s quarterly revenue was down 6.3% compared to the same quarter last year.

Here are the key takeaways from WEBTOON Entertainment’s conference call:

  • WEBTOON completed a strategic agreement with The Walt Disney Company (Disney acquired ~2.7M shares for ~$32.8M), and the companies are building an all‑new digital comics platform targeting a 2026 launch with WEBTOON operating the platform and recognizing revenue and costs.
  • While adjusted EBITDA improved (Q4 adjusted EBITDA $0.6M; full year $19.4M), GAAP results showed large net losses driven by goodwill impairments—Q4 net loss $336.5M and full year net loss $373.4M—largely attributable to Wattpad.
  • User engagement shows signs of recovery—company MPU turned positive in Q4 (+0.7% overall; Korea +3.3%; rest of world MPU +5.7%)—but MAU declined (global MAU down 1.7% in Q4, down 7.1% for the year), with some MAU distortion from automated Wattpad web traffic in non‑core markets.
  • Q1 2026 guidance is modest (revenue -1.5% to +1.5% CC, $317M–$327M; adjusted EBITDA $0–$5M), while management expects to return to double‑digit YoY revenue growth by the end of 2026 driven by paid content, advertising recovery, and IP adaptations.
  • Content and IP initiatives continue to accelerate—examples include 12 Disney reformats already launched, Amazon MGM green‑lighting Lore Olympus, 20 new anime projects in Japan, and new anime/live‑action adaptations—supporting cross‑platform monetization and discovery.

WEBTOON Entertainment Stock Performance

WBTN traded down $0.82 during midday trading on Wednesday, reaching $10.70. 338,250 shares of the company were exchanged, compared to its average volume of 318,035. The stock has a market capitalization of $1.40 billion, a P/E ratio of -10.59 and a beta of 1.94. WEBTOON Entertainment has a one year low of $6.75 and a one year high of $22.47. The stock’s 50-day simple moving average is $12.33 and its 200 day simple moving average is $14.63.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Invesco Ltd. increased its stake in WEBTOON Entertainment by 37.8% in the fourth quarter. Invesco Ltd. now owns 62,236 shares of the company’s stock valued at $811,000 after purchasing an additional 17,088 shares in the last quarter. Millennium Management LLC increased its position in shares of WEBTOON Entertainment by 329.0% in the 4th quarter. Millennium Management LLC now owns 191,048 shares of the company’s stock valued at $2,489,000 after buying an additional 146,514 shares in the last quarter. AQR Capital Management LLC increased its position in shares of WEBTOON Entertainment by 1.2% in the 4th quarter. AQR Capital Management LLC now owns 90,643 shares of the company’s stock valued at $1,181,000 after buying an additional 1,061 shares in the last quarter. Barclays PLC raised its stake in WEBTOON Entertainment by 26.9% during the 4th quarter. Barclays PLC now owns 32,073 shares of the company’s stock worth $418,000 after buying an additional 6,804 shares during the period. Finally, State Street Corp lifted its holdings in WEBTOON Entertainment by 0.9% during the fourth quarter. State Street Corp now owns 366,437 shares of the company’s stock worth $4,775,000 after acquiring an additional 3,443 shares in the last quarter.

WEBTOON Entertainment News Roundup

Here are the key news stories impacting WEBTOON Entertainment this week:

  • Positive Sentiment: Solid balance sheet and some operating positives: full-year 2025 revenue grew 2.5% (3.9% constant currency), adjusted EBITDA was positive, and the company reported about $582M in cash with no debt — supports runway and strategic flexibility. WEBTOON Entertainment Inc. Reports Fourth Quarter and Full Year 2025 Financial Results
  • Positive Sentiment: Management outreach: the company will participate in upcoming investor conferences — helpful for transparency and could improve investor sentiment if management provides reassuring color. WEBTOON Entertainment Inc. to Participate in Upcoming Investor Conferences
  • Neutral Sentiment: Earnings call transcript and analyst writeups are available for details on drivers of the quarter (user trends, content monetization, regional performance) — useful for digging into whether the results are cyclical or structural. WEBTOON Entertainment Inc. (WBTN) Q4 2025 Earnings Call Transcript
  • Negative Sentiment: Big quarterly EPS miss: WBTN reported ($2.86) EPS for Q4 vs. consensus (~($0.04)), and revenue of $330.7M missed estimates (~$336.8M); revenue was down ~6.3% YoY — this surprised investors and likely drove immediate selling pressure. View Press Release
  • Negative Sentiment: Weaker Q1 guidance: management updated Q1 2026 revenue guidance to $317M–$327M vs. consensus ~$347.5M — implies near-term top-line pressure and raises questions on growth trajectory. (Guidance disclosed in the company’s investor materials.)
  • Negative Sentiment: Analyst downgrade: HSBC cut WBTN from “buy” to “hold” with an $11.50 target (only modest upside vs. the current price), which can reduce buyer interest.

Wall Street Analyst Weigh In

Several research firms have issued reports on WBTN. UBS Group downgraded WEBTOON Entertainment from a “buy” rating to a “neutral” rating in a report on Friday, November 14th. HSBC lowered WEBTOON Entertainment from a “buy” rating to a “hold” rating and set a $11.50 price target on the stock. in a research note on Wednesday. Evercore reiterated an “outperform” rating and issued a $15.00 price objective on shares of WEBTOON Entertainment in a research report on Wednesday. Zacks Research downgraded shares of WEBTOON Entertainment from a “strong-buy” rating to a “hold” rating in a research report on Thursday, November 20th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of WEBTOON Entertainment in a research note on Wednesday, January 21st. Four investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, WEBTOON Entertainment currently has a consensus rating of “Hold” and a consensus target price of $15.79.

Check Out Our Latest Stock Analysis on WEBTOON Entertainment

WEBTOON Entertainment Company Profile

(Get Free Report)

Webtoon Entertainment Inc operates WEBTOON, a leading digital comics platform offering a diverse library of user-generated and professionally produced webcomics. The company enables creators around the world to publish serialized content in a vertical-scrolling format optimized for mobile and web consumption. Through its platform, readers can access thousands of titles across genres such as romance, fantasy, drama, and action, with both free-to-read episodes and advanced access options supported by microtransactions and advertising.

Founded as part of Naver Corporation and launched internationally in 2014, Webtoon Entertainment has grown rapidly by fostering a direct connection between comic creators and global audiences.

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