{"success":true,"data":{"pressRelease":{"id":"114648","rtpr_id":"nGNXDpPgs","ticker":"WBTN","exchange":"NASDAQ","all_tickers":["WBTN"],"title":"WEBTOON Entertainment Inc. Reports Second Quarter 2026 Financial Results","author":"Globe Newswire","published_at":"2026-08-10T20:30:01.406Z","article_body":"Delivered Revenue Within Guidance Range and Adjusted EBITDA Above the High-End\nof Guidance Range\n\nSecond Quarter Revenue Decline of 2.8%; Revenue Growth on a Constant Currency\nBasis of 5.2%\n\nNet Loss of $14.6 million; Adjusted EBITDA of $5.5 million\n\nStrong Balance Sheet With Cash and Cash Equivalents of Approximately $583.1\nmillion and No Debt\n\nLOS ANGELES, Aug. 10, 2026 (GLOBE NEWSWIRE) -- WEBTOON Entertainment Inc.\n(Nasdaq: WBTN) (“WEBTOON Entertainment” or “the Company”), a leading\nglobal entertainment company and home to some of the world’s largest\nstorytelling platforms, today announced results for its second quarter ended\nJune 30, 2026. More information about these results can be found in the\nCompany’s shareholder letter on the investor relations section of its\nwebsite.\n\nSecond Quarter 2026 Highlights (vs. Second Quarter 2025)\n* Total revenue of $338.5 million declined 2.8%, driven by declines in Paid\nContent and IP Adaptations, partially offset by growth in Advertising.\n* Revenue on a constant currency basis was $366.4 million, growing 5.2%,\ndriven by growth in all three revenue streams, Paid Content and Advertising\nand IP Adaptations.\n* Net Loss was $14.6 million, compared to $3.9 million in the prior year,\ndriven primarily by increased marketing investment.\n* Adjusted EBITDA was $5.5 million, compared to $9.7 million in the prior\nyear, due to increased marketing investment. Adjusted EBITDA Margin was 1.6%,\ncompared to 2.8% in the prior year.\n* Diluted loss per share was $0.11, compared to diluted loss per share of\n$0.03 in the prior year.\n* Adjusted Earnings Per Share was $0.04, compared to $0.07 in the prior year.\n* Cash and cash equivalents of approximately $583.1 million plus another $11.2\nmillion of short-term deposits included in prepaid expenses and other current\nassets.\n* Cash outflow from operations was $6.3 million, compared to a cash inflow of\n$5.7 million in the prior year.\nJunkoo Kim, Founder and CEO, said, “We delivered another quarter of solid\nfinancial performance, with revenue of $338.5 million, in line with our\nexpectations, and an Adjusted EBITDA of $5.5 million, exceeding the high-end\nof our previous guidance range.”\n\nKim continued, “This quarter, we advanced two strategic priorities that\nfurther strengthen our flywheel. We are leveraging AI to create more\ninteractive experiences through innovations like byUs, our interactive story\nchat service, and our AI-Powered Auto Translation program, both of which are\ndriving deeper engagement across our platform. We also continue to experiment\nwith AI-powered initiatives such as Short Animation. At the same time, we are\nevolving our IP strategy by increasing direct investment and ownership,\npositioning us to capture more of the long-term value our ecosystem\ncreates.”\n\nStrategic Investment in RI Games Holdings Inc.\n\nToday, WEBTOON Entertainment also issued a press release announcing entry into\na definitive agreement to make a strategic investment in RI Games Holdings\nInc., giving the Company a dedicated pipeline to develop games from hit\nwebcomics with established, built-in global fandoms. The transaction is\nexpected to support WEBTOON Entertainment's long-term IP strategy by extending\nsuccessful stories across additional entertainment formats.\n\nThird Quarter 2026 Outlook\n\nFor the third quarter 2026, the Company expects:\n* Revenue growth on a constant currency basis in the range of 0.7%-3.3%. This\nrepresents revenue in the range of $358-$368 million, based on current FX\nrates.\n* Adjusted EBITDA in the range of $0.0-$5.0 million, representing an Adjusted\nEBITDA Margin in the range of 0.0%-1.4%.\nConference Call & Webcast Details\n\nAs previously disclosed, the Company will host a webcast and conference call\non August 10, 2026, at 5:30 p.m. Eastern Time, to discuss the Company’s\nfinancial results for its second quarter ended June 30, 2026.\n\nA live webcast of the conference call will be available online at\nhttps://ir.webtoon.com/.\n\nFor those unable to listen to the live webcast, an archived version will be\navailable at the same location for up to one year.\n\nAbout WEBTOON Entertainment Inc.\n\nWEBTOON Entertainment is a leading global entertainment company and home to\nsome of the world's largest storytelling platforms. As the global leader and\npioneer of the mobile webcomic format, WEBTOON Entertainment has transformed\ncomics and visual storytelling for fans and creators.\n\nWith its CANVAS UGC platform empowering anyone to become a creator, and a\ngrowing roster of superstar WEBTOON Originals creators and series, WEBTOON\nEntertainment’s passionate fandoms are the new face of pop culture. WEBTOON\nEntertainment adaptations are available on Netflix, Prime Video, Crunchyroll,\nand other screens around the world, and the company’s content partners have\nincluded Warner Bros. Animation, Discord, HYBE, and Duolingo, among many\nothers.\n\nWith approximately 155 million monthly active users, WEBTOON Entertainment’s\nIP & Creator Ecosystem of aligned brands and platforms include WEBTOON,\nWattpad--the world’s leading webnovel platform--WEBTOON Productions, Studio\nN, Studio LICO, WEBTOON Unscrolled, LINE MANGA, and eBookJapan, among others.\n\nForward-Looking Statements\n\nThis release contains forward-looking statements within the meaning of the\nsafe harbor provisions of the U.S. Private Securities Litigation Reform Act of\n1995, and involves risks, assumptions and uncertainties that could cause\nactual results to differ materially from those expressed or implied by\nforward-looking statements. Forward-looking statements cover all matters which\nare not historical facts and include, without limitation, statements or\nguidance regarding or relating to our future financial position, results of\noperations and growth, plans and objectives for future capabilities, ability\nto attract users in both our core and underpenetrated geographies, ability to\ngrow Paid Content, Advertising and IP Adaptations businesses, the impact of\nour product development initiatives, including our use of AI, our financial\ncondition and liquidity, and other statements concerning the success of our\nbusiness and strategies. Forward-looking statements may be identified by the\nuse of words such as “anticipate,” “intend,” “plan,” “goal,”\n“seek,” “believe,” “project,” “estimate,” “expect,”\n“strategy,” “future,” “likely,” “may,” “should,”\n“will” and similar references to future periods. Forward-looking\nstatements speak only as of the date on which they are made. They are not\nassurances of future performance and are based only on our current beliefs,\nexpectations and assumptions regarding the future of our business, future\nplans and strategies, projections, anticipated events and trends, the economy\nand other future conditions. Therefore, you should not place undue reliance on\nany of these forward-looking statements. Although we believe that the\nforward-looking statements contained in this release are based on reasonable\nassumptions, you should be aware that many factors could cause actual results\nto differ materially from those in such forward-looking statements, including,\nbut not limited to: weakness in the economy, market trends, uncertainty and\nother conditions in the markets in which we operate, and other geopolitical or\nmacroeconomic factors beyond our control; inability to attract, empower,\nproperly support or incentivize our creators; inability to retain, attract and\nengage with our users; inability to anticipate, understand and appropriately\nrespond to market trends and changing user preferences; failure to retain or\nincrease our paying users; failure to effectively operate in highly\ncompetitive markets; inability to innovate and expand our Advertising\nbusiness; inability to continue to diversify our monetization strategy or to\nincrease revenues from IP Adaptations; failure to realize returns on\ninvestments made toward entering new markets and lines of business; failure to\ncontrol our content-related costs; exposure to significant legal proceedings\nand regulatory investigations which may result in significant expenses, fines\nand reputational damage; failure to provide a safe online environment for\nchildren; exposure to claims that we violated third parties’ intellectual\nproperty rights; failure to obtain, maintain, protect or enforce our\nproprietary and intellectual property rights; exposure to liability and\nadverse effects from the use of AI; rise of conflicts of interests with NAVER\nCorporation, our majority stockholder; and other risks and uncertainties set\nforth under the caption “Risk Factors” in our most recent Annual Report on\nForm 10-K, and in other filings we make with the SEC in the future.\n\nAdditionally, forward-looking statements regarding past trends or activities\nshould not be taken as a representation that such trends or activities will\ncontinue in the future. Other than in accordance with our legal or regulatory\nobligations, we undertake no obligations to publicly update or revise any\nforward-looking statement, whether as a result of new information, future\nevents or otherwise.\n\nNon-GAAP Financial Measures & Definitions\n\nThis release contains certain financial information that is not presented in\nconformity with U.S. GAAP. These non-GAAP measures include Adjusted EBITDA,\nAdjusted EBITDA Margin, Adjusted Earnings Per Share (Adjusted EPS), revenue on\na constant currency basis and revenue growth on a constant currency basis.\n\nWe believe that these non-GAAP measures provide users of the Company’s\nfinancial information with additional meaningful information to assist in\nunderstanding financial results and assessing the Company’s performance from\nperiod to period. Management believes these measures are important indicators\nof operations because they exclude items that may not be indicative of our\ncore operating results and provide a better baseline for analyzing trends in\nour underlying businesses, and they are consistent with how business\nperformance is planned, reported and assessed internally by management and the\nboard of directors of the Company. Our non-GAAP financial measures should not\nbe considered in isolation, or as substitutes for, financial information\nprepared in accordance with GAAP. Non-GAAP measures have limitations as they\ndo not reflect all the amounts associated with our results of operations as\ndetermined in accordance with GAAP, and should only be used to evaluate our\nresults of operations in conjunction with the corresponding or the most\ndirectly comparable GAAP measures. We strongly encourage investors and\nshareholders to review our financial statements and publicly filed reports in\ntheir entirety and not to rely on any single financial measure.\n\nA reconciliation is provided at the end of this release for each historical\nnon-GAAP financial measure to the most directly comparable financial measure\nstated in accordance with U.S. GAAP. We encourage investors and shareholders\nto review the related U.S. GAAP financial measures and the reconciliation of\nthese non-GAAP financial measures to their most directly comparable U.S. GAAP\nfinancial measures, and not to rely on any single financial measure to\nevaluate our business. We do not provide a reconciliation of forward-looking\nnon-GAAP financial measures to the most directly comparable U.S. GAAP\nfinancial measures on a forward-looking basis because we are unable to predict\nwith reasonable certainty or without unreasonable effort non-recurring items\nthat may arise in the future.\n\nAdjusted EBITDA: We define Adjusted EBITDA as net income (loss), adjusted to\nremove the impact of interest income, interest expense, income tax expense\n(benefit) and depreciation and amortization, with further adjustments to\neliminate the effects of loss on equity method investments, effect of applying\nthe valuation method of fair value through profit or loss, impairment of\ngoodwill, non-cash stock-based compensation and certain other non-recurring\ncosts.\n\nAdjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted EBITDA\ndivided by revenue.\n\nAdjusted Earnings Per Share (Adjusted EPS): We define Adjusted Earnings Per\nShare as Earnings Per Share before interest expense, interest income, income\ntax expense (benefit) and depreciation and amortization with further\nadjustments to eliminate the effects of loss on equity method investments,\neffect of applying the valuation method of fair value through profit or loss,\nimpairment of goodwill, non-cash stock-based compensation and certain other\nnon-recurring costs. We calculate Adjusted Earnings Per Share by making the\nadjustments described herein from Net Income (Loss) and dividing by basic and\ndiluted weighted average shares of common stock outstanding, respectively, for\nthe applicable period.\n\nRevenue on a Constant Currency Basis: We define revenue on a constant currency\nbasis as revenue adjusted to remove the impact of foreign currency rate\nfluctuations and the impact of deconsolidated and transferred operations. We\ncalculate revenue on a constant currency basis in a given period by applying\nthe average currency exchange rates in the comparable period of the prior year\nto the local currency revenue in the current period. We calculate revenue on a\nconstant currency basis in each of our revenue streams – Paid Content,\nAdvertising and IP Adaptations – using the same method as laid out herein.\n\nRevenue Growth on a Constant Currency Basis: We define revenue growth on a\nconstant currency basis as period-over-period growth rates of revenue,\nadjusted to remove the impact of foreign currency rate fluctuations and the\nimpact of deconsolidated and transferred operations. We calculate revenue\ngrowth (as a percentage) on a constant currency basis by determining the\nincrease in current period revenue over prior period revenue, where current\nperiod foreign currency revenue is translated using prior period average\ncurrency exchange rates.\n\n\n\n Financial Statements WEBTOON Entertainment Inc. Consolidated Balance Sheets (unaudited) (in thousands of USD, except share and per share data) \n \n As of \n June 30, 2026 December 31, 2025 \n Assets \n Current assets: \n Cash and cash equivalents $ 583,145 $ 581,806 \n Receivables (1), net of allowance for credit losses of $1,917 and $3,378 at June 30, 2026, and December 31, 2025, respectively 191,311 176,779 \n Prepaid expenses and other current assets, net (2) 72,473 72,647 \n Total current assets 846,929 831,232 \n Property and equipment, net 12,390 8,339 \n Operating lease right-of-use assets 22,674 23,705 \n Debt and equity securities 65,986 69,669 \n Intangible assets, net 144,459 157,804 \n Goodwill, net 328,462 336,825 \n Equity method investments 75,859 80,440 \n Deferred tax assets 24,641 22,302 \n Other non-current assets, net (3) 69,028 65,194 \n Total assets $ 1,590,428 $ 1,595,510 \n Liabilities and equity \n Current liabilities: \n Accounts payable (4) $ 133,662 $ 136,962 \n Accrued expenses (5) 60,940 66,690 \n Current portion of operating lease liabilities (6) 8,105 9,617 \n Contract liabilities 103,841 89,994 \n Taxes payable 4,080 4,136 \n Provisions and defined pension benefits 7,465 8,766 \n Other current liabilities 3,467 2,457 \n Total current liabilities 321,560 318,622 \n Non-current liabilities: \n Long-term operating lease liabilities (7) 14,525 14,055 \n Defined severance benefits 22,838 25,069 \n Deferred tax liabilities 6,100 5,755 \n Other non-current liabilities 3,619 3,737 \n Total liabilities 368,642 367,238 \n Commitments and Contingencies (Note 8) \n Redeemable non-controlling interest in subsidiary $ 24,459 $ 24,540 \n Stockholders' equity: \n Common stock, $0.0001 par value (2,000,000,000 authorized, 135,663,014 shares and 130,776,161 shares issued and outstanding as of June 30, 2026, and December 31, 2025, respectively) 14 13 \n Additional paid-in capital 2,187,794 2,137,926 \n Accumulated other comprehensive loss (145,831 ) (114,363 ) \n Accumulated deficit (877,827 ) (853,124 ) \n Total stockholders' equity attributable to WEBTOON Entertainment Inc. 1,164,150 1,170,452 \n Non-controlling interests in consolidated subsidiaries 33,177 33,280 \n Total equity $ 1,197,327 $ 1,203,732 \n Total liabilities, redeemable non-controlling interest, and equity $ 1,590,428 $ 1,595,510 \n1. Includes amounts due from related parties of $59,283 and $55,156 as of\nJune 30, 2026, and December 31, 2025, respectively.\n2. Includes amounts due from related parties of $4,881 and $4,730 as of\nJune 30, 2026, and December 31, 2025, respectively.\n3. Includes amounts due from related parties of $33,529 and $33,913 as of\nJune 30, 2026, and December 31, 2025, respectively.\n4. Includes amounts due to related parties of $20,010 and $18,765 as of\nJune 30, 2026, and December 31, 2025, respectively.\n5. Includes amounts due to related parties of $5,898 and $6,849 as of\nJune 30, 2026, and December 31, 2025, respectively.\n6. Includes amounts due to related parties of $4,866 and $5,221 as of\nJune 30, 2026, and December 31, 2025, respectively.\n7. Includes amounts due to related parties of $2,714 and $5,371 as of\nJune 30, 2026, and December 31, 2025, respectively.\n\n\n WEBTOON Entertainment Inc. \n Consolidated Statements of Operations and Comprehensive Loss \n (unaudited) \n (in thousands of USD, except share and per share data) \n \n Three Months Ended Six Months Ended \n June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 \n Revenue (1) $ 338,465 $ 348,271 $ 659,337 $ 673,978 \n Cost of revenue (2) (250,329 ) (260,992 ) (488,153 ) (515,088 ) \n Marketing (3) (38,336 ) (31,070 ) (68,856 ) (62,613 ) \n General and administrative expenses (4) (65,368 ) (64,972 ) (125,927 ) (131,674 ) \n Operating income (loss) (15,568 ) (8,763 ) (23,599 ) (35,397 ) \n Interest income 4,485 4,910 8,859 10,023 \n Interest expense (17 ) (2 ) (34 ) (4 ) \n Gain (loss) on equity method investments, net 988 507 542 (62 ) \n Other income (loss), net (5) 2,472 (1,367 ) 467 1,303 \n Income (loss) before income tax (7,640 ) (4,715 ) (13,765 ) (24,137 ) \n Income tax benefit (expense) (6,937 ) 832 (9,609 ) (1,715 ) \n Net income (loss) $ (14,577 ) $ (3,883 ) $ (23,374 ) $ (25,852 ) \n Net income (loss) attributable to WEBTOON Entertainment Inc. (15,248 ) (4,326 ) (24,703 ) (26,715 ) \n Net income (loss) attributable to non-controlling interests and redeemable non-controlling interests 671 443 1,329 863 \n Other comprehensive income (loss): \n Foreign currency translation adjustments, net of tax (9,171 ) 41,120 (32,918 ) 47,692 \n Share of other comprehensive loss of equity method investments, net of tax $ (48 ) $ 568 $ (63 ) $ 425 \n Total other comprehensive income (loss), net of tax (9,219 ) 41,688 (32,981 ) 48,117 \n Total comprehensive income (loss) $ (23,796 ) $ 37,805 $ (56,355 ) $ 22,265 \n Total comprehensive income (loss) attributable to WEBTOON $ (24,072 ) $ 35,802 $ (56,171 ) $ 19,803 \n Total comprehensive income (loss) attributable to non-controlling interests and redeemable non-controlling interests $ 276 $ 2,003 (184 ) 2,462 \n \n Weighted average shares outstanding \n Basic 135,250,711 130,358,706 134,439,157 129,980,922 \n Diluted 135,250,711 130,358,706 134,439,157 129,980,922 \n \n Income (loss) per share attributable to WEBTOON Entertainment Inc. \n Basic $ (0.11 ) $ (0.03 ) $ (0.18 ) $ (0.21 ) \n Diluted $ (0.11 ) $ (0.03 ) $ (0.18 ) $ (0.21 ) \n1. Includes amounts earned from related parties of $24,551 and $18,278 for the\nthree months ended June 30, 2026, and June 30, 2025, respectively, and\n$42,794 and $35,991 for the six months ended June 30, 2026, and June 30,\n2025, respectively.\n2. Includes amounts incurred from related parties of $28,259 and $28,399 for\nthe three months ended June 30, 2026, and June 30, 2025, respectively, and\n$55,330 and $56,530 for the six months ended June 30, 2026, and June 30,\n2025, respectively.\n3. Includes amounts incurred from related parties of $613 and $(2,870) for the\nthree months ended June 30, 2026, and June 30, 2025, respectively, and\n$(1,116) and $(5,451) for the six months ended June 30, 2026, and June 30,\n2025, respectively.\n4. Includes amounts incurred from related parties of $8,031 and $7,023 for the\nthree months ended June 30, 2026, and June 30, 2025, respectively, and\n$15,848 and $13,936 for the six months ended June 30, 2026, and June 30,\n2025, respectively.\n5. Includes amounts earned from related parties of $384 and $424 for the three\nmonths ended June 30, 2026, and June 30, 2025, respectively, and $792 and\n$835 for the six months ended June 30, 2026, and June 30, 2025,\nrespectively.\n\n\n WEBTOON Entertainment Inc. \n Consolidated Statements of Cash Flows \n (unaudited) \n (in thousands of USD) \n \n For the Six Months Ended \n June 30, 2026 June 30, 2025 \n Operating activities: \n Net income (loss) $ (23,374 ) $ (25,852 ) \n Adjustments to reconcile net loss to net cash used in operating activities: \n Provision for credit losses (446 ) 894 \n Depreciation and amortization 15,341 16,844 \n Operating lease expense 5,123 4,479 \n Gain on foreign currency, net (6,790 ) (3,644 ) \n Deferred tax benefit (2,773 ) (5,005 ) \n Loss on debt and equity securities, net 672 2,376 \n Change in severance benefit, net 1,847 1,165 \n (Gain) loss on equity method investments, net (542 ) 62 \n Stock-based compensation 19,730 25,498 \n Other non-cash items 275 (2,336 ) \n Changes in operating assets and liabilities \n Changes in receivables (23,218 ) (3,088 ) \n Changes in other assets (19,600 ) (9,545 ) \n Changes in accounts payable (1,828 ) (5,317 ) \n Changes in accrued expenses (2,204 ) (16,251 ) \n Changes in contract liabilities 18,571 10,286 \n Changes in other liabilities 1,238 8,762 \n Changes in operating lease liabilities $ (4,678 ) $ (3,330 ) \n Net cash used in operating activities $ (18,097 ) $ (12,951 ) \n Investing activities: \n Proceeds from maturities of short-term investments 9,278 32,257 \n Proceeds from sale of property and equipment 82 225 \n Purchases of property and equipment (4,763 ) (2,297 ) \n Purchases of debt and equity securities (643 ) (3,790 ) \n Payment made for short-term investments (10,167 ) (16,619 ) \n Payment made for loan receivable (77 ) (823 ) \n Purchases of intangible assets (4,027 ) (4,460 ) \n Other investing activities — 1,366 \n Net cash (used in) provided by investing activities $ (10,317 ) $ 5,711 \n Financing activities: \n Proceeds from issuance of common stock related to private placement, net 32,682 — \n Other financing activities 307 229 \n Net cash provided by financing activities $ 32,989 $ 229 \n Effect of exchange rate changes on cash and cash equivalents (3,236 ) 16,155 \n Cash and cash equivalents: \n Net increase in cash and cash equivalents 1,339 9,144 \n Cash and cash equivalents at beginning of the period 581,806 572,402 \n Cash and cash equivalents at end of the period $ 583,145 $ 581,546 \n Supplemental disclosure: \n Income taxes paid $ 5,978 $ 14,298 \n Interest paid $ — $ 1 \n Purchase of property and equipment included in accounts payable $ 1,792 $ — \n Purchase of intangible assets included in accounts payable $ 1,162 $ — \n Reclassification of long-term advances to current $ (5,321 ) $ 49,443 \n Increase in right-of-use assets recognized from new lease agreements $ 4,882 $ 12,477 \n Reclassification of construction in progress to property and equipment $ 833 $ — \n\n\n\n Reconciliation of Non-GAAP Measures \n\nThe following table presents a reconciliation of revenue to revenue on a\nconstant currency basis, and ARPPU to ARPPU on a constant currency basis,\nrespectively, for each of the periods presented.\n\n Three Months Ended Six Months Ended \n June 30, June 30, \n (in thousands of USD, except percentages) 2026 2025 Change 2026 2025 Change \n Total Revenue $ 338,465 $ 348,271 (2.8%) $ 659,337 $ 673,978 (2.2%) \n Effects of foreign currency rate fluctuations 27,929 - N/A 33,420 - N/A \n Revenue on a Constant Currency Basis $ 366,394 $ 348,271 5.2% $ 692,757 $ 673,978 2.8% \n Paid Content Revenue $ 263,941 $ 274,914 (4.0%) $ 525,379 $ 535,139 (1.8%) \n Effects of foreign currency rate fluctuations 22,741 - N/A 27,537 - N/A \n Paid Content Revenue on a Constant Currency Basis $ 286,682 $ 274,914 4.3% $ 552,916 $ 535,139 3.3% \n Advertising Revenue $ 47,124 $ 45,220 4.2% $ 86,806 $ 85,118 2.0% \n Effects of foreign currency rate fluctuations 3,282 - N/A 3,823 - N/A \n Advertising Revenue on a Constant Currency Basis $ 50,406 $ 45,220 11.5% $ 90,629 $ 85,118 6.5% \n IP Adaptations Revenue $ 27,400 $ 28,138 (2.6%) $ 47,152 $ 53,721 (12.2%) \n Effects of foreign currency rate fluctuations 1,906 - N/A 2,059 - N/A \n IP Adaptations Revenue on a Constant Currency Basis $ 29,306 $ 28,138 4.2% $ 49,211 $ 53,721 (8.4%) \n Paid Content Average Revenue Per Paying User (\"ARPPU\") \n Korea Paid Content Revenue $ 93,521 $ 80,645 16.0% $ 180,409 $ 157,671 14.4% \n Korea ARPPU 8.3 7.9 5.0% 8.0 7.7 4.6% \n Effects of foreign currency rate fluctuations 0.7 - N/A 0.4 - N/A \n Korea ARPPU on a Constant Currency Basis $ 9.0 $ 7.9 14.8% $ 8.4 $ 7.7 10.1% \n Japan Paid Content Revenue $ 135,963 $ 161,076 (15.6%) $ 275,145 $ 311,477 (11.7%) \n Japan ARPPU 22.1 23.7 (6.7%) 22.3 23.0 (3.0%) \n Effects of foreign currency rate fluctuations 2.3 - N/A 1.5 - N/A \n Japan ARPPU on a Constant Currency Basis $ 24.4 $ 23.7 2.9% $ 23.8 $ 23.0 3.3% \n Rest of World Paid Content Revenue $ 34,457 $ 33,193 3.8% $ 69,825 $ 65,991 5.8% \n Rest of World ARPPU 6.9 6.6 4.4% 6.8 6.5 4.4% \n Rest of World ARPPU on a Constant Currency Basis $ 6.9 $ 6.6 4.4% $ 6.8 $ 6.5 4.4% \n\n(1) ARPPU is calculated by taking Paid Content revenue and dividing it by the\nnumber of monthly paid users (\"MPU\") for such month, averaged over each month\nin the given period. ARPPU on a constant currency basis is calculated by\ndividing Paid Content revenue on a constant currency basis by the number of\nMPU for such month, averaged over each month in the given period. Where each\nmetric is country specific, the numerator is Paid Content revenue on a\nconstant currency basis by country and the denominator is users by country.\n\nThe following table presents a reconciliation of net loss to EBITDA, Adjusted\nEBITDA and Adjusted EBITDA Margin for each of the periods presented.\n\n Three Months Ended June 30, Six Months Ended June 30, \n (in thousands of USD, except percentages) 2026 2025 2026 2025 \n Net income (loss) $ (14,577 ) $ (3,883 ) $ (23,374 ) $ (25,852 ) \n Interest income (4,485 ) (4,910 ) (8,859 ) (10,023 ) \n Interest expense 17 2 34 4 \n Income tax (benefit) expense 6,937 (832 ) 9,609 1,715 \n Depreciation and amortization 7,343 8,407 15,341 16,844 \n EBITDA $ (4,765 ) $ (1,216 ) $ (7,249 ) $ (17,312 ) \n Stock-based compensation expense ((1)) 12,105 8,463 19,730 25,498 \n Restructuring, advisory and legal fees ((2)) 1,114 1,476 2,381 3,118 \n (Gain) loss on fair value instruments, net ((3)) (1,989 ) 1,446 638 2,376 \n (Gain) loss on equity method investments, net ((4)) (988 ) (507 ) (542 ) 62 \n Adjusted EBITDA ((5)) $ 5,477 $ 9,662 $ 14,958 $ 13,742 \n Net income (loss) margin (4.3 )% (1.1 )% (3.5 )% (3.8 )% \n Adjusted EBITDA Margin 1.6 % 2.8 % 2.3 % 2.0 % \n Weighted average shares outstanding \n Basic 135,250,711 130,358,706 134,439,157 129,980,922 \n Diluted 135,250,711 130,358,706 134,439,157 129,980,922 \n Earnings (loss) per share \n Basic $ (0.11 ) $ (0.03 ) $ (0.18 ) $ (0.21 ) \n Diluted $ (0.11 ) $ (0.03 ) $ (0.18 ) $ (0.21 ) \n Adjusted EPS ((6)) \n Basic $ 0.04 $ 0.07 $ 0.11 $ 0.11 \n Diluted $ 0.04 $ 0.07 $ 0.11 $ 0.11 \n\n(1) Represents non-cash stock-based compensation expense related to\nWEBTOON’s equity incentive plan and stock-based compensation plans of NAVER\nCorp. and Munpia Inc., including amounts which are cash settled.\n(2) Represents specific costs that are discrete to the periods presented and\nare not indicative of our core ongoing operations. For the three months ended\nJune 30, 2026, these amounts were comprised of (i) non-routine legal and\nprofessional fees associated with the defense of the 2024 IPO-related\nshareholder litigation, which are outside the ordinary course of business;\n(ii) professional fees and severance costs directly related to the strategic\nrestructuring initiative of our Wattpad business; and (iii) a penalty, and\nrelated professional fees, arising from a resolved regulatory matter\nconcerning foreign exchange transaction reporting. For the six months ended\nJune 30, 2026, these amounts were comprised of (i) non-routine legal and\nprofessional fees associated with the defense of the 2024 IPO-related\nshareholder litigation, which are outside the ordinary course of business,\n(ii) one-time advisory fees related to the purchase agreement that do not\nqualify as equity issuance costs; (iii) professional fees and severance costs\ndirectly related to the strategic restructuring initiative of our Wattpad\nbusiness; and (iv) a penalty, and related professional fees, arising from a\nresolved regulatory matter concerning foreign exchange transaction reporting.\nFor the three and six months ended June 30, 2025, these amounts included (i)\nnon-routine legal and professional fees associated with the defense of the\n2024 IPO-related shareholder litigation, which are outside the ordinary course\nof business; and (ii) professional fees associated with the initial\nimplementation of Sarbanes-Oxley compliance and IPO readiness.\n(3) Represents unrealized net (gain) loss of financial assets measured at\nFVPL, which include the Company's equity investments.\n(4) Represents our proportionate share of recognized losses associated with\nour investments accounted for using the equity method.\n(5) Totals may not foot due to rounding. \n(6) The numerator for Adjusted EPS is calculated by adjusting Net Income\n(Loss) by the same items in the Net Income (Loss) to Adjusted EBITDA\nreconciliation. The denominator for computing Adjusted EPS is the same as that\nused for Basic and Diluted EPS.\n\nContact Information\n\nInvestor Relations\nSoohwan Kim, CFA\ninvestor@webtoon.com\n\nCorporate Communications\nKiel Hume\nwebtoonpress@webtoon.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/539fae16-24b3-4d72-8397-4f32c91bdf8d)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNXDpPgs","title":"WEBTOON Entertainment Inc. Reports Second Quarter 2026 Financial Results","author":"Globe Newswire","ticker":"WBTN","created":"2026-08-10T20:30:01.406Z","tickers":["WBTN"],"exchange":"NASDAQ","article_body":"Delivered Revenue Within Guidance Range and Adjusted EBITDA Above the High-End\nof Guidance Range\n\nSecond Quarter Revenue Decline of 2.8%; Revenue Growth on a Constant Currency\nBasis of 5.2%\n\nNet Loss of $14.6 million; Adjusted EBITDA of $5.5 million\n\nStrong Balance Sheet With Cash and Cash Equivalents of Approximately $583.1\nmillion and No Debt\n\nLOS ANGELES, Aug. 10, 2026 (GLOBE NEWSWIRE) -- WEBTOON Entertainment Inc.\n(Nasdaq: WBTN) (“WEBTOON Entertainment” or “the Company”), a leading\nglobal entertainment company and home to some of the world’s largest\nstorytelling platforms, today announced results for its second quarter ended\nJune 30, 2026. More information about these results can be found in the\nCompany’s shareholder letter on the investor relations section of its\nwebsite.\n\nSecond Quarter 2026 Highlights (vs. Second Quarter 2025)\n* Total revenue of $338.5 million declined 2.8%, driven by declines in Paid\nContent and IP Adaptations, partially offset by growth in Advertising.\n* Revenue on a constant currency basis was $366.4 million, growing 5.2%,\ndriven by growth in all three revenue streams, Paid Content and Advertising\nand IP Adaptations.\n* Net Loss was $14.6 million, compared to $3.9 million in the prior year,\ndriven primarily by increased marketing investment.\n* Adjusted EBITDA was $5.5 million, compared to $9.7 million in the prior\nyear, due to increased marketing investment. Adjusted EBITDA Margin was 1.6%,\ncompared to 2.8% in the prior year.\n* Diluted loss per share was $0.11, compared to diluted loss per share of\n$0.03 in the prior year.\n* Adjusted Earnings Per Share was $0.04, compared to $0.07 in the prior year.\n* Cash and cash equivalents of approximately $583.1 million plus another $11.2\nmillion of short-term deposits included in prepaid expenses and other current\nassets.\n* Cash outflow from operations was $6.3 million, compared to a cash inflow of\n$5.7 million in the prior year.\nJunkoo Kim, Founder and CEO, said, “We delivered another quarter of solid\nfinancial performance, with revenue of $338.5 million, in line with our\nexpectations, and an Adjusted EBITDA of $5.5 million, exceeding the high-end\nof our previous guidance range.”\n\nKim continued, “This quarter, we advanced two strategic priorities that\nfurther strengthen our flywheel. We are leveraging AI to create more\ninteractive experiences through innovations like byUs, our interactive story\nchat service, and our AI-Powered Auto Translation program, both of which are\ndriving deeper engagement across our platform. We also continue to experiment\nwith AI-powered initiatives such as Short Animation. At the same time, we are\nevolving our IP strategy by increasing direct investment and ownership,\npositioning us to capture more of the long-term value our ecosystem\ncreates.”\n\nStrategic Investment in RI Games Holdings Inc.\n\nToday, WEBTOON Entertainment also issued a press release announcing entry into\na definitive agreement to make a strategic investment in RI Games Holdings\nInc., giving the Company a dedicated pipeline to develop games from hit\nwebcomics with established, built-in global fandoms. The transaction is\nexpected to support WEBTOON Entertainment's long-term IP strategy by extending\nsuccessful stories across additional entertainment formats.\n\nThird Quarter 2026 Outlook\n\nFor the third quarter 2026, the Company expects:\n* Revenue growth on a constant currency basis in the range of 0.7%-3.3%. This\nrepresents revenue in the range of $358-$368 million, based on current FX\nrates.\n* Adjusted EBITDA in the range of $0.0-$5.0 million, representing an Adjusted\nEBITDA Margin in the range of 0.0%-1.4%.\nConference Call & Webcast Details\n\nAs previously disclosed, the Company will host a webcast and conference call\non August 10, 2026, at 5:30 p.m. Eastern Time, to discuss the Company’s\nfinancial results for its second quarter ended June 30, 2026.\n\nA live webcast of the conference call will be available online at\nhttps://ir.webtoon.com/.\n\nFor those unable to listen to the live webcast, an archived version will be\navailable at the same location for up to one year.\n\nAbout WEBTOON Entertainment Inc.\n\nWEBTOON Entertainment is a leading global entertainment company and home to\nsome of the world's largest storytelling platforms. As the global leader and\npioneer of the mobile webcomic format, WEBTOON Entertainment has transformed\ncomics and visual storytelling for fans and creators.\n\nWith its CANVAS UGC platform empowering anyone to become a creator, and a\ngrowing roster of superstar WEBTOON Originals creators and series, WEBTOON\nEntertainment’s passionate fandoms are the new face of pop culture. WEBTOON\nEntertainment adaptations are available on Netflix, Prime Video, Crunchyroll,\nand other screens around the world, and the company’s content partners have\nincluded Warner Bros. Animation, Discord, HYBE, and Duolingo, among many\nothers.\n\nWith approximately 155 million monthly active users, WEBTOON Entertainment’s\nIP & Creator Ecosystem of aligned brands and platforms include WEBTOON,\nWattpad--the world’s leading webnovel platform--WEBTOON Productions, Studio\nN, Studio LICO, WEBTOON Unscrolled, LINE MANGA, and eBookJapan, among others.\n\nForward-Looking Statements\n\nThis release contains forward-looking statements within the meaning of the\nsafe harbor provisions of the U.S. Private Securities Litigation Reform Act of\n1995, and involves risks, assumptions and uncertainties that could cause\nactual results to differ materially from those expressed or implied by\nforward-looking statements. Forward-looking statements cover all matters which\nare not historical facts and include, without limitation, statements or\nguidance regarding or relating to our future financial position, results of\noperations and growth, plans and objectives for future capabilities, ability\nto attract users in both our core and underpenetrated geographies, ability to\ngrow Paid Content, Advertising and IP Adaptations businesses, the impact of\nour product development initiatives, including our use of AI, our financial\ncondition and liquidity, and other statements concerning the success of our\nbusiness and strategies. Forward-looking statements may be identified by the\nuse of words such as “anticipate,” “intend,” “plan,” “goal,”\n“seek,” “believe,” “project,” “estimate,” “expect,”\n“strategy,” “future,” “likely,” “may,” “should,”\n“will” and similar references to future periods. Forward-looking\nstatements speak only as of the date on which they are made. They are not\nassurances of future performance and are based only on our current beliefs,\nexpectations and assumptions regarding the future of our business, future\nplans and strategies, projections, anticipated events and trends, the economy\nand other future conditions. Therefore, you should not place undue reliance on\nany of these forward-looking statements. Although we believe that the\nforward-looking statements contained in this release are based on reasonable\nassumptions, you should be aware that many factors could cause actual results\nto differ materially from those in such forward-looking statements, including,\nbut not limited to: weakness in the economy, market trends, uncertainty and\nother conditions in the markets in which we operate, and other geopolitical or\nmacroeconomic factors beyond our control; inability to attract, empower,\nproperly support or incentivize our creators; inability to retain, attract and\nengage with our users; inability to anticipate, understand and appropriately\nrespond to market trends and changing user preferences; failure to retain or\nincrease our paying users; failure to effectively operate in highly\ncompetitive markets; inability to innovate and expand our Advertising\nbusiness; inability to continue to diversify our monetization strategy or to\nincrease revenues from IP Adaptations; failure to realize returns on\ninvestments made toward entering new markets and lines of business; failure to\ncontrol our content-related costs; exposure to significant legal proceedings\nand regulatory investigations which may result in significant expenses, fines\nand reputational damage; failure to provide a safe online environment for\nchildren; exposure to claims that we violated third parties’ intellectual\nproperty rights; failure to obtain, maintain, protect or enforce our\nproprietary and intellectual property rights; exposure to liability and\nadverse effects from the use of AI; rise of conflicts of interests with NAVER\nCorporation, our majority stockholder; and other risks and uncertainties set\nforth under the caption “Risk Factors” in our most recent Annual Report on\nForm 10-K, and in other filings we make with the SEC in the future.\n\nAdditionally, forward-looking statements regarding past trends or activities\nshould not be taken as a representation that such trends or activities will\ncontinue in the future. Other than in accordance with our legal or regulatory\nobligations, we undertake no obligations to publicly update or revise any\nforward-looking statement, whether as a result of new information, future\nevents or otherwise.\n\nNon-GAAP Financial Measures & Definitions\n\nThis release contains certain financial information that is not presented in\nconformity with U.S. GAAP. These non-GAAP measures include Adjusted EBITDA,\nAdjusted EBITDA Margin, Adjusted Earnings Per Share (Adjusted EPS), revenue on\na constant currency basis and revenue growth on a constant currency basis.\n\nWe believe that these non-GAAP measures provide users of the Company’s\nfinancial information with additional meaningful information to assist in\nunderstanding financial results and assessing the Company’s performance from\nperiod to period. Management believes these measures are important indicators\nof operations because they exclude items that may not be indicative of our\ncore operating results and provide a better baseline for analyzing trends in\nour underlying businesses, and they are consistent with how business\nperformance is planned, reported and assessed internally by management and the\nboard of directors of the Company. Our non-GAAP financial measures should not\nbe considered in isolation, or as substitutes for, financial information\nprepared in accordance with GAAP. Non-GAAP measures have limitations as they\ndo not reflect all the amounts associated with our results of operations as\ndetermined in accordance with GAAP, and should only be used to evaluate our\nresults of operations in conjunction with the corresponding or the most\ndirectly comparable GAAP measures. We strongly encourage investors and\nshareholders to review our financial statements and publicly filed reports in\ntheir entirety and not to rely on any single financial measure.\n\nA reconciliation is provided at the end of this release for each historical\nnon-GAAP financial measure to the most directly comparable financial measure\nstated in accordance with U.S. GAAP. We encourage investors and shareholders\nto review the related U.S. GAAP financial measures and the reconciliation of\nthese non-GAAP financial measures to their most directly comparable U.S. GAAP\nfinancial measures, and not to rely on any single financial measure to\nevaluate our business. We do not provide a reconciliation of forward-looking\nnon-GAAP financial measures to the most directly comparable U.S. GAAP\nfinancial measures on a forward-looking basis because we are unable to predict\nwith reasonable certainty or without unreasonable effort non-recurring items\nthat may arise in the future.\n\nAdjusted EBITDA: We define Adjusted EBITDA as net income (loss), adjusted to\nremove the impact of interest income, interest expense, income tax expense\n(benefit) and depreciation and amortization, with further adjustments to\neliminate the effects of loss on equity method investments, effect of applying\nthe valuation method of fair value through profit or loss, impairment of\ngoodwill, non-cash stock-based compensation and certain other non-recurring\ncosts.\n\nAdjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted EBITDA\ndivided by revenue.\n\nAdjusted Earnings Per Share (Adjusted EPS): We define Adjusted Earnings Per\nShare as Earnings Per Share before interest expense, interest income, income\ntax expense (benefit) and depreciation and amortization with further\nadjustments to eliminate the effects of loss on equity method investments,\neffect of applying the valuation method of fair value through profit or loss,\nimpairment of goodwill, non-cash stock-based compensation and certain other\nnon-recurring costs. We calculate Adjusted Earnings Per Share by making the\nadjustments described herein from Net Income (Loss) and dividing by basic and\ndiluted weighted average shares of common stock outstanding, respectively, for\nthe applicable period.\n\nRevenue on a Constant Currency Basis: We define revenue on a constant currency\nbasis as revenue adjusted to remove the impact of foreign currency rate\nfluctuations and the impact of deconsolidated and transferred operations. We\ncalculate revenue on a constant currency basis in a given period by applying\nthe average currency exchange rates in the comparable period of the prior year\nto the local currency revenue in the current period. We calculate revenue on a\nconstant currency basis in each of our revenue streams – Paid Content,\nAdvertising and IP Adaptations – using the same method as laid out herein.\n\nRevenue Growth on a Constant Currency Basis: We define revenue growth on a\nconstant currency basis as period-over-period growth rates of revenue,\nadjusted to remove the impact of foreign currency rate fluctuations and the\nimpact of deconsolidated and transferred operations. We calculate revenue\ngrowth (as a percentage) on a constant currency basis by determining the\nincrease in current period revenue over prior period revenue, where current\nperiod foreign currency revenue is translated using prior period average\ncurrency exchange rates.\n\n\n\n Financial Statements WEBTOON Entertainment Inc. Consolidated Balance Sheets (unaudited) (in thousands of USD, except share and per share data) \n \n As of \n June 30, 2026 December 31, 2025 \n Assets \n Current assets: \n Cash and cash equivalents $ 583,145 $ 581,806 \n Receivables (1), net of allowance for credit losses of $1,917 and $3,378 at June 30, 2026, and December 31, 2025, respectively 191,311 176,779 \n Prepaid expenses and other current assets, net (2) 72,473 72,647 \n Total current assets 846,929 831,232 \n Property and equipment, net 12,390 8,339 \n Operating lease right-of-use assets 22,674 23,705 \n Debt and equity securities 65,986 69,669 \n Intangible assets, net 144,459 157,804 \n Goodwill, net 328,462 336,825 \n Equity method investments 75,859 80,440 \n Deferred tax assets 24,641 22,302 \n Other non-current assets, net (3) 69,028 65,194 \n Total assets $ 1,590,428 $ 1,595,510 \n Liabilities and equity \n Current liabilities: \n Accounts payable (4) $ 133,662 $ 136,962 \n Accrued expenses (5) 60,940 66,690 \n Current portion of operating lease liabilities (6) 8,105 9,617 \n Contract liabilities 103,841 89,994 \n Taxes payable 4,080 4,136 \n Provisions and defined pension benefits 7,465 8,766 \n Other current liabilities 3,467 2,457 \n Total current liabilities 321,560 318,622 \n Non-current liabilities: \n Long-term operating lease liabilities (7) 14,525 14,055 \n Defined severance benefits 22,838 25,069 \n Deferred tax liabilities 6,100 5,755 \n Other non-current liabilities 3,619 3,737 \n Total liabilities 368,642 367,238 \n Commitments and Contingencies (Note 8) \n Redeemable non-controlling interest in subsidiary $ 24,459 $ 24,540 \n Stockholders' equity: \n Common stock, $0.0001 par value (2,000,000,000 authorized, 135,663,014 shares and 130,776,161 shares issued and outstanding as of June 30, 2026, and December 31, 2025, respectively) 14 13 \n Additional paid-in capital 2,187,794 2,137,926 \n Accumulated other comprehensive loss (145,831 ) (114,363 ) \n Accumulated deficit (877,827 ) (853,124 ) \n Total stockholders' equity attributable to WEBTOON Entertainment Inc. 1,164,150 1,170,452 \n Non-controlling interests in consolidated subsidiaries 33,177 33,280 \n Total equity $ 1,197,327 $ 1,203,732 \n Total liabilities, redeemable non-controlling interest, and equity $ 1,590,428 $ 1,595,510 \n1. Includes amounts due from related parties of $59,283 and $55,156 as of\nJune 30, 2026, and December 31, 2025, respectively.\n2. Includes amounts due from related parties of $4,881 and $4,730 as of\nJune 30, 2026, and December 31, 2025, respectively.\n3. Includes amounts due from related parties of $33,529 and $33,913 as of\nJune 30, 2026, and December 31, 2025, respectively.\n4. Includes amounts due to related parties of $20,010 and $18,765 as of\nJune 30, 2026, and December 31, 2025, respectively.\n5. Includes amounts due to related parties of $5,898 and $6,849 as of\nJune 30, 2026, and December 31, 2025, respectively.\n6. Includes amounts due to related parties of $4,866 and $5,221 as of\nJune 30, 2026, and December 31, 2025, respectively.\n7. Includes amounts due to related parties of $2,714 and $5,371 as of\nJune 30, 2026, and December 31, 2025, respectively.\n\n\n WEBTOON Entertainment Inc. \n Consolidated Statements of Operations and Comprehensive Loss \n (unaudited) \n (in thousands of USD, except share and per share data) \n \n Three Months Ended Six Months Ended \n June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 \n Revenue (1) $ 338,465 $ 348,271 $ 659,337 $ 673,978 \n Cost of revenue (2) (250,329 ) (260,992 ) (488,153 ) (515,088 ) \n Marketing (3) (38,336 ) (31,070 ) (68,856 ) (62,613 ) \n General and administrative expenses (4) (65,368 ) (64,972 ) (125,927 ) (131,674 ) \n Operating income (loss) (15,568 ) (8,763 ) (23,599 ) (35,397 ) \n Interest income 4,485 4,910 8,859 10,023 \n Interest expense (17 ) (2 ) (34 ) (4 ) \n Gain (loss) on equity method investments, net 988 507 542 (62 ) \n Other income (loss), net (5) 2,472 (1,367 ) 467 1,303 \n Income (loss) before income tax (7,640 ) (4,715 ) (13,765 ) (24,137 ) \n Income tax benefit (expense) (6,937 ) 832 (9,609 ) (1,715 ) \n Net income (loss) $ (14,577 ) $ (3,883 ) $ (23,374 ) $ (25,852 ) \n Net income (loss) attributable to WEBTOON Entertainment Inc. (15,248 ) (4,326 ) (24,703 ) (26,715 ) \n Net income (loss) attributable to non-controlling interests and redeemable non-controlling interests 671 443 1,329 863 \n Other comprehensive income (loss): \n Foreign currency translation adjustments, net of tax (9,171 ) 41,120 (32,918 ) 47,692 \n Share of other comprehensive loss of equity method investments, net of tax $ (48 ) $ 568 $ (63 ) $ 425 \n Total other comprehensive income (loss), net of tax (9,219 ) 41,688 (32,981 ) 48,117 \n Total comprehensive income (loss) $ (23,796 ) $ 37,805 $ (56,355 ) $ 22,265 \n Total comprehensive income (loss) attributable to WEBTOON $ (24,072 ) $ 35,802 $ (56,171 ) $ 19,803 \n Total comprehensive income (loss) attributable to non-controlling interests and redeemable non-controlling interests $ 276 $ 2,003 (184 ) 2,462 \n \n Weighted average shares outstanding \n Basic 135,250,711 130,358,706 134,439,157 129,980,922 \n Diluted 135,250,711 130,358,706 134,439,157 129,980,922 \n \n Income (loss) per share attributable to WEBTOON Entertainment Inc. \n Basic $ (0.11 ) $ (0.03 ) $ (0.18 ) $ (0.21 ) \n Diluted $ (0.11 ) $ (0.03 ) $ (0.18 ) $ (0.21 ) \n1. Includes amounts earned from related parties of $24,551 and $18,278 for the\nthree months ended June 30, 2026, and June 30, 2025, respectively, and\n$42,794 and $35,991 for the six months ended June 30, 2026, and June 30,\n2025, respectively.\n2. Includes amounts incurred from related parties of $28,259 and $28,399 for\nthe three months ended June 30, 2026, and June 30, 2025, respectively, and\n$55,330 and $56,530 for the six months ended June 30, 2026, and June 30,\n2025, respectively.\n3. Includes amounts incurred from related parties of $613 and $(2,870) for the\nthree months ended June 30, 2026, and June 30, 2025, respectively, and\n$(1,116) and $(5,451) for the six months ended June 30, 2026, and June 30,\n2025, respectively.\n4. Includes amounts incurred from related parties of $8,031 and $7,023 for the\nthree months ended June 30, 2026, and June 30, 2025, respectively, and\n$15,848 and $13,936 for the six months ended June 30, 2026, and June 30,\n2025, respectively.\n5. Includes amounts earned from related parties of $384 and $424 for the three\nmonths ended June 30, 2026, and June 30, 2025, respectively, and $792 and\n$835 for the six months ended June 30, 2026, and June 30, 2025,\nrespectively.\n\n\n WEBTOON Entertainment Inc. \n Consolidated Statements of Cash Flows \n (unaudited) \n (in thousands of USD) \n \n For the Six Months Ended \n June 30, 2026 June 30, 2025 \n Operating activities: \n Net income (loss) $ (23,374 ) $ (25,852 ) \n Adjustments to reconcile net loss to net cash used in operating activities: \n Provision for credit losses (446 ) 894 \n Depreciation and amortization 15,341 16,844 \n Operating lease expense 5,123 4,479 \n Gain on foreign currency, net (6,790 ) (3,644 ) \n Deferred tax benefit (2,773 ) (5,005 ) \n Loss on debt and equity securities, net 672 2,376 \n Change in severance benefit, net 1,847 1,165 \n (Gain) loss on equity method investments, net (542 ) 62 \n Stock-based compensation 19,730 25,498 \n Other non-cash items 275 (2,336 ) \n Changes in operating assets and liabilities \n Changes in receivables (23,218 ) (3,088 ) \n Changes in other assets (19,600 ) (9,545 ) \n Changes in accounts payable (1,828 ) (5,317 ) \n Changes in accrued expenses (2,204 ) (16,251 ) \n Changes in contract liabilities 18,571 10,286 \n Changes in other liabilities 1,238 8,762 \n Changes in operating lease liabilities $ (4,678 ) $ (3,330 ) \n Net cash used in operating activities $ (18,097 ) $ (12,951 ) \n Investing activities: \n Proceeds from maturities of short-term investments 9,278 32,257 \n Proceeds from sale of property and equipment 82 225 \n Purchases of property and equipment (4,763 ) (2,297 ) \n Purchases of debt and equity securities (643 ) (3,790 ) \n Payment made for short-term investments (10,167 ) (16,619 ) \n Payment made for loan receivable (77 ) (823 ) \n Purchases of intangible assets (4,027 ) (4,460 ) \n Other investing activities — 1,366 \n Net cash (used in) provided by investing activities $ (10,317 ) $ 5,711 \n Financing activities: \n Proceeds from issuance of common stock related to private placement, net 32,682 — \n Other financing activities 307 229 \n Net cash provided by financing activities $ 32,989 $ 229 \n Effect of exchange rate changes on cash and cash equivalents (3,236 ) 16,155 \n Cash and cash equivalents: \n Net increase in cash and cash equivalents 1,339 9,144 \n Cash and cash equivalents at beginning of the period 581,806 572,402 \n Cash and cash equivalents at end of the period $ 583,145 $ 581,546 \n Supplemental disclosure: \n Income taxes paid $ 5,978 $ 14,298 \n Interest paid $ — $ 1 \n Purchase of property and equipment included in accounts payable $ 1,792 $ — \n Purchase of intangible assets included in accounts payable $ 1,162 $ — \n Reclassification of long-term advances to current $ (5,321 ) $ 49,443 \n Increase in right-of-use assets recognized from new lease agreements $ 4,882 $ 12,477 \n Reclassification of construction in progress to property and equipment $ 833 $ — \n\n\n\n Reconciliation of Non-GAAP Measures \n\nThe following table presents a reconciliation of revenue to revenue on a\nconstant currency basis, and ARPPU to ARPPU on a constant currency basis,\nrespectively, for each of the periods presented.\n\n Three Months Ended Six Months Ended \n June 30, June 30, \n (in thousands of USD, except percentages) 2026 2025 Change 2026 2025 Change \n Total Revenue $ 338,465 $ 348,271 (2.8%) $ 659,337 $ 673,978 (2.2%) \n Effects of foreign currency rate fluctuations 27,929 - N/A 33,420 - N/A \n Revenue on a Constant Currency Basis $ 366,394 $ 348,271 5.2% $ 692,757 $ 673,978 2.8% \n Paid Content Revenue $ 263,941 $ 274,914 (4.0%) $ 525,379 $ 535,139 (1.8%) \n Effects of foreign currency rate fluctuations 22,741 - N/A 27,537 - N/A \n Paid Content Revenue on a Constant Currency Basis $ 286,682 $ 274,914 4.3% $ 552,916 $ 535,139 3.3% \n Advertising Revenue $ 47,124 $ 45,220 4.2% $ 86,806 $ 85,118 2.0% \n Effects of foreign currency rate fluctuations 3,282 - N/A 3,823 - N/A \n Advertising Revenue on a Constant Currency Basis $ 50,406 $ 45,220 11.5% $ 90,629 $ 85,118 6.5% \n IP Adaptations Revenue $ 27,400 $ 28,138 (2.6%) $ 47,152 $ 53,721 (12.2%) \n Effects of foreign currency rate fluctuations 1,906 - N/A 2,059 - N/A \n IP Adaptations Revenue on a Constant Currency Basis $ 29,306 $ 28,138 4.2% $ 49,211 $ 53,721 (8.4%) \n Paid Content Average Revenue Per Paying User (\"ARPPU\") \n Korea Paid Content Revenue $ 93,521 $ 80,645 16.0% $ 180,409 $ 157,671 14.4% \n Korea ARPPU 8.3 7.9 5.0% 8.0 7.7 4.6% \n Effects of foreign currency rate fluctuations 0.7 - N/A 0.4 - N/A \n Korea ARPPU on a Constant Currency Basis $ 9.0 $ 7.9 14.8% $ 8.4 $ 7.7 10.1% \n Japan Paid Content Revenue $ 135,963 $ 161,076 (15.6%) $ 275,145 $ 311,477 (11.7%) \n Japan ARPPU 22.1 23.7 (6.7%) 22.3 23.0 (3.0%) \n Effects of foreign currency rate fluctuations 2.3 - N/A 1.5 - N/A \n Japan ARPPU on a Constant Currency Basis $ 24.4 $ 23.7 2.9% $ 23.8 $ 23.0 3.3% \n Rest of World Paid Content Revenue $ 34,457 $ 33,193 3.8% $ 69,825 $ 65,991 5.8% \n Rest of World ARPPU 6.9 6.6 4.4% 6.8 6.5 4.4% \n Rest of World ARPPU on a Constant Currency Basis $ 6.9 $ 6.6 4.4% $ 6.8 $ 6.5 4.4% \n\n(1) ARPPU is calculated by taking Paid Content revenue and dividing it by the\nnumber of monthly paid users (\"MPU\") for such month, averaged over each month\nin the given period. ARPPU on a constant currency basis is calculated by\ndividing Paid Content revenue on a constant currency basis by the number of\nMPU for such month, averaged over each month in the given period. Where each\nmetric is country specific, the numerator is Paid Content revenue on a\nconstant currency basis by country and the denominator is users by country.\n\nThe following table presents a reconciliation of net loss to EBITDA, Adjusted\nEBITDA and Adjusted EBITDA Margin for each of the periods presented.\n\n Three Months Ended June 30, Six Months Ended June 30, \n (in thousands of USD, except percentages) 2026 2025 2026 2025 \n Net income (loss) $ (14,577 ) $ (3,883 ) $ (23,374 ) $ (25,852 ) \n Interest income (4,485 ) (4,910 ) (8,859 ) (10,023 ) \n Interest expense 17 2 34 4 \n Income tax (benefit) expense 6,937 (832 ) 9,609 1,715 \n Depreciation and amortization 7,343 8,407 15,341 16,844 \n EBITDA $ (4,765 ) $ (1,216 ) $ (7,249 ) $ (17,312 ) \n Stock-based compensation expense ((1)) 12,105 8,463 19,730 25,498 \n Restructuring, advisory and legal fees ((2)) 1,114 1,476 2,381 3,118 \n (Gain) loss on fair value instruments, net ((3)) (1,989 ) 1,446 638 2,376 \n (Gain) loss on equity method investments, net ((4)) (988 ) (507 ) (542 ) 62 \n Adjusted EBITDA ((5)) $ 5,477 $ 9,662 $ 14,958 $ 13,742 \n Net income (loss) margin (4.3 )% (1.1 )% (3.5 )% (3.8 )% \n Adjusted EBITDA Margin 1.6 % 2.8 % 2.3 % 2.0 % \n Weighted average shares outstanding \n Basic 135,250,711 130,358,706 134,439,157 129,980,922 \n Diluted 135,250,711 130,358,706 134,439,157 129,980,922 \n Earnings (loss) per share \n Basic $ (0.11 ) $ (0.03 ) $ (0.18 ) $ (0.21 ) \n Diluted $ (0.11 ) $ (0.03 ) $ (0.18 ) $ (0.21 ) \n Adjusted EPS ((6)) \n Basic $ 0.04 $ 0.07 $ 0.11 $ 0.11 \n Diluted $ 0.04 $ 0.07 $ 0.11 $ 0.11 \n\n(1) Represents non-cash stock-based compensation expense related to\nWEBTOON’s equity incentive plan and stock-based compensation plans of NAVER\nCorp. and Munpia Inc., including amounts which are cash settled.\n(2) Represents specific costs that are discrete to the periods presented and\nare not indicative of our core ongoing operations. For the three months ended\nJune 30, 2026, these amounts were comprised of (i) non-routine legal and\nprofessional fees associated with the defense of the 2024 IPO-related\nshareholder litigation, which are outside the ordinary course of business;\n(ii) professional fees and severance costs directly related to the strategic\nrestructuring initiative of our Wattpad business; and (iii) a penalty, and\nrelated professional fees, arising from a resolved regulatory matter\nconcerning foreign exchange transaction reporting. For the six months ended\nJune 30, 2026, these amounts were comprised of (i) non-routine legal and\nprofessional fees associated with the defense of the 2024 IPO-related\nshareholder litigation, which are outside the ordinary course of business,\n(ii) one-time advisory fees related to the purchase agreement that do not\nqualify as equity issuance costs; (iii) professional fees and severance costs\ndirectly related to the strategic restructuring initiative of our Wattpad\nbusiness; and (iv) a penalty, and related professional fees, arising from a\nresolved regulatory matter concerning foreign exchange transaction reporting.\nFor the three and six months ended June 30, 2025, these amounts included (i)\nnon-routine legal and professional fees associated with the defense of the\n2024 IPO-related shareholder litigation, which are outside the ordinary course\nof business; and (ii) professional fees associated with the initial\nimplementation of Sarbanes-Oxley compliance and IPO readiness.\n(3) Represents unrealized net (gain) loss of financial assets measured at\nFVPL, which include the Company's equity investments.\n(4) Represents our proportionate share of recognized losses associated with\nour investments accounted for using the equity method.\n(5) Totals may not foot due to rounding. \n(6) The numerator for Adjusted EPS is calculated by adjusting Net Income\n(Loss) by the same items in the Net Income (Loss) to Adjusted EBITDA\nreconciliation. The denominator for computing Adjusted EPS is the same as that\nused for Basic and Diluted EPS.\n\nContact Information\n\nInvestor Relations\nSoohwan Kim, CFA\ninvestor@webtoon.com\n\nCorporate Communications\nKiel Hume\nwebtoonpress@webtoon.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/539fae16-24b3-4d72-8397-4f32c91bdf8d)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-08-10T20:30:01.510093343Z","server_sent_at_ms":1786393801510},"received_at":"2026-08-10T20:30:01.576Z","source_url":"https://www.globenewswire.com/news-release/2026/08/10/3342271/0/en/webtoon-entertainment-inc-reports-second-quarter-2026-financial-results.html"},"analysis":{"id":"103649","press_release_id":"114648","analysis_json":{"industry":{"label":"Interactive Media & Services","sector":"Communication Services"},"redFlags":["Net loss widened to $14.6 million from $3.9 million in the prior year","Q3 Adjusted EBITDA guidance implies potential flat or negative profitability ($0.0M-$5.0M)"],"eventType":"earnings","narrative":"WEBTOON Entertainment reported Q2 2026 revenue of $338.5 million, down 2.8% year-over-year on a GAAP basis but up 5.2% on a constant currency basis, landing within the guidance range.\n\nAdjusted EBITDA reached $5.5 million, exceeding the high end of guidance, while net loss widened to $14.6 million compared to the prior year due to increased marketing investments.\n\nThe company maintains a strong balance sheet with $583.1 million in cash and no debt, and announced a strategic investment in RI Games Holdings Inc. to expand its IP gaming pipeline.\n\nFor the third quarter, management expects revenue of $358 million to $368 million and Adjusted EBITDA between $0.0 million and $5.0 million.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"Mixed earnings with constant currency growth offsetting GAAP decline; strong cash balance supports continued investment in AI and gaming."},"keyFigures":{"revenue":338500000,"guidance":"Q3 2026 Revenue $358M-$368M; Adjusted EBITDA $0.0M-$5.0M","revenueYoy":"-2.8%","customDimensions":{"adjusted_ebitda":5500000,"cash_and_equivalents":583100000,"adjusted_ebitda_margin":"1.6%"}},"quotedText":"We delivered another quarter of solid financial performance, with revenue of $338.5 million, in line with our expectations, and an Adjusted EBITDA of $5.5 million, exceeding the high-end of our previous guidance range.","namedEntities":{"people":[{"name":"Junkoo Kim","role":"CEO"},{"name":"Soohwan Kim","role":"Investor Relations"},{"name":"Kiel Hume","role":"Corporate Communications"}],"products":["WEBTOON","Wattpad","byUs","Short Animation"],"companies":[{"name":"WEBTOON Entertainment Inc.","ticker":"WBTN"},{"name":"RI Games Holdings Inc.","relationship":"investment target"},{"name":"NAVER Corp.","relationship":"majority stockholder"},{"name":"Munpia Inc.","relationship":"related party"}],"dollarAmounts":[{"amount":"$338.5 million","context":"Q2 2026 Total Revenue"},{"amount":"$14.6 million","context":"Q2 2026 Net Loss"},{"amount":"$5.5 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$583.1 million","context":"Cash and cash equivalents"},{"amount":"$358-$368 million","context":"Q3 2026 Revenue Outlook"},{"amount":"$0.0-$5.0 million","context":"Q3 2026 Adjusted EBITDA Outlook"}]},"materialImpact":{"score":3,"reasoning":"Q2 results showed a mixed performance with GAAP revenue declining 2.8% and net loss widening significantly, though constant currency revenue grew 5.2% and Adjusted EBITDA beat guidance."},"tickerRelevance":{"others":[],"primary":"WBTN"},"globalImportance":30,"audienceRelevance":45,"eventTypeSecondary":["operations_update","guidance_update"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"quarterly-earnings-mixed","sectorWeight":"digital-media","brandAwareness":"high"}},"event_type":"earnings","event_type_secondary":["operations_update","guidance_update"],"sentiment":"mixed","material_impact_score":3,"narrative":"WEBTOON Entertainment reported Q2 2026 revenue of $338.5 million, down 2.8% year-over-year on a GAAP basis but up 5.2% on a constant currency basis, landing within the guidance range.\n\nAdjusted EBITDA reached $5.5 million, exceeding the high end of guidance, while net loss widened to $14.6 million compared to the prior year due to increased marketing investments.\n\nThe company maintains a strong balance sheet with $583.1 million in cash and no debt, and announced a strategic investment in RI Games Holdings Inc. to expand its IP gaming pipeline.\n\nFor the third quarter, management expects revenue of $358 million to $368 million and Adjusted EBITDA between $0.0 million and $5.0 million.","key_figures":{"revenue":338500000,"guidance":"Q3 2026 Revenue $358M-$368M; Adjusted EBITDA $0.0M-$5.0M","revenueYoy":"-2.8%","customDimensions":{"adjusted_ebitda":5500000,"cash_and_equivalents":583100000,"adjusted_ebitda_margin":"1.6%"}},"named_entities":{"people":[{"name":"Junkoo Kim","role":"CEO"},{"name":"Soohwan Kim","role":"Investor Relations"},{"name":"Kiel Hume","role":"Corporate Communications"}],"products":["WEBTOON","Wattpad","byUs","Short Animation"],"companies":[{"name":"WEBTOON Entertainment Inc.","ticker":"WBTN"},{"name":"RI Games Holdings Inc.","relationship":"investment target"},{"name":"NAVER Corp.","relationship":"majority stockholder"},{"name":"Munpia Inc.","relationship":"related party"}],"dollarAmounts":[{"amount":"$338.5 million","context":"Q2 2026 Total Revenue"},{"amount":"$14.6 million","context":"Q2 2026 Net Loss"},{"amount":"$5.5 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$583.1 million","context":"Cash and cash equivalents"},{"amount":"$358-$368 million","context":"Q3 2026 Revenue Outlook"},{"amount":"$0.0-$5.0 million","context":"Q3 2026 Adjusted EBITDA Outlook"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-11T00:47:38.147Z","global_importance":30,"audience_relevance":45,"importance_components":{"tickerTier":"mid-cap","eventGravity":"quarterly-earnings-mixed","sectorWeight":"digital-media","brandAwareness":"high"}},"durationMs":165730,"modelName":"glm-4.7"}}