Second Quarter 2026
Filed Aug 10, 2026WEBTOON Entertainment Inc. Reports Second Quarter 2026 Financial Results Delivered Revenue Within Guidance Range and Adjusted EBITDA Above the High-End of Guidance Range
Revenue declined 2.8% and both net loss and Adjusted EBITDA deteriorated from the prior year amid increased marketing investment, while constant-currency revenue grew 5.2%, revenue was within guidance, and Adjusted EBITDA exceeded the high end of the previous guidance range.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $338.5 million | – | declined 2.8% |
| Revenue on a constant currency basisnon-GAAP | $366.4 million | – | growing 5.2% |
| Net LossGAAP | $14.6 million | – | – |
| Adjusted EBITDAnon-GAAP | $5.5 million | – | – |
| Adjusted EBITDA Marginnon-GAAP | 1.6% | – | – |
| Diluted loss per shareGAAP | $0.11 | – | – |
| Adjusted Earnings Per Sharenon-GAAP | $0.04 | – | – |
| Cash outflow from operationsGAAP | $6.3 million | – | – |
| Cash and cash equivalentsGAAP | approximately $583.1 million | – | – |
| Short-term deposits included in prepaid expenses and other current assetsGAAP | $11.2 million | – | – |
| DebtGAAP | No Debt | – | – |
| Monthly active usersother | approximately 155 million | – | – |
Third Quarter 2026 outlook
- RevenueRevenue growth on a constant currency basis in the range of 0.7%-3.3%. This represents revenue in the range of $358-$368 million, based on current FX rates.
- NoteAdjusted EBITDA in the range of $0.0-$5.0 million, representing an Adjusted EBITDA Margin in the range of 0.0%-1.4%.
What drove it
- Total revenue declined 2.8%, driven by declines in Paid Content and IP Adaptations, partially offset by growth in Advertising.
- Revenue on a constant currency basis grew 5.2%, driven by growth in all three revenue streams, Paid Content and Advertising and IP Adaptations.
- Net Loss and Adjusted EBITDA were affected by increased marketing investment.
- The Company is leveraging AI through byUs, AI-Powered Auto Translation, and experiments including Short Animation.
- The Company entered into a definitive agreement to make a strategic investment in RI Games Holdings Inc. to develop games from hit webcomics with established global fandoms.
Concerns
- Reported total revenue declined 2.8%.
- Net Loss was $14.6 million, compared to $3.9 million in the prior year.
- Adjusted EBITDA was $5.5 million, compared to $9.7 million in the prior year, and Adjusted EBITDA Margin was 1.6%, compared to 2.8% in the prior year.
- Cash outflow from operations was $6.3 million, compared to a cash inflow of $5.7 million in the prior year.
- Third-quarter Adjusted EBITDA guidance is in the range of $0.0-$5.0 million, with an Adjusted EBITDA Margin range of 0.0%-1.4%.
What to watch
- Whether Paid Content and IP Adaptations return to reported growth.
- Advertising growth and whether all three revenue streams continue to grow on a constant currency basis.
- The effect of increased marketing investment on net loss, Adjusted EBITDA, and cash flow from operations.
- Execution of AI initiatives including byUs, AI-Powered Auto Translation, and Short Animation.
- Progress on the RI Games Holdings Inc. strategic investment and the extension of webcomic IP into games.
Balance sheet and cash flow
- Cash and cash equivalents of approximately $583.1 million plus another $11.2 million of short-term deposits included in prepaid expenses and other current assets.
- No Debt.
- Cash outflow from operations was $6.3 million, compared to a cash inflow of $5.7 million in the prior year.
Analysis
WEBTOON reported $338.5 million of total revenue, down 2.8% from the second quarter of 2025. The company attributed the reported decline to Paid Content and IP Adaptations, partly offset by Advertising growth. On a constant-currency basis, revenue was $366.4 million and grew 5.2%, with the company citing growth across Paid Content, Advertising, and IP Adaptations. This establishes foreign exchange as an important distinction between reported and constant-currency operating trends.
Profitability weakened year over year. Net Loss was $14.6 million versus $3.9 million in the prior year, while Adjusted EBITDA was $5.5 million versus $9.7 million and Adjusted EBITDA Margin was 1.6% versus 2.8%. Management attributed the net-loss and Adjusted EBITDA changes primarily to increased marketing investment. Diluted loss per share was $0.11 compared with $0.03, and Adjusted Earnings Per Share was $0.04 compared with $0.07.
Liquidity remains a central offset to the weaker earnings and operating cash flow. The company reported cash and cash equivalents of approximately $583.1 million, another $11.2 million of short-term deposits included in prepaid expenses and other current assets, and no debt. Cash outflow from operations was $6.3 million, compared with a cash inflow of $5.7 million in the prior year. No share repurchases or dividends were reported in the provided filing text.
For the third quarter of 2026, WEBTOON expects constant-currency revenue growth of 0.7%-3.3%, representing $358-$368 million based on current FX rates. It expects Adjusted EBITDA of $0.0-$5.0 million and an Adjusted EBITDA Margin of 0.0%-1.4%. Management highlighted AI-led engagement products and increased direct IP investment, including the planned RI Games Holdings Inc. strategic investment, as components of its longer-term strategy. The filing states that second-quarter revenue was within guidance and Adjusted EBITDA exceeded the high end of the previous guidance range, but the prior outlook itself was not provided for metric-by-metric comparison.
Management, verbatim
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.
Junkoo Kim, Founder and CEO
This quarter, we advanced two strategic priorities that further strengthen our flywheel. We are leveraging AI to create more interactive experiences through innovations like byUs, our interactive story chat service, and our AI-Powered Auto Translation program, both of which are driving deeper engagement across our platform. We also continue to experiment with AI-powered initiatives such as Short Animation. At the same time, we are evolving our IP strategy by increasing direct investment and ownership, positioning us to capture more of the long-term value our ecosystem creates.
Junkoo Kim, Founder and CEO
Not in the filing
stated, not guessed- Prior-quarter total revenue, net loss, Adjusted EBITDA, Adjusted EBITDA Margin, diluted loss per share, Adjusted Earnings Per Share, cash flow from operations, cash and cash equivalents, and short-term deposits.
- Individual revenue figures and growth rates for Paid Content, Advertising, and IP Adaptations.
- Gross margin, operating income, operating expenses, tax rate, free cash flow, and capital expenditures.
- Share repurchases, dividends, and other capital-return figures.
- Debt amount and comparative balance-sheet figures.
- Third-quarter guidance for gross margin, operating expenses, and tax rate.
- Previous-quarter outlook needed for metric-by-metric comparison of actual results versus prior guidance.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.