Q3 FY2026
Filed Nov 9, 2026Q3 2026 reported revenue fell 4.0% to $362.8 million, while constant currency revenue rose 0.2%; net loss narrowed to $7.5 million and Adjusted EBITDA fell to $2.2 million
Reported revenue declined 4.0% and Adjusted EBITDA fell from $5,120 thousand to $2,206 thousand, but the net loss narrowed from $(11,050) thousand to $(7,471) thousand, constant currency revenue grew 0.2% with Paid Content and Advertising growing on that basis, and the company reports cash of $548,438 thousand with no debt.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Q3 2026GAAP | $362.8M | – | (4.0%) |
| Revenue on a constant currency basis, Q3 2026non-GAAP | $378.6M | – | 0.2% |
| Cost of revenue, Q3 2026GAAP | −$270.2M | – | – |
| Marketing expense, Q3 2026GAAP | −$39.11M | – | – |
| General and administrative expenses, Q3 2026GAAP | −$62.69M | – | – |
| Operating income (loss), Q3 2026GAAP | −$9.23M | – | – |
| Interest income, Q3 2026GAAP | $4.17M | – | – |
| Interest expense, Q3 2026GAAP | −$19K | – | – |
| Gain (loss) on equity method investments, net, Q3 2026GAAP | $59K | – | – |
| Other income (loss), net, Q3 2026GAAP | −$2.98M | – | – |
| Income (loss) before income tax, Q3 2026GAAP | −$8M | – | – |
| Income tax benefit (expense), Q3 2026GAAP | $529K | – | – |
| Net income (loss), Q3 2026GAAP | −$7.47M | – | – |
| Net income (loss) attributable to WEBTOON Entertainment Inc., Q3 2026GAAP | −$8.37M | – | – |
| Net income (loss) margin, Q3 2026GAAP | (2.1)% | – | – |
| Diluted earnings (loss) per share, Q3 2026GAAP | $(0.06) | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $2.21M | – | – |
| Adjusted EBITDA Margin, Q3 2026non-GAAP | 0.6% | – | – |
| Adjusted EPS (diluted), Q3 2026non-GAAP | $0.02 | – | – |
| Net cash provided by operating activities, Q3 2026GAAP | $6.2M | – | – |
| Global ARPPU, Q3 2026other | $12.3 | – | (0.8%) |
| Global ARPPU on a constant currency basis, Q3 2026non-GAAP | $13.0 | – | 4.2% |
| Korea ARPPU, Q3 2026other | 9.4 | – | 17.6% |
| Korea ARPPU on a constant currency basis, Q3 2026non-GAAP | 9.7 | – | 21.1% |
| Japan ARPPU, Q3 2026other | 22.3 | – | (5.8%) |
| Japan ARPPU on a constant currency basis, Q3 2026non-GAAP | 24.0 | – | 1.8% |
| Rest of World ARPPU, Q3 2026other | 6.8 | – | (0.2%) |
| Monthly active users (boilerplate)other | approximately 159 million | – | – |
| Total revenue, nine months 2026GAAP | $1.02B | – | (2.8%) |
| Revenue on a constant currency basis, nine months 2026non-GAAP | $1.07B | – | 1.8% |
| Cost of revenue, nine months 2026GAAP | −$758.4M | – | – |
| Marketing expense, nine months 2026GAAP | −$108.0M | – | – |
| General and administrative expenses, nine months 2026GAAP | −$188.6M | – | – |
| Operating income (loss), nine months 2026GAAP | −$32.83M | – | – |
| Income tax benefit (expense), nine months 2026GAAP | −$9.08M | – | – |
| Net income (loss), nine months 2026GAAP | −$30.84M | – | – |
| Diluted earnings (loss) per share, nine months 2026GAAP | $(0.25) | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | $17.16M | – | – |
| Adjusted EBITDA Margin, nine months 2026non-GAAP | 1.7% | – | – |
| Adjusted EPS (diluted), nine months 2026non-GAAP | $0.13 | – | – |
| Net cash (used in) provided by operating activities, nine months 2026GAAP | −$11.89M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Paid Content revenue, Q3 2026Company names Paid Content among the lines driving the decline in total reported revenue. | $275.5M | – | (3.9%) |
| Paid Content revenue on a constant currency basis, Q3 2026Company names growth in Paid Content as a driver of constant currency revenue growth. | $289.6M | – | 1.0% |
| Advertising revenue, Q3 2026Company names growth in Advertising as a partial offset to the reported revenue decline. | $49.68M | – | 26.2% |
| Advertising revenue on a constant currency basis, Q3 2026Company names growth in Advertising as a driver of constant currency revenue growth. | $51.23M | – | 30.1% |
| IP Adaptations revenue, Q3 2026Company names IP Adaptations among the lines driving the decline in total reported revenue. | $37.58M | – | (27.5%) |
| IP Adaptations revenue on a constant currency basis, Q3 2026Company names a decline in IP Adaptations as the offset to constant currency growth. | $37.84M | – | (27.0%) |
| Korea revenue, Q3 2026No driver stated in the release. | $169.3M | – | 10.8% |
| Korea revenue on a constant currency basis, Q3 2026No driver stated in the release. | $173.4M | – | 13.5% |
| Japan revenue, Q3 2026No driver stated in the release. | $147.3M | – | (18.0%) |
| Japan revenue on a constant currency basis, Q3 2026No driver stated in the release. | $159.1M | – | (11.4%) |
| Rest of World revenue, Q3 2026No driver stated in the release. | $46.17M | – | 1.3% |
| Paid Content revenue, nine months 2026No driver stated for the nine-month period beyond the release's table. | $800.9M | – | (2.6%) |
| Paid Content revenue on a constant currency basis, nine months 2026No driver stated for the nine-month period beyond the release's table. | $842.5M | – | 2.5% |
| Advertising revenue, nine months 2026No driver stated for the nine-month period beyond the release's table. | $136.5M | – | 9.6% |
| Advertising revenue on a constant currency basis, nine months 2026No driver stated for the nine-month period beyond the release's table. | $141.8M | – | 13.9% |
| IP Adaptations revenue, nine months 2026No driver stated for the nine-month period beyond the release's table. | $84.73M | – | (19.7%) |
| IP Adaptations revenue on a constant currency basis, nine months 2026No driver stated for the nine-month period beyond the release's table. | $87.05M | – | (17.5%) |
| Korea revenue, nine months 2026No driver stated in the release. | $428.2M | – | 8.0% |
| Korea revenue on a constant currency basis, nine months 2026No driver stated in the release. | $445.8M | – | 12.5% |
| Japan revenue, nine months 2026No driver stated in the release. | $452.0M | – | (13.4%) |
| Japan revenue on a constant currency basis, nine months 2026No driver stated in the release. | $483.6M | – | (7.3%) |
| Rest of World revenue, nine months 2026No driver stated in the release. | $141.9M | – | 6.0% |
Q4 2026 outlook
- RevenueRevenue growth on a constant currency basis of 9.0%-12.0%; revenue of $371-$381 million, based on current FX rates
- NoteAdjusted EBITDA of $0.0-$5.0 million
- NoteAdjusted EBITDA Margin of 0.0%-1.3%
- NoteOutlook includes expected revenue and contributions from RI Games Holdings Inc. following the anticipated second closing of the transaction
Capital returns
- The release reports no share repurchases and no dividends.
- Nine-month proceeds from issuance of common stock related to private placement, net: $32,682 thousand (inflow, not a return).
What drove it
- Company states total revenue decreased 4.0% driven by declines in Paid Content and IP Adaptations, partially offset by growth in Advertising.
- Company states constant currency revenue increased 0.2%, driven by growth in Paid Content and Advertising, partially offset by a decline in IP Adaptations.
- Company states the net loss improvement was driven primarily by higher gross profit and an income tax benefit, partially offset by increased marketing investment and higher foreign currency losses.
- Company states Adjusted EBITDA decreased to $2,206 thousand from $5,120 thousand, primarily due to higher foreign currency losses.
- Company states reported revenue and Adjusted EBITDA were within its guidance ranges for the third quarter.
Concerns
- Reported total revenue declined 4.0% year over year to $362,775 thousand.
- IP Adaptations revenue declined 27.5% to $37,579 thousand, and 27.0% on a constant currency basis.
- Japan revenue declined 18.0% to $147,293 thousand, and 11.4% on a constant currency basis.
- Adjusted EBITDA fell to $2,206 thousand from $5,120 thousand, and Adjusted EBITDA Margin fell to 0.6% from 1.4%.
- Net cash provided by operating activities was $6.2 million for the quarter, compared with $16.5 million in the prior year quarter.
- Nine-month net cash used in operating activities was $(11,892) thousand, compared with net cash provided of $3,578 thousand in the prior year period.
- Marketing expense rose to $(39,111) thousand from $(35,166) thousand.
- Release lists the pending acquisition of RI Games Holdings Inc. and its anticipated second closing among forward-looking risks, and states the Q4 outlook includes its contributions.
What to watch
- Whether Q4 2026 constant currency revenue growth of 9.0%-12.0% is achieved, against the Q3 constant currency growth of 0.2%.
- Whether Q4 2026 reported revenue lands within the $371-$381 million range, based on current FX rates.
- Whether Q4 2026 Adjusted EBITDA lands within the $0.0-$5.0 million range.
- Trajectory of IP Adaptations revenue, which declined 27.5% in Q3 2026.
- Trajectory of Japan revenue and Japan ARPPU, which declined 18.0% and 5.8% respectively in Q3 2026.
- Timing and contribution of the RI Games Holdings Inc. second closing.
- Operating cash flow trend, which was $6.2 million in Q3 2026 and $(11,892) thousand for the nine months.
Balance sheet and cash flow
- Cash and cash equivalents: $548,438 thousand at September 30, 2026, versus $581,806 thousand at December 31, 2025.
- Release states cash and cash equivalents of approximately $548.4 million plus another $13.3 million of short-term deposits included in prepaid expenses and other current assets, net.
- Release headline states the company has no debt.
- Total assets: $1,669,365 thousand at September 30, 2026, versus $1,595,510 thousand at December 31, 2025.
- Total equity: $1,250,028 thousand at September 30, 2026, versus $1,203,732 thousand at December 31, 2025.
- Equity method investments: $128,749 thousand at September 30, 2026, versus $80,440 thousand at December 31, 2025.
- Nine months 2026: net cash used in operating activities $(11,892) thousand; net cash used in investing activities $(57,736) thousand; net cash provided by financing activities $30,651 thousand.
- Nine months 2026 investing line: purchases of equity method investments $(45,326) thousand; purchases of property and equipment $(7,544) thousand; purchases of intangible assets $(7,466) thousand.
- Nine months 2026 cash and cash equivalents: net decrease of $(33,368) thousand; ending balance $548,438 thousand.
- Nine months 2026 income taxes paid: $10,565 thousand.
Analysis
WEBTOON reported Q3 2026 total revenue of $362,775 thousand, down 4.0% from $378,041 thousand, while revenue on a constant currency basis was $378,631 thousand, up 0.2%. The release attributes the gap to foreign currency effects of $15,856 thousand on the quarter. By line, Paid Content revenue was $275,514 thousand (down 3.9%, up 1.0% on a constant currency basis), Advertising was $49,682 thousand (up 26.2%, up 30.1% on a constant currency basis) and IP Adaptations was $37,579 thousand (down 27.5%, down 27.0% on a constant currency basis). By region, Korea grew 10.8% to $169,307 thousand, Japan fell 18.0% to $147,293 thousand and Rest of World rose 1.3% to $46,175 thousand. Global ARPPU was $12.3, down 0.8%, and rose to $13.0 on a constant currency basis.
Profitability moved in mixed directions. Operating loss narrowed to $(9,227) thousand from $(14,878) thousand, and net loss narrowed to $(7,471) thousand from $(11,050) thousand. The company attributes the net loss improvement mainly to higher gross profit and an income tax benefit, partly offset by higher marketing investment and higher foreign currency losses. Cost of revenue fell to $(270,206) thousand from $(295,267) thousand, while marketing rose to $(39,111) thousand from $(35,166) thousand. Adjusted EBITDA fell to $2,206 thousand from $5,120 thousand, and Adjusted EBITDA Margin fell to 0.6% from 1.4%. The company states the Adjusted EBITDA decline was primarily due to higher foreign currency losses. Diluted loss per share was $(0.06) against $(0.09), and Adjusted EPS was $0.02 against $0.04.
For the nine months, revenue was $1,022,112 thousand, down 2.8%, and constant currency revenue was $1,071,387 thousand, up 1.8%. Adjusted EBITDA was $17,164 thousand against $18,862 thousand, and operating cash flow was $(11,892) thousand against $3,578 thousand. Cash and cash equivalents stood at $548,438 thousand at September 30, 2026, against $581,806 thousand at December 31, 2025, and the release states the company has no debt. Nine-month investing outflows included $(45,326) thousand for purchases of equity method investments, and financing inflows included $32,682 thousand of net proceeds from a private placement of common stock. Total assets rose to $1,669,365 thousand from $1,595,510 thousand.
The Q4 2026 outlook calls for constant currency revenue growth of 9.0%-12.0%, reported revenue of $371-$381 million based on current FX rates, and Adjusted EBITDA of $0.0-$5.0 million (margin 0.0%-1.3%). The company states the outlook includes expected revenue and contributions from RI Games Holdings Inc. following the anticipated second closing of the transaction. The release does not separately quantify the RI Games contribution. Because the constant currency growth range is well above the Q3 constant currency growth of 0.2%, the guidance depends on the company delivering a sharp acceleration, and the release does not explain the drivers of that acceleration beyond the executive commentary. The company describes Q3 reported revenue and Adjusted EBITDA as within guidance ranges, but no prior guidance figures were supplied for comparison.
Attention points for the reader are the decline in IP Adaptations (down 27.5%), the decline in Japan (down 18.0%), the drop in Adjusted EBITDA and operating cash flow for the quarter, and the pending RI Games transaction. Positive points are the constant currency growth in Paid Content and Advertising, the narrower net loss and the reported cash balance.
Management, verbatim
We delivered third quarter reported revenue and Adjusted EBITDA within our guidance ranges while continuing to invest with discipline in our next phase of growth, and we are confident in our return to double-digit revenue growth in the fourth quarter.
Junkoo Kim, Founder and CEO
Our strategy is working across the business. On-platform, we are strengthening how readers discover and engage with stories; Off-platform, we are turning our IP into global franchises across diverse formats; and through collaborations, we are extending our reach to new audiences.
Junkoo Kim, Founder and CEO
Not in the filing
stated, not guessed- Prior quarter (Q2 2026) figures for all metrics, as the release does not print them.
- Gross profit and gross margin for Q3 2026 and the prior year quarter, which are not printed.
- Year-over-year percentage change for Q3 2026 net loss, operating loss, Adjusted EBITDA, Adjusted EBITDA Margin and diluted EPS, which are not printed.
- Year-over-year percentage change for Q3 2026 operating cash flow ($6.2 million vs $16.5 million), which is not printed.
- Q3 2026 cash flow statement detail, as the release prints only nine-month cash flows.
- Free cash flow, which is not reported.
- Share repurchases and dividends, which are not reported.
- Q3 2026 revenue by region and by line for the prior quarter.
- RI Games Holdings Inc. expected revenue or Adjusted EBITDA contribution, which is not quantified.
- Prior guidance for Q4 2026 or any other period, as no previous outlook was provided.
- Analyst consensus, price targets and share price reaction, which are not in the documents.
- Currency of the ARPPU figures, which is not stated in the release.
- Segment-level driver explanations for Korea, Japan and Rest of World, which are not stated.
- Nature of the anticipated second closing of RI Games Holdings Inc. and its timing, which are not specified in the release.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.