Webtoon 2025 Q3 Earnings Net Loss Widens 155.3% Amid Strategic Partnerships

Webtoon (WBTN) reported fiscal 2025 Q3 results on Nov 14th, 2025, with revenue rising 8.7% year-over-year to $378.04 million. While the revenue beat Zacks’ $383.22 million estimate, the stock fell post-earnings amid a net loss of $11.05 million and a Q4 revenue guidance cut.

Revenue

Driven by Paid Content ($286.81 million) and IP Adaptations ($51.86 million), total revenue grew 8.7% to $378.04 million. Advertising revenue declined 8.9% to $39.37 million, weighed by weaker performance in Korea and global markets. The 12% year-over-year growth in English platform MAU highlights progress in international expansion.

Earnings/Net Income

Webtoon swung to a net loss of $11.05 million in Q3 2025, a 155.3% deterioration from $19.99 million net income in 2024 Q3. EPS fell to -$0.09, compared to $0.15 in the prior-year period. The loss reflects higher income tax expenses and lower other income, despite growth in paid content and IP adaptations.

Post-Earnings Price Action Review

Despite missing EPS estimates, WBTN’s stock surged 55% following the Disney partnership announcement, signaling strong market optimism. The company’s 10 animated projects with Warner Bros. Animation and 52-week high stock price underscore growth potential. However, Q4 revenue guidance of $330–$340 million, a 5.1–2.3% decline, highlights near-term challenges. Buying WBTN post-revenue beat and holding for 30 days could be strategic, though risks persist amid execution uncertainties.

CEO Commentary

Junkoo Kim, CEO, emphasized the Disney partnership as a “long-term game changer,” with 7 of 100 planned titles launched. He highlighted progress in video episodes and English platform growth but acknowledged “timing of IP adaptation milestones” as a Q4 headwind. Kim’s tone was cautiously optimistic, balancing strategic investments in animation and digital comics with near-term profitability challenges.

Guidance

Webtoon guided Q4 2025 revenue to decline 5.1–2.3%, citing IP adaptation timing and advertising weakness. Adjusted EBITDA is expected to show a loss of $6.5–$1.5 million. The company reiterated confidence in long-term growth through partnerships but provided no specific 2025 full-year targets.

Additional News

1. Disney Collaboration: Webtoon and Disney launched a digital comics platform featuring 35,000+ titles, with Disney acquiring a 2% equity stake.

2. Warner Bros. Animation: The partnership to co-produce 10 animated series aims to expand IP adaptations globally, with titles like The Stellar Swordmaster in development.

3. Stock Volatility: WBTN shares surged 55% post-Disney announcement but later declined 24% after Q4 guidance, reflecting market sensitivity to execution risks.

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