Webtoon Entertainment's Stock Surges 93% to a 52-Week High on Q2 Earnings and Disney Partnership

Webtoon Entertainment's stock surged 93% to a 52-week high on a strong earnings report and an unexpected partnership with Walt Disney. The company beat analyst expectations with Q2 earnings of $0.07 per share and $348 million in revenue. The Disney deal adds a selection of Disney, Marvel, and Star Wars content to Webtoon's platform.

Webtoon Entertainment's (NASDAQ: WBTN) stock surged 93% to a 52-week high on July 2, 2025, following a strong earnings report and an unexpected partnership with Walt Disney Company (NYSE: DIS). The company's stock closed at $9.20, up from $4.70 on the previous day, driven by a 2.41% increase during regular trading hours and further gains in aftermarket trading.

The primary catalyst for the stock's surge was Webtoon's Q2 earnings report, which beat analyst expectations. The company reported earnings per share (EPS) of $0.07, surpassing estimates of -$0.17 per share. Revenue for the quarter reached $348 million, up 8.5% year-over-year and beating forecasts of $341.2 million. Webtoon's net loss narrowed to $3.9 million from $76.6 million in the same quarter a year ago, driven by lower general and administrative expenses.

However, the real game-changer was the announcement of a multi-year partnership with Disney. The deal will bring Disney's extensive comic library to Webtoon's mobile platform, including titles from Disney, Marvel, 20th Century Studios, and Star Wars. The partnership will also involve the creation of new, original webcomics from these brands. Yongsoo Kim, Chief Strategy Officer and Head of Global Webtoon, expressed enthusiasm about the collaboration, stating, "We’re thrilled to kick off this collaboration with iconic series from their comic book catalog – and this is just the start!" [1]

The partnership is expected to provide an additional revenue opportunity for Webtoon, which projects third-quarter revenue between $380 million and $390 million, representing growth of 9.4% to 12.2%. Adjusted EBITDA is targeted to reach $2.0 million to $7.0 million in Q3.

Morgan Stanley raised Webtoon's price target to $11 per share on the news, but the stock blew well past that. The company is nearing profitability, with a price-to-sales ratio of 0.90, suggesting a good value.

References:

[1] https://www.investing.com/analysis/webtoon-entertainment-stock-momentum-builds-on-disney-partnership-buzz-200665299