Webtoon Expects 9.4%-12.2% Q3 2025 Revenue Growth Amid Disney Partnership Advancement

Webtoon expects 9.4%-12.2% revenue growth in Q3 2025, surpassing Q2 performance. The company's CEO credits strong user engagement initiatives and a successful Disney partnership for the positive results.

Webtoon Entertainment Inc. (NASDAQ: WBTN) has announced its second-quarter earnings, which exceeded analyst expectations. The company reported a 9.4%-12.2% revenue growth forecast for the third quarter of 2025, surpassing its Q2 performance. The company's CEO, Junkoo Kim, attributed the positive results to strong user engagement initiatives and a successful strategic partnership with Disney.

In the second quarter, Webtoon's revenue increased by 8.5%, reaching $348.27 million, which was above the consensus estimate of $341.60 million [1]. The adjusted earnings per share (EPS) for Q2 also beat expectations, coming in at $0.07, compared to the consensus estimate of $0.02 [1]. Despite a net loss of $3.9 million, the company's adjusted EBITDA was $9.7 million, representing a margin of 2.8% [2].

The company's net loss narrowed significantly from $76.6 million in the prior year, primarily due to lower general and administrative expenses associated with its IPO in the year-ago quarter [2]. The company's adjusted EBITDA margin for Q3 is expected to be between 0.5%-1.8% [1].

Webtoon's revenue growth was driven by increases in Paid Content, Advertising, and IP Adaptations. The company's recent updates to its webcomic app aimed at increasing user engagement have also contributed to the positive results [1]. The strategic collaboration with Disney, which will bring iconic comics from Marvel, Star Wars, Disney Studios, and 20th Century Studios to Webtoon's mobile vertical-scroll format, is expected to further boost user engagement and revenue [2].

Looking ahead, Webtoon projects Q3 revenue between $380-$390 million, representing growth of 9.4%-12.2% on a constant currency basis [1]. The company ended the quarter with a strong cash position of approximately $581.5 million, plus an additional $12.1 million in short-term deposits [2].

Analysts remain bullish on Webtoon, with the current average analyst rating on the shares being "buy" and the breakdown of recommendations being 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell" [1]. The average consensus recommendation for the online services peer group is also "buy" [1].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX9512BE:0-webtoon-q2-revenue-beats-expectations/
[2] https://za.investing.com/news/earnings/webtoon-entertainment-soars-28-on-strong-results-disney-partnership-93CH-3834852