WEBTOON Entertainment Inc. (WBTN)

Price$10.09Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe valuation is modest, but it already assumes today’s weak cash generation improves.

With about 135.7 million shares outstanding, the market values WEBTOON near $1.46 billion. Subtracting June net cash of $560.5 million leaves an operating-business value near $902 million, about 0.66 times the latest twelve months’ $1.37 billion revenue. Yet free cash flow—cash left after operations and investment—was roughly negative $4 million over that period. A sustainable 5% margin would produce about $68 million and imply 13 times that cash; 3% implies 22 times. This balance supports Fair-priced.

Big pictureGrowth has slowed sharply, with stronger Korean demand offset by weakness in Japan.

Revenue rose from $1.08 billion in 2022 to $1.38 billion in 2025, but 2025 growth slowed to 2.5%. First-half 2026 reported revenue fell 2.2%; holding exchange rates constant, it rose 2.8%. Second-quarter global monthly users grew only 0.5% and paying users 1.8%. Korean paid-content sales grew 16%, while Japan fell 15.6% in dollars. Results therefore swing with currencies, hit-title schedules, and marketing, while Japan’s weaker user and payer counts make renewed double-digit growth uncertain.

Business strengthA large cash reserve limits financial danger, although the core business still consumes cash.

The balance sheet provides real protection: $583.1 million cash, $22.6 million debt, and current assets 2.6 times short-term liabilities. Second-quarter gross margin improved to 26.0% from 25.1%, and the first-half operating loss narrowed to $23.6 million from $35.4 million. Cash proof remains weak, however: first-half operations consumed $18.1 million and equipment investment consumed another $4.8 million, after only $3.6 million free cash flow in 2025. A $335.5 million goodwill write-down was noncash but showed several past acquisitions missed expectations.

What could change the storyLasting cash profits could unlock value, while Japan weakness and aggressive dealmaking could erase it.

The strongest bull case is better monetization of 156.9 million monthly users, especially if Japan stabilizes and Disney or Marvel stories lift advertising and paid reading. A credible threshold is positive free cash flow approaching 5% of revenue. The bear case is continued slow growth while acquisitions consume the cash cushion. Shares outstanding rose 5.5% since December 2024, and stock compensation was $19.7 million in first-half 2026. The $100 million RI Games purchase may require further cash and shares, with no buybacks or dividends offsetting dilution.

AI: News

Mixed second-quarter resultsCurrency-adjusted sales grew, but higher marketing costs and cautious guidance exposed fragile profitability.

On August 10, WEBTOON reported that second-quarter revenue fell 2.8% to $338.5 million, although it grew 5.2% after holding exchange rates constant. Management’s adjusted profit measure was $5.5 million, above its guidance, but operating cash outflow reached $6.3 million. Third-quarter guidance called for only 0.7% to 3.3% currency-adjusted growth and up to $5 million adjusted profit. Shares fell 6.8% the next session, though timing alone does not prove the report caused the decline.

Major games investmentWEBTOON committed a meaningful share of its cash to turn popular comics into games.

On August 10, WEBTOON agreed to buy up to 60% of RI Games for approximately $100 million, initially paying about $33.2 million and paying the remainder after a launch milestone. The agreement also allows up to $33.2 million of additional funding. If later revenue targets are met, WEBTOON may have to purchase the remaining 40% for at least $66.5 million using cash and shares. The deal could create valuable franchises, but it materially increases capital-allocation and dilution risk.

Marvel partnership advancesThe first exclusive Marvel series made the Disney partnership more tangible, though revenue remains unproven.

On July 24, Marvel and WEBTOON unveiled three original vertical-scroll series created exclusively for WEBTOON. Release dates and commercial terms were not disclosed. This followed the January completion of a broader Disney digital-comics platform agreement and Disney’s $32.8 million purchase of roughly 2% of WEBTOON. The reasonable inference is that well-known characters could attract readers and advertisers, but there is not yet reported evidence that these projects can produce meaningful revenue or cash profit.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$1.38B	$1.35B	$1.28B	$1.08B
Gross profit	$322.2M	$339.1M	$295.5M	$273.0M
Gross margin	23.30%	25.14%	23.04%	25.29%
Operating expenses	$385.7M	$439.8M	$331.8M	$387.7M
Operating income	−$63.5M	−$100.7M	−$36.4M	−$114.7M
Operating margin	−4.59%	−7.47%	−2.83%	−10.63%
EBITDA	−$28.1M	−$60.6M	$2.0M	−$80.0M
EBITDA margin	−2.03%	−4.50%	0.16%	−7.41%
Net income	−$345.9M	−$143.9M	−$116.5M	−$129.9M
Net profit margin	−25.02%	−10.67%	−9.08%	−12.03%
Basic EPSper basic share	-$2.66	-$1.21	-$1.06	-$1.22
Diluted EPSper diluted share	-$2.66	-$1.21	-$1.06	-$1.22

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 9 reported holders of WBTN
Holder	Shares held
Kim Junkoo	659.82K
Lee David J.	231.05K
Kim Yongsoo	204.97K
Chae Yuki	149.82K
Park Chankyu	125.91K
Son Hyeeun	108.53K
Kim Hyojung	102.76K
Jeong Saeju	48.49K
Kim Namsun	7.2K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys10$1.18M disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 20, 2025Form 4	Kim JunkooSee Remarks	BuyCommon Stock	11.4K	$8.81	$100.6K	510.2K
Mar 19, 2025Form 4	Kim JunkooSee Remarks	BuyCommon Stock	11.4K	$8.73	$99.3K	498.8K
Feb 28, 2025Form 4	Lee David J.See Remarks	BuyCommon Stock	7.2K	$9.00	$64.8K	291.1K
Aug 21, 2024Form 4	Kim NamsunDirector	BuyCommon Stock	7.2K	$13.90	$100.0K	7.2K
Aug 19, 2024Form 4	Kim JunkooSee Remarks	BuyCommon Stock	2.1K	$13.07	$27.9K	924.0K

Review ownership filings at SEC.gov ↗

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WEBTOON Entertainment Inc. (WBTN)

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