Webtoon Posts $336.5M Q4 Loss with 3.9% Full-Year Revenue Growth
Webtoon reported a fourth-quarter net loss of $336.5 million, driven by goodwill impairments primarily at Wattpad, while revenue fell 4.1% constant-currency to $330.7 million. Full-year revenue rose 3.9% constant-currency to $1.4 billion, and adjusted EBITDA reached $19.4 million thanks to positive MPU growth and AI personalization.
1. Q4 Financial Results
Webtoon reported a fourth-quarter net loss of $336.5 million driven by goodwill impairments primarily at Wattpad, with revenue of $330.7 million down 4.1% on a constant-currency basis and adjusted EBITDA of $0.6 million exceeding guidance.
2. Full-Year Performance
For 2025 full-year, Webtoon posted a $373.4 million net loss compared to $152.9 million, generated $1.4 billion in revenue up 3.9% constant-currency, and achieved adjusted EBITDA of $19.4 million with adjusted EPS of $0.15.
3. Operational Drivers
Gross margin expanded 100 basis points to 24.3% in the quarter, aided by lapping marketing recategorization, while paid content grew modestly, advertising declined over 10%, and IP adaptation revenue volatility reflected timing of milestone recognition.
4. Strategic Outlook
Management highlighted a $32.8 million Disney investment for a 2% stake and plans for a Disney-backed digital comics platform, backed by AI-driven personalization with 0.7% MPU growth, aiming for double-digit revenue growth by end of 2026.