Webtoon Flags Fourth-Quarter Constant-Currency Growth Rebound

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue was $362.8 million, down 4.0%, as constant-currency growth slowed to 0.2% and the company now expects 9.0%-12.0% growth in the fourth quarter.

WEBTOON Entertainment Inc. (WBTN), a global storytelling-platform company, reported third-quarter revenue of $362.8 million, a 4.0% year-over-year decline that widened from a 2.8% drop in the second quarter. On a constant-currency basis, revenue was $378.6 million, up 0.2%, after 5.2% constant-currency growth in the prior quarter.

The company said it delivered reported revenue and Adjusted EBITDA within its guidance ranges. Founder and CEO Junkoo Kim said the company is confident in a return to double-digit revenue growth in the fourth quarter.

Paid Content, the largest stream, generated $275.5 million, down 3.9%; on a constant-currency basis it was $289.6 million, up 1.0%. Advertising revenue was $49.7 million, up 26.2%, or $51.2 million, up 30.1%, on a constant-currency basis. IP Adaptations revenue was $37.6 million, down 27.5%, or $37.8 million, down 27.0%, on a constant-currency basis.

Korea was the growth engine. Korea revenue was $169.3 million, up 10.8%, or $173.4 million, up 13.5%, on a constant-currency basis. Korea Paid Content revenue was $108.9 million, up 23.7%, and Korea ARPPU was $9.4, up 17.6%. Japan revenue was $147.3 million, down 18.0%, or $159.1 million, down 11.4%, on a constant-currency basis. Japan Paid Content revenue was $134.8 million, down 17.9%, and Japan ARPPU was $22.3, down 5.8%. Rest of World revenue was $46.2 million, up 1.3%. Global Paid Content ARPPU was $12.3, down 0.8%, or $13.0, up 4.2%, on a constant-currency basis.

Net loss was $7.5 million, compared with $11.1 million a year earlier; diluted loss per share was $0.06 versus $0.09. The company said the improvement was driven primarily by higher gross profit and an income tax benefit, partially offset by increased marketing investment and higher foreign currency losses. Operating loss was $9.2 million, versus $14.9 million a year earlier. Marketing expense was $39.1 million, versus $35.2 million.

Adjusted EBITDA was $2.2 million, compared with $5.1 million a year earlier, primarily due to higher foreign currency losses, the company said. Adjusted EBITDA margin was 0.6%, versus 1.4%. Adjusted EPS was $0.02, compared with $0.04.

Net cash provided by operating activities was $6.2 million for the quarter, compared with $16.5 million in the prior-year quarter. Cash and cash equivalents were approximately $548.4 million, with no debt.

For the fourth quarter of 2026, the company expects revenue growth on a constant-currency basis in the range of 9.0%-12.0%, or revenue of $371 million to $381 million at current FX rates. Adjusted EBITDA is expected in the range of $0.0 million to $5.0 million, or a 0.0%-1.3% margin. The outlook includes expected revenue and contributions from RI Games Holdings Inc. following the anticipated second closing of that transaction.