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Mar 31
WEBTOON Entertainment Inc Q1 2025 Earnings Report
WEBTOON Entertainment Inc reported flat year-over-year revenue with margin compression and a net loss in Q1 2025.
Key Takeaways
WEBTOON delivered Q1 2025 revenue of $325.7M, slightly down year-over-year but up 5.3% on a constant currency basis. While Advertising and IP Adaptations grew, higher G&A and marketing expenses drove a net loss of $22.0M. Adjusted EBITDA came in at $4.1M.
Revenue reached $325.7M, down 0.3% YoY but up 5.3% on a constant currency basis.
Net loss was $22.0M compared to $6.2M income last year, impacted by higher G&A and marketing costs.
Adjusted EBITDA fell to $4.1M from $22.2M in Q1 2024.
Strong liquidity position with $550.1M in cash and no debt.
WEBTOON Entertainment Inc
WEBTOON Entertainment Inc
WEBTOON Entertainment Inc Revenue by Segment
WEBTOON Entertainment Inc Revenue by Geographic Location
Revenue by Segment
Paid Content Revenue
CapyFin.comAdvertising Revenue
CapyFin.comIP Adaptations Revenue
CapyFin.comRevenue by Geographic Location
Korea Revenue
CapyFin.comJapan Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
WEBTOON projects Q2 2025 revenue between $335M and $345M with Adjusted EBITDA between $0.5M and $5.5M.
Positive Outlook
- Revenue guidance implies continued top-line growth.
- Advertising and IP Adaptations segments show strong momentum.
- Enhanced AI discovery features rolled out to English-language platform.
- New partnerships with global franchises like Godzilla and Sonic.
- Robust balance sheet with over $550M in cash and no debt.
Challenges Ahead
- Paid content revenue declined YoY.
- Adjusted EBITDA margin compressed from 6.8% to 1.3%.
- G&A and marketing expenses significantly increased.
- Net income turned negative after prior year profit.
- Limited geographic revenue diversification outside Japan.