WEBTOON Reports Q2 2026 Loss, Revenue Decline

WEBTOON Entertainment reported Q2 2026 revenue of about $338.5 million, a 2.8% year-over-year decline, with a net loss of about $15 million and adjusted EBITDA of $5.5 million on a margin of 1.6%. Regional results were mixed, with Korea delivering double-digit paid content and advertising growth, Rest of World up 11.1% in constant currency, and Japan posting a decline as gains in IP adaptations were offset by other segments; advertising revenue rose 11.5% and MAU reached 156 million while MPU grew 1.8% globally. Gross margin improved to 26%, while marketing spend rose 11% to $38.3 million as the company invests in user acquisition, and cash and equivalents stood at $583.1 million with no debt. For Q3, WEBTOON guided revenue of $358 million to $368 million, implying modest constant-currency growth and continued investment in growth initiatives. Market observers highlighted a mix of momentum and profitability concerns, with Simply Wall St noting the stock’s slide to around $8.29 and discussing undervaluation versus a fair value near $11.29 amid ongoing monetization efforts. Analysts also varied, with Wall Street Zen downgrading WEBTOON to sell, while Evercore maintained an outperform rating and price target around $12, and the consensus from MarketBeat reflected a Hold stance with mixed ratings.