$WBTN

WEBTOON Entertainment Inc.

CIK:0001997859|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

Income Statement [Abstract]

Revenue

^[1]

$ 338,465

$ 348,271

$ 659,337

$ 673,978

Cost of revenue

^[2]

(250,329)

(260,992)

(488,153)

(515,088)

Marketing

^[3]

(38,336)

(31,070)

(68,856)

(62,613)

General and administrative expenses

^[4]

(65,368)

(64,972)

(125,927)

(131,674)

Operating income (loss)

(15,568)

(8,763)

(23,599)

(35,397)

Interest income

4,485

4,910

8,859

10,023

Interest expense

(17)

(2)

(34)

(4)

Gain (loss) on equity method investments, net

988

507

542

(62)

Other income (loss), net

^[5]

2,472

(1,367)

467

1,303

Income (loss) before income tax

(7,640)

(4,715)

(13,765)

(24,137)

Income tax benefit (expense)

(6,937)

832

(9,609)

(1,715)

Net income (loss)

(14,577)

(3,883)

(23,374)

(25,852)

Net income (loss) attributable to WEBTOON Entertainment Inc.

(15,248)

(4,326)

(24,703)

(26,715)

Net income (loss) attributable to non-controlling interests and redeemable non-controlling interests

671

443

1,329

863

Other comprehensive income (loss):

Foreign currency translation adjustments, net of tax

(9,171)

41,120

(32,918)

47,692

Share of other comprehensive loss of equity method investments, net of tax

(48)

568

(63)

425

Total other comprehensive income (loss), net of tax

(9,219)

41,688

(32,981)

48,117

Total comprehensive income (loss)

(23,796)

37,805

(56,355)

22,265

Total comprehensive income (loss) attributable to WEBTOON Entertainment Inc.

(24,072)

35,802

(56,171)

19,803

Total comprehensive income (loss) attributable to non-controlling interests and redeemable non-controlling interests

$ 276

$ 2,003

$ (184)

$ 2,462

Weighted average shares outstanding

Basic (in shares)

135,250,711

130,358,706

134,439,157

129,980,922

Diluted (in shares)

135,250,711

130,358,706

134,439,157

129,980,922

Income (loss) per share attributable to WEBTOON Entertainment Inc.

Basic (in usd per share)

$ (0.11)

$ (0.03)

$ (0.18)

$ (0.21)

Diluted (in usd per share)

$ (0.11)

$ (0.03)

$ (0.18)

$ (0.21)

[1]	Includes amounts earned from related parties of $24,551 and $18,278 for the three months ended June 30, 2026, and June 30, 2025, respectively, and $42,794 and $35,991 for the six months ended June 30, 2026, and June 30, 2025, respectively. (See Note 15. Related Party Transactions)
[2]	Includes amounts incurred from related parties of $28,259 and $28,399 for the three months ended June 30, 2026, and June 30, 2025, respectively, and $55,330 and $56,530 for the six months ended June 30, 2026, and June 30, 2025, respectively. (See Note 15. Related Party Transactions)
[3]	Includes amounts incurred from related parties of $613 and $(2,870) for the three months ended June 30, 2026, and June 30, 2025, respectively, and $(1,116) and $(5,451) for the six months ended June 30, 2026, and June 30, 2025, respectively. (See Note 15. Related Party Transactions)
[4]	Includes amounts incurred from related parties of $8,031 and $7,023 for the three months ended June 30, 2026, and June 30, 2025, respectively, and $15,848 and $13,936 for the six months ended June 30, 2026, and June 30, 2025, respectively. (See Note 15. Related Party Transactions).
[5]	Includes amounts earned from related parties of $384 and $424 for the three months ended June 30, 2026, and June 30, 2025, respectively, and $792 and $835 for the six months ended June 30, 2026, and June 30, 2025, respectively. (See Note 15. Related Party Transactions)

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net income (loss)	$ (23,374)	$ (25,852)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for credit losses	(446)	894
Depreciation and amortization	15,341	16,844
Operating lease expense	5,123	4,479
Gain on foreign currency, net	(6,790)	(3,644)
Deferred tax benefit	(2,773)	(5,005)
Loss on debt and equity securities, net	672	2,376
Change in severance benefit, net	1,847	1,165
(Gain) loss on equity method investments, net	(542)	62
Stock-based compensation	19,730	25,498
Other non-cash items	275	(2,336)
Changes in operating assets and liabilities
Changes in receivables	(23,218)	(3,088)
Changes in other assets	(19,600)	(9,545)
Changes in accounts payable	(1,828)	(5,317)
Changes in accrued expenses	(2,204)	(16,251)
Changes in contract liabilities	18,571	10,286
Changes in income tax receivable	6,405	(7,717)
Changes in other liabilities	1,238	8,762
Changes in operating lease liabilities	(4,678)	(3,330)
Payments of severance benefits, net of cash transferred	(1,846)	(1,232)
Net cash used in operating activities	(18,097)	(12,951)
Investing activities:
Proceeds from maturities of short-term investments	9,278	32,257
Proceeds from sale of property and equipment	82	225
Purchases of property and equipment	(4,763)	(2,297)
Purchases of debt and equity securities	(643)	(3,790)
Payment made for short-term investments	(10,167)	(16,619)
Payment made for loan receivable	(77)	(823)
Purchases of intangible assets	(4,027)	(4,460)
Acquisition of businesses, net of cash	0	(148)
Other investing activities	0	1,366
Net cash (used in) provided by investing activities	(10,317)	5,711
Financing activities:
Proceeds from issuance of common stock related to private placement, net	32,682	0
Other financing activities	307	229
Net cash provided by financing activities	32,989	229
Effect of exchange rate changes on cash and cash equivalents	(3,236)	16,155
Cash and cash equivalents:
Net increase in cash and cash equivalents	1,339	9,144
Cash and cash equivalents at beginning of the period	581,806	572,402
Cash and cash equivalents at end of the period	583,145	581,546
Supplemental disclosure:
Income taxes paid	5,978	14,298
Interest paid	0	1
Purchase of property and equipment included in accounts payable	1,792	0
Purchase of intangible assets included in accounts payable	1,162	0
Reclassification of long-term advances to current	(5,321)	49,443
Increase in right-of-use assets recognized from new lease agreements	4,882	12,477
Reclassification of construction in progress to property and equipment	$ 833	$ 0

Condensed Consolidated Balance Sheets (unaudited) - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

Current assets:

Cash and cash equivalents

$ 583,145

$ 581,806

Receivables, net of allowance for credit losses of $1,917 and $3,378 at June 30, 2026, and December 31, 2025, respectively

^[1]

191,311

176,779

Prepaid expenses and other current assets, net

^[2]

72,473

72,647

Total current assets

846,929

831,232

Property and equipment, net

12,390

8,339

Operating lease right-of-use assets

22,674

23,705

Debt and equity securities

65,986

69,669

Intangible assets, net

144,459

157,804

Goodwill, net

328,462

336,825

Equity method investments

75,859

80,440

Deferred tax assets

24,641

22,302

Other non-current assets, net

^[3]

69,028

65,194

Total assets

1,590,428

1,595,510

Current liabilities:

Accounts payable

^[4]

133,662

136,962

Accrued expenses

^[5]

60,940

66,690

Current portion of operating lease liabilities

^[6]

8,105

9,617

Contract liabilities

103,841

89,994

Taxes payable

4,080

4,136

Provisions and defined pension benefits

7,465

8,766

Other current liabilities

3,467

2,457

Total current liabilities

321,560

318,622

Non-current liabilities:

Long-term operating lease liabilities

^[7]

14,525

14,055

Defined severance benefits

22,838

25,069

Deferred tax liabilities

6,100

5,755

Other non-current liabilities

3,619

3,737

Total liabilities

368,642

367,238

Commitments and Contingencies (Note 8)

Redeemable non-controlling interest in subsidiary

24,459

24,540

Stockholders' equity:

Common stock, $0.0001 par value (2,000,000,000 authorized, 135,663,014 shares and 130,776,161 shares issued and outstanding as of June 30, 2026, and December 31, 2025, respectively)

Additional paid-in capital

2,187,794

2,137,926

Accumulated other comprehensive loss

(145,831)

(114,363)

Accumulated deficit

(877,827)

(853,124)

Total stockholders' equity attributable to WEBTOON Entertainment Inc.

1,164,150

1,170,452

Non-controlling interests in consolidated subsidiaries

33,177

33,280

Total equity

1,197,327

1,203,732

Total liabilities, redeemable non-controlling interest, and equity

$ 1,590,428

$ 1,595,510

[1]	Includes amounts due from related parties of $59,283 and $55,156 as of June 30, 2026, and December 31, 2025, respectively. (See Note 15. Related Party Transactions)
[2]	Includes amounts due from related parties of $4,881 and $4,730 as of June 30, 2026, and December 31, 2025, respectively. (See Note 15. Related Party Transactions)
[3]	Includes amounts due from related parties of $33,529 and $33,913 as of June 30, 2026, and December 31, 2025, respectively. (See Note 15. Related Party Transactions)
[4]	Includes amounts due to related parties of $20,010 and $18,765 as of June 30, 2026, and December 31, 2025, respectively. (See Note 15. Related Party Transactions)
[5]	Includes amounts due to related parties of $5,898 and $6,849 as of June 30, 2026, and December 31, 2025, respectively. (See Note 15. Related Party Transactions)
[6]	6.Includes amounts due to related parties of $4,866 and $5,221 as of June 30, 2026, and December 31, 2025, respectively. (See Note 15. Related Party Transactions)
[7]	Includes amounts due to related parties of $2,714 and $5,371 as of June 30, 2026, and December 31, 2025, respectively. (See Note 15. Related Party Transactions)