Webtoon Entertainment Inc

about.webtoon.com

What Do They Do?

Runs digital storytelling platforms for readers, sells ad placements to advertisers, and adapts creator stories into screen and game productions for media partners.

How Do They Make Money?

Paid Content is the largest source: users buy access to stories, often by purchasing virtual currency first; advertisers pay when ads are shown or based on clicks, impressions or user activity. Adaptations bring in production fees, licensing fees and merchandise sales.

revenue

Segment	Share	How money arrives
Paid Content Usage-based	79% FY2022: 79%	Usage-based
Advertising Usage-based	12% FY2022: 13%	Usage-based
IP Adaptations Mix	9.5% FY2022: 7.6%	Mix

Who Are Their Customers?

Readers get stories on its platforms, often using virtual currency to buy access; advertisers buy ad placements, while studios and streaming platforms commission adaptations or license content.

Do Revenues Turn Into Profits?

Not on paper. It lost $345.9M in FY2025, but brought in more cash than it spent: $3.6M of free cash flow.

Operating income, FY2025

−5% of revenue

▼ −37% (Loss) vs FY2024 (−$100.7M, −7%)

Net income, FY2025

−25% of revenue

▲ +140% (Loss) vs FY2024 (−$143.9M, −11%)

Free cash flow, FY2025

0% of revenue

▼ −77% vs FY2024 ($15.5M, 1%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▼ −3%; vs $348.3M in Q2 FY2025
Net income: ▲ +252% (Loss); vs −$4.3M in Q2 FY2025

Paid Content share of revenue vs 78.9% in Q2 FY2025

Aug 10, 2026 Agrees to acquire majority stake in RI Games Holdings The game developer focuses on games based on webcomic intellectual property; the second closing depends in part on a commercial launch milestone.

Growing. Revenue grew 28% in 3 years, from $1.1B in FY2022 to $1.4B in FY2025, about 9% a year.

Revenue over time

Paid Content Advertising IP Adaptations

$2B$1B$0

FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Facebook, YouTube, TikTok, Twitch, Comcast, Disney, ViacomCBS, Activision Blizzard, Electronic Arts, Take-Two, Valve, Unity, Zynga, Netflix, Kakao Entertainment, Kidari Studio, Shueisha, RIDI, GoodNovel, and Dreame

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