WEBTOON Entertainment Inc. Common stock

Second-quarter revenue was $339 million, down 2.8% year over year but up 5.2% on a constant-currency basis. Gross profit increased 1% year over year to $88.1 million, and gross margin expanded to 26%, up almost a full percentage point. Adjusted EBITDA was $5.5 million versus $9.7 million a year ago; adjusted EBITDA margin was 1.6% versus 2.8%. Adjusted EPS was $0.04 versus $0.07 last year, while GAAP EPS was a loss of $0.11 versus a loss of $0.03. Net loss was $14.6 million versus $3.9 million a year ago. For Q3 2026, Webtoon guided to revenue growth of 0.7% to 3.3% constant currency, or $358 million to $368 million at current FX rates, and adjusted EBITDA of $0 to $5 million, implying a 0% to 1.4% margin.

Junkoo Kim framed the quarter as evidence that the business is still executing, while also signaling a more aggressive strategic shift. He emphasized AI-powered features, including auto-translation, BIAS-ON interactive story tech, and CutCut video creation tools, as ways to deepen engagement and expand the creator ecosystem. He also highlighted the Disney collaboration and reiterated confidence that Webtoon can return to double-digit growth by year-end.

David J. Lee said the company posted $339 million of revenue, with 5.2% constant-currency growth driven by all three revenue streams, and he pointed to gross margin of 26% as evidence of improving profitability. He noted $88.1 million of gross profit, $5.5 million of adjusted EBITDA, $14.6 million of net loss, and adjusted EPS of $0.04, explaining the weaker profit line was mainly due to higher marketing investment and tax expense. He also said cash stood at $583 million plus $11 million of short-term deposits, and guided Q3 revenue to $358 million to $368 million with adjusted EBITDA of $0 to $5 million.

Analysts focused on engagement, marketing efficiency, Japan, and the new IP commercialization strategy. Management said users typically spend about 30 minutes per day on the platform, but Webtoon does not disclose a separate engagement number for paying users; instead it uses ARPU as a better measure of monetization depth. On marketing, management said spend was about $38 million in the quarter, roughly up 11%, with efficient spend in Korea and more intentional investment in growth markets like Japan and rest of world. On Japan, they said growth should improve through stronger local content, distribution partnerships, and better product/CRM execution, while the double-digit growth target is about exiting Q4 rather than full-quarter performance.