Webtoon Entertainment Reports 5% Revenue Growth, $22M Q1 Net Loss

Webtoon Entertainment Inc. reported first-quarter 2025 results with total revenue of $325.7 million, a slight 0.3% decline year-over-year due to currency effects, but a 5.3% increase on a constant currency basis driven by growth across Paid Content, Advertising, and IP Adaptations. Despite this revenue growth, the company recorded a net loss of $22 million, a reversal from the prior year's net income, primarily due to increased general and administrative expenses and higher marketing costs related to its public company status. Adjusted EBITDA fell significantly to $4.1 million from $22.2 million the previous year, with margins declining accordingly. Webtoon highlighted strategic product enhancements using AI for better content discovery and the addition of major franchises such as 'Godzilla' and 'Sonic the Hedgehog' to expand its global content library and user engagement. The company maintains a strong balance sheet with over $550 million in cash and no debt, and it projects second-quarter 2025 revenue growth between 2.2% and 5.2% on a constant currency basis. Management remains optimistic about future growth through continued innovation and content expansion to strengthen its position in the digital entertainment market.