WEBTOON Entertainment Inc. reported financial results for the second quarter ending June 30, 2026, highlighting a period of strategic investment and operational transition. The company generated $338.5 million in total revenue, representing a 2.8% decline on a reported basis but a 5.2% increase when adjusted for constant currency fluctuations. This growth was supported by performance across its primary revenue streams: Paid Content, Advertising, and IP Adaptations. Despite top-line growth in constant currency, the company recorded a net loss of $14.6 million, compared to a $3.9 million loss in the same period of the previous year, primarily due to heightened marketing expenditures.
Adjusted EBITDA reached $5.5 million, exceeding the company’s high-end guidance, though this figure was lower than the $9.7 million reported in the second quarter of 2025. The company maintained a robust balance sheet with approximately $583.1 million in cash and cash equivalents and no debt. Operational focus remains on leveraging artificial intelligence to enhance user engagement through tools like interactive story chat services and automated translation programs. Additionally, the company is shifting its intellectual property strategy toward increased direct ownership and investment, exemplified by a new strategic agreement with RI Games Holdings Inc. to develop gaming content from its existing webcomic library.
The company’s outlook for the third quarter of 2026 projects constant currency revenue growth between 0.7% and 3.3%, with anticipated Adjusted EBITDA ranging from $0.0 million to $5.0 million. As a global leader in mobile webcomics and visual storytelling, the company continues to manage an ecosystem of approximately 155 million monthly active users across platforms including WEBTOON and Wattpad. Management emphasizes that these financial results reflect a commitment to long-term value creation through ecosystem expansion and the integration of new entertainment formats.
