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WEBTOON Ent. Reports Revenue Increase But Net Loss in 3rd Quarter
posted on by Wonhee Cho
WEBTOON Entertainment posted higher revenue but swung to a loss in the third quarter of 2025, as slowing user numbers in Korea and other global markets weighed on the company despite strong performance in Japan and continued growth in its IP adaptation business.
According to the company's most recent filing and shareholder letter released on November 12, WEBTOON reported revenue of US$378 million, an 8.7% increase from a year earlier. The growth came mainly from paid content sales and a sharp rise in revenue from adaptations of its intellectual property, including films and animation produced by its subsidiaries.
However, the company recorded a net loss of US$11.1 million, reversing last year's US$20 million profit. WEBTOON said the downturn was driven by lower investment income and higher tax expenses. Operating performance also softened, with adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) falling to US$5.1 million, down from US$28.9 million a year earlier.
Paid content—the company's core business—rose slightly to US$286.8 million, while revenue from IP adaptations more than doubled. Advertising revenue fell about 9% amid weaker traffic outside Japan.
The quarter also highlighted diverging regional trends. In Japan, WEBTOON's LINE Manga service continued to expand, with monthly active users rising from 22.5 million to 25.3 million. But user numbers dropped in Korea and the rest of the world: Korea fell 12%, and global regions outside Japan declined 8.5%, reflecting a broader slowdown in engagement.
WEBTOON said it expects the fourth quarter to be difficult. The company forecasts revenue to decline between 2.3% and 5.1%.
Source: WEBTOON's press release and shareholder letter
