WEBTOON Entertainment is continuing to face financial challenges nearly a year after going public. In its earnings report for the quarter ending March 31, 2025, the Korean-based digital comics giant posted a modest 0.3% increase in revenue, reaching $325.7 million. However, the company also reported a significant net loss of $22 million, a sharp decline from the $6.2 million net income it reported during the same period in 2024.
The company attributed its sluggish growth to ongoing currency fluctuations and rising operating costs. Excluding exchange rate effects, revenue actually rose 5.3% to $343.8 million, with all three of its main business lines showing gains.
WEBTOON’s newer business segments saw stronger growth. Advertising revenue jumped 13.6% year-over-year to $39.9 million (or $42 million on a constant currency basis). Its IP adaptations segment, which includes WEBTOON-based media projects like dramas and films, grew 11.8% to $25.8 million, or 20.7% when adjusted for currency changes.
CEO and founder Junkoo Kim pointed to recent enhancements made to the company’s English-language platform, particularly improvements to AI-powered discovery tools aimed at helping readers find content more efficiently, as a highlight of the quarter: “[Our] goal is to allow users to spend more time enjoying a story and less time searching for one.”
Looking ahead, WEBTOON’s forecast for the second quarter suggests more modest growth. The company expects revenue to increase between 2.2% and 5.2% compared to the same quarter last year, based on constant currency estimates.
Still, investor confidence appears to be waning. WEBTOON’s stock closed at $9.85 on May 13—less than half its IPO price of $23 per share when it debuted on the public market in June 2024.
Source: PW
