WEBTOON Entertainment Q1 revenue falls 1.5%, slightly misses estimates

Webtoon Entertainment

11/05/2026 21:17

Overview

US digital comics platform's Q1 revenue declined 1.5%, slightly missing analyst expectations

Adjusted EPS beat analyst expectations, driven by effective cost controls

Company cited lower IP Adaptations and Advertising as main reasons for revenue decline

Outlook

WEBTOON Entertainment expects Q2 revenue of $332-$342 mln, up 1.7%-4.6% on constant currency

Company expects Q2 adjusted EBITDA of $0-$5 mln, with margin of 0.0%-1.5%

WEBTOON Entertainment says it will continue investing in platform updates and innovation throughout 2026

Result Drivers

IP ADAPTATIONS AND ADVERTISING - Co said Q1 revenue decline was driven by lower IP Adaptations and Advertising revenue

PAID CONTENT GROWTH - Growth in Paid Content partially offset revenue declines, according to co

COST CONTROLS - Co attributed significant Adjusted EBITDA increase to effective cost controls

Company press release: ID:nGNX8KDB85

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$320.87 mln
$321.66 mln (5 Analysts)
Q1 Adjusted EPS
Beat
$0.07
-$0.10 (5 Analysts)
Q1 EPS
-$0.07
Q1 Net Income
-$8.80 mln
Q1 Operating Income
-$8.03 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy."

Wall Street's median 12-month price target for Webtoon Entertainment Inc is $12.25, about 7.8% below its May 8 closing price of $13.28

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)