WEBTOON Entertainment Reports $362.8M Q3 Revenue, Down 4%, as Korea Grows and IP Adaptations Fall 27.5%

WEBTOON Entertainment (Nasdaq: WBTN) reported third-quarter 2026 revenue of $362.8 million on Nov. 9, a 4.0% decline from a year earlier, while its net loss narrowed to $7.5 million. In constant currency, revenue rose 0.2% to $378.6 million.

The company said declines in Paid Content and IP Adaptations outweighed growth in Advertising.

Profit measures

The net loss compares with $11.1 million in the same quarter last year. Diluted loss per share was $0.06, against $0.09 a year earlier.

Adjusted EBITDA moved the other way. It came in at $2.2 million, down from $5.1 million, which the company attributed mainly to higher foreign currency losses. Gross margin, however, widened to 25.5% from 21.9%.

Segments and regions

Advertising was the clearest bright spot. Revenue from ads reached $49.7 million, up 26.2% from a year earlier. IP adaptations, which cover revenue from turning webcomics into other media, went the opposite direction, falling 27.5% to $37.6 million.

Global monthly active users rose 2.7% year over year to 159.6 million, according to the earnings call transcript published by The Motley Fool. Results by region diverged sharply. Korea revenue grew 10.8% to $169.3 million, and Korean monthly paying users increased 5.2% to 3.9 million, based on call highlights compiled by MarketBeat.

Japan was weaker. Monthly active users there fell 12.1% to 22.3 million. Management responded with a plan to put 10 billion yen, about $63 million, into Japan content over three years.

For the fourth quarter, WEBTOON guided revenue of $371 million to $381 million and adjusted EBITDA of $0 to $5 million. It will begin consolidating RI Games Holdings in that quarter following its acquisition, which will change the composition of reported results.

The company also confirmed the launch date of its new Marvel Comics app: Nov. 16, with more than 35,000 titles available at launch.