Webtoon Entertainment soars 28% on strong results, Disney partnership

Published 12/08/2025, 21:32
Webtoon Entertainment soars 28% on strong results, Disney partnership

Investing.com -- Webtoon Entertainment Inc. (NASDAQ:WBTN) shares surged 28% after the global storytelling platform operator reported second-quarter earnings that exceeded analyst expectations and announced a strategic partnership with Disney (NYSE:DIS).

The company posted adjusted earnings per share of $0.07 for the quarter ended June 30, 2025, significantly beating the consensus estimate and improving from $0.02 in the same period last year. Revenue came in at $348.3 million, up 8.5% YoY and ahead of the $341.2 million analyst consensus.

Webtoon’s stock jumped sharply following the results and the announcement of a collaboration with Disney to bring iconic comics from Marvel, Star Wars, Disney Studios, and 20th Century Studios to Webtoon’s mobile vertical-scroll format.

"We are pleased to report strong second quarter results, with both revenue and Adjusted EBITDA coming in above the top end of our guidance range," said Junkoo Kim, Founder and CEO. " Total (EPA:TTEF) revenue was up 5.5% on a constant currency basis, with growth in all three revenue streams – Paid Content, Advertising, and IP Adaptations."

The company’s net loss narrowed significantly to $3.9 million from $76.6 million in the prior year, primarily due to lower general and administrative expenses associated with its IPO in the year-ago quarter. Adjusted EBITDA was $9.7 million, representing a margin of 2.8%.

Looking ahead, Webtoon provided an upbeat outlook for the third quarter, projecting revenue between $380-$390 million, well above the analyst consensus of $373.7 billion. This represents growth of 9.4%-12.2% on a constant currency basis.

The company ended the quarter with a strong cash position of approximately $581.5 million, plus an additional $12.1 million in short-term deposits.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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