WEBTOON Entertainment reported an operating loss of $26.63 million for the first quarter of 2025, marking a steep reversal from its $14.19 million operating profit in the same period last year. The company also reported a net loss of $21.97 million, according to financial results disclosed on May 13.
Despite its losses, WEBTOON’s quarterly revenue remained stable at $325.71 million, showing only a 0.3% year-over-year decline. This marks the company’s first revenue dip since it went public in June 2023, and reflects a shift in both global market trends and currency pressures.
Key Figures for Q1 2025
- Operating Loss: $26.63 million
- Net Loss: $21.97 million
- Adjusted EBITDA: $4.1 million
- Revenue: $325.71 million (↓ 0.3% YoY)
- First YoY revenue drop since IPO
Regional Performance and Platform Updates
The company highlighted strong growth in advertising and IP adaptations, with:
- Advertising revenue up 7.8% year-over-year
- IP adaptations revenue up 11.8%
In North America, WEBTOON credited a major redesign of its global app for a 19% increase in monthly active users (MAUs). The update introduced AI-powered content recommendations and short-form video previews, designed to enhance discoverability and reader engagement.
However, Japan remains the company’s strongest revenue driver, accounting for 50% of total Q1 revenue. Monthly active users in Japan rose 3.7% year-over-year, reaching 21.9 million. The average revenue per paying user (ARPPU) in Japan stood at $22.30, well ahead of Korea ($7.50) and other regions ($6.50).
The company's Japanese platform, LINE Manga, also ranked No. 1 by revenue across all app stores in Japan during Q1, reinforcing WEBTOON’s dominant position in the region.
Currency Growths and Adjusted Outlook
Founder and CEO Junkoo Kim cited foreign exchange challenges, particularly the weakened Korean won and Japanese yen, as key contributors to the muted growth. According to the company, adjusting for currency fluctuations would have revealed a 5.3% year-over-year revenue increase.
Although the financials suggest a cooling period after a strong post-IPO stretch, WEBTOON's strategic push into AI discovery tools and multimedia expansion especially its growing catalog of IP-based adaptations signals continued ambition in the global digital content market.
About WEBTOON Entertainment Inc.
WEBTOON Entertainment is a leading global entertainment company and home to some of the world's largest storytelling platforms. As the global leader and pioneer of the mobile webcomic format, WEBTOON Entertainment has transformed comics and visual storytelling for fans and creators.
With its CANVAS UGC platform empowering anyone to become a creator, and a growing roster of superstar WEBTOON Originals creators and series, WEBTOON Entertainment’s passionate fandoms are the new face of pop culture. WEBTOON Entertainment's adaptations are available on Netflix, Prime Video, Crunchyroll and other screens around the world, and the company’s content partners include Discord, HYBE and DC Comics, among many others.
With approximately 150 million monthly active users, WEBTOON Entertainment’s IP & Creator Ecosystem of aligned brands and platforms include WEBTOON, Wattpad – the world’s leading webnovel platform – Wattpad WEBTOON Studios, Studio N, Studio LICO, WEBTOON Unscrolled, LINE Manga and eBookJapan, among others.
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