WEBTOON Entertainment Inc. reported a revenue of $378.0 million for the third quarter of 2025, marking an 8.7% increase from $347.9 million in the same period last year. For the nine months ending September 30, 2025, total revenue reached $1.052 billion, up 5.7% from $995.6 million in 2024. The growth was primarily driven by a significant increase in revenue from IP adaptations, which surged by 168.7% to $51.9 million in Q3 2025, compared to $19.3 million in Q3 2024. However, the company experienced a decline in advertising revenue, which fell by 9.3% to $39.4 million, attributed to reduced ad volume from a key e-commerce partner.
Despite the revenue growth, WEBTOON reported a net loss of $11.1 million for Q3 2025, a stark contrast to a net income of $20.0 million in Q3 2024. The loss for the nine-month period was $36.9 million, an improvement from a loss of $50.3 million in the prior year. The increase in costs, particularly a 15.1% rise in cost of revenue to $295.3 million, contributed to the operating loss of $14.9 million for the quarter. General and administrative expenses decreased by 6.4% to $62.5 million, reflecting a reduction in stock-based compensation expenses.
Operationally, WEBTOON's monthly active users (MAU) decreased by approximately 8.5% year-over-year to 155.4 million, with notable declines in Korea and the Rest of World segments. In Korea, MAU fell to 24.6 million from 28.1 million, while Japan saw an increase to 25.3 million from 22.5 million, driven by growth in eBookJapan. The company reported 7.7 million monthly paying users (MPU) globally, with a paying ratio of 5.0%, up from 4.6% in the previous year. The average revenue per paying user (ARPPU) increased by 2.8% to $12.4.
Strategically, WEBTOON has focused on enhancing its content offerings and expanding its market presence. The company completed the acquisition of Wattpad in June 2023, which is expected to bolster its user base and content library. Additionally, WEBTOON is investing in marketing to drive user engagement and content consumption. The company maintains a strong cash position with $584.6 million in cash and cash equivalents as of September 30, 2025, which it believes will support its operational needs for at least the next 12 months. Looking ahead, WEBTOON aims to continue leveraging its platform for growth while navigating challenges in user engagement and monetization.
About WEBTOON Entertainment Inc.
Webtoon Entertainment Inc. operates a global digital storytelling platform featuring webcomics, web-novels, and multimedia IP adaptations. It empowers amateur and professional creators to produce and monetize serialized content, attracting diverse audiences worldwide. Revenue streams include Paid Content, advertising, and media adaptations. The company leverages proprietary technology, community engagement, and strategic partnerships to foster content discovery, creator growth, and competitive differentiation in the digital entertainment industry.
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