WEBTOON Entertainment Inc. reported a revenue of $1.383 billion for the year ended December 31, 2025, a 2.5% increase compared to $1.348 billion in 2024. This growth was primarily driven by a significant increase in IP Adaptations revenue, which rose by 31.8% to $131 million. However, advertising revenue saw a slight decrease of 1.1%, amounting to $164 million. The company experienced a net loss of $373 million, a substantial increase from the $153 million net loss in the previous year.
Key operational metrics for WEBTOON include 157 million monthly active users (MAU) and 7.5 million monthly paying users (MPU). The paying ratio, calculated as MPU divided by MAU, was 4.8%. Paid Content Average Revenue per Paying User (ARPPU) increased by 3.5% to $12.1. The company's cost of revenue increased by 5.1% to $1.061 billion, while marketing expenses rose by 17% to $126 million. General and administrative expenses decreased by 21.8% to $260 million, primarily due to lower stock-based compensation expenses and the absence of one-time IPO-related costs.
A significant factor impacting the company's financial performance was an impairment loss of $336 million on goodwill and other intangible assets, primarily related to Wattpad, Munpia, Wattpad WEBTOON Studios Corp., and Purple Duck. These impairments were attributed to downward revisions in projected cash flows and long-term operating results due to operational challenges, strategic shifts, and slower-than-expected synergy realization. The company also noted that its results of operations are affected by fluctuations in currency exchange rates, particularly the Korean won and Japanese yen against the U.S. dollar.
Looking ahead, WEBTOON intends to continue expanding its presence in existing and new geographic markets, diversify its monetization strategy, and innovate its platform to offer attractive features and safe experiences for creators and users. The company also plans to increase revenues from IP Adaptations and expand its advertising business. However, the company acknowledges various risks and uncertainties that could affect its future performance, including competition, the ability to attract and empower creators and users, and compliance with evolving regulations related to privacy, data protection, and cybersecurity.
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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