Webtoon Entertainment Inc. · NASDAQ:WBTN
Webtoon Entertainment — Q1 2026 Earnings Presentation
23 slides from Webtoon Entertainment's earnings presentation, May 11, 2026
Slide 1: WEBTOON Entertainment Shareholder Letter Q1 2026
WEBTOON Entertainment Shareholder Letter NASDAQ: 1 WBTN Q1 2026
Slide 2: Dear Fellow Shareholders
Q1 2026 May 11, 2026 Dear Fellow Shareholders, We are pleased to start the year with solid Q1 results as Adjusted EBITDA grew significantly by 132% year- over-year to $9.5 million, well above the high-end of our previous guidance range. Total reported revenue of $320.9 million was down 1.5% year-ove
Slide 3: Investing in Our Creator Ecosystem to Power Long-term Growth
Investing in Our Creator Ecosystem to Power Long-term Growth Our creators, users, and content drive a powerful global flywheel. By continually creating and publishing new and diverse content, creators on our platform help power our flywheel and drive the scale of our user base. In turn, users build
Slide 4: CANVAS platform changes and AI-powered Translation Program
than ever for creators to share their stories, grow their fandoms, and monetize their work all over the world. As part of this change, we will expand our Ad Revenue Share to all supported CANVAS languages, further incentivizing amateur creators around the world to start on WEBTOON. Readers will also
Slide 5: Partnering with Xbox on a New Sea of Thieves Original Webcomic Series
Partnering with Xbox on a New Sea of Thieves Original Webcomic Series In January 2026, we announced that WEBTOON Entertainment and Xbox teamed up to bring the world of Sea of Thieves to webcomic fans all over the world with Sea of Thieves: The Last Bite, an all-new, original miniseries now available
Slide 6: Transforming our Platform into an Interactive Playground for Fans
Prime Video Tubi Source: TVING Transforming our Platform into an Interactive Playground for Fans Moving beyond screen adaptations, we are exploring new ways for our users to engage with the platform. We have seen encouraging early results with our AI-enabled Character Chat, which allows users to con
Slide 7: In Closing
We also introduced other management changes during the quarter to accelerate execution and drive innovation, including shifts from regional structures to integrated global leadership and realigning our tech leadership and structure. In Closing I am proud of our continued progress during the first qu
Slide 8: Financial Update
Financial Update First Quarter 2026 (vs. First Quarter 2025) Total revenue of $320.9 million declined 1.5%, driven by declines in IP Adaptations and Advertising, partially offset by growth in Paid Content. Revenue on a constant currency basis was $326.4 million, increasing 0.2%, driven by growth in
Slide 9: Consolidated Global Results
Consolidated Global Results GLOBAL REVENUE CC ($M) GLOBAL MAU (M) 0.2% $325.7 $326.4 $25.6 $19.9 -5.9% $39.9 $40.2 $260.2 $266.2 153.3 144.3 1Q25 1Q26 1Q25 1Q26 Paid Content Revenue CC Advertising Revenue CC IP Revenue CC Global Revenue CC GLOBAL MPU (M) Global ARPPU CC ($) 5.2% 4.8% +0.1% 7.4 7.5 $
Slide 10: Total MAU, MPU and Advertising revenue commentary
During the first quarter, total MAU of 144.3 million declined 5.9%. In March 2026, we saw a spike in automated web traffic in certain non-core markets. We strive to detect and minimize unauthorized access to our platform, fake user accounts, and fraudulent accounts created by bots that inflate user
Slide 11: Net loss and Adjusted EBITDA for the first quarter
Adj. EBITDA (Non-GAAP) ($M) ADJUSTED EPS ($) 3.0% 1.3% $9.5 0.07 $4.1 0.03 1Q25 1Q26 1Q25 1Q26 Adj. EBITDA Margin Net loss for the first quarter was $8.8 million, compared to a net loss of $22.0 million last year, driven primarily by improved gross profit. Excluding adjustments and other non-recurri
Slide 12: Performance By Location: Korea
Performance By Location Korea KOREA REVENUE CC ($M) KOREA MAU (M) +3.2% -4.3% $121.6 24.2 23.1 $117.7 1Q25 1Q26 1Q25 1Q26 KOREA MPU (M) KOREA ARPPU CC ($) 16.1% 14.2% +5.1% 3.7 $7.9 3.4 $7.5 1Q25 1Q26 1Q25 1Q26 MPU Paying ratio Korea’s total revenue for the three months ended March 31, 2026 grew 2.3
Slide 13: Japan
Japan JAPAN REVENUE CC ($M) JAPAN MAU (M) -3.4% -3.6% $164.3 $158.6 21.9 21.1 1Q25 1Q26 1Q25 1Q26 JAPAN MPU (M) JAPAN ARPPU CC ($) 10.3% 9.8% +3.7% 2.2 $22.3 $23.2 2.1 1Q25 1Q26 1Q25 1Q26 MPU Paying ratio Japan’s total revenue for the three months ended March 31, 2026 decreased 6.1%, to $154.3 milli
Slide 14: Rest of World
Rest of World ROW REVENUE CC ($M) ROW MAU (M) -6.7% +5.6% 107.3 100.0 $43.7 $46.2 1Q25 1Q26 1Q25 1Q26 ROW MPU (M) ROW ARPPU CC ($) +4.4% 1.7% 1.6% $6.5 $6.8 1.7 1.7 1Q25 1Q26 1Q25 1Q26 MPU Paying ratio Rest of World’s total revenue for the three months ended March 31, 2026 grew 5.6%, to $46.2 millio
Slide 15: Guidance, Conference Call & Webcast Details, About WEBTOON Entertainment
Guidance Second Quarter 2026 Outlook For the second quarter 2026, the Company expects: • Revenue growth on a constant currency basis in the range of 1.7%-4.6%. This represents revenue in the range of $332-$342 million, based on current FX rates. • Adjusted EBITDA in the range of $0.0-$5.0 million, r
Slide 16: Forward-Looking Statements and Note About Key Business Metrics
Forward-Looking Statements This letter contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those
Slide 17: Use of Non-GAAP Financial Measures & Definitions
Webcomic app MAU refers to users who visited one of our webcomic mobile applications, rather than our webnovel mobile applications, averaged over each month in the given period. We define MPU as users who have paid to access Paid Content in the applicable calendar month, averaged over each month in
Slide 18: Contact Information
before interest expense, interest income, income tax expense (benefit) and depreciation and amortization, with further adjustments to eliminate the effects of loss on equity method investments, effect of applying the valuation method of fair value through profit or loss, impairment of goodwill, non-
Slide 19: Financial Highlights
Financial Highlights Quarter Ended (YoY Analysis) Figures in millions, except user metrics and per share data March 31, 2026 March 31, 2025 Change Total Revenue $320.9 $325.7 (1.5%) Revenue on a Constant Currency Basis1 $326.4 $325.7 0.2% Paid Content Revenue $261.4 $260.2 0.5% Paid Content Revenue
Slide 20: Non-GAAP constant currency measures note
1 Revenue on a constant currency basis, Paid Content revenue on a constant currency basis, Advertising revenue on a constant currency basis, IP Adaptations revenue on a constant currency basis, ARPPU on a constant currency basis, Korea ARPPU on a constant currency basis, Japan ARPPU on a constant cu
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures The following table presents a reconciliation of revenue to revenue on a constant currency basis, and ARPPU to ARPPU on a constant currency basis, respectively, for each of the periods presented. Three Months Ended March 31, (in thousands of USD, except percentage
Slide 22: Reconciliation of net loss to EBITDA and Adjusted EBITDA
The following table presents a reconciliation of net loss to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for each of the periods presented. Three Months Ended March 31, (in thousands of USD, except percentages) 2026 2025 Net income (loss) ($8,797) $21,969 Interest income (4,374) (5,113) Inter
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