Webtoon Entertainment, the U.S. headquarters of Naver Webtoon, posted an operating loss of 90.2 billion won last year. The operating loss narrowed, but the net loss widened to 530.6 billion won due to goodwill impairment.
On the 3rd (local time), Webtoon Entertainment announced its full-year 2025 results, reporting revenue of $1,382.71 million (about 1.9647 trillion won, based on an average annual exchange rate of 1,420.94 won) and an operating loss of $63.51 million (about 90.2 billion won). Revenue rose 2.5% from a year earlier.
The operating loss shrank 36.9% from $100.69 million a year earlier. However, the net loss increased to $373.39 million (about 530.6 billion won), more than double the prior year's $152.91 million. The company said the results reflected an impairment loss on goodwill. Adjusted EBITDA was $19.44 million.
By business institutional sector, IP business revenue grew 31.8%, showing an upward trend. Paid content revenue rose 0.4%, while advertising revenue fell 1.1%.
Fourth-quarter results showed revenue of $330.69 million, down 6.3% from a year earlier, and an operating loss of $13.24 million. Revenue from IP, advertising, and paid content all declined.
In user metrics, Korea's monthly active users (MAU) fell 11.1% to 24 million, while Japan rose 4.9% to 23 million. MAU in other regions, including the United States, Europe, and Southeast Asia, fell 8.4% to 110 million. However, average revenue per paying user (ARPPU) per month in Korea and Japan rose 4.7% and 3.4%, respectively.
This year, Webtoon Entertainment plans to accelerate global partnerships and expansion of its IP business. In collaboration with Disney, it will roll out a new platform within the year that offers more than 35,000 comics from Marvel, Star Wars, and 20th Century Studios, and it also plans to release original webtoons based on Disney franchises. It has signed an animation development partnership with Warner Bros. Animation for webtoon-based adaptations.
The webtoon "Viral Hit" will be produced as a live-action drama in Japan, and the web novel "Chasing Red" is set to stream on Amazon Prime Video. "Dark Moon: Altar of the Moon" and "Lore Olympus" will also be produced as animations.
Kim Jun-gu, CEO of Webtoon Entertainment and Naver Webtoon, said, "The partnerships we built last year with global entertainment corporations will broaden the base of the comics industry, attract more readers to the webtoon platform, and open more opportunities in the creative ecosystem," adding, "In 2026, we will focus our capabilities on further enhancing user immersion within the platform to build a solid and vibrant fandom."