Financial Performance - Total revenue for Q3 2025 was $378.0 million, an increase of 8.7% year-over-year, with a constant currency growth of 9.1%[6] - Net loss for the quarter was $11.1 million, compared to a net income of $20.0 million in Q3 2024[6] - Adjusted EBITDA was $5.1 million, down from $28.9 million in the prior year, resulting in an Adjusted EBITDA Margin of 1.4%[6] - Adjusted Earnings Per Share for Q3 2025 was $0.04, down from $0.22 in the prior year[6] - For Q4 2025, the company expects revenue to decline in the range of $330-$340 million, with an Adjusted EBITDA loss projected between $6.5 million and $1.5 million[7] - The company reported a basic loss per share of $0.09 for Q3 2025, compared to earnings of $0.15 per share in Q3 2024[39] - The net income margin for Q3 2025 was (2.9)%, a decline from 5.7% in Q3 2024, indicating a significant drop in profitability[39] - For the nine months ended September 30, 2025, the net loss was $36,902,000, an improvement from a loss of $50,349,000 in the same period of 2024[39] Cash and Assets - The company has approximately $584.6 million in cash and cash equivalents, with no debt[1] - Cash and cash equivalents increased to $584,575 as of September 30, 2025, compared to $572,402 as of December 31, 2024[26] - Total assets as of September 30, 2025, were $1,977,871, an increase from $1,935,334 as of December 31, 2024[27] - Total current liabilities increased to $334,260 as of September 30, 2025, from $313,224 as of December 31, 2024, reflecting a rise of 6.6%[27] Revenue Breakdown - Total revenue for the nine months ended September 30, 2025, increased by 5.7% to $1,052,019 thousand compared to $995,631 thousand in 2024[37] - Revenue on a Constant Currency Basis for the nine months ended September 30, 2025, was $1,076,043 thousand, reflecting an 8.1% increase from $995,486 thousand in 2024[37] - Paid Content Revenue for the nine months ended September 30, 2025, was $821,953 thousand, a 1.1% increase from $812,791 thousand in 2024[37] - IP Adaptations Revenue surged by 70.2% to $105,581 thousand for the nine months ended September 30, 2025, compared to $62,040 thousand in 2024[37] Operating Activities - Net cash provided by operating activities for the nine months ended September 30, 2025, was $3,578 thousand, down from $26,539 thousand in 2024[32] - Net cash used in investing activities for the nine months ended September 30, 2025, was $(5,029) thousand, compared to $(11,230) thousand in 2024[33] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $1,407 thousand, significantly lower than $353,668 thousand in 2024[33] Marketing and Expenses - Marketing expenses for the three months ended September 30, 2025, were $35,166, an increase from $32,719 in the same period of 2024[29] - The company incurred stock-based compensation expenses of $9,625,000 in Q3 2025, down from $12,262,000 in Q3 2024[39] User Engagement - The company has approximately 155 million monthly active users, indicating a strong user base for its platforms[12] Strategic Partnerships - WEBTOON Entertainment is expanding its relationship with Disney, including a non-binding agreement for Disney to acquire a 2% equity interest[3] - The company plans to co-produce 10 animated projects with Warner Bros. Animation for global distribution[5] Foreign Currency and Interest - The company reported a foreign currency translation adjustment loss of $21,116 for the three months ended September 30, 2025[29] - Interest income for the three months ended September 30, 2025, was $4,638, a decrease from $6,512 in the same period in 2024[29] - Total interest income decreased to $(4,638,000) in Q3 2025 from $(6,512,000) in Q3 2024, while interest expense remained minimal at $2,000[39]
Webtoon Entertainment Inc.(WBTN) - 2025 Q3 - Quarterly Results