Financial Data and Key Metrics Changes - For Q4 2025, the company reported revenue of $330.7 million, down 4.1% on a constant currency basis and 6.3% on a reported basis, primarily due to declines in advertising and IP adaptations [10][11] - Full year 2025 revenue was $1.4 billion, growing 3.9% on a constant currency basis and 2.5% on a reported basis [10] - Adjusted EBITDA for Q4 was $0.6 million, exceeding guidance, compared to a negative adjusted EBITDA of $3.5 million in Q4 2024 [12] - The net loss for Q4 was $336.5 million, compared to a loss of $102.6 million in the prior year, driven by goodwill impairments [11][25] - Full year adjusted EBITDA was $19.4 million, down from $68 million in the prior year [12][23] Business Line Data and Key Metrics Changes - Paid content revenue grew 0.4% on a constant currency basis in Q4, while full year growth was 1.5% [14][15] - Advertising revenue declined 10.3% in Q4 on a constant currency basis, but grew 0.4% for the full year [16] - IP adaptation revenue saw a significant decline of 29.7% in Q4 on a constant currency basis, but grew 35.5% for the full year [16][17] Market Data and Key Metrics Changes - In Korea, Q4 revenue declined 9.1% on a constant currency basis, while full year revenue grew 5.9% [17] - Japan's Q4 revenue declined 1.0% on a constant currency basis, with full year growth of 3.9% [19] - The rest of the world saw Q4 revenue growth of 0.8% on a constant currency basis, but a full year decline of 2.1% [21] Company Strategy and Development Direction - The company is focusing on enhancing its personalization tools and AI-driven content recommendations to improve user engagement [5][6] - A strategic agreement with Disney was completed, targeting a 2026 launch for a new digital comics platform [6][7] - The company aims to deepen engagement across its platform and accelerate its growth potential [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to double-digit year-over-year growth by the end of 2026, driven by improvements in paid content and advertising [27][36] - The company acknowledged challenges in the advertising sector but remains optimistic about its long-term strategy and market position [27][36] Other Important Information - The company reported a cash balance of $582 million at year-end, indicating strong financial health [26] - The company is investing in infrastructure and product development to support future growth [20][61] Q&A Session Summary Question: Details on the Disney platform launch - Management confirmed that Disney's investment was completed, and 12 reformatted titles have been launched, with a commitment to original stories in 2026 [31][33] Question: Factors for double-digit growth - Management highlighted that growth will come from paid content recovery, advertising improvements, and crossover IP opportunities [36][62] Question: Key learnings from recommendation algorithms in Korea - The company noted strong performance metrics in Korea and plans to apply successful strategies to other markets [41][42] Question: Competitive dynamics for attracting creators - Management emphasized the importance of a healthy base of paying users to attract and retain creators, with ongoing investments in content development [43][44] Question: Economics of the new Disney platform - Management stated that WEBTOON will recognize all revenue and costs for the new platform, with a structure consistent with existing business models [52] Question: Advertising ecosystem shifts - Management acknowledged the need to build a tailored advertising infrastructure for the North American market while maintaining a focus on long-term growth [72]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported revenue of $330.7 million, down 4.1% on a constant currency basis and 6.3% on a reported basis, primarily due to declines in advertising and IP adaptations [10][11] - Full year 2025 revenue was $1.4 billion, growing 3.9% on a constant currency basis and 2.5% on a reported basis [10][11] - Adjusted EBITDA for Q4 was $0.6 million, compared to a negative $3.5 million in Q4 2024, while full year Adjusted EBITDA was $19.4 million, down from $68 million in the prior year [12][23] - The net loss for Q4 was $336.5 million, compared to a loss of $102.6 million in the prior year, driven by goodwill impairments [11][25] - Full year net loss was $373.4 million, compared to a loss of $152.9 million in the previous year [25][26] Business Line Data and Key Metrics Changes - Paid content revenue grew 0.4% in Q4 on a constant currency basis, while full year growth was 1.5% [14][15] - Advertising revenue declined 10.3% in Q4 on a constant currency basis, but grew 0.4% for the full year [16] - IP adaptation revenue saw a significant decline of 29.7% in Q4 on a constant currency basis, but grew 35.5% for the full year [16][17] Market Data and Key Metrics Changes - In Korea, Q4 revenue declined 9.1% year-over-year on a constant currency basis, while full year revenue grew 5.9% [17][18] - Japan's Q4 revenue declined 1.0% on a constant currency basis, but full year revenue grew 3.9% [19][20] - The rest of the world saw Q4 revenue growth of 0.8% year-over-year on a constant currency basis, but a full year decline of 2.1% [21][22] Company Strategy and Development Direction - The company is focusing on enhancing its personalization tools and AI-driven content recommendations to improve user engagement [5][6] - A strategic agreement with Disney was completed, targeting a 2026 launch for a new digital comics platform [6][7] - The company aims to deepen engagement across its platform and accelerate its growth potential [9][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to double-digit year-over-year growth by the end of 2026, driven by improvements in paid content and advertising [27][34] - The company acknowledged the challenges faced in Q4 but emphasized the health of its flywheel of creators, content, and users [28][34] Other Important Information - The company reported a cash balance of $582 million at year-end, indicating strong financial health [26] - The first quarter of 2026 is expected to deliver revenue growth in the range of -1.5% to +1.5% on a constant currency basis [27] Q&A Session Summary Question: Details on the Disney platform launch - Management confirmed that Disney's investment was completed on January 8, 2026, and highlighted the launch of 12 reformatted titles [31][32] Question: Factors for double-digit growth by year-end - Management indicated that growth would come from a return to strong paid content growth, improvements in advertising, and crossover IP opportunities [34][36] Question: Key learnings from recommendation algorithms in Korea - Management noted strong performance metrics in Korea and plans to apply successful strategies to other markets [40][41] Question: Competitive dynamics for attracting creators - Management emphasized the importance of a healthy base of paying users and ongoing investments in content diversification [43][44] Question: Economics of the new Disney platform - Management stated that WEBTOON will recognize all revenue and costs, with a structure consistent with existing business models [52]

Financial Data and Key Metrics Changes - The company reported Q4 2025 revenue of $330.7 million, down 4.1% on a constant currency basis and 6.3% on a reported basis, with full year revenue of $1.4 billion, growing 3.9% on a constant currency basis [9][10] - Adjusted EBITDA for Q4 was $0.6 million, exceeding guidance, compared to a negative adjusted EBITDA of $3.5 million in Q4 2024, while full year adjusted EBITDA was $19.4 million, down from $68 million in the prior year [11][22] - The net loss for Q4 was $336.5 million, compared to a loss of $102.6 million in the prior year, driven primarily by goodwill impairments, with a full year net loss of $373.4 million compared to $152.9 million last year [10][24] Business Line Data and Key Metrics Changes - Paid content revenue grew 0.4% in Q4 on a constant currency basis, while full year growth was 1.5% [12][14] - Advertising revenue declined 10.3% in Q4 on a constant currency basis, but full year advertising revenue grew 0.4% [14] - IP adaptation revenue saw a significant decline of 29.7% in Q4 on a constant currency basis, but full year revenue was up 35.5% [14][15] Market Data and Key Metrics Changes - In Korea, Q4 revenue declined 9.1% year-over-year on a constant currency basis, while full year revenue grew 5.9% [16] - Japan's Q4 revenue declined 1.0% on a constant currency basis, with full year growth of 3.9% [18] - The rest of the world saw Q4 revenue growth of 0.8% year-over-year on a constant currency basis, but a full year decline of 2.1% [20] Company Strategy and Development Direction - The company is focusing on enhancing user engagement through AI-driven personalized content recommendations, particularly in Korea, and plans to apply these learnings to other regions [4][5] - A strategic agreement with The Walt Disney Company was completed, targeting a 2026 launch for a new digital comics platform [5][6] - The company aims to deepen engagement across its platform and accelerate growth potential through various initiatives, including IP adaptations and content diversification [8][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to double-digit year-over-year growth by the end of 2026, driven by improvements in paid content and advertising [26][60] - The company acknowledged challenges in the advertising segment but remains optimistic about recovery in key markets, particularly Korea and Japan [33][60] - Management highlighted the importance of ongoing investments in infrastructure and product innovation to support future growth [41][60] Other Important Information - The company reported a cash balance of $582 million at year-end, indicating strong financial health [25] - The first quarter of 2026 is expected to deliver revenue growth in the range of -1.5% to +1.5% on a constant currency basis [26] Q&A Session Summary Question: Details on the Disney platform launch - Management confirmed that Disney's investment was completed on January 8, 2026, and highlighted the launch of 12 reformatted titles as part of the collaboration [30][31] Question: Factors for double-digit growth - Management indicated that growth would come from a return to strong paid content growth, improvements in advertising, and crossover IP opportunities [32][34] Question: Key learnings from Korea's recommendation algorithm - Management noted that the AI-driven personalization engine has been effective in Korea and plans to implement similar strategies in other markets [38][40] Question: Competitive dynamics for attracting creators - The company emphasized the importance of a healthy base of paying users and ongoing investments in marketing and product innovation to attract creators [41][42] Question: Economics of the new Disney platform - Management stated that WEBTOON will recognize all revenue and costs for the new platform, with a structure consistent with existing business models [50] Question: Broader advertising opportunity - Management acknowledged the need for long-term investments in advertising infrastructure, particularly in the U.S. market [72]

Financial Data and Key Metrics Changes - The company reported a net loss of $22 million in the quarter compared to a net income of $6.2 million in the prior year, driven by higher general and administrative expenses and marketing costs [13] - Adjusted EBITDA was $4.1 million in the quarter, down from $22.2 million in the same quarter of the previous year [26] - Revenue grew 5.3% on a constant currency basis, but reported revenue was roughly flat year over year [12] Business Line Data and Key Metrics Changes - Paid content revenue grew 2.8% on a constant currency basis year over year, driven by strength in Japan, offset by declines in Korea and the rest of the world [17] - Advertising revenue increased by 13.6% on a constant currency basis, with strong performance in Korea and Japan, but a decline in the rest of the world [18] - IP Adaptation revenue saw a 20.7% increase year over year on a constant currency basis, with significant growth in Japan [19] Market Data and Key Metrics Changes - In Korea, revenue grew 3.6% year over year on a constant currency basis, primarily driven by advertising and IP adaptations [20] - Japan posted revenue growth of 9.4% on a constant currency basis, with all revenue streams contributing positively [22] - The rest of the world experienced a revenue decline of 4% year over year on a constant currency basis [24] Company Strategy and Development Direction - The company is focused on building a local creator ecosystem in Japan and expanding its cross-border strategy by taking Japanese content to other markets [6] - Investments are being made in the English language platform to enhance user experience and engagement [7][10] - The company aims to leverage its flywheel of creators, content, and users to generate profitable growth over the long term [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite potential market downturns, citing a low average revenue per paying user [10] - The company anticipates revenue growth in the range of 2.2% to 5.2% for the second quarter of 2025 [29] - Management is closely monitoring market health and believes in the long-term growth potential of newer markets [35] Other Important Information - The company faced challenges with a security upgrade affecting search engine indexing, which contributed to a decline in web MAU [14] - The gross profit for the quarter was $71.6 million, resulting in a gross margin of 22%, down from 25.2% in the prior year [25] - The company is making significant changes to its English language web comic app to improve user engagement [60] Q&A Session Summary Question: User growth initiatives and investment cadence - Management highlighted strong long-term growth signs in newer markets, particularly a 19% increase in English-speaking platform MAU [35] Question: Importance of local content in local markets - Management emphasized the significance of local creator IP and partnerships to enhance global reach and engagement [39] Question: MAU decline in Korea and future growth potential - Management noted that while Korea has high penetration, constant currency revenue growth of 3.6% indicates potential for future growth [46] Question: Update on advertising revenue in North America - Management stated that North America advertising is still in early stages, with a focus on building foundational products for future growth [49] Question: Impact of global franchises on monetization - Management clarified that global franchises have historically contributed positively to the core paid content margin structure [53] Question: Security update on Wattpad and user impact - Management confirmed that Wattpad's issues significantly impacted total MAU declines, but it is not a major contributor to paid content revenue [66] Question: Engagement levels of licensed IP in the U.S. - Management indicated that engagement levels depend on the specific IP, but there is potential for licensed IP to drive user engagement [85]