Web tune Entertainment, the company behind the global web comic phenomenon, rewrote the rules of storytelling with one swipe. It pioneered the vertical scroll format and drew in over 150 million readers worldwide. It completely dominated in Korea and Japan, becoming the go-to platform for digital comics among Gen Z.But breaking into the US, that's been a tougher plot line. In a market ruled by Marvel superheroes and Japanese anime, Webune has struggled to catch up. After its NASDAQ debut last year, the comp ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $5.1 million, down from $28.9 million in the same quarter of 2024 [10][18] - Total revenue reached $378 million, an increase of 8.7% year-over-year, or 9.1% on a constant currency basis [4][10] - Net loss for the quarter was $11.1 million compared to a net income of $20 million in the prior year [10][19] - Adjusted earnings per share was $0.04, down from $0.22 in the prior year [20] Business Line Data and Key Metrics Changes - Revenue from paid content grew by 0.8% on a constant currency basis, driven by strength in Japan and the rest of the world, but offset by a decline in Korea [12] - Advertising revenue decreased by 8.9% on a constant currency basis, with declines in Korea and the rest of the world [13] - IP adaptations revenue increased by 171.8% year-on-year on a constant currency basis, driven by theatrical releases in Korea [14] Market Data and Key Metrics Changes - In Korea, revenue grew by 22.2% year-over-year on a constant currency basis, despite a decline in advertising [15] - Japan's revenue growth was 2% year-over-year, with MAU increasing by 12.6% [16] - The rest of the world saw a revenue decline of 0.7% year-over-year, primarily due to advertising declines [17] Company Strategy and Development Direction - The company is focusing on expanding its partnership with Disney to develop a new digital comics platform featuring over 35,000 comics [5][6] - The launch of video episodes aims to enhance user engagement and attract new users [6][7] - The company plans to co-produce 10 fan-favorite WEBTOON series with Warner Bros. Animation for global distribution [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver growth despite challenges, citing strong partnerships and product innovations [21] - The guidance for Q4 2025 anticipates a revenue decline of 5.1% to 2.3% on a constant currency basis, with expected revenue between $330 million and $340 million [20] - Management highlighted the importance of IP adaptations for user engagement and revenue growth [9][38] Other Important Information - The company is experiencing a decline in overall MAU by 8.5%, primarily due to issues with Wattpad [11][31] - Gross profit for the quarter declined by 9.4%, resulting in a gross margin of 21.9% compared to 26.3% in the prior year [18] Q&A Session Summary Question: Can you elaborate on the long-term vision of the Disney partnership? - Management indicated that the collaboration with Disney is still in early stages and aims to create original stories while maintaining the fundamental margin structure of the business [24][25] Question: What early engagement or monetization metrics are you seeing with video episodes? - Management noted that it is too early to provide specific metrics but expressed optimism about the potential of video episodes to enhance user engagement [26][27] Question: Any updates on the Warner partnership and its economic terms? - Management stated that while they are excited about the partnership with Warner Bros. Animation, they are not ready to disclose specific economic terms yet [28][30] Question: How should we think about web novel users going forward? - Management acknowledged that Wattpad is a significant driver of MAU declines but emphasized its importance as a source of IP [31][33] Question: Can you discuss the drivers of the Q4 guidance? - Management explained that the anticipated revenue decline is primarily due to the timing of IP adaptations and not a fundamental business health issue [36][38]

Core Insights - WEBTOON Entertainment Inc. (NASDAQ:WBTN) has seen a significant increase in its stock price, reaching an all-time high following The Walt Disney Co.'s acquisition of a 2-percent stake in the company [1][3]. Group 1: Stock Performance - Shares of WEBTOON Entertainment surged to a 52-week high of $21.32 during intra-day trading, ultimately closing up by 39.04 percent at $20.80 [2]. - This marks the third consecutive day of gains for WEBTOON Entertainment's stock [1]. Group 2: Strategic Partnership - WEBTOON Entertainment has entered into a non-binding term sheet with Disney for a 2-percent interest, aimed at developing a new digital comics platform [3]. - The platform will feature over 35,000 comics from Disney's extensive portfolio, including Marvel, Star Wars, and Pixar, available through a single subscription [4]. - This agreement builds on a multi-year collaboration between WEBTOON and Disney, which has already produced nearly 100 reformatted classics and original series tailored for WEBTOON's vertical scroll format [4].

Market Overview - U.S. stock futures showed mixed results, with Dow futures increasing approximately 0.1% [1] Company-Specific Movements - Diversified Energy Company PLC DEC experienced a significant decline of 6.6%, dropping to $14.37, following the announcement of a proposed secondary offering of 5,713,353 ordinary shares [1] - Turbo Energy, S.A. TURB saw a sharp decline of 24.1% to $9.41 after a substantial increase of 359% on Tuesday due to being awarded a $53 million contract for energy storage projects in Spain with a total capacity of 366 MWh [3] - ChowChow Cloud International CHOW fell 11.9% to $11.11 after a previous surge of 215% on Tuesday [3] - Pebblebrook Hotel Trust PEB decreased by 8.5% to $10.56 as the company initiated a $350 million convertible senior notes offering to repurchase 2026 notes [3] - WEBTOON Entertainment Inc. WBTN dropped 5% to $19.76 after a 39% increase on Tuesday, following a non-binding agreement with Disney to develop a digital comics platform [3] - loanDepot, Inc. LDI fell 5% to $4.22 in pre-market trading [3] - DRDGOLD Limited DRD decreased by 4.3% to $22.36 [3] - Mercurity Fintech Holding Inc. MFH declined by 2.1% to $9.34 after a previous surge of over 18% on Tuesday [3]

Market Overview - Investors have maintained a bullish outlook recently, but markets experienced a slight decline as the Federal Reserve's two-day meeting commenced, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all slightly lower than their all-time highs [1] - The S&P 500 closed 0.13% lower after reaching a new 52-week high at the open, while the Nasdaq also saw a 0.07% drop from its new 52-week high [1] Stock Performance - The Dow Jones Industrial Average (DJIA) fell by 0.27%, with Nvidia experiencing a 1.64% drop in stock price [2] - Webtoon, a digital comic platform, surged by 36.8% following news of a Disney deal, while Steel Dynamics rose by 7.2%, making it a top performer in the S&P 500 [2] - Warner Bros Discovery was the worst performer, declining by 6.5% after a downgrade from TD Cowen, which changed its rating from Buy to Hold due to unattractive risk/reward dynamics [2][7] Notable Stocks - Warner Bros Discovery's stock has increased by 72.7% year-to-date, despite recent performance issues [3] - Other notable stock movements include APA Corp (+6.9%), Steel Dynamics Inc (+6.2%), and Occidental Petroleum Corp (+5%) [6] - Conversely, Warner Bros Discovery (-6.2%), Paramount Skydance Corp (-5.7%), and Emerson Electric Co (-4.9%) were among the worst performers [6] Acquisition Concerns - Warner Bros Discovery faces uncertainty regarding a potential takeover, with analysts suggesting the stock could "quickly round-trip" if the acquisition does not materialize [7] - Senator Elizabeth Warren expressed concerns over the concentration of media power related to a potential merger involving Warner Bros Discovery and Paramount [8] - Warner Bros, Disney, and Universal have filed a copyright infringement lawsuit against a Chinese AI firm, Minimax, amidst these acquisition concerns [8]

Group 1 - Webtoon Entertainment's shares surged by 42.5% in a single day following an expanded partnership with Walt Disney, significantly enhancing the business value of the Webtoon digital comics platform [1][6] - The new agreement builds on a previous deal made on August 12, which included 100 selected comics from popular franchises like Star Wars and Spider-Man, leading to a notable increase in investor interest [3][4] - The expanded partnership will feature over 35,000 titles from Disney's comic-book worlds, many of which are newly available in digital format, along with original titles being developed specifically for the platform [4][5] Group 2 - The combined announcements from Disney have resulted in a total stock price increase of 117% for Webtoon in less than five weeks [6] - Webtoon, as a subsidiary of Naver, is less likely to issue new shares to capitalize on the stock surge, which would protect existing shareholders from dilution of their stakes [7][8] - The development of the mobile app and back-end infrastructure for the new project is still ongoing, with no confirmed release date, although the partnership benefits from Naver's data centers and Disney's marketing capabilities [9][10]

U.S. Stock Market - U.S. stocks traded mostly lower, with the Dow Jones index falling more than 150 points, down 0.37% to 45,713.02 [1] - NASDAQ fell 0.03% to 22,341.05, and S&P 500 dropped 0.14% to 6,605.77 [1] - Energy shares increased by 1.1%, while utilities stocks fell by 0.8% [1] Company Performance - Dave & Buster's Entertainment Inc. reported second-quarter revenue of $557.41 million, missing analyst estimates of $562.78 million [2] - Adjusted earnings for Dave & Buster's were 40 cents per share, below estimates of 92 cents per share [2] Commodities - Oil prices increased by 2.2% to $64.70, while gold rose by 0.2% to $3,726.00 [5] - Silver traded up 0.1% to $43.000, and copper fell 0.1% to $4.7120 [5] European Markets - European shares were lower, with the eurozone's STOXX 600 falling 0.86% [6] - Spain's IBEX 35 Index decreased by 1.30%, and London's FTSE 100 fell 0.74% [6] Asian Markets - Asian markets closed mostly higher, with Japan's Nikkei gaining 0.30% and India's BSE Sensex increasing by 0.73% [7] Notable Stock Movements - Turbo Energy, S.A. shares surged 408% to $13.72 after securing a $53 million contract for energy storage projects in Spain [8] - WEBTOON Entertainment Inc. shares rose 28% to $19.13 following a non-binding agreement with Disney [8] - Jumia Technologies AG shares increased by 22% to $11.90 after an upgrade from RBC Capital [8] - Bionano Genomics, Inc. shares dropped 41% to $1.6398 due to a $10 million public offering announcement [8] - GD Culture Group Limited shares fell 19% to $7.84 after entering a share exchange agreement [8] - Next Technology Holding Inc. shares decreased by 17% to $23.79 after filing for a stock shelf of up to $500 million [8] Economic Indicators - U.S. business inventories increased by 0.2% month-over-month in July, aligning with market estimates [11] - The NAHB/Wells Fargo Housing Market Index remained steady at 32 in September [11] - U.S. industrial production rose by 0.1% in August, exceeding market expectations [11] - U.S. retail sales increased by 0.6% month-over-month in August, surpassing expectations [11] - Export and import prices both rose by 0.3% in August [11]

Core Insights - Disney and Webtoon have announced a partnership to create a new digital comics platform that will feature over 35,000 titles from Marvel, Disney, 20th Century Studios, and Lucasfilm, along with content from Webtoon [2][4] - The partnership allows Disney the option to acquire a 2% equity stake in Webtoon, which recently went public [2] - Webtoon shares surged to a 52-week high following the announcement, while Disney shares experienced a slight decline [3] Group 1: Partnership Details - The new platform aims to provide fans with unprecedented access to a wide array of comics, combining various IPs into a single digital space [4] - The platform will feature a mix of vertical and traditional formats for archived comics, current runs, and original stories [4] - Webtoon will localize select Disney titles for the Japanese and Korean markets, enhancing its global reach [6] Group 2: Strategic Benefits - The collaboration is strategically beneficial for both companies, as Webtoon is a leader in vertically-scrolling graphic stories, appealing to younger mobile consumers [6] - The partnership follows a positive earnings report for Webtoon, which had seen its stock drop over 60% post-IPO, indicating a recovery and growth potential [7] - Disney is incentivizing its Disney+ subscribers to explore the new app, potentially increasing engagement with its franchises [7] Group 3: Future Considerations - There are several unanswered questions regarding the new platform, including the balance between Webtoon’s format and traditional comic formats [10] - The potential for additional announcements and expansions in the partnership is likely if the initial collaboration proves successful [9] - The impact of the new app on the current digital comics landscape, which represents a small fraction of total revenues for North American publishers, remains to be seen [10]

Core Viewpoint - Webtoon Entertainment Inc. shares surged following a significant partnership with Disney to create a digital comic platform, marking a notable increase in stock value and potential for revenue diversification [1][2][3]. Group 1: Partnership Details - Webtoon and Disney have agreed to develop a digital platform for Marvel and Star Wars brands, offering over 35,000 comics from various Disney properties under a single subscription service for the first time [2]. - The deal represents a "material expansion" of a previous partnership, which could lead to a steady stream of recurring income for Webtoon [3]. Group 2: Market Reaction - Following the announcement, Webtoon shares jumped more than 36% in early trading, reaching a new 52-week high and on track for its second-largest one-day advance since going public [1]. - Including the recent rally, Webtoon shares have more than doubled in the past three months, indicating strong market confidence [5]. Group 3: Analyst Perspectives - Deutsche Bank analyst described the agreement as validating Webtoon’s platform as a preferred destination for major intellectual property distribution [3][4]. - Morgan Stanley analyst expressed skepticism regarding the immediate impact on Webtoon’s near-term earnings, highlighting the need for investment to build the new platform [4].

Business Performance - Naver's Webtoon arm jumps 81% [1] Strategic Partnerships - Disney deal to bring Marvel and Star Wars to digital comics [1]