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WEBTOON Entertainment had a tough fourth quarter in 2025. The company reported $330.7 million in revenue, which was about 4% lower than before. This was due to less money from advertising and changes in revenue from its adaptations of popular content. WEBTOON also faced a net loss of $336.5 million, mainly because of goodwill impairments from its acquisition of Wattpad.
Despite these losses, WEBTOON saw some positive signs. The number of paying users increased slightly. Management noted that their tools using AI helped attract more paying users. In Korea, they also reported a rise in the ratio of users who pay for content.
WEBTOON is forming a partnership with Disney. Disney has bought about 2% of WEBTOON for about $32.8 million. Together, they plan to create a new digital comics platform by 2026.
The company expects to get back to double-digit revenue growth by the end of 2026. However, they warned that timing for new releases could change.