WEBTOON Entertainment Narrows Losses in First Quarter 2026
The narrowing loss suggests WEBTOON Entertainment's cost-cutting and content diversification strategies are gaining traction, even as overall revenue continues to decline.
Reporting from 1 sources: Anime News Network.
WEBTOON Entertainment reported a narrowed operating loss of US$8.03 million for the first quarter of 2026, a roughly 70% improvement from the US$26.63 million loss in the same period a year earlier. The company disclosed the results on May 11. Net loss also fell to US$8.8 million, down about 60% from US$21.97 million a year ago. Quarterly revenue reached US$320.9 million, a 1.5% decline year-over-year, marking another quarter of softening sales after revenue first began slipping last year. The company pointed to Korea as a bright spot. Adjusting for currency effects, Korean revenue grew 3.2% year-over-year, which the company credited to a more diverse content lineup and AI-powered recommendations. Monthly paying users in Korea rose 8.5%, while global monthly paying users outside Korea and Japan increased 3.3%. Japan remains the company's most lucrative market on a per-user basis, with an average revenue per paying user of US$22.5, compared to US$7.8 in Korea and US$6.8 in the rest of the world. The company's IP and creator ecosystem now reaches roughly 145 million monthly active users worldwide. Founder and CEO Junkoo Kim said the company delivered "solid first quarter results" and plans to expand its creator ecosystem, including a major overhaul of its amateur CANVAS platform through the year.
WEBTOON Entertainment's first-quarter 2026 results show the company making progress on profitability while facing headwinds in top-line growth. The operating loss of US$8.03 million was a significant improvement from the US$26.63 million loss a year ago, and the net loss of US$8.8 million was down about 60% from US$21.97 million. Revenue slipped 1.5% year-over-year to US$320.9 million, but adjusting for currency swings, the company said revenue would have edged up 0.2%.
The company highlighted Korea as a standout market. Excluding currency effects, Korean revenue grew 3.2%, driven by a more diverse content lineup and AI-powered recommendations. Monthly paying users in Korea jumped 8.5%, while global monthly paying users outside Korea and Japan rose 3.3%. Japan continues to generate the highest average revenue per paying user at US$22.5, far above Korea's US$7.8 and the rest of the world's US$6.8.
Founder and CEO Junkoo Kim said the company will keep expanding its creator ecosystem, including a major overhaul of its amateur CANVAS platform planned through the year, while continuing to invest in long-term growth. The company's IP and creator ecosystem now reaches roughly 145 million monthly active users worldwide.
Synthesized by Yomimono from the 1 cited source below, including Japanese-language reporting where cited, then editorially reviewed before publishing.
Sources
- Anime News Network TBS Reports 524 Million Yen Loss in Anime Division