Webtoon Entertainment Tumbles After Mixed Q3 Results

Webtoon Entertainment shares sank nearly 27% after the online comics platform reported third-quarter revenue of $378 million, falling short of the $385 million consensus estimate from LSEG.

Despite the revenue miss, Webtoon delivered a notable upside on profitability. The company posted adjusted earnings of $0.04 per share, far better than the $0.12-loss analysts were expecting — signaling improving cost discipline and operational efficiency.

Earnings Highlights

Q3 revenue: $378M (vs. $385M expected).
Adjusted EPS: $0.04 (vs. –$0.12 expected).
Stock reaction: Shares fell nearly 27% following the results.
Revenue softness overshadowed the strong bottom-line beat.

Why It Matters

The company’s user-growth and monetization pace remain under scrutiny.
A sharp stock reaction suggests investors expected stronger top-line momentum.
Profit upside shows improving margins but wasn’t enough to offset concerns about slowing revenue growth.