By Dean Seal

Webtoon Entertainment's revenue forecast for the second quarter undershot Wall Street estimates while its first-quarter sales slid, weighing on shares.

The digital comics platform said it expects revenue to rise 1.7% to 4.6% on a constant currency basis for the current quarter, hitting $332 million to $342 million. Analysts polled by FactSet had been projecting $348 million.

Shares fell 15% to $11.24 in after hours trading.

For the first three months of the year, revenue slipped 1.5% to $320.9 million. The top line was dragged by a 23% decline in Webtoon's IP adaptations business.

Chief Executive Junkoo Kim said revenue was more than $326 million on a constant currency basis, which is toward the top-end of guidance it gave in March.

The company narrowed its quarterly loss to $8.8 million, or 7 cents a share, from a loss of $22 million, or 17 cents a share, a year earlier. Analysts polled FactSet had been expecting a loss of 10 cents a share. Webtoon chalked the smaller loss up to a higher gross profit.

Write to Dean at dean.seal@wsj.com

(END) Dow Jones Newswires

May 11, 2026 16:32 ET (20:32 GMT)

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