WEBTOON Entertainment Inc. (WBTN) experienced a sharp 24-hour plunge of 13.72% in post-market trading. The decline followed the release of the company's fourth quarter and full year 2025 financial results.
The company reported Q4 revenue of $330.7 million, which missed analyst estimates and represented a 6.3% year-over-year decline. The revenue drop was driven by declines across its Paid Content, Advertising, and IP Adaptations segments. Furthermore, WEBTOON reported a significant net loss of $336.5 million for the quarter, which it attributed primarily to goodwill impairments.
Adding to investor concerns, the company issued weak guidance for the first quarter of 2026, expecting revenue between $317 million and $327 million. This forecast fell well below analyst expectations of approximately $353 million, signaling potential continued challenges in the near term and contributing to the significant stock price decline.