WEBTOON Entertainment Inc. (WBTN) experienced a sharp after-hours plunge of 8.94% following the release of its fourth quarter and full year 2025 financial results.
The decline came after the company reported Q4 revenue of $330.7 million, which missed analyst estimates of $337.5 million 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, the company reported a significant net loss of $336.5 million for the quarter, primarily due to goodwill impairments.
Adding to investor concerns, WEBTOON 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.