How did Webtoon's partnership with Disney impact the company?

Webtoon's partnership with Disney to add over 35,000 comics from Disney's brands failed to stem a decline in Webtoon's user base, which lost 14.5 million active users compared to the third quarter of 2024.

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Webtoon Shares Plunge 25% as Growth Slows Despite Disney Deal

Q: What caused Webtoon's shares to plunge 25%?

Webtoon's shares plunged 25% after the company's third-quarter results and forward guidance fell short of investors' expectations.

Q: What happened to Webtoon's profitability?

Webtoon's profitability deteriorated, with its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) falling from $28.9 million in the year-ago quarter to $5.1 million.

14 Nov

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Summary

Webtoon's Q3 results and guidance disappoint investors
Partnership with Disney to add 35,000 comics fails to stem user decline
Webtoon's profitability deteriorates, with adjusted EBITDA falling 82%

Webtoon Shares Plunge 25% as Growth Slows Despite Disney Deal

On November 14, 2025, Webtoon Entertainment (NASDAQ: WBTN) found itself in the spotlight for all the wrong reasons. The digital storytelling platform's shares plummeted by 25% after the company's third-quarter results and forward guidance failed to meet investors' expectations.

Webtoon had been hoping that a recent partnership with The Walt Disney Company (NYSE: DIS) would help reaccelerate its growth. The deal, struck on September 15, 2025, allowed Webtoon to make over 35,000 comics from Disney's beloved brands, including Marvel, Star Wars, and Pixar, available through a single digital subscription. However, this collaboration has yet to bear fruit, as Webtoon's user base declined by 14.5 million active users compared to the third quarter of 2024.

Adding to the company's woes, Webtoon's profitability also took a hit. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to $5.1 million, down from $28.9 million in the year-ago quarter. Management has offered a tepid near-term sales outlook, expecting Q4 revenue to decrease by 2.3% to 5.1% on a constant currency basis to between $330 million and $340 million.

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