WEBTOON Entertainment Inc.

Previous wording

As of the quarter ended June 30, 2025, our global MAU was approximately 156.1 million. The global MAU decreased by approximately 7.6% compared to June 30, 2024, primarily due to declines of MAU in Korea and ROW.

Current wording

As of the quarter ended September 30, 2025, our global MAU was approximately 155.4 million. The global MAU decreased by approximately 8.5% compared to September 30, 2024, primarily due to declines of MAU in Korea and ROW.

Previous wording

•In Korea, our MAU was approximately 23.0 million as of the quarter ended June 30, 2025, compared to MAU of 25.8 million as of the same quarter of 2024.

Current wording

•In Korea, our MAU was approximately 24.6 million as of the quarter ended September 30, 2025, compared to MAU of 28.1 million as of the same quarter of 2024.

Previous wording

•In Japan, our MAU have reached 22.6 million as of the quarter ended June 30, 2025, compared to MAU of 22.0 million as of the same quarter of 2024, largely attributable to growth in eBookJapan.

Current wording

•In Japan, our MAU have reached 25.3 million as of the quarter ended September 30, 2025, compared to MAU of 22.5 million as of the same quarter of 2024, largely attributable to growth in eBookJapan and increased investments in marketing.

Previous wording

•In Rest of World, our MAU was 110.5 million as of the quarter ended June 30, 2025, which declined from 121.1 million as of the comparable prior year period. The decrease was primarily attributable to government bans on Wattpad in certain countries, as well as the impact of a Wattpad security upgrade which unintentionally affected search engine indexing, causing a dip in search traffic.

Current wording

•In Rest of World, our MAU was 105.5 million as of the quarter ended September 30, 2025, which declined from 119.3 million as of the comparable prior year period. The decrease was primarily attributable to government bans on Wattpad in certain countries, as well as the impact of a Wattpad security upgrade which unintentionally affected search engine indexing, causing a dip in search traffic. We fully resolved the search engine indexing issue during the quarter and saw sequential stability in Wattpad MAU in the second half of the quarter as a result.

Previous wording

As of the quarter ended June 30, 2025, our global MPU was 7.4 million with a paying ratio of 4.7%, which is an increase of 0.1% compared to the paying ratio for the quarter ended June 30, 2024, of 4.6%. By geographic regions, Korea, Japan, and Rest of World contributed 46.4%, 30.8% and 22.8% of global MPU, respectively.

Current wording

As of the quarter ended September 30, 2025, our global MPU was 7.7 million with a paying ratio of 5.0%, which is an increase of 0.3% compared to the paying ratio for the quarter ended September 30, 2024, of 4.6%. By geographic regions, Korea, Japan, and Rest of World contributed 47.8%, 30.1% and 22.1% of global MPU, respectively.

Previous wording

•In Korea, our MPU have decreased to around 3.4 million with a paying ratio of 14.9%, compared to MPU of 3.7 million and a paying ratio of 14.5% as of the quarter ended June 30, 2024. While our MPU decreased from the comparable quarter of 2024, our paying ratio increased approximately 0.4% from the comparable quarter of 2024.

Current wording

•In Korea, our MPU have decreased to around 3.7 million with a paying ratio of 14.9%, compared to MPU of approximately 3.9 million and a paying ratio of 13.8% as of the quarter ended September 30, 2024. While our MPU decreased from the comparable quarter of 2024, our paying ratio increased approximately 1.2% from the comparable quarter of 2024.

Previous wording

•In Japan, our MPU have reached 2.3 million with a paying ratio of 10.0%, compared to MPU of 2.2 million and a paying ratio of 10.2% as of the quarter ended June 30, 2024.

Current wording

•In Japan, our MPU have reached 2.3 million with a paying ratio of 9.1%, compared to MPU of 2.3 million and a paying ratio of 10.3% as of the quarter ended September 30, 2024.

Previous wording

•In Rest of World, our MPU is 1.7 million with a paying ratio of 1.5% compared to MPU of 1.8 million and a paying ratio of 1.5% in the prior year's comparable quarter.

Current wording

•In Rest of World, our MPU is 1.7 million with a paying ratio of 1.6% compared to MPU of 1.7 million and a paying ratio of 1.4% in the prior year's comparable quarter.

Previous wording

Engagement is a key aspect to drive our monetization. Our ARPPU has increased over time as our users explored more titles and purchased more episodes behind our paywall. For the quarter ended June 30, 2025, our ARPPU has increased to $12.4, or 11.1% growth compared to the same quarter of 2024. The growth in ARPPU was driven primarily by our strategic effort to shift users from web to the app, as app users are more engaged and present better monetization opportunities.

Current wording

Engagement is a key aspect to drive our monetization. Our ARPPU has increased over time as our users explored more titles and purchased more episodes behind our paywall. For the quarter ended September 30, 2025, our ARPPU has increased to $12.4, or 2.8% growth compared to the same quarter of 2024. The growth in ARPPU was driven primarily by our strategic effort to shift users from web to the app, as app users are more engaged and present better monetization opportunities.

Previous wording

•In Korea, our ARPPU for the quarter ended June 30, 2025 has increased to $7.9, or 5.0% increase compared to the same quarter of 2024. On a constant currency basis, our ARPPU increased by 8.3%.

Current wording

•In Korea, our ARPPU for the quarter ended September 30, 2025 has increased to $8.0, or 1.3% increase compared to the same quarter of 2024.

Previous wording

•In Japan, our ARPPU for the quarter ended June 30, 2025 has increased to $23.7, or 11.8% increase compared to the same quarter of 2024.

Current wording

•In Japan, our ARPPU for the quarter ended September 30, 2025 has increased to $23.6, or 2.4% increase compared to the same quarter of 2024.

Previous wording

•In Rest of World, our ARPPU for the quarter ended June 30, 2025 has increased to $6.6, or 2.2% growth compared to the same quarter of 2024.

Current wording

•In Rest of World, our ARPPU for the quarter ended September 30, 2025 has increased to $6.8, or 1.4% growth compared to the same quarter of 2024.

Previous wording

The following table sets forth our condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024, respectively. We have derived this data from our unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss. The information for each of the periods presented has been prepared on the same basis as our audited Consolidated Financial Statements and, in the opinion of management, reflects all adjustments of a normal, recurring nature that are necessary for the fair statement of the results of operations for the period.

Current wording

The following table sets forth our condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024, respectively. We have derived this data from our unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss. The information for each of the periods presented has been prepared on the same basis as our audited consolidated financial statements and, in the opinion of management, reflects all adjustments of a normal, recurring nature that are necessary for the fair statement of the results of operations for the period. This data should be read in conjunction with our audited consolidated financial statements in the Annual Report, and unaudited Condensed Consolidated Financial Statements included in this Report. Historical results are not necessarily indicative of the results that may be expected in the future.

Previous wording

Marketing expense increased by $7.6 million, or 32.5%, for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, as we continue to invest in marketing to drive growth.

Current wording

Marketing expense increased by $2.4 million, or 7.5%, for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, as we continue to invest in marketing to drive growth.

Previous wording

General and administrative expenses decreased by $73.7 million, or 53.2%, for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. The decrease in general and administrative expenses was largely driven by a decrease of approximately $43.2 million in stock compensation expense during the three months ended June 30, 2025, compared to the three months ended June 30, 2024. Additional drivers were the impact of a one-time bonus of $30.0 million granted to the CEO for a successful IPO, and increased consulting fees during the quarter ended June 30, 2024, which did not occur during the three months ended June 30, 2025.

Current wording

General and administrative expenses decreased by $4.3 million, or 6.4%, for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. The decrease in general and administrative expenses was largely driven by a decrease of approximately $4.4 million in stock compensation expense during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Previous wording

Income on equity method investment, net, increased by $0.4 million, or 322.5%, for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. See Note 14. Equity Method Investments in the accompanying notes to our unaudited Condensed Consolidated Financial Statements included in this Report for more information on the Company's equity method investments.

Current wording

Income (loss) on equity method investment, net, increased by $1.8 million, or 1338.4%, for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. See Note 15. Equity Method Investments in the accompanying notes to our unaudited Condensed Consolidated Financial Statements included in this Report for more information on the Company's equity method investments.

Previous wording

Other income (loss), net, decreased by $3.7 million, or (159.9%), for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. This decrease was driven by losses on certain transactions due to changes in foreign currency exchange rates.

Current wording

Other income (loss), net, decreased by $13.7 million, or (116.0%), for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. This decrease was driven by losses on certain transactions due to changes in foreign currency exchange rates.

Previous wording

Income tax expense decreased by $2.7 million, or 143.6%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The decrease was primarily attributable to the change in position from income before income tax during the three months ended June 30, 2024, to loss before income tax in the three months ended June 30, 2025, for the entities included in our effective tax rate. See Note 8. Income Taxes in the accompanying notes to our unaudited Condensed Consolidated Financial Statements included in this Report for more information on our taxes.

Current wording

Income tax benefit (expense) decreased by $10.5 million, or 106.3%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The decrease was primarily driven by the LDF valuation allowance release in the prior year due to the LDF-eBIJ Merger. See Note 9. Income Taxes in the accompanying notes to our unaudited Condensed Consolidated Financial Statements included in this Report for more information on our taxes.

Previous wording

Revenue increased by $26.3 million, or 4.1%, for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. The primary driver was an increase in IP Adaptations revenue of $11.0 million, or 25.7%, followed by increases of $7.7 million and $7.6 million in Advertising and Paid Content, respectively.

Current wording

Revenue increased by $56.4 million, or 5.7%, for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. The primary driver was an increase in IP Adaptations revenue of $43.5 million, or 70.2%, followed by increases of $9.2 million and $3.7 million in Paid Content and Advertising, respectively.

Previous wording

Our cost of revenue increased by $32.8 million, or 6.8%, for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, due to overall increases in commissions and fees paid to creators.

Current wording

Our cost of revenue increased by $71.5 million, or 9.7%, for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, due to the higher attribution of free coins to cost of revenue, investments in labor to further improve our platform to drive growth, and overall increases in commissions and fees paid to creators, primarily associated with higher revenues.

Previous wording

Marketing expenses increased by $19.7 million, or 45.9%, for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. These increases were a result of our continued investment in marketing to drive growth.

Current wording

Marketing expenses increased by $22.1 million, or 29.3%, for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. These increases were a result of our continued investment in marketing to drive growth.

Previous wording

General and administrative expenses decreased by $55.7 million, or 29.7%, for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. The decrease in general and administrative expenses was largely driven by a decrease in stock compensation expense of approximately $32.8 million during the six months ended June 30, 2025, and a one-time bonus of $30.0 million granted to the CEO for a successful IPO during the six months ended June 30, 2024, which did not occur during the six months ended June 30, 2025.

Current wording

General and administrative expenses decreased by $60.0 million, or 23.6%, for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. The decrease in general and administrative expenses was largely driven by a decrease in stock compensation expense of approximately $37.2 million during the nine months ended September 30, 2025, and a one-time bonus of $30.0 million granted to the CEO for a successful IPO during the nine months ended September 30, 2024, which did not occur during the nine months ended September 30, 2025.

Previous wording

Interest income increased by $6.7 million, or 205.8%, for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. The increase was primarily driven by higher balances due to proceeds from the IPO and higher interest rates compared to the prior year.

Current wording

Interest income increased by $4.9 million, or 49.8%, for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. The increase was primarily driven by higher balances due to proceeds from the IPO and higher interest rates compared to the prior year.

Previous wording

Loss on equity method investment, net, decreased by $0.9 million, or 93.3%, for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. See Note 14. Equity Method Investments in the accompanying notes to our unaudited Condensed Consolidated Financial Statements included in this Report for more information on the Company's equity method investments.

Current wording

Income (loss) on equity method investment, net, increased by $2.7 million, or 253.9%, for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. See Note 15. Equity Method Investments in the accompanying notes to our unaudited Condensed Consolidated Financial Statements included in this Report for more information on the Company's equity method investments.

Previous wording

Other income (loss), net, increased by $0.5 million, or 54.0%, for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. This increase was attributable to gains related to certain transactions due to changes in foreign currency exchange rates.

Current wording

Other income (loss), net, increased by $13.2 million, or (104.7%), for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. This increase was attributable to gains related to certain transactions due to changes in foreign currency exchange rates.

Previous wording

(2)Represents non-recurring expenses that we do not consider representative of the operating performance of the business. For the three and six months ended June 30, 2025, these amounts include legal fees and advisory fees. For the three and six months ended June 30, 2024, these amounts were comprised of a $30.0 million one-time CEO bonus and legal and advisory fees related to the IPO.

Current wording

(2)Represents non-recurring expenses that we do not consider representative of the operating performance of the business. For the three and nine months ended September 30, 2025, these amounts include legal fees and advisory fees. For the three and nine months ended September 30, 2024, these amounts were comprised of a $30.0 million one-time CEO bonus and legal and advisory fees related to the IPO.

Previous wording

Historically, we have relied primarily upon cash generated from operations and cash provided by NAVER through capital contributions to finance our operations, repay or repurchase indebtedness, finance acquisitions and fund our capital expenditures. NAVER does not have any contractual obligation to provide additional capital to us and therefore there can be no assurance that NAVER will continue to provide additional capital in the form of debt or equity investment in the future to enable us to operate our business. As of June 30, 2025, we had $581.5 million of cash and cash equivalents, which were primarily invested in short-term, highly liquid investments with original maturities of three months or less from the date of purchase and are mainly comprised of bank deposits. We believe that our existing cash and cash equivalent balances will be sufficient to support our working capital requirements for at least the next 12 months based on our current operating plans. However, our future capital requirements will depend on many factors, including our growth rate, sales and marketing activities and other factors affecting our business, including those described in the section entitled “Risk Factors” in the Annual Report. Our expected primary uses of our capital on short- and long-term bases are for repayment of debt, interest payments, working capital, capital expenditures, geographic expansion and other general corporate purposes.

Current wording

Historically, we have relied primarily upon cash generated from operations and cash provided by NAVER through capital contributions to finance our operations, repay or repurchase indebtedness, finance acquisitions and fund our capital expenditures. NAVER does not have any contractual obligation to provide additional capital to us and therefore there can be no assurance that NAVER will continue to provide additional capital in the form of debt or equity investment in the future to enable us to operate our business. As of September 30, 2025, we had $584.6 million of cash and cash equivalents, which were primarily invested in short-term, highly liquid investments with original maturities of three months or less from the date of purchase and are mainly comprised of bank deposits. We believe that our existing cash and cash equivalent balances will be sufficient to support our working capital requirements for at least the next 12 months based on our current operating plans. However, our future capital requirements will depend on many factors, including our growth rate, sales and marketing activities and other factors affecting our business, including those described in the section entitled “Risk Factors” in the Annual Report. Our expected primary uses of our capital on short- and long-term bases are for repayment of debt, interest payments, working capital, capital expenditures, geographic expansion and other general corporate purposes.

Previous wording

For the six months ended June 30, 2025, net cash used in operating activities was $13.0 million, which primarily consisted of net loss of $25.9 million, adjusted for certain non-cash items of $40.3 million. The non-cash items included stock-based compensation of $25.5 million, depreciation and amortization of approximately $16.8 million, and operating lease expense of $4.5 million, which was partially offset by a gain of $3.6 million on foreign currency, net. The net cash outflow from changes in our operating assets and liabilities was primarily due to a decrease in our accrued expenses, an increase in our other assets, and a decrease in accounts payable, which was partially offset by an increase in contract liabilities.

Current wording

For the nine months ended September 30, 2025, net cash provided by operating activities was $3.6 million, which primarily consisted of net loss of $36.9 million, adjusted for certain non-cash items of $60.3 million. The non-cash items included stock-based compensation of $35.1 million, depreciation and amortization of approximately $24.8 million, and operating lease expense of $7.2 million, which was partially offset by a gain of $2.5 million on foreign currency, net, and a gain on equity method investments, net, of $1.6 million. The net cash outflow from changes in our operating assets and liabilities was primarily due to a decrease in our accrued expenses, an increase in our other assets, and an increase in accounts payable, which was partially offset by an decrease in other liabilities and contract liabilities.

Previous wording

For the six months ended June 30, 2025, net cash provided by investing activities was $5.7 million, consisting of proceeds from maturities of short-term investments of approximately $32.3 million, which was primarily offset by payment made for short-term investments of $16.6 million, and purchases of intangible assets of $4.5 million.

Current wording

For the nine months ended September 30, 2025, net cash used in investing activities was $5.0 million, consisting of proceeds from maturities of short-term investments of approximately $32.5 million, which was primarily offset by payment made for short-term investments of $17.4 million, purchases of intangible assets of $7.2 million, purchases of property and equity of $7.0 million and purchases of debt and equity securities of $6.7 million.

Previous wording

For the six months ended June 30, 2025, net cash provided by financing was minimal, and related to exercise of stock options.

Current wording

For the nine months ended September 30, 2025, net cash provided by financing was minimal, and primarily related to exercise of stock options, and a small amount of proceeds from short-term borrowings.