WBTNWEBTOON Entertainment Inc.
Is the business good?
The checks split: nothing decisive, though 3 of 9 health tests passed.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Margins have held roughly steady, a stable cost structure.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is WBTN?
WEBTOON Entertainment Inc. earns −7.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 16 points below what the capital costs: growth destroys value
- Operating margin
- −3.8%
Operating margin · Internet Content & Information median 4.9% · 12 months to Q2 2026
- Share count, year on year
- +3.8%
Share count, year on year · shareholders own a smaller slice than a year ago
- Gross margin
- 24%
Gross margin
| Year | Operating margin |
|---|---|
| FY2022 | −11% |
| FY2023 | −2.8% |
| FY2024 | −7.5% |
| FY2025 | −4.6% |
Details›
- Gross margin12 months to Q2 2026
- 24%
- Operating margin12 months to Q2 2026
- −3.8%
- Net margin12 months to Q2 2026
- −25%
- Free cash flow margin
- −0.29%
- Revenue, trailing twelve months
- $1.37B
- Free cash flow, trailing twelve months
- −$4.0M
- Net income, trailing twelve months
- −$344M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −7.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Content & Information
Ranks #26 of 31 by RyuScore