WEBTOON cuts Q2 outlook as user declines pressure WBTN after mixed Q1 results

WEBTOON (NASDAQ: WBTN) fell after reporting first-quarter 2026 revenue in line with expectations but issuing second-quarter guidance below Wall Street estimates, as management cited declining users and weaker intellectual property adaptation revenue. Revenue fell 1.5% year over year to $320.9 million in the quarter. The company reported a GAAP loss of $0.07 per share, narrower than analysts expected by 26.4%. WEBTOON guided for second-quarter revenue of $337 million, about 6% below consensus. Management said paid content and advertising supported results, while IP adaptation sales declined sharply. CFO David Lee said a change in monthly active user reporting, which excludes automated and fake accounts, reduced reported user metrics. The company said gross margin improved and costs remained controlled. WEBTOON said it will continue investing in creator support, product upgrades, AI-powered translation and global content distribution, including work on a Disney digital comics platform. Management aims to return to double-digit revenue growth by year-end but warned that investments and regional weakness, particularly in Japan, may pressure near-term profitability.