Forensic Analysis · Media / Entertainment / Streaming · as of Aug 11, 2026

Webtoon Entertainment Inc. (WBTN)

A forensic read on Webtoon Entertainment Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

D · Weak — demands caution

Forensic grade

Safe

Financial health

3.8

Distress distance

Clean

Earnings quality

Forensic signals

-3.5

P / E (ttm)

-29.6%

ROE

$1.3B

Market cap

0.00%

Dividend yield

2.5%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Webtoon Entertainment Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 3.8, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.

What the filings flag

-7.2%

FY2025

Return on invested capital. Return on invested capital is -7.2% in the latest fiscal year and steady — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.

+9.2%/yr

FY2024–FY2025

Share-count dilution. Diluted share count changed +9% over the last 1 year to FY2025 (+9.2%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~9.2% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~8%.

3% of rev

FY2025

Stock-based comp load. Stock-based compensation ran 3% of revenue and 1165% of free cash flow in FY2025 — about $0.32 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 9.2% a year, small enough that totals and per-share results tell the same story.

$405M

FY2024–FY2025

Goodwill impairments. Took $405M of goodwill writedowns across 2 years (FY2024 ($70M), FY2025 ($336M)). Writedowns mean past acquisitions underperformed what was paid for them.

Key fundamentals

Latest Revenue$1.38B

Revenue Growth YoY+2.5%

Net Margin-25.0%

Free Cash Flow$3.6M

Return on Equity-29.6%

Debt / Equity0.00x

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Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.