Forensic Analysis · General / Diversified · as of Jun 27, 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
3.4
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-24.9%
ROE
$1.6B
Market cap
WEBTOON Entertainment Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is 3.4, 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%Return on invested capital.Return on invested capital is -7% and steady — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+7.4%/yrShare-count dilution.Diluted share count changed +22% over the last 3 years to FY2025 (+7.4%/yr). The count is GROWING — existing holders are being diluted. That's ~7.4% 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 FY2022 has been diluted ~22%.
3% of revStock-based comp load.Stock-based compensation ran 3% of revenue and 1165% of free cash flow in FY2025 — about $0.32 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
$469MGoodwill impairments.Took $469M of goodwill writedowns across 3 year(s) (FY2023 ($63M), FY2024 ($70M), FY2025 ($336M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Net Margin-25.0%
Debt / Equity0.00x
Free Cash Flow$3.6M
Latest Revenue$1.38B
Return on Equity-29.6%
Revenue Growth YoY+2.5%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on WEBTOON Entertainment Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about WBTN's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown