WEBTOON Entertainment Inc. (NASDAQ:WBTN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. WEBTOON Entertainment Inc. operates a storytelling platform in the United States, Korea, Japan, and internationally. The US$1.6b market-cap company’s loss lessened since it announced a US$144m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$131m, as it approaches breakeven. Many investors are wondering about the rate at which WEBTOON Entertainment will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company’s growth and when analysts expect it to become profitable.
According to the 8 industry analysts covering WEBTOON Entertainment, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$25m in 2027. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 100% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of WEBTOON Entertainment’s upcoming projects, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
View our latest analysis for WEBTOON Entertainment
Before we wrap up, there’s one aspect worth mentioning. WEBTOON Entertainment currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
This article is not intended to be a comprehensive analysis on WEBTOON Entertainment, so if you are interested in understanding the company at a deeper level, take a look at WEBTOON Entertainment’s company page on Simply Wall St. We’ve also compiled a list of pertinent aspects you should look at:
