WEBTOON Entertainment Inc.WBTN

WEBTOON Entertainment Inc. Leases Disclosure

10-KFiled Mar 5, 20262 min read
Leases
The Company engages in leasing arrangements that primarily involve office buildings, some of which are further subleased to third parties or related parties. The Company has not entered into any arrangements that include residual value guarantees for its leases. The Company has extension options for four lease offices, with extension periods ranging from one year to five years; however, since the likelihood of extension is not reasonably certain, it is not reflected in the right-of-use assets and liabilities.
The components of lease expense for the years ended December 31, 2025, December 31, 2024, and December 31, 2023, are as follows:
Year Ended
December 31,
202520242023
(in thousands of USD)
Operating lease expense1
$9,690 $10,446 $11,965 
Short-term lease expense564 922 653 
Total lease expense$10,254 $11,368 $12,618 
1.Includes operating lease expense of $4.3 million, $5.5 million, and $7.2 million related to NAVER for the years ended December 31, 2025, December 31, 2024, and December 31, 2023, respectively. See Note. 16 “Related Parties and Variable Interest Entity” for further details.
Lease expense is included within General and administrative expenses of the Consolidated Statements of Operations and Comprehensive Loss.
Supplemental disclosure of cash flow information related to operating leases is as follows:
As of December 31,
202520242023
(in thousands of USD)
Cash paid for amounts included in the measurement of operating lease liabilities$8,062 $9,035 $10,193 
Right-of-use assets obtained in exchange for operating lease liabilities13,533 15,070 2,806 
The following table presents the weighted average remaining lease terms and discount rates as of December 31, 2025 and December 31, 2024:
As of
December 31,
20252024
Weighted-average remaining lease term3.24 years3.56 years
Weighted-average discount rate3.86%4.49%
The aggregate future lease payments for operating lease liabilities as of December 31, 2025, are as follows:
Year(in thousands of USD)
2026$10,188 
20277,148 
20283,612 
20293,234 
2030734 
Thereafter691 
Total future lease payments25,607 
Less: Imputed interest(1,935)
Total$23,672 
The Company subleases a portion of its operating lease right-of-use assets for buildings. Total other income generated from subleases is $0.3 million, $0.3 million, and $0.6 million for the years ended December 31, 2025, December 31, 2024, and December 31, 2023, respectively, and is included within Other income (loss), net of the Consolidated Statements of Operations and Comprehensive Loss.

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 11, 2025

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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