WEBTOON Entertainment Inc.WBTN

WEBTOON Entertainment Inc. Segments Disclosure

10-KFiled Mar 5, 20262 min read
Segment and Geographic Information
Segment Information
The Company operates as one reportable segment, which derives its revenue from paid content, advertising, and IP adaptations revenue streams. Our chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis for the purposes of allocating resources and evaluating financial performance. The CODM manages the Company as a consolidated ecosystem because the revenue streams are interrelated, and resources are shared.

The CODM uses net income (loss) as reported in our Consolidated Statements of Operations and Comprehensive Loss to assess performance and allocate resources such as employees and capital expenditures. Additionally, the net income (loss) is used to monitor trends in year-over-year or quarter-over-quarter performance comparisons and to compare actual results to forecasts.
The CODM receives and reviews expenses included in segment operating performance regularly. However, the CODM reviews general and administrative expenses on a more disaggregated basis to ensure the resources are in line with its business and operating needs.
The measure of segment revenue and assets are reported on the Consolidated Statements of Operations and Comprehensive Loss as total sales and the Consolidated Balance Sheets as total assets, respectively.
All intercompany and intra-entity transactions and balances have been eliminated.
The following table presents reportable segment profit and loss, including significant expense categories, attributable to the Company’s reportable segment for the periods presented:
Year Ended December 31,
202520242023
(in thousands of USD)
Revenue
$1,382,705 $1,348,478 $1,282,748 
Less:
Cost of revenue
1,060,524 1,009,410 987,258 
Marketing126,149 107,783 121,086 
General and administrative expenses - labor related104,211 129,705 94,397 
General and administrative expenses - non-labor related155,332 202,279 116,365 
Interest income(19,170)(15,820)(3,009)
Interest expense56 45 79 
Loss (gain) on equity method investment, net
(1,282)1,123 12,339 
Impairment losses on goodwill and other intangible assets
336,486 69,743 63,412 
Other loss (income), net9,808 (6,482)23,574 
Income tax expense (benefit)
(16,022)3,604 12,006 
Net Loss
$(373,387)$(152,912)$(144,759)
The following non-cash expense items are also included in the measure of segment profit or loss reviewed by the CODM:
Stock-based compensation
37,798 $87,379 $8,345 
Depreciation and amortization
35,431 $40,074 $38,359 
Geographic Information
Refer to Note 2. Revenue for revenues by location. The Company’s long-lived tangible assets as well as the Company’s operating lease right-of-use assets recognized on the Consolidated Balance Sheets, are located as follows:
As of December 31,
20252024
(in thousands of USD)
Korea$14,131 $17,465 
Japan15,620 182 
Rest of World2,294 2,784 
Total long-lived tangible assets and operating lease right-of-use assets $32,045 $20,431 

Historical Timeline

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

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsNew StandardsPay vs Performance