WEBTOON (WBTN): Buy, Sell, or Hold Post Q4 Earnings?
Following the pullback, is now a good time to buy WBTN? Find out in our full research report, it's free.
Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ:WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.
Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, WEBTOON's sales grew at an excellent 11.8% compounded annual growth rate over the last two years. Its growth beat the average business services company and shows its offerings resonate with customers.
We track the change in earnings per share (EPS) because it highlights whether a company's growth is profitable.
WEBTOON's full-year EPS flipped from negative to positive over the last one years. This is a good sign and shows it's at an inflection point.
Revenue growth can be broken down into changes in price and volume (for companies like WEBTOON, our preferred volume metric is monthly active users (mau)). While both are important, the latter is the most critical to analyze because prices have a ceiling.
WEBTOON's monthly active users (mau) came in at 163.3 million in the latest quarter, and over the last two years, averaged 1.2% year-on-year declines. This performance was underwhelming and implies there may be increasing competition or market saturation. It also suggests WEBTOON might have to lower prices or invest in product improvements to grow, factors that can hinder near-term profitability.
WEBTOON's positive characteristics outweigh the negatives. With the recent decline, the stock trades at 8.2× forward EV-to-EBITDA (or $7.69 per share). Is now the time to initiate a position? See for yourself in our full research report, it's free.
The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Fourth Quarters Ended Twelve Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Cash flows from operating activities: Net income (loss) $ 16,370 $ (10,777 ) $ (37,904 ) $ (137,640 ) Depreciation and amortization 19,969 21,391 82,027 88,030 Other non-cash items, net 6,953 286 26,627 25,764 Cash settlement for termination of interest rate swap — — — 7,403 Changes in operating assets and liabilities (5,217 ) 60,861 68,101 76,825 Net cash provided by operating activities 38,075 71,761 138,851 60,382 Cash flows from investing activities: Purchases of property and equipment (4,098 ) (10,348 ) (19,803 ) (34,291 ) Acquisition of assets and businesses, net of cash acquired (4,543 ) — (4,543 ) — Proceeds from sale of manufacturing operations to Cicor Group 6,246 — 6,246 Other investing activities — — 4,600 — Net cash used in investing activities (2,395 ) (10,348 ) (13,500 ) (34,291 ) Cash flows from financing activities: Proceeds from employee stock plans 2,169 1,479 3,661 4,642 Borrowings under credit facilities — — — 105,000 Payments under credit facilities — (25,000 ) — (25,000 ) Payments of deferred financing and offering costs — — (2,249 ) (1,931 ) Payments for retirement of common stock — (16 ) — (31 ) Net cash provided by (used in) financing activities 2,169 (23,537 ) 1,412 82,680 Effect of exchange rate changes on cash and cash equivalents 1,428 — 1,815 187 Net increase in cash and cash equivalents 39,277 37,876 128,578 108,958 Cash and cash equivalents at beginning of period 269,822 142,645 180,521 71,563 Cash and cash equivalents at end of period $ 309,099 $ 180,521 $ 309,099 $ 180,521 UNAUDITED SUPPLEMENTAL INFORMATION RECONCILIATION OF GAAP TO NON-GAAP MEASURES (In thousands) Adjusted EBITDA, a non-GAAP measure for reporting financial performance, excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. Management believes that exclusion of these items assists in providing a more complete understanding of the Company's underlying results and trends, and management uses these measures along with the corresponding GAAP financial measures to manage the Company's business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. The adjustments to calculate this non-GAAP financial measure, and the basis for such adjustments, are outlined below: Other non-operating adjustments. The Company records other non-operating adjustments such as gains or losses on foreign currency remeasurement, investments and fixed asset sales or disposals among other adjustments. These adjustments may vary from period to period without any direct correlation to underlying operating performance. Interest income and expense. The Company receives interest income on investments and incurs interest expense on loans, financing leases and other financing arrangements. These amounts may vary from period to period due to changes in cash and debt balances and interest rates driven by general market conditions or other circumstances which may be outside of the normal course of the Company's operations. Income taxes. The Company's GAAP tax expense can fluctuate materially from period to period due to tax adjustments that are not directly related to underlying operating performance or to the current period of operations. Depreciation. The Company incurs depreciation expense related to capital assets purchased to support the ongoing operations of the business. These assets are recorded at cost or fair value and are depreciated using the straight-line method over the useful life of the asset. Purchases of such assets may vary significantly from period to period and without any direct correlation to underlying operating performance. Amortization of intangible assets. The Company incurs amortization of intangible assets primarily as a result of acquired intangible assets such as backlog, customer relationships and completed technologies but also due to licenses, patents and other arrangements. These intangible assets are valued at the time of acquisition or upon receipt of right to use the asset, amortized over the requisite life and generally cannot be changed or influenced by management after acquisition. Restructuring and other charges. The Company incurs restructuring and other charges in connection with management's decisions to undertake certain actions to realign operating expenses through workforce reductions and the closure of certain Company facilities, businesses and lines of business. The Company's adjustments reflected in restructuring and other charges are typically related to acquisitions and organizational redesign programs initiated as part of discrete post-acquisition integration activities. Management believes these items are non-routine and may not be indicative of ongoing operating results. Impairment of long-lived assets. The Company incurs impairment charges of long-lived assets based on events that may or may not be within the control of management. Management believes these items are outside the normal operations of the Company's business and are not indicative of ongoing operating results. Acquisition, financing and other third party costs. The Company incurs transaction costs related to acquisition and potential acquisition opportunities, such as legal, accounting, and other third party advisory fees. The Company may also incur third party costs, such as legal, banking, communications, proxy solicitation, and other third party advisory fees in connection with engagements by activist investors or unsolicited acquisition offers. Although the Company may incur such third party costs and other related charges and adjustments, it is not indicative that any transaction will be consummated. Additionally, the Company incurs unused revolver and bank fees associated with maintaining its credit facility as well as non-cash financing expenses associated with obtaining its credit facility. Management believes these items are outside the normal operations of the Company's business and are not indicative of ongoing operating results. Fair value adjustments from purchase accounting. As a result of applying purchase accounting rules to acquired assets and liabilities, certain fair value adjustments are recorded in the opening balance sheet of acquired companies. These adjustments are then reflected in the Company's income statements in periods subsequent to the acquisition. In addition, the impact of any changes to originally recorded contingent consideration amounts are reflected in the income statements in the period of the change. Management believes these items are outside the normal operations of the Company and are not indicative of ongoing operating results. Litigation and settlement income and expense. The Company periodically receives income and incurs expenses related to pending claims and litigation and associated legal fees and potential case settlements and/or judgments. Although the Company may incur such costs and other related charges and adjustments, it is not indicative of any particular outcome until the matter is fully resolved. Management believes these items are outside the normal operations of the Company's business, often occur in periods other than the period of activity, and are not indicative of ongoing operating results. The Company periodically receives warranty claims from customers and makes warranty claims towards its vendors and supply chain. Management believes the expenses and gains associated with these recurring warranty items are within the normal operations and operating cycle of the Company's business. Therefore, management deems no adjustments are necessary unless under extraordinary circumstances. Stock-based and other non-cash compensation expense. The Company incurs expense related to stock-based compensation included in its GAAP presentation of cost of revenues, selling, general and administrative expense and research and development expense. The Company also incurs non-cash based compensation in the form of pension related expenses and matching contributions to its defined contribution plan. Although stock-based and other non-cash compensation is an expense of the Company and viewed as a form of compensation, these expenses vary in amount from period to period, and are affected by market forces that are difficult to predict and are not within the control of management, such as the market price and volatility of the Company's shares, risk-free interest rates and the expected term and forfeiture rates of the awards, as well as pension actuarial assumptions. Management believes that exclusion of these expenses allows comparisons of operating results to those of other companies, both public, private or foreign, that disclose non-GAAP financial measures that exclude stock-based compensation and other non-cash compensation. Mercury uses adjusted EBITDA as an important indicator of the operating performance of its business. Management excludes the above-described items from its internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to the Company's board of directors, determining a portion of bonus compensation for executive officers and other key employees based on operating performance, evaluating short-term and long-term operating trends in the Company's operations, and allocating resources to various initiatives and operational requirements. The Company believes that adjusted EBITDA permits a comparative assessment of its operating performance, relative to its performance based on its GAAP results, while isolating the effects of charges that may vary from period to period without direct correlation to underlying operating performance. The Company believes that these non-GAAP financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in its financial and operational decision-making. The Company believes that trends in its adjusted EBITDA are valuable indicators of its operating performance. Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenses similar to the adjusted EBITDA financial adjustments described above, and investors should not infer from the Company's presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring. The following table reconciles the most directly comparable GAAP financial measure to the non-GAAP financial measure. Fourth Quarters Ended Twelve Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net income (loss) $ 16,370 $ (10,777 ) $ (37,904 ) $ (137,640 ) Other non-operating adjustments, net (4,645 ) (217 ) (7,742 ) (592 ) Interest expense, net 6,659 8,634 29,823 33,816 Income tax expense (benefit) 2,447 (7,824 ) (12,520 ) (51,635 ) Depreciation 9,694 10,080 39,178 40,369 Amortization of intangible assets 10,275 11,311 42,849 47,661 Restructuring and other charges (15 ) 6,781 7,216 26,170 Impairment of long-lived assets — — — — Acquisition, financing and other third party costs 2,126 1,400 6,638 4,370 Fair value adjustments from purchase accounting 131 178 617 710 Litigation and settlement expense, net 4,062 945 13,010 4,927 Stock-based and other non-cash compensation expense 4,165 10,650 38,273 41,257 Adjusted EBITDA $ 51,269 $ 31,161 $ 119,438 $ 9,413 Free cash flow, a non-GAAP measure for reporting cash flow, is defined as cash provided by operating activities less capital expenditures for property and equipment, which includes capitalized software development costs, and, therefore, has not been calculated in accordance with GAAP. Management believes free cash flow provides investors with an important perspective on cash available for investment and acquisitions after making capital investments required to support ongoing business operations and long-term value creation. The Company believes that trends in its free cash flow are valuable indicators of its operating performance and liquidity. Free cash flow is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenditures similar to the free cash flow financial adjustment described above, and investors should not infer from the Company's presentation of this non-GAAP financial measure that these expenditures reflect all of the Company's obligations which require cash. The following table reconciles the most directly comparable GAAP financial measure to the non-GAAP financial measure. Fourth Quarters Ended Twelve Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net cash provided by operating activities $ 38,075 $ 71,761 $ 138,851 $ 60,382 Purchases of property and equipment (4,098 ) (10,348 ) (19,803 ) (34,291 ) Free cash flow $ 33,977 $ 61,413 $ 119,048 $ 26,091 UNAUDITED SUPPLEMENTAL INFORMATION RECONCILIATION OF GAAP TO NON-GAAP MEASURES (In thousands, except per share data) Adjusted income and adjusted earnings per share ('adjusted EPS') are non-GAAP measures for reporting financial performance, exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. Management believes that exclusion of these items assists in providing a more complete understanding of the Company's underlying results and trends and allows for comparability with its peer company index and industry. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. The Company uses these measures along with the corresponding GAAP financial measures to manage the Company's business and to evaluate its performance compared to prior periods and the marketplace. The Company defines adjusted income as income before other non-operating adjustments, amortization of intangible assets, restructuring and other charges, impairment of long-lived assets, acquisition, financing and other third party costs, fair value adjustments from purchase accounting, litigation and settlement income and expense, and stock-based and other non-cash compensation expense. The impact to income taxes includes the impact to the effective tax rate, current tax provision and deferred tax provision(1). Adjusted EPS expresses adjusted income on a per share basis using weighted average diluted shares outstanding. The following tables reconcile the most directly comparable GAAP financial measures to the non-GAAP financial measures. Fourth Quarters Ended June 27, 2025 June 28, 2024 Net income (loss) and earnings (loss) per share $ 16,370 $ 0.27 $ (10,777 ) $ (0.19 ) Other non-operating adjustments, net (4,645 ) (217 ) Amortization of intangible assets 10,275 11,311 Restructuring and other charges (15 ) 6,781 Impairment of long-lived assets — — Acquisition, financing and other third party costs 2,126 1,400 Fair value adjustments from purchase accounting 131 178 Litigation and settlement expense, net 4,062 945 Stock-based and other non-cash compensation expense 4,165 10,650 Impact to income taxes(1) (4,576 ) (7,033 ) Adjusted income and adjusted earnings per share(2) $ 27,893 $ 0.47 $ 13,238 $ 0.23 Diluted weighted-average shares outstanding 59,540 58,048 (1) Impact to income taxes is calculated by recasting income before income taxes to include the items involved in determining adjusted income and recalculating the income tax provision using this adjusted income from operations before income taxes. The recalculation also adjusts for any discrete tax expense or benefit related to the items. (2) Adjusted earnings per share is calculated using diluted shares whereas Net loss per share or Adjusted loss per share is calculated using basic shares. There was a $0.01 impact to the calculation of adjusted earnings per share as a result of this for the fourth quarters ended June 28, 2024. Twelve Months Ended June 27, 2025 June 28, 2024 Net loss and loss per share $ (37,904 ) $ (0.65 ) $ (137,640 ) $ (2.38 ) Other non-operating adjustments, net (7,742 ) (592 ) Amortization of intangible assets 42,849 47,661 Restructuring and other charges 7,216 26,170 Impairment of long-lived assets — — Acquisition, financing and other third party costs 6,638 4,370 Fair value adjustments from purchase accounting 617 710 Litigation and settlement expense, net 13,010 4,927 Stock-based and other non-cash compensation expense 38,273 41,257 Impact to income taxes(1) (25,091 ) (26,621 ) Adjusted income (loss) and adjusted earnings (loss) per share(2) $ 37,866 $ 0.64 $ (39,758 ) $ (0.69 ) Diluted weighted-average shares outstanding 59,203 57,738 (1) Impact to income taxes is calculated by recasting income before income taxes to include the items involved in determining adjusted income and recalculating the income tax provision using this adjusted income from operations before income taxes. The recalculation also adjusts for any discrete tax expense or benefit related to the items. (2) Adjusted earnings per share is calculated using diluted shares whereas Net loss per share is calculated using basic shares. There was a $0.01 impact to the calculation of adjusted earnings per share as a result of this for the twelve months ended June 27, 2025 and June 28, 2024, respectively. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Nasdaq Announces End-of-Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date July 31, 2025
NEW YORK, Aug. 11, 2025 (GLOBE NEWSWIRE) -- At the end of the settlement date of July 31, 2025, short interest in 3,285 Nasdaq Global MarketSM securities totaled 13,683,072,188 shares compared with 13,792,841,090 shares in 3,260 Global Market issues reported for the prior settlement date of July 15, 2025. The mid-July short interest represents 2.15 days compared with 2.37 days for the prior reporting period. Short interest in 1,658 securities on The Nasdaq Capital MarketSM totaled 2,910,549,464 shares at the end of the settlement date of July 31, 2025, compared with 2,853,251,720 shares in 1,647 securities for the previous reporting period. This represents a 1.00 day average daily volume; the previous reporting period's figure was 1.00. In summary, short interest in all 4,943 Nasdaq® securities totaled 16,593,621,652 shares at the July 31, 2025 settlement date, compared with 4,907 issues and 16,646,092,810 shares at the end of the previous reporting period. This is 1.56 days average daily volume, compared with an average of 1.84 days for the prior reporting period. The open short interest positions reported for each Nasdaq security reflect the total number of shares sold short by all broker/dealers regardless of their exchange affiliations. A short sale is generally understood to mean the sale of a security that the seller does not own or any sale that is consummated by the delivery of a security borrowed by or for the account of the seller. For more information on Nasdaq Short interest positions, including publication dates, visithttp:// Nasdaq:Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at Media Contact:Maximilian A photo accompanying this announcement is available at NDAQOSign in to access your portfolio
