Earnings (loss) per share

6 Months Ended

Jun. 30, 2025

Basic earnings (loss) per share is computed using the weighted-average number of outstanding shares of common stock during the period, including vested restricted stock units ("RSUs"). Diluted earnings (loss) per share is computed using the weighted average number of outstanding shares of common stock and, potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares issuable upon the assumed exercise of stock options and vesting of unvested RSUs. For the three and six months ended June 30, 2025 and 2024, the Company's Korean subsidiaries and equity method investees each had outstanding stock options that will be settled in each respective subsidiary or equity method investee's common shares. The numerator of the Company's earnings (loss) per share include the Parent's proportionate share of the diluted earnings or loss per share impact of outstanding subsidiaries and equity method investees' stock options.

The following table sets forth the computation of basic and diluted earnings (loss) per share, as adjusted on a retrospective basis to reflect the Stock Split as discussed in Note 1. Description of Business and Summary of Significant Accounting Policies, for the three and six months ended June 30, 2025 and 2024, respectively (in thousands of USD, except share and per share amounts):


	Three Months Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Basic earnings (loss) per share:
Net income (loss) attributable to Webtoon Entertainment Inc.	$	(4,326)	$	(76,885)	$	(26,715)	$	(70,693)
Add: allocation to subsidiary / equity method investee participating security1	(38)		—		(125)		123
Net income (loss) attributable to Webtoon Entertainment Inc.	$	(4,364)	$	(76,885)	$	(26,840)	$	(70,570)
Shares used in computation:
Weighted-average common shares outstanding	130,358,706		110,102,868		129,980,922		109,804,009
Basic earnings (loss) per share:	$	(0.03)	$	(0.70)	$	(0.21)	$	(0.64)
Diluted earnings (loss) per share:
Net income (loss) attributable to Webtoon Entertainment Inc.	$	(4,364)	$	(76,885)	$	(26,840)	$	(70,570)
Add: dilutive impact of subsidiary / equity method investee stock options	(3)		(5)		(7)		(4)
Diluted net income (loss) attributable to Webtoon Entertainment Inc.	$	(4,367)	$	(76,890)	$	(26,847)	$	(70,574)
Shares used in computation:
Weighted-average common shares outstanding	130,358,706		110,102,868		129,980,922		109,804,009
Dilutive effect of stock options and unvested RSUs	—		—		—		—
Diluted weighted-average common shares outstanding	130,358,706		110,102,868		129,980,922		109,804,009
Diluted earnings (loss) per share	$	(0.03)	$	(0.70)	$	(0.21)	$	(0.64)

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1.Represents net income (loss) allocable to Jakga Company Inc. ("Jakga") redeemable convertible preferred stock which is a participating security per ASC 260. Jakga became an equity method investee from a subsidiary when it was deconsolidated on March 28, 2024 (Refer to Note 13. Disposition for additional information for Jakga disposition).

The following potentially dilutive outstanding securities were excluded from the computation of diluted net earnings (loss) per share because their effect would have been anti-dilutive for the periods presented, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period:


	Three Months Ended		Six Months Ended
	June 30, 2025	June 30, 2024	June 30, 2025	June 30, 2024
Stock options	10,753,510	11,058,779	10,753,510	11,058,779
Unvested RSUs	3,417,189	2,710,567	3,417,189	2,710,567
Subsidiary / equity method investee stock options	332,597	6,000	332,597	7,800
Total	14,503,296	13,775,346	14,503,296	13,777,146

WEBTOON Entertainment Inc. 10-Q