Cash flow generation is highly inconsistent, evidenced by an OCF/NI ratio that fluctuated from 3.85 in 2024Q1 to -1.42 in 2025Q3, complicating the assessment of operational sustainability.
| Cash from Operations | 18.02M | 11.22M | 17.88M | 14.8M | -140.61M |
| Operating CF Margin % | - | 0.81% | 1.33% | 1.15% | -13.03% |
| Operating CF Growth % | 1013.44% | -37.28% | 20.8% | 110.53% | - |
| Net Income | -332.99M | -373.39M | -152.91M | -144.76M | -132.52M |
| Depreciation & Amortization | 34.99M | 35.43M | 40.07M | 35.86M | 34.73M |
| Stock-Based Compensation | 14.03M | 41.91M | 87.38M | 3.22M | 0 |
| Deferred Taxes | -29.97M | -28.96M | -24.54M | -15.57M | -7.14M |
| Other Non-Cash Items | 377.79M | 359.45M | 81.73M | 115.06M | 33.04M |
| Working Capital Changes | -17.24M | -23.22M | -13.85M | 20.99M | -68.72M |
| Change in Receivables | -13.29M | -873K | -24.06M | 30.92M | 41.76M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 10.3M | 3.42M | 26.18M | -7.84M | -48.2M |
| Cash from Investing | -6.21M | -7.5M | -17.28M | -51.98M | -50.7M |
| Capital Expenditures | -15.81M | -7.62M | -2.4M | -10.2M | -2.7M |
| CapEx % of Revenue | 1.15% | 0.55% | 0.18% | 0.8% | 0.25% |
| Acquisitions | 51K | -148K | -3.44M | 2.65M | -14.67M |
| Investments | - | - | - | - | - |
| Other Investing | -25.05M | -9.1M | -914K | 52K | -20.89M |
| Cash from Financing | 34.07M | 1.47M | 353.87M | -6.5M | 350.34M |
| Debt Issued (Net) | 139K | 139K | -3.61M | -5.96M | -30.6M |
| Equity Issued (Net) | 33.93M | 1.33M | 342.95M | 0 | 408.37M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 14.53M | -539K | -27.43M |
| Net Change in Cash | 44.72M | 9.4M | 340.66M | -47.96M | 138.62M |
| Free Cash Flow | 7.79M | -6.7M | 4.73M | -7.54M | -161.8M |
| FCF Margin % | 0.57% | -0.48% | 0.35% | -0.59% | -14.99% |
| FCF Growth % | 122.1% | -241.42% | 162.8% | 95.34% | - |
| FCF per Share | 0.06 | -0.05 | 0.04 | -0.06 | -1.27 |
| FCF Conversion (FCF/Net Income) | -0.02x | -0.03x | -0.12x | -0.13x | 1.08x |
| Interest Paid | 1K | 1K | 85K | 92K | 700K |
| Taxes Paid | 7.47M | 24.7M | 25.68M | 26.64M | 29.36M |
Structural margin ceiling
As reported in recent financial filings, WBTN exhibits a volatile relationship between net income and operating cash flow, with OCF/NI ratios fluctuating wildly from 3.85 in 2024Q1 to -1.42 in 2025Q3, highlighting significant non-cash adjustments that complicate the assessment of true underlying operational profitability.
The frequent divergence between net income and operating cash flow suggests that accounting accruals and non-cash charges are heavily influencing the bottom line. Investors should monitor whether these fluctuations represent genuine timing differences in revenue recognition or if they mask a persistent inability to convert accounting profits into actual liquidity.
Based on the company's reported quarterly figures, free cash flow trajectory is highly inconsistent, swinging from a peak of $20.8 million in 2024Q1 to a deficit of $19.2 million in 2025Q1, which underscores the difficulty in maintaining self-sustaining cash generation within the current business model.
The lack of a stable FCF trend suggests that the company's cash-generating capacity is highly sensitive to quarterly operational shifts rather than a predictable, compounding growth engine. This volatility warrants further investigation into whether the business can achieve consistent positive cash flow without relying on external capital injections.
According to the provided cash flow statements, working capital changes have been a significant drag on liquidity, with a notable $23.9 million outflow in 2024Q3, indicating that the company's cash conversion cycle is currently inefficient and prone to sudden, material swings in operational funding requirements.
These erratic working capital movements suggest that the timing of creator payouts and platform-related receivables is not yet optimized. Such instability in cash flow timing may force the company to maintain higher cash balances than would otherwise be necessary, potentially limiting capital allocation flexibility.
Analysis of recent SEC filings reveals that stock-based compensation, which peaked at $55.1 million in 2024Q2, serves as a critical non-cash adjustment that masks the true extent of the company's cash burn and complicates the interpretation of its operational efficiency relative to its peers.
By adding back significant SBC to arrive at operating cash flow, the company presents a more favorable liquidity picture than the underlying business operations might otherwise support. Investors should be cautious, as this reliance on equity-based incentives may be obscuring the true cost of talent and the sustainability of the current operating model.
Quick answers to the most common questions about buying WBTN stock.
WEBTOON Entertainment Inc. Common stock (WBTN) generated $11.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
WEBTOON Entertainment Inc. Common stock (WBTN) reported negative free cash flow of $6.7M in 2025, indicating capital requirements exceeded cash from operations.
WEBTOON Entertainment Inc. Common stock (WBTN) spent $7.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.