KOSDAQMedia & Entertainment432430

Ylab

₩2,060▲ 1.48%2026-10-02 close

Market Cap

₩34.1B

Turnover

₩61,173,954

Volume

30,000 shares

Shares out.

16.5M

PER

—

PBR

1.4×

EPS

-₩427

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Ylab Expands IP Portfolio Amid Persistent Losses

Ylab continues to grow revenue on the back of the global success of Teach You a Lesson and an expanding IP lineup, but four consecutive years of operating losses leave profitability as an unresolved challenge.

1
Consolidated revenue reached KRW 37.07bn in 2025, up from the prior year, but the company posted an operating loss of KRW 8.74bn, marking a fourth straight year of losses.
2
Quarterly revenue swings widely, jumping from KRW 1.23bn in Q4 2025 to KRW 20.45bn in Q2 2026, reflecting pronounced seasonality in revenue recognition.
3
The Netflix drama Teach You a Lesson, based on the company's original webtoon, became a hit on the Global Non-English TV chart, reaffirming the value of its IP.
4
The acquisition of a 35.7% stake in fandom-business firm Detailz internalizes merchandise and pop-up store operations as a secondary revenue stream.
5
The Japanese subsidiary is developing IP with investment from Bandai, while numerous video adaptation projects remain in the pipeline.

Business structure

Founded in 2010, Ylab is a content company specializing in webtoon planning and production, supplying content to domestic and overseas platforms with Naver Webtoon as its primary client.

Unlike many webtoon production companies that operate as agencies licensing secondary rights from authors for a set period, Ylab distinguishes itself by internalizing and enhancing original story creation, directly holding copyrights to many of its webtoons.

Its flagship universes include Superstring, followed by Bluestring and Redstring, through which it links multiple webtoon IPs into a single world via transmedia storytelling.

The business structure centers on webtoon production, supplemented by video production, academy operations, and webtoon localization services, with subsidiary Ylab Academy training specialized creative talent.

In 2024, the company established a Vietnam subsidiary to improve production efficiency, and its sub-subsidiary Ylab Us launched the 'Oz Viewer' communication-efficiency solution for webtoon production in 2025 as part of its AI push.

Its Japanese subsidiary, Ylab Studios, received an investment of JPY 1.5 billion from Bandai in 2024 and is developing IP, while also holding K-pop artist IP business Detailz as a subsidiary.

In late 2025, the company decided to acquire a 35.7% stake in Detailz for KRW 7.5 billion, a strategic M&A move to internalize fandom business operations including merchandise planning and pop-up store management.

Through this, the company is seeking to build an integrated business system spanning content planning, video adaptation, and fandom monetization.

Earnings trend

Quarterly revenue · Operating profit

₩11.6B-₩2B25Q2₩10B-₩2.1B25Q3₩1.2B-₩2.1B25Q4₩12.8B-₩4B26Q1₩20.5B-₩2B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩29.8B-₩400M2022₩19.4B-₩5.5B2023₩25B-₩10B2024₩37.1B-₩8.7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩11.6B	-₩2B	−17.7%
2025Q3	₩10B	-₩2.1B	−21.3%
2025Q4	₩1.2B	-₩2.1B	−171.2%
2026Q1	₩12.8B	-₩4B	−31.6%
2026Q2	₩20.5B	-₩2B	−9.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩29.8B	-₩400M	-₩600M	−1.5%	−5.1%	73.7%
2023	₩19.4B	-₩5.5B	-₩6.1B	−28.4%	−18.9%	44.1%
2024	₩25B	-₩10B	-₩8.3B	−40.2%	−24.4%	37.2%
2025	₩37.1B	-₩8.7B	-₩6.7B	−23.6%	−24.4%	31.6%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05

Earnings analysis

Ylab's consolidated revenue fell from KRW 29.78bn in 2022 to KRW 19.42bn in 2023, then recovered to KRW 24.97bn in 2024 and KRW 37.07bn in 2025.

Operating losses, by contrast, widened from KRW -0.44bn in 2022 to KRW -5.51bn in 2023 and KRW -10.04bn in 2024 before narrowing to KRW -8.74bn in 2025, with the operating margin improving from -40.2% in 2024 to -23.6% in 2025.

Net loss attributable to owners narrowed from KRW -6.08bn in 2023 and KRW -8.35bn in 2024 to KRW -6.74bn in 2025.

On a quarterly basis, revenue slowed slightly from KRW 11.57bn with an operating loss of KRW 2.05bn in Q2 2025 to KRW 10.01bn in revenue and a KRW 2.13bn operating loss in Q3, before revenue plunged to KRW 1.23bn in Q4 with an operating loss of KRW 2.10bn, underscoring pronounced seasonality in revenue recognition.

In Q1 2026, revenue reached KRW 12.81bn, but the operating loss widened sharply to KRW 4.05bn and the net loss attributable to owners grew to KRW 2.48bn.

In Q2 2026, revenue jumped to KRW 20.45bn, the highest in the past five quarters, while the operating loss narrowed to KRW 1.98bn, signaling a potential improvement in earnings.

Over the most recent four quarters (Q3 2025 through Q2 2026), the cumulative net loss attributable to owners totaled KRW 7.06bn, indicating that a clear loss-making trend persists.

Total equity rose from KRW 11.15bn in 2022 to KRW 39.40bn in 2024 before declining to KRW 31.0bn in 2025 due to accumulated losses, and operating cash flow has remained negative every year except 2022 (+KRW 0.68bn), reflecting weak cash-generating capacity.

Industry analysis

The webtoon industry is in a phase of slowing growth after explosive expansion during the pandemic era, as content oversupply has weighed on the sector. That said, the overseas expansion of domestic webtoon platforms is showing results in Japan and North America, offsetting slower domestic growth to some degree.

The 2026 webtoon market has reportedly become dominated by school-action genre titles, and Ylab is responding by diversifying its new releases into genres such as occult and revenge drama.

In terms of competitive positioning, Ylab differs from most webtoon production companies, which typically operate as agencies licensing secondary rights from authors for a set period, by maintaining a studio model that directly owns original IP.

As video adaptations of webtoons into dramas, films, and animation increasingly become a key driver of hit content, producers with large IP portfolios are positioned to benefit from greater capacity for secondary business expansion.

However, rising production costs and intensifying competition among OTT platforms are cited as pressures on profitability across the content production sector.

Outlook

Following the success of the Netflix drama Teach You a Lesson, Ylab has been accelerating its video business by unveiling a lineup of dramas and films scheduled for sequential release from the second half onward.

The company is pursuing roughly 21 new video projects encompassing both original webtoon-based IP and pure original works, including a film adaptation of the Study Group spin-off tentatively titled 'Hallim Gymnasium-Jeon Young-ha,' while 'The World Is Money and Power' from the Bluestring universe has also entered video development.

Scripts for drama series based on 'Revival Man' and 'Stone Age Girl,' part of the Superstring universe, are also in progress.

On the webtoon side, new occult-action title 'Healing Office' was launched on Naver Webtoon, and 'Debt and Family Bond,' a new Bluestring universe title, has also begun serialization, extending the company's school-action lineup.

With the Detailz acquisition now complete, the company has stated plans to run multi-pronged promotions timed to the video releases of key IP such as the animation 'Terror Man,' the dramas 'Teach You a Lesson' and 'Study Group Season 2,' and the film 'Revival Man,' aiming to accelerate revenue generation.

However, specific release schedules and expected revenue contributions for many of these projects have not yet been formally confirmed and warrant verification through future disclosures and IR materials.

Valuation

PER

—

PBR

1.4×

ROE

-25.7%

EPS

-₩427

BPS

₩1,449

Dividend per share

₩0

Ylab remains in a net-loss position over the most recent four quarters, a stage where conventional earnings-based valuation multiples are difficult to apply meaningfully.

Its price-to-book ratio trades at a level reflecting a certain premium over net asset value, which can be interpreted as the market partially pricing in expectations for its IP assets and video adaptation pipeline despite ongoing losses.

There is no recent dividend payment history, so dividend-yield comparisons are not applicable. On the earnings front, the operating loss narrowed and the operating margin improved in 2025 versus 2024, though the company has not yet reached breakeven.

Future valuation discussion is likely to hinge on when the Detailz consolidation effect and actual revenue contribution from video adaptation projects begin to show up in reported results.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-05

Bull factors

Secondary Business Expansion Built on Owned IP

Ylab directly holds the copyrights to most of its webtoons, giving it a foundation to expand into video adaptations across drama, film, and animation, as well as fandom businesses such as merchandise and pop-up stores.

The success of the Netflix drama Teach You a Lesson is seen as evidence that this owned-IP strategy can resonate in the market. Through the Detailz acquisition, the company is also internalizing fandom business operations, building a structure aimed at generating multiple revenue streams from a single IP.

Revenue Growth and Improving Operating Loss Trajectory

Consolidated revenue expanded from KRW 19.42bn in 2023 to KRW 37.07bn in 2025, and the operating margin also moved from -40.2% in 2024 to -23.6% in 2025. In Q2 2026, revenue reached KRW 20.45bn, the highest of recent quarters, while the operating loss narrowed from the prior quarter. This suggests a possible structural shift toward relatively lower fixed-cost burden as revenue scale grows.

Diversified Video Adaptation Pipeline

About 21 new video projects are underway, with multiple IPs simultaneously advancing through video adaptation stages, including a film version of 'Hallim Gymnasium,' development planning for 'The World Is Money and Power,' and script work for dramas based on 'Revival Man' and 'Stone Age Girl.' Running multiple projects in parallel can mitigate the impact of any single title's underperformance on overall results.

Its Japanese subsidiary is developing IP with investment from Bandai, providing further room for expansion through overseas partnerships.

Bear factors

Four Consecutive Years of Operating Losses

Ylab has recorded operating losses every year from 2022 through 2025, posting an operating loss of KRW 8.74bn in 2025. Despite revenue growth, the profit-and-loss structure has yet to move out of the red, suggesting that fixed and production costs are outpacing the pace of revenue growth. The timing of any turn to profitability has not been officially confirmed.

High Quarter-to-Quarter Earnings Volatility

Revenue swung sharply between quarters, plunging to KRW 1.23bn in Q4 2025 before surging to KRW 20.45bn in Q2 2026.

This reflects a structural characteristic where revenue recognition timing depends on the contract and settlement schedules of specific projects, making it difficult to judge trends from any single quarter. The operating loss also widened sharply to KRW 4.05bn in Q1 2026 compared to the prior quarter.

Persistent Cash Outflow and Declining Equity

Operating cash flow has been negative every year except 2022, with a cash outflow of KRW -11.5bn recorded in 2025 as well. Total equity declined from KRW 39.40bn in 2024 to KRW 31.0bn in 2025 due to the impact of accumulated losses. If weak cash-generating capacity persists, the need for additional fundraising could grow going forward.

Risk factors

Content Hit-Dependency Risk

Ylab's results are heavily dependent on the commercial success of individual webtoons and dramas.

While the company has produced major hits such as Teach You a Lesson, numerous new titles must each win market reception simultaneously, so any underperformance could cause revenue contributions to fall short of expectations.

Social controversy over content can also pose a risk; in fact, some teachers' groups called for Teach You a Lesson to be canceled, arguing the premise glorified corporal punishment.

Platform Concentration Risk

With Naver Webtoon as its primary client accounting for a significant share of revenue, changes in the platform's policies, fee structures, or contract terms could directly affect performance. High revenue dependence on a single platform can also work against the production company's negotiating leverage.

Financial Soundness and Additional Funding Risk

Total equity has continued to decline due to accumulated net losses, and operating cash flow has remained persistently negative.

As M&A activity such as the Detailz acquisition and new project investments continue, a lack of cash-generating capacity could increase the need for external funding, which is a factor that could affect shareholder value.

What to watch next

Mid-November 2026 (expected Q3 earnings disclosure)
Check whether the Q3 2026 results reflect the Detailz consolidation effect and revenue recognition patterns, and whether the trend of narrowing operating losses continues.
Second half of 2026 (once release schedules are confirmed)
Confirm the specific release schedules and box-office/viewership performance of the animation 'Terror Man,' the film 'Revival Man,' and the drama 'Study Group Season 2.'
Early serialization period of new webtoons 'Healing Office' and 'Debt and Family Bond'
Monitor whether the new titles can match the performance of the company's existing school-action IP in Naver Webtoon rankings and reader response.
Upon future disclosures related to the Japanese subsidiary
Check whether IP planning and development based on the Bandai investment progresses to a concrete commercialization stage.

Overall view

Ylab is a content company that has built a value chain linking webtoons, video adaptations, and fandom business on the foundation of its self-owned IP, with the Netflix success of Teach You a Lesson cited as evidence of this strategy's viability.

Revenue has steadily expanded since 2023 and the operating margin has trended toward improvement, but four consecutive years of operating losses mean the company has yet to turn its profit-and-loss structure around.

High quarter-to-quarter revenue volatility and persistently negative operating cash flow, indicating weak cash-generating capacity, are points worth noting.

The Detailz acquisition and a pipeline of roughly 21 video projects hold potential to positively affect future results, but most have yet to translate into confirmed revenue contributions.

Key points to watch going forward include whether the Detailz consolidation effect and improving profit-and-loss trend continue in Q3 results, and the actual release and box-office performance of the video adaptation projects. These bullish and bearish factors should be weighed together ahead of any investment decision.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.