WBTN Q2 2026: revenue $338.5M, net income -$15.2M. Operating loss widens 78% as net loss balloons 250% on tax drag

Filed August 10, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 13, 2025 · ~2 min read

Key Changes

• high

  Operating loss widened 78% YoY to $15.6M, but net loss to common ballooned 250% to $15.3M — the divergence driven by a $7.8M income tax expense swing (from $0.8M benefit to $6.9M expense), plus $3.9M non-operating/other and $228K noncontrolling interest drag, totaling $4.1M net below-the-line headwind.

  MD&A: Operating Results & Tax verify on EDGAR →
• high

  Material weaknesses in internal controls disclosed for the first time: inadequate control environment with insufficient accounting expertise, and ineffective period-end financial reporting controls. Management concluded disclosure controls were not effective as of period end, though remediation efforts are underway.

  Controls & Procedures verify on EDGAR →
• high

  Company committed $40M to a webcomic adaptation fund (40% stake, $10M funded, $30M over three years) and agreed to acquire controlling interest in RI Games Holdings for up to $100M ($33M first closing, $66M contingent second closing, plus up to $33M earn-outs through 2030) — entering video game development with no prior operating experience.

  MD&A: Capital Deployment & Risk Factors verify on EDGAR →