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olivLaw · US equity research

Kartoon Studios, Inc. TOON

Services-Motion Picture & Video Tape Production · SIC 7812 · Vertical: Services-Motion Picture & Video Tape Production (SIC 7812)

0.49USD−6.44% · 1 dayClose 05 Nov 2026

Kartoon Studios is a global children's content company that creates, produces, licenses and distributes animated multimedia content, with revenue of $39.4 million in fiscal 2025. In 2026 it is reorienting toward owned intellectual property after selling the Frederator network and signing a distribution deal with Amazon Prime.

At the close of 05 Nov 2026, Kartoon Studios, Inc. (TOON) stock was 0.49 USD (−6.44% on the day), with market capitalisation 30.3 m USD, P/E 9.9 on diluted EPS of 0.05 USD over the last 12 months, beta 0.99, 52-week range 0.49–1.25 USD. Latest reported quarter (Q2 2026): revenue of 5.8 m USD (−43.4% YoY), net income of 27.0 m USD, diluted EPS 0.38 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
30.3 m USD
shares as of 13 Aug 2026
P/E (TTM)
9.9
Diluted EPS TTM 0.05 · TTM to 30 Jun 2026
E/P (TTM)
10.14%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
0.99
Volatility (1y) 60%
52-week range
0.491.25

Price history

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Technical reading

RSI (14)
34.9
weak (30–45)
Bollinger (20, 2)
0.48 – 0.56
in the lower half of the band · %B 0.04 · band width 14.2%
SMA 50 / 200
0.57 / 0.64
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.02 / -0.02
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−14.5%−5.9%−8.5 pp—
3 months−18.0%−4.6%−13.3 pp—
6 months−24.2%+0.2%−24.4 pp—
Year to date−32.4%+7.4%−39.9 pp—
1 year−29.5%+8.2%−37.7 pp−47.6%
3 years−56.6%+68.4%−125.0 pp−52.1%
5 years−96.6%+56.5%−153.2 pp—
Max drawdown (1y)
−61.1%
16 Jun 2026 → 05 Nov 2026
Max drawdown (5y)
−96.6%
08 Nov 2021 → 05 Nov 2026
Compound annual growth (5y)
−49.3%
S&P 500 +9.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
5.8 m USD
−43.4% YoY
Net income
27.0 m USD
unavailable YoY
Diluted EPS
0.38
unavailable YoY
net / operating
463.6% / -58.6%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue8.7 m9.4 m9.5 m10.3 m9.9 m9.7 m7.2 m5.8 m
Operating income-2.5 m-3.5 m-3.1 m-3.2 m-2.9 m-3.7 m-2.8 m-3.4 m
Depreciation & amortisation590.0 k ≈617.0 k650.0 k100.0 k651.0 k ≈657.0 k677.0 k200.0 k
Interest expense176.0 k154.0 k128.0 k165.0 k157.0 k206.0 k233.0 k175.0 k
Pre-tax income-2.1 m-5.9 m-6.6 m-6.3 m———27.5 m
Income tax0-588.0 k000-135.0 k0573.0 k
Net income-2.1 m-5.8 m-6.5 m-6.2 m-6.6 m-5.3 m-6.4 m27.0 m
Diluted EPS-0.05-0.14 ≈-0.14-0.13-0.14-0.09 ≈-0.100.38
Operating cash flow1.5 m ≈-2.4 m-1.8 m-4.5 m ≈-5.5 m ≈381.0 k-2.9 m34.3 m ≈
Capex36.0 k ≈47.0 k20.0 k60.0 k ≈36.0 k ≈35.0 k33.0 k42.0 k ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 0 percentile of its own 1-quarter history (min 14.4, median 14.4, max 14.4; quarters with earnings only).

Fiscal years

Fiscal year20182019⚠ 202020212022202320242025
Revenue993.5 k5.9 m2.5 m7.9 m62.3 m44.1 m32.6 m39.4 m
Revenue YoY−81.4%+494.7%—+217.1%+691.3%−29.2%−26.1%+20.7%
Net income-9.0 m-11.5 m-401.7 m-126.3 m-45.6 m-77.1 m-20.7 m-24.5 m
Net income YoYunavailableunavailable—unavailableunavailableunavailableunavailableunavailable
Diluted EPSunavailableunavailable-2.82-4.24-1.45-2.29-0.54-0.49
Diluted EPS YoYunavailableunavailable—unavailableunavailableunavailableunavailableunavailable
net %-906.3%-194.3%-16,176.8%-1,604.1%-73.2%-174.9%-63.6%-62.3%
Free cash flow-8.0 m-6.3 m-8.1 m-24.1 m-26.5 m-16.2 m-3.6 m-11.6 m

The series breaks before 2020: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
2.9 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
27.5 m USD
Total assets
70.9 m USD
Debt / equity
unavailable
Current ratio
1.07x
ROE
-76.7%
ROA
-31.4%
FCF margin
-29.4%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
44.1 m
2024
32.6 m
2025
39.4 m

SEC (XBRL)· 31 Mar 2026verified

Operating income
2023
-72.4 m
2024
-17.0 m
2025
-12.9 m

SEC (XBRL)· 31 Mar 2026verified

Depreciation & amortisation
2023
2.5 m
2024
2.4 m
2025
2.6 m

SEC (XBRL)· 31 Mar 2026verified

EBITDA
2023
-69.8 m ≈
2024
-14.6 m ≈
2025
-10.3 m ≈

SEC (XBRL)· 31 Mar 2026derived

Interest expense
2023
3.1 m
2024
779.0 k
2025
656.0 k

SEC (XBRL)· 31 Mar 2026verified

Pre-tax income
2023
-78.2 m
2024
-21.0 m
2025
-24.8 m

SEC (XBRL)· 31 Mar 2026verified

Income tax
2023
-973.0 k
2024
-43.0 k
2025
-135.0 k

SEC (XBRL)· 31 Mar 2026verified

Net income
2023
-77.1 m
2024
-20.7 m
2025
-24.5 m

SEC (XBRL)· 31 Mar 2026verified

Diluted EPS
2023
-2.29
2024
-0.54
2025
-0.49

SEC (XBRL)· 31 Mar 2026verified

Weighted average diluted shares
2023
33.7 m
2024
38.4 m
2025
50.2 m

SEC (XBRL)· 31 Mar 2026verified

Balance sheet · USD

Cash
2023
4.1 m
2024
8.4 m
2025
2.9 m

SEC (XBRL)· 31 Mar 2026verified

Receivables
2023
18.1 m
2024
12.0 m
2025
9.6 m

SEC (XBRL)· 31 Mar 2026verified

Inventories
2023
—
2024
—
2025
—

SEC (XBRL)· 31 Mar 2021verified

Current assets
2023
55.7 m
2024
34.7 m
2025
35.8 m

SEC (XBRL)· 31 Mar 2026verified

Property, plant & equipment, net
2023
1.9 m
2024
2.1 m
2025
1.6 m

SEC (XBRL)· 31 Mar 2026verified

Goodwill
2023
0
2024
—
2025
—

SEC (XBRL)· 09 Apr 2024verified

Intangibles (excl. goodwill)
2023
23.0 m
2024
19.7 m
2025
17.6 m

SEC (XBRL)· 31 Mar 2026verified

Total assets
2023
111.4 m
2024
85.5 m
2025
70.9 m

SEC (XBRL)· 31 Mar 2026verified

Accounts payable
2023
16.9 m
2024
12.0 m
2025
12.1 m

SEC (XBRL)· 31 Mar 2026verified

Current liabilities
2023
45.6 m
2024
33.4 m
2025
33.5 m

SEC (XBRL)· 31 Mar 2026verified

Total liabilities
2023
58.2 m
2024
49.0 m
2025
43.4 m

SEC (XBRL)· 31 Mar 2026verified

Equity
2023
53.3 m
2024
36.5 m
2025
27.5 m

SEC (XBRL)· 31 Mar 2026verified

Cash flow · USD

Operating cash flow
2023
-16.1 m
2024
-3.5 m
2025
-11.4 m

SEC (XBRL)· 31 Mar 2026verified

Capex
2023
72.0 k
2024
117.0 k
2025
151.0 k

SEC (XBRL)· 31 Mar 2026verified

Free cash flow
2023
-16.2 m ≈
2024
-3.6 m ≈
2025
-11.6 m ≈

SEC (XBRL)· 31 Mar 2026derived

Investing cash flow
2023
73.9 m
2024
10.0 m
2025
-1.6 m

SEC (XBRL)· 31 Mar 2026verified

Financing cash flow
2023
-60.8 m
2024
-3.1 m
2025
8.1 m

SEC (XBRL)· 31 Mar 2026verified

Share repurchases
2023
0
2024
—
2025
—

SEC (XBRL)· 09 Apr 2024verified

Computed indicators

Growth

Revenue growth (YoY)
20.7%
computed by olivLawFY 2025
Revenue CAGR 3Y
-14.2%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
73.8%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
-32.6%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
-39.3%
computed by olivLawTTM to 30 Jun 2026
Net margin
26.9%
computed by olivLawTTM to 30 Jun 2026
FCF margin
80.2%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
21.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
10.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
input data missing
ROCE
-20.4%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
-16.6x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
2.0x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.2x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
26.3 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
146.0 k USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
26.2 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
298.2%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
51 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
30.3 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
3.4x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
9.9x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
10.1%
computed by olivLawTTM to 30 Jun 2026
P/B
0.6x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
0.9x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
1.2x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
86.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 50.0% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

0.49 USD

05 Nov 2026Source: olivLaw, closing series

Market cap: 30.3 m USD

Key indicators

Market capitalisation
30.3 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
9.9x
computed by olivLawTTM to 30 Jun 2026
P/B
0.6x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
21.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
26.9%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
20.7%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

28/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 13 Aug 2026
Source: SEC (XBRL)published 14 Aug 2026
verified 2013derived 178

Score by group

50% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/Eunavailable · not enough peers
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption

no valuation method could be computed

Multiple comparisons use the SIC vertical: Services-Motion Picture & Video Tape Production (SIC 7812)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 50.0% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality26.9%100 (vs peers)13%
FCF conversion · Quality298.2%100 (on a fixed band)13%
Revenue CAGR 3Y · Growth-14.2%0 (on a fixed band)17%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet-16.6x0 (on a fixed band)13%
Current ratio · Balance sheet2.0x100 (on a fixed band)8%
P/E (TTM) · Valuation9.9x92 (on a fixed band)21%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation86.5%100 (on a fixed band)17%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet40/100 · 2/3 factors with a value
  • Growth· partial0/100 · 1/2 factors with a value
  • Quality100/100 · 2/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation95/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Kartoon Studios, Inc. (TOON). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 39.4 m USD in 2025; YoY growth 20.7%; net margin 26.9%; ROE 21.7%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (score weight coverage: 50.0% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 26.9%
  • FCF conversion: 298.2%
  • Current ratio: 2.0x
  • P/E (TTM): 9.9x
  • FCF yield: 86.5%

What contradicts it

  • Revenue CAGR 3Y: -14.2%
  • Interest coverage: -16.6x

Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Services-Motion Picture & Video Tape Production (SIC 7812) · same industry (4-digit SIC) · compared with 7 companies

Multiples and returns vs the median

P/E
9.9x
vertical median —
EV/EBITDA
—
vertical median —
P/S
0.9x
vertical median 1.4x
below median (−33.5%)
P/B
0.6x
vertical median 2.9x
below median (−80.1%)
ROE
21.7%
vertical median -9.3%
above median
Net margin
26.9%
vertical median -32.5%
above median
EBIT margin
-39.3%
vertical median -28.1%
below median
Revenue YoY
20.7%
vertical median 18.6%
above median (+11.5%)
Net debt/EBITDA
—
vertical median —
Dividend yield
—
vertical median —

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
LIONLionsgate Studios Corp.3.7 bn——-4.1%+1.8%+68% / +19%
FUBOFuboTV Inc.2.6 bn—-5.8%-0.7%+18.6%−79% / −80%
ANGXAngel Studios, Inc.617.3 m——-37.5%+233.2%−32% / unavailable
STRZStarz Entertainment Corp.419.7 m—-87.9%-32.5%−1.6%+122% / unavailable
CURICuriositystream Inc.149.5 m484.20.1%0.0%+40.1%−48% / +265%
MPUMega Matrix Inc46.3 m—-213.2%-131.4%−27.9%−95% / −95%
TOONKartoon Studios, Inc.30.3 m9.921.7%26.9%+20.7%−29% / −57%
GAIAGaia, Inc——-9.3%-1,090.3%+55.2%−67% / −52%

1- and 3-year price returns: for TOON from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
0.74
Total return 53% · Per year 53%
1.32
Total return 172% · Per year 172%
2.00
Total return 311% · Per year 311%
3 years
0.59
Total return 21% · Per year 7%
1.19
Total return 145% · Per year 35%
2.00
Total return 311% · Per year 60%
5 years
0.47
Total return -4% · Per year -1%
1.08
Total return 121% · Per year 17%
2.00
Total return 311% · Per year 33%
What moves the 3-year price the most
  • Exit P/E± 0.30
  • Net margin± 0.21
  • Annual revenue growth± 0.19
  • Annual dilution± 0.02

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Kartoon Studios is a global children's content company that creates, produces, licenses and distributes animated multimedia content, with revenue of $39.4 million in fiscal 2025 1. In 2026 it is reorienting toward owned intellectual property after selling the Frederator network and signing a distribution deal with Amazon Prime 3.

SWOT

Strengths

  • The content library is large and includes known franchises, and Mainframe has solid production experience for major platforms 1.
  • The balance sheet was strengthened by settlement proceeds, with no long-term debt at the reporting date 3.
  • The Amazon Prime deal for Hundred Acre Wood offers promotional support and integration between streaming and merchandising 3.

Weaknesses

  • The company has reported net losses in every quarter since inception, and revenue is concentrated among a few customers 1.
  • Revenue fell in Q2 2026 and the operating result remains negative 3.
  • The company relies on external capital and has restrictive financing arrangements that limit flexibility 1.

Opportunities

  • If owned franchises such as Hundred Acre Wood and the Stan Lee Universe succeed, licensing and consumer product revenue could grow 3.
  • Expansion outside the US through Kartoon Channel! Worldwide could add new revenue streams 1.
  • AI tools could lower production and localization costs, supporting long-term margins 1.

Threats

  • Rapid shifts in children's tastes could make the company's products less appealing 1.
  • Larger competitors have superior resources and may attract the talent and distribution the company seeks 1.
  • Rules on children's privacy and product safety could raise costs or slow launches 1.

Risks

  • Going concernhigh

    The financial statements note substantial doubt about the company's ability to continue as a going concern, and it will need additional capital 1.

  • Customer losshigh

    A few customers generate nearly all revenue, and losing one of them could have a material impact 1.

  • Financing restrictionsmedium

    The October 2025 purchase agreement limits the types of financing the company can pursue until 2027 1.

  • Revenue volatilitymedium

    Revenue can fluctuate between periods, and film cost amortization may be adjusted downward if forecasts fall 1.

  • YFE investmentlow

    The stake in German company Your Family Entertainment is volatile and could generate revaluation losses if its share price falls 1.

Investment thesis

What would need to be true (bull case)

  • If the launch of Hundred Acre Wood and the Stan Lee Universe happens in 2027, the company could turn owned IP into higher recurring revenue 3.
  • The consolidated balance sheet after the settlements gives the company time and flexibility to execute its strategy 3.
  • The content library and studio production experience provide a base for new franchises 1.

What would break the thesis

  • Recurring net losses and the need for additional capital could limit the company's ability to fund the transition 1.
  • Q2 2026 revenue declined sharply, and the settlement gain is non-recurring and does not reflect operating activity 3.
  • If new franchises fail to meet expectations, the company could remain dependent on low-margin production for others 1.

What to watch

  • Hundred Acre Wood launch on Amazon Prime2027
  • Launch of the Stan Lee Universe and related consumer products2027
  • Payment of remaining settlement funds from escrow after legal fees are determinednext 10-K
  • How revenue and expenses change after the Frederator saleQ3 2026

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Kartoon Studios, Inc. (formerly Genius Brands International) builds its business on original IP development, production services for third parties, and licensing and distribution of content, including through its media agency 1. Its Mainframe Studios has produced over 1,200 television episodes, 70 movies and 3 feature films 1. The company also owns Beacon, a marketing agency focused on children and family audiences 1.

The company distributes content across streaming platforms, linear television and its own VOD services such as Kartoon Channel! and Ameba TV 1. Hundred Acre Wood: Winnie & Friends and the Stan Lee Universe are the main growth assets announced for 2027 3.

Segments

Production services

Mainframe Studios provides animation for third parties, with revenue of $26.8 million in 2025, up 50% from 2024 1. This segment was also the main driver of the decline in Q2 2026 revenue to $5.8 million 3.

Content distribution

Revenue from AVOD and SVOD distribution fell to $8.0 million in 2025, down 17%, mainly due to lower YouTube viewership on the Frederator network 1. Frederator was sold in July 2026, though the company kept Frederator Studios IP 2.

Media and advertising

Beacon's revenue was $4.2 million in 2025, down 14%, partly due to lower net renewals and media purchases amid U.S. tariff uncertainty 1. The segment remains focused on clients in the toy industry 1.

Market context

The children's content market is highly competitive, with rivals for distribution, retail shelf space and creative talent 1. The company operates where distribution ubiquity is essential and audiences move quickly between platforms 1. The company views licensing and merchandising as its most significant long-term growth opportunity 1.

The company licensed content to over 60 broadcasters in more than 150 countries and partnered with 35 consumer products licensees 1. For 2026 and beyond, plans include expanding licensing and using its owned IP catalog more widely 2.

Trends

  • Shift to owned IPmixed

    Management describes a move from producing for others to developing its own franchises, which could improve ownership economics if launches succeed 3.

  • Customer concentrationheadwind

    A small number of customers generate most revenue, and losing one of them would have a significant negative effect 1.

  • AI in productiontailwind

    Industry players are deploying AI tools to lower localization and video enhancement costs, which could support margins 1.

  • Regulationheadwind

    Rules on children's privacy and toy safety are tightening, which could raise compliance costs 1.

Competitive position

The company competes with children's creators such as Disney, Nickelodeon, Netflix, Hulu, PBS Kids and Sesame Street, as well as many smaller studios 1. Larger rivals have stronger brand recognition, bigger budgets and greater resources 1.

Kartoon Studios differentiates itself through its 'content with a purpose' positioning and its owned Kartoon Channel!, which increases brand awareness 1. A persistent risk is that audiences shift away from current properties toward other offerings 1.

  • DisneyDIS

    Direct rival for children's content, distribution and retail shelf space, with stronger brand advantages and larger budgets 1.

  • NetflixNFLX

    Streaming platform that both buys and produces children's content, and is also a customer of the company 1.

  • Nickelodeon

    Children's content creator competing for distribution, while also serving as a production partner of the company 1.

  • PBS Kids

    Public creator of educational children's content competing for distribution and audience 1.

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Kartoon Studios, Inc. · 31 Mar 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Kartoon Studios, Inc. · 14 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Kartoon Studios, Inc. · 14 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.