Kartoon Studios Delivers Strong 2025 Results and Sets Stage for Major Franchise Launches

Key Financial Highlights for 2025

• Total Revenue: \$39.4 million, up 21% year-over-year from \$32.6 million.
• Production Services Revenue: \$26.8 million, up 50% year-over-year, with strong demand from major partners including Disney, Sony, PBS, ABC, and Spinmaster.
• Operating Loss: Improved by 24%, reflecting continued cost discipline and focus on overhead reduction.
• Balance Sheet: \$35.8 million in current assets and \$27.5 million in stockholders’ equity.
• Production Visibility: Over 60% of projected 2026 production revenue already under contract.

Distribution Platform Momentum

• Kartoon Channel! achieved all-time high subscribers as of March 2026, with engagement up 85% year-over-year in Q1 2026.
• Ameba delivered record subscribers, engagement up 206% year-over-year.
• FAST channel watch time increased 70% year-over-year in Q4 2025.
• Kartoon Channel! continues to lead competitors in Apple App Store viewer ratings.
• Growth driven by strategic content acquisitions and seasonal programming (e.g., Scary Godmother, Franklin, Santa Claus: The Movie, Numberblocks, Alphablocks).
• Third-party platform performance strong on Tubi, Samsung TV Plus, and Google TV.

Strategic Shift to High-Margin Revenue Streams

• The Company is transitioning from infrastructure investment to monetization of flagship tentpole properties.
• Major investments in global streaming, channel infrastructure, Toon Media Networks, and productivity tools (including AI) are largely complete.
• Entering a phase of reduced infrastructure investment, streamlined cost basis, and expected operating leverage as revenue scales.

Major Franchise Launches Set for Q4 2026

Hundred Acre Woods – Inspired by A.A. Milne’s Winnie the Pooh

• Global franchise platform with 78 anchor streamer episodes, 200+ short-form episodes, holiday specials, and a global consumer products program.
• Creative team includes Linda Woolverton (The Lion King), Danny Elfman (The Simpsons), Elise Allen (The Lion Guard), Mike Maliani (Madeline), and John Rivoli (Harry Potter, Batman).
• Sneak peek premiered at the Chinese Theater in December 2025, received enthusiastic response from children.

Stan Lee Universe

• Upcoming launches include The Excelsiors and Stan Lee’s SuperHero Pets.
• Designed to expand across animation, publishing, licensing, and global consumer products, aiming for long-term franchise value.

Vertically Integrated Platform

• Kartoon Studios operates Mainframe Studios (production), Kartoon Channel! and Ameba (distribution), Beacon Media Group (marketing), and licensing/consumer products divisions.
• This structure enables the company to own and monetize IP across the entire value chain.

Management Commentary

Andy Heyward, Chairman & CEO:
“Our business model is fundamentally different from traditional media and consumer sectors. As an IP-driven company, our value is created through storytelling—not physical inputs. Our production pipeline is digital and globally distributed, not dependent on energy input costs or transportation economics. In a rising-cost world, Kartoon Studios stands apart, built on characters, stories, and franchises that scale. With our platform built and franchises ready to launch, 2026 marks the moment Kartoon Studios begins converting years of investment into scalable growth and long-term shareholder value.”

Brian Parisi, CFO:
“Our improving operating performance reflects a disciplined strategy of investing in infrastructure and IP, now positioning the Company to benefit from those investments. With over 60% of 2026 production revenue already under contract, a rebounding media buying division, and continued growth across our distribution platforms, we see a clear path toward improved margins as our franchise initiatives scale.”

Investor Takeaways – Potential Price Sensitive Information

• Strong revenue growth and improved operating losses signal a positive trend ahead of major franchise launches.
• Over 60% of 2026 production revenue is already under contract, providing significant production visibility and revenue assurance.
• The launch of Hundred Acre Woods and Stan Lee Universe (The Excelsiors & SuperHero Pets) expected in Q4 2026 represents a major monetization inflection point.
• Expansion into global consumer products could significantly increase revenue streams.
• Audit opinion in the 2025 Annual Report includes an explanatory paragraph on the Company’s ability to continue as a going concern, which may warrant attention from investors as it signals underlying financial risks.
• Majority of infrastructure and franchise investment is now complete, setting the stage for operating leverage and potentially improved margins.

About Kartoon Studios

Kartoon Studios (NYSE AMERICAN: TOON) is a leader in children’s and family entertainment, delivering premium content and high-value animated IP to millions worldwide. The portfolio includes globally recognized brands, controlling interest in Stan Lee Universe, and Mainframe Studios—one of North America’s largest animation producers. Through Toon Media Networks (Kartoon Channel!, Ameba, Kartoon Channel Worldwide, Frederator), Kartoon Studios reaches audiences across linear TV, AVOD, SVOD, FAST channels, and top streaming platforms. Kartoon Channel! is consistently rated the #1 kids’ streaming app on the Apple App Store. With a global distribution footprint in over 60 territories and a robust content pipeline, Kartoon Studios is positioned for sustained growth and long-term shareholder value.

Forward-Looking Statements & Risks

This article contains forward-looking statements regarding the Company’s transition to high-margin franchise monetization, resilient scalable growth, completion of multi-year infrastructure investments, launch timelines, and future financial performance. These statements are based on current estimates and assumptions and are subject to various risks and uncertainties, including but not limited to: ability to launch key franchises as planned, achieve operating leverage, benefit from infrastructure and IP investments, obtain additional financing, anticipate shifts in consumer trends, manage relationships with third-party studios, market and advertise products, keep pace with technology, and protect IP. Actual results may differ materially. See Kartoon Studios’ filings with the SEC for more information.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should review official filings and consult with financial advisors before making investment decisions.