Kartoon Studios (TOON) AI Stock Analysis

• Market Cap: $38.06M
• Dividend Yield: N/A
• Average Volume (3M): 298.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: 22.84%
• EPS Growth: 46.18%
• Country: US
• Employees: 344
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.14
• Shares Outstanding: 52,865,240
• 10 Day Avg. Volume: 359,792
• 30 Day Avg. Volume: 298,314
• PEG Ratio: 0.01
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -6.29
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 4.97
• Enterprise Value/Ebitda: -2.45
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.70 ▼(-3.97% Downside)

Kartoon Studios' overall stock score is primarily impacted by its poor financial performance, characterized by ongoing profitability and cash flow challenges. Technical analysis indicates a neutral to slightly bearish trend, while valuation metrics are unattractive due to negative earnings and the absence of dividends. The lack of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

The company's strong revenue growth in Q2 2025 indicates a successful strategy in expanding its market reach and content offerings, which can lead to sustained business expansion and increased market share over the long term.

Institutional Investment

The $7.3M financing from an institutional investor provides Kartoon Studios with capital to fuel content expansion and marketing efforts, supporting long-term growth initiatives and enhancing financial stability.

Leadership Strength

The addition of Jeffrey Schlesinger, with his extensive industry experience, to the board strengthens Kartoon Studios' leadership, potentially improving strategic decisions and fostering growth in content distribution.

Negative Factors

Negative Profit Margins

Persistent negative profit margins highlight ongoing profitability challenges, which can hinder reinvestment in growth opportunities and affect long-term financial health.

Cash Flow Issues

Negative cash flows indicate operational inefficiencies and potential liquidity issues, which can constrain the company's ability to fund new projects and manage debt obligations over time.

Negative Return on Equity

A negative return on equity suggests that the company is not effectively using shareholders' equity to generate profits, which can be a concern for long-term investor returns and company valuation.

Kartoon Studios Business Overview & Revenue Model

Company Description

Kartoon Studios (TOON) is a dynamic entertainment company specializing in the creation and distribution of animated content across various platforms. With a focus on producing original animated series, films, and digital content, the company caters to a diverse audience, including children and families. Kartoon Studios operates within the media and entertainment sector, leveraging its intellectual property to engage viewers through television, streaming services, and merchandise.

How the Company Makes Money

Kartoon Studios generates revenue through multiple channels, including licensing deals for its animated content to television networks and streaming platforms, direct sales of digital content, and merchandise sales based on its popular characters. The company also benefits from advertising revenue generated from its online platforms and content distribution. Strategic partnerships with broadcasters and streaming services enhance its reach and monetization opportunities, while investments in original content help drive viewer engagement and brand loyalty, contributing to its overall earnings.

Kartoon Studios Financial Statement Overview

Summary

Kartoon Studios faces significant financial challenges across all verticals. Despite minor improvements in revenue and free cash flow growth, the company struggles with profitability and cash flow generation. The balance sheet shows moderate leverage, but negative returns on equity highlight inefficiencies. Overall, the financial health of the company is concerning, with a need for strategic improvements to achieve sustainable growth and profitability.

Income Statement

Kartoon Studios shows a slight revenue growth in the TTM period, but profitability remains a significant concern with negative net profit margins and EBIT margins. The company has been struggling with consistent losses, and while there is a minor improvement in revenue, the overall profitability metrics indicate ongoing financial challenges.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating manageable leverage. However, the return on equity is negative, highlighting inefficiencies in generating returns for shareholders. The equity ratio suggests a reasonable level of equity financing, but the negative ROE is a concern for long-term sustainability.

Cash Flow

Cash flow analysis reveals a challenging situation with negative operating and free cash flows. Although there is a significant improvement in free cash flow growth in the TTM period, the operating cash flow to net income ratio remains negative, indicating cash flow issues. The free cash flow to net income ratio is slightly positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.07M	32.59M	44.09M	62.30M	7.87M	2.48M
Gross Profit	10.22M	9.46M	3.69M	12.94M	-14.11M	359.00K
EBITDA	-20.72M	-15.74M	-68.90M	-31.06M	-124.11M	-399.13M
Net Income	-25.02M	-20.74M	-77.10M	-45.59M	-126.29M	-401.67M
Balance Sheet
Total Assets	66.72M	85.47M	111.44M	239.59M	174.08M	134.20M
Cash, Cash Equivalents and Short-Term Investments	916.00K	9.91M	15.54M	91.14M	114.58M	100.46M
Total Debt	6.10M	16.78M	28.71M	92.37M	9.60M	3.67M
Total Liabilities	42.71M	49.01M	58.17M	126.72M	29.43M	15.00M
Stockholders Equity	22.64M	34.97M	51.57M	111.08M	142.73M	119.20M
Cash Flow
Free Cash Flow	-14.35M	-3.61M	-16.16M	-26.54M	-25.13M	-8.16M
Operating Cash Flow	-14.19M	-3.49M	-16.09M	-25.92M	-23.82M	-8.05M
Investing Cash Flow	4.47M	10.01M	73.86M	-30.94M	-128.73M	-1.40M
Financing Cash Flow	6.17M	-3.13M	-60.80M	54.44M	62.17M	109.61M

Kartoon Studios Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.73
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOON, the sentiment is Positive. The current price of 0.73 is above the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.73, and above the 200-day MA of 0.71, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 84.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOON.

Kartoon Studios Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
DLPN	53 Neutral	$19.52M	-2.96	-55.09%	―	3.86%	81.68%
TOON	45 Neutral	$38.06M	-1.55	-78.34%	―	22.84%	46.18%
RDI	44 Neutral	$46.40M	―	―	―	7.11%	69.85%
AGAE	41 Neutral	$21.88M	-1.11	-35.18%	―	-14.24%	-104.12%
ANGH	41 Neutral	$19.73M	-0.27	―	―	88.72%	-85.54%
LVO	40 Underperform	$53.96M	―	―	―	-32.17%	-135.06%

Kartoon Studios Corporate Events

Kartoon Studios Reports Increased Revenue Amid Financial Challenges

Kartoon Studios, Inc. is a global content and brand management company specializing in multimedia animated content for children, with operations spanning original IP development, third-party production services, and content distribution across various platforms.

Kartoon Studios Announces Securities Purchase Agreement

On October 20, 2025, Kartoon Studios announced a securities purchase agreement with an institutional investor, involving a registered direct offering and a concurrent private placement expected to close on October 22, 2025. The company anticipates gross proceeds of approximately $7.3 million, which will be used for working capital and to support the global launch of new animated series and the expansion of its streaming service. This financial move is expected to bolster Kartoon Studios’ market position and strategic initiatives.

The most recent analyst rating on (TOON) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Kartoon Studios stock, see the TOON Stock Forecast page.

Kartoon Studios Appoints Jeffrey Schlesinger to Board

On October 10, 2025, Kartoon Studios appointed Jeffrey Schlesinger, former President of Warner Bros. Worldwide Television Distribution, to its Board of Directors. Schlesinger’s extensive experience in global media, including overseeing Warner Bros.’s vast animation catalogue and successful television properties, is expected to significantly impact Kartoon Studios’ growth strategy. His appointment is seen as a strategic move to expand the company’s distribution channels, enhance IP monetization, and strengthen its position in the global kids’ entertainment market. Schlesinger’s expertise is anticipated to accelerate the company’s business model transformation, driving revenue growth and expanding its global footprint.

The most recent analyst rating on (TOON) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Kartoon Studios stock, see the TOON Stock Forecast page.

Kartoon Studios Settles Debt with Stock Issuance

Kartoon Studios, Inc. entered into an agreement with Continuation Capital, Inc. to settle obligations amounting to $1,799,162.60 by issuing up to 3,148,535 shares of its common stock. The agreement was approved by the Circuit Court of Sarasota County, Florida on August 28, 2025, and became binding on September 2, 2025, following approval from the NYSE American, potentially impacting the company’s financial structure and shareholder composition.

The most recent analyst rating on (TOON) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Kartoon Studios stock, see the TOON Stock Forecast page.

Kartoon Studios Extends CEO Andrew Heyward’s Tenure

On August 25, 2025, Kartoon Studios, Inc. announced a new Executive Employment Agreement with Andrew Heyward, reaffirming his role as Chief Executive Officer for another three years. This agreement maintains his previous compensation level and includes eligibility for an annual performance bonus, which could impact the company’s leadership stability and strategic direction.

The most recent analyst rating on (TOON) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Kartoon Studios stock, see the TOON Stock Forecast page.

Kartoon Studios Reports Strong Revenue Growth in Q2 2025

Kartoon Studios, Inc. is a global leader in children’s and family entertainment, known for delivering premium content and high-value intellectual property across various platforms, including its top-rated Kartoon Channel! streaming service.