Kartoon Studios (TOON) AI Stock Analysis

• Market Cap: $41.04M
• Dividend Yield: N/A
• Average Volume (3M): 298.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.67
• 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: 53,905,697
• 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: 1.24
• 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: 54 Neutral
• Price Target: $0.76 ▲(1.07% Upside)

Kartoon Studios' overall stock score is primarily impacted by its poor financial performance, which is a significant concern. However, positive corporate events and moderate technical indicators provide some optimism. The valuation remains unattractive due to negative earnings, and the absence of earnings call data limits further insights.

Positive Factors

Strategic Partnerships

The partnership with Shriners Children’s expands Kartoon Studios' content reach, enhancing brand visibility and engagement with new audiences, which can drive long-term growth and strengthen market position.

New Franchise Launch

The launch of a new franchise based on popular characters can attract a broad audience, increasing viewership and merchandise sales, thus supporting sustainable revenue growth and brand expansion.

Board Appointment

Appointing an experienced executive like Schlesinger can enhance strategic initiatives, improve distribution channels, and strengthen IP monetization, contributing to long-term growth and competitive advantage.

Negative Factors

Negative Profitability

Persistent negative profitability metrics suggest challenges in achieving sustainable earnings, which can hinder investment capabilities and long-term financial health.

Cash Flow Issues

Negative cash flows indicate potential liquidity issues, limiting the company's ability to invest in growth opportunities and manage debt, impacting long-term stability.

Stock Issuance for Debt Settlement

Using stock issuance to settle debt can dilute existing shareholders and reflects underlying financial challenges, potentially affecting investor confidence and future capital raising.

Kartoon Studios Business Overview & Revenue Model

Company Description

Kartoon Studios Inc., a content and brand management company, creates, produces, licenses, and broadcasts educational and multimedia animated content for children worldwide. The company offers Ukulele U, a live-action IP preschool music series; Team Zenko Go!, a preschool computer animated children's streaming television series; Rainbow Rangers, an animated series about the adventures of seven magical girls; Guava Juice, a 2D animated IP series; Shaq's Garage, a children's animated series about the secret adventures; Cocomelon that provides 3D animation videos of traditional nursery rhymes and children's songs; Eggventurers, a preschool animated series; Barbie Productions that provides animated Barbie series; Octonauts, a children's television series based on the children's books; Roblox Rumble, an elimination-style competitive reality series; Spin Master Productions; Madagascar; and Bee & PuppyCat. It also operates a cartoon channel over various platforms. In addition, the company acts as a licensing agent for Llama Llama, Bee & PuppyCat, and Castlevania. It serves various customers and partners, including broadcasters, consumer products licensees, and online platforms. The company was formerly known as Genius Brands International, Inc. and changed its name to Kartoon Studios Inc. in June 2023. Kartoon Studios Inc. was incorporated in 2006 and is headquartered in Beverly Hills, California.

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: 0.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.75 is above the 20-day moving average (MA) of 0.74, above the 50-day MA of 0.73, and above the 200-day MA of 0.72, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 47.37 is Neutral, 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%
TOON	54 Neutral	$41.04M	-1.37	-78.34%	―	22.84%	46.18%
DLPN	53 Neutral	$17.94M	-2.70	-55.09%	―	3.86%	81.68%
RDI	44 Neutral	$40.80M	-1.72	―	―	7.11%	69.85%
LVO	43 Neutral	$50.01M	-1.80	―	―	-32.17%	-135.06%
AGAE	41 Neutral	$14.59M	-0.74	-35.18%	―	-14.24%	-104.12%
ANGH	41 Neutral	$16.42M	-0.23	―	―	88.72%	-85.54%

Kartoon Studios Corporate Events

Kartoon Studios Director Resigns, Enters Consulting Agreement

On December 10, 2025, Henry Sicignano, a member of the Board of Directors of Kartoon Studios, announced his resignation effective December 12, 2025, due to personal reasons. His departure was not related to any disagreements with the company’s operations or policies. Following his resignation, on December 12, 2025, Kartoon Studios entered into a Consulting Agreement with Mr. Sicignano, ensuring his continued involvement with the company.

Kartoon Studios Settles Debt with Stock Issuance

Kartoon Studios, Inc. has entered into an agreement with Continuation Capital, Inc. to settle obligations amounting to $968,612.79 by issuing up to 1,705,071 shares of its common stock, with the agreement becoming binding on November 26, 2025. Additionally, Kartoon Studios has signed new executive employment agreements with Brian Parisi and Michael Jaffa, securing their roles as CFO and COO/General Counsel, respectively, with provisions for performance bonuses and stock unit awards.

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.

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.