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: 14.09%
• EPS Growth: 67.05%
• Country: US
• Employees: 344
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.13
• 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: 1.34
• Enterprise Value/Gross Profit: 4.56
• Enterprise Value/Ebitda: -3.13
• 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: 40 Underperform
• Price Target: $0.50 ▼(-24.24% Downside)

Kartoon Studios faces significant financial and operational challenges, with negative profitability and cash flow issues being the most critical factors. The technical analysis indicates a bearish trend, and the valuation metrics are unfavorable due to ongoing losses. These factors collectively result in a low overall stock score.

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 streams, primarily from the production and licensing of animated content. Key revenue sources include advertising revenues from its television programming, subscription fees from digital platforms, and licensing agreements for merchandise based on its popular characters and series. Additionally, the company may enter into partnerships with streaming services and networks to distribute its content, further enhancing its earning potential. Collaborative ventures with toy manufacturers and other consumer products also contribute to its revenue, allowing Kartoon Studios to monetize its intellectual properties beyond just content creation.

Kartoon Studios Financial Statement Overview

Summary

Kartoon Studios is facing significant financial challenges. Despite a slight revenue increase, profitability is a major concern with negative margins. The balance sheet shows moderate leverage, but negative return on equity and cash flow issues highlight liquidity concerns. Overall, the company needs to improve profitability and cash flow management.

Income Statement

Kartoon Studios shows a slight improvement in revenue growth with a 5.26% increase in the TTM period. However, profitability remains a significant concern with negative margins across the board. The gross profit margin is relatively low at 29.22%, and the net profit margin is deeply negative at -56.14%. The company has consistently reported negative EBIT and EBITDA margins, indicating ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.50, suggesting a balanced approach to leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio stands at 40.50%, indicating a reasonable level of equity financing relative to total assets.

Cash Flow

Kartoon Studios faces challenges in cash flow management, with negative operating and free cash flows. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow is marginally covering net losses. However, the negative growth in free cash flow and the operating cash flow coverage ratio highlight liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.91M	32.59M	44.09M	62.30M	7.87M	2.48M
Gross Profit	11.15M	9.46M	3.69M	15.03M	-15.04M	-21.26K
EBITDA	-16.21M	-15.74M	-68.90M	-31.07M	-105.88M	-399.13M
Net Income	-20.51M	-20.74M	-77.10M	-45.59M	-126.29M	-401.67M
Balance Sheet
Total Assets	70.00M	85.47M	111.44M	239.59M	174.08M	134.20M
Cash, Cash Equivalents and Short-Term Investments	2.74M	9.91M	16.05M	91.14M	122.58M	100.46M
Total Debt	17.24M	16.78M	28.71M	92.37M	9.63M	3.66M
Total Liabilities	40.33M	49.01M	58.17M	126.72M	29.43M	15.00M
Stockholders Equity	28.36M	34.97M	51.57M	111.08M	142.73M	119.20M
Cash Flow
Free Cash Flow	-7.28M	-3.61M	-16.16M	-26.54M	-25.05M	-7.95M
Operating Cash Flow	-7.13M	-3.49M	-16.09M	-25.92M	-23.74M	-7.84M
Investing Cash Flow	5.79M	10.01M	73.86M	-30.94M	-127.46M	-1.40M
Financing Cash Flow	1.40M	-3.13M	-60.80M	54.44M	60.82M	109.40M

Kartoon Studios Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOON, the sentiment is Negative. The current price of 0.66 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.78, and below the 200-day MA of 0.69, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.43 is Neutral, neither overbought nor oversold. The STOCH value of 1.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	50 Neutral	$18.89M	-0.69	-101.62%	―	4.84%	-9.71%
RDI	46 Neutral	$47.15M	―	―	―	7.59%	61.22%
AGAE	42 Neutral	$21.88M	-1.11	-30.92%	―	0.52%	-225.42%
ANGH	41 Neutral	$18.72M	-0.25	―	―	88.72%	-85.54%
TOON	40 Underperform	$38.06M	-1.55	-57.70%	―	14.09%	67.05%
LVO	39 Underperform	$59.67M	-2.49	―	―	-18.76%	-21.71%

Kartoon Studios Corporate Events

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.