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Kartoon Studios (TOON)
XASE:TOON
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Kartoon Studios (TOON) AI Stock Analysis

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TOON

Kartoon Studios

(NYSE MKT:TOON)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
$0.62
▼(-13.75% Downside)
Action:Reiterated
Date:07/08/26
The score is held down primarily by weak financial performance (revenue decline, large losses, and ongoing cash burn) and bearish technicals (trading below key moving averages with negative MACD). A notable offset is the positive legal settlement that could improve finances and reduce uncertainty, but valuation remains constrained by unprofitability (negative P/E).
Positive Factors
Owned IP and diversified monetization
Kartoon's core model of owning family animation IP and monetizing it across licensing, distribution, merchandising and ad-supported digital channels is durable. Owned characters enable repeated revenue streams, long-tail monetization and margin expansion versus one-off productions if franchises gain steady audience traction.
Negative Factors
Persistent negative operating and free cash flow
Sustained negative operating and free cash flow (~-$12.5M TTM) indicates the business is burning cash to operate and produce content. Until core operations generate positive, consistent cash flows, the company will need external financing or asset sales, raising dilution or refinancing risk and constraining reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Owned IP and diversified monetization
Kartoon's core model of owning family animation IP and monetizing it across licensing, distribution, merchandising and ad-supported digital channels is durable. Owned characters enable repeated revenue streams, long-tail monetization and margin expansion versus one-off productions if franchises gain steady audience traction.
Read all positive factors

Kartoon Studios (TOON) vs. SPDR S&P 500 ETF (SPY)

Kartoon Studios Business Overview & Revenue Model

Company Description
Kartoon Studios Inc., which operated as Genius Brands International, Inc. until its renaming in June 2023, is a dynamic content and brand management company. Its core business involves developing, producing, licensing, and broadcasting educational...
How the Company Makes Money
Kartoon Studios makes money primarily by monetizing animated intellectual property (IP) across multiple channels. Key revenue streams include: (1) Content production and distribution revenues: the company produces animated programming and earns re...

Kartoon Studios Financial Statement Overview

Summary
Overall financials are weak: TTM revenue declined (-5.8%), profitability remains deeply negative (net margin about -65.7%), and operating/free cash flow are materially negative (about -$12.5M). The main offset is an improved balance sheet with moderate leverage (debt-to-equity around 0.26), but losses (TTM ROE roughly -99%) continue to pressure equity.
Income Statement
22
Negative
Balance Sheet
52
Neutral
Cash Flow
28
Negative
BreakdownMar 2026Mar 2025Mar 2024Dec 2022Dec 2021
Income Statement
Total Revenue39.35M32.59M44.09M62.30M7.87M
Gross Profit12.52M9.46M3.69M12.94M-14.11M
EBITDA-19.57M-15.74M-68.90M-31.06M-124.11M
Net Income-24.53M-20.74M-77.10M-45.59M-126.29M
Balance Sheet
Total Assets70.91M85.47M111.44M239.59M174.08M
Cash, Cash Equivalents and Short-Term Investments6.92M9.91M15.54M91.14M114.58M
Total Debt17.68M16.78M28.71M92.37M9.60M
Total Liabilities43.37M49.01M58.17M126.72M29.43M
Stockholders Equity26.21M34.97M51.57M111.08M142.73M
Cash Flow
Free Cash Flow-11.56M-3.61M-16.16M-26.54M-25.13M
Operating Cash Flow-11.41M-3.49M-16.09M-25.92M-23.82M
Investing Cash Flow-1.63M10.01M73.86M-30.94M-128.73M
Financing Cash Flow8.15M-3.13M-60.80M54.44M62.17M

Kartoon Studios Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.72
Price Trends
50DMA
0.74
Negative
100DMA
0.67
Negative
200DMA
0.70
Negative
Market Momentum
MACD
-0.04
Positive
RSI
39.43
Neutral
STOCH
8.59
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 0.72 is below the 20-day moving average (MA) of 0.84, below the 50-day MA of 0.74, and above the 200-day MA of 0.70, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 39.43 is Neutral, neither overbought nor oversold. The STOCH value of 8.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TOON.

Kartoon Studios Risk Analysis

Kartoon Studios disclosed 34 risk factors in its most recent earnings report. Kartoon Studios reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Kartoon Studios Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
54
Neutral
$67.00M-2.66128.06%-32.57%-7.51%
46
Neutral
$36.14M-1.37-98.96%-69.44%5.10%
44
Neutral
$40.60M-1.61110.41%1.12%35.50%
44
Neutral
$30.82M-0.26-205.22%27.16%-18.55%
40
Underperform
$13.80M-3.71-55.09%17.92%86.34%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TOON
Kartoon Studios
0.64
-0.10
-13.55%
RDI
Reading International
1.24
-0.07
-5.34%
LVO
LiveOne
5.22
-2.48
-32.21%
DLPN
Dolphin Entertainment
1.06
-0.16
-13.11%
ANGH
Anghami Inc.
3.40
-1.54
-31.17%

Kartoon Studios Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Kartoon Studios Strengthens Board Protections and Governance Structure
Neutral
Jul 2, 2026
On July 1, 2026, Kartoon Studios’ board adopted a new form of indemnification agreement granting directors and executive officers enhanced contractual rights to indemnification, expense advancement, and reimbursement to the fullest extent pe...
Business Operations and StrategyDividends
Kartoon Studios Adopts Stockholder Rights Protection Plan
Neutral
Jul 2, 2026
On July 1, 2026, Kartoon Studios’ board approved a preferred stock rights agreement and declared a dividend of one right for each outstanding common share, with a record date of July 13, 2026. The plan, announced publicly on July 2, 2026, gi...
Legal Proceedings
Kartoon Studios Advances With Major Litigation Settlement Approval
Neutral
Jun 16, 2026
On June 11, 2026, Kartoon Studios reached a settlement agreement with an additional party in the Augenbaum v. Anson Investments Master Fund LP et al. litigation in the U.S. District Court for the Southern District of New York, under which the sett...
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Kartoon Studios Reaches Major Legal Settlement, Boosting Finances
Positive
Jun 8, 2026
From June 2 through June 5, 2026, Kartoon Studios entered into settlement agreements with five parties in the Augenbaum v. Anson Investments Master Fund LP et al. case in the U.S. District Court for the Southern District of New York. The settlemen...
Business Operations and StrategyLegal ProceedingsPrivate Placements and Financing
Kartoon Studios Completes Debt-for-Equity Settlement Agreement
Neutral
Apr 24, 2026
Kartoon Studios, Inc. has entered into an agreement with Continuation Capital, Inc. to settle certain past due obligations and accounts payable by issuing 2,553,047 shares of common stock in lieu of cash payments. The settlement covers an initial ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2026