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Kartoon Studios
(TOON)
Select Model
Select Model
Rating:57Neutral
Price Target:
$0.65
▲(0.46% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improved financials—positive net income and strong free cash flow with modest leverage—but is held back by weak core operating quality (sharp revenue decline and deeply negative gross margins). Technicals remain mixed-to-weak versus longer-term averages, while valuation looks relatively low on P/E and recent corporate actions/settlement provide additional support.
Positive Factors
Legal settlement boosts liquidity
The ~$28.48M of settlement proceeds (net of fees) materially strengthen near-term liquidity and reduce a major legal overhang. That improved cash position can provide runway to invest in IP monetization, reduce urgent financing needs, and support strategic execution over the coming months.
Negative Factors
Persistent cash burn
Material negative operating and free cash flow (~-$12.5M TTM) is a durable constraint: it erodes liquidity and forces reliance on settlements, equity issuance, or external financing. That dynamic limits consistent, self-funded investment in content and merchandising over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Legal settlement boosts liquidity
The ~$28.48M of settlement proceeds (net of fees) materially strengthen near-term liquidity and reduce a major legal overhang. That improved cash position can provide runway to invest in IP monetization, reduce urgent financing needs, and support strategic execution over the coming months.
Read all positive factors
Kartoon Studios (TOON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.92M
Dividend YieldN/A
Average Volume (3M)298.31K
Price to Earnings (P/E)8.7
Beta (1Y)1.33
Revenue Growth-96.27%
EPS GrowthN/A
CountryUS
Employees294
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.07
Shares Outstanding62,204,105
10 Day Avg. Volume359,792
30 Day Avg. Volume298,314
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)1.38
Price to Sales (P/S)0.92
P/FCF Ratio-3.13
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
41
Neutral
Balance Sheet
67
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.67M | 39.35M | 32.59M | 44.09M | 62.30M | 7.87M |
| Gross Profit | -15.72M | 12.52M | 9.46M | 3.69M | 12.94M | -14.11M |
| EBITDA | 13.85M | -19.57M | -15.74M | -68.90M | -31.06M | -124.11M |
| Net Income | 9.85M | -24.53M | -20.74M | -77.10M | -45.59M | -126.29M |
Balance Sheet | ||||||
| Total Assets | 94.53M | 70.91M | 85.47M | 111.44M | 239.59M | 174.08M |
| Cash, Cash Equivalents and Short-Term Investments | 40.51M | 6.92M | 9.91M | 15.54M | 91.14M | 114.58M |
| Total Debt | 9.11M | 17.68M | 16.78M | 28.71M | 92.37M | 9.60M |
| Total Liabilities | 40.91M | 43.37M | 49.01M | 58.17M | 126.72M | 29.43M |
| Stockholders Equity | 52.38M | 26.21M | 34.97M | 51.57M | 111.08M | 142.73M |
Cash Flow | ||||||
| Free Cash Flow | 26.17M | -11.56M | -3.61M | -16.16M | -26.52M | -24.05M |
| Operating Cash Flow | 26.32M | -11.41M | -3.49M | -16.09M | -25.92M | -23.74M |
| Investing Cash Flow | -31.76M | -1.63M | 10.01M | 73.86M | -30.94M | -127.46M |
| Financing Cash Flow | 10.09M | 8.15M | -3.13M | -60.80M | 54.44M | 60.82M |
Kartoon Studios Technical Analysis
Negative
0.65
Price Trends
0.64
Negative
0.68
Negative
0.67
Negative
Market Momentum
<0.01
Negative
51.44
Neutral
62.80
Neutral
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 0.65 is above the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.64, and below the 200-day MA of 0.67, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 62.80 is Neutral, 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 37 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $39.92M | 8.66 | 32.16% | ― | -96.27% | ― | |
51 Neutral | $70.42M | -3.65 | 50.09% | ― | -2.17% | 25.32% | |
48 Neutral | $15.37M | -3.85 | -41.42% | ― | 12.55% | 86.16% | |
44 Neutral | $32.09M | -0.26 | -205.22% | ― | 27.16% | -18.55% | |
43 Neutral | $54.30M | -2.19 | 114.87% | ― | -23.12% | 13.43% |
* Communication Services Sector Average
TOON
Kartoon Studios
0.64
-0.15
-19.09%
RDI
Reading International
2.01
0.46
30.10%
LVO
LiveOne
3.87
-1.63
-29.64%
DLPN
Dolphin Entertainment
1.10
-0.09
-7.56%
ANGH
Anghami Inc.
3.37
0.23
7.32%
Kartoon Studios Corporate Events
Business Operations and StrategyProduct-Related Announcements
Kartoon Studios inks Amazon Prime streaming partnership
Positive
Aug 12, 2026
On August 12, 2026, Kartoon Studios, Inc. announced a streaming agreement with Amazon Prime Video for its animated series HUNDRED ACRE WOOD, based on A.A. Milne’s Winnie, scheduled to launch on February 18, 2027. The collaboration includes p...
Shareholder Meetings
Kartoon Studios Announces 2026 Annual Meeting Schedule
Neutral
Aug 6, 2026
On August 5, 2026, Kartoon Studios, Inc.’s board set October 21, 2026 as the date for the company’s 2026 annual meeting of stockholders, which will occur more than 30 days after the anniversary of the 2025 meeting. As a result, previou...
Business Operations and StrategyM&A Transactions
Kartoon Studios Divests Channel Network, Refocuses on Core IP
Positive
Jul 17, 2026
On July 17, 2026, Kartoon Studios announced it had sold its interest in Frederator Networks’ Channel Network business for $500,000 in cash, while retaining key Frederator Studios intellectual property, including Bee and PuppyCat, Bravest War...
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...
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.