Kartoon Studios (TOON) AI Stock Analysis

• Market Cap: $37.36M
• Dividend Yield: N/A
• Average Volume (3M): 249.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• 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: 47,984,467
• 10 Day Avg. Volume: 258,036
• 30 Day Avg. Volume: 249,311
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 4.56
• Enterprise Value/Ebitda: -3.13
• 1Y Price Target: $0.50
• Price Target Upside: -35.90% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: $0.50 ▼(-35.90% Downside)

Kartoon Studios faces significant financial and valuation challenges, with negative profitability and cash flow issues being the most pressing concerns. Technical analysis shows mixed signals, with bearish momentum prevailing. The lack of earnings call data and corporate events further limits positive catalysts for the stock.

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 demonstrates financial instability with declining revenue, persistent losses, and negative cash flows. The balance sheet provides some stability with reduced liabilities, but ongoing challenges in profitability and cash generation remain key concerns.

Income Statement

Kartoon Studios has faced declining revenues and significant losses. The TTM period shows a revenue decrease with negative EBIT and EBITDA margins. Despite some gross profit in 2025, the persistent net losses indicate ongoing profitability issues.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, but declining stockholders' equity over time. The reduction in total assets and cash reserves may pose risks, although liabilities have decreased, indicating some deleveraging.

Cash Flow

Kartoon Studios' cash flow statements reflect ongoing negative operating and free cash flows, indicating struggles with cash generation. The high variation in cash flows showcases instability, although recent improvements in investing cash flow offer some positive signs.

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: Positive
• Last Price: 0.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 0.78 is below the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.76, and above the 200-day MA of 0.67, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 73.18 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
CNVS	62 Neutral	$63.14M	24.25	9.22%	―	77.07%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
RDI	53 Neutral	$50.44M	―	-540.12%	―	7.59%	61.22%
DLPN	49 Neutral	$17.97M	―	-101.62%	―	4.84%	-9.71%
AGAE	46 Neutral	$32.32M	―	-30.92%	―	0.52%	-225.42%
TOON	39 Underperform	$37.36M	―	-57.70%	―	14.09%	67.05%

Kartoon Studios Corporate Events

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.

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.