The core business continues to shrink, but the $40.5M cash position and Amazon Prime deal provide a potential catalyst for the IP-driven turnaround. Monitor Hundred Acre Wood launch in Feb 2027 and the company's ability to convert IP into recurring revenue. The one-time litigation gain masks underlying operational weakness.
Price Chart
Executive Summary
Kartoon Studios reported Q2 2026 revenue of $5.8M, down 43% YoY from $10.3M, with operating loss widening to $3.4M from $3.2M. Net income of $27.0M was driven by a $39.2M non-recurring litigation settlement gain. The company ended the quarter with $40.5M cash and no long-term debt, and concurrently filed an 8-K announcing an Amazon Prime distribution partnership for its Hundred Acre Wood franchise, signaling a strategic pivot to owned IP.
Key Financial Metrics
Key Facts
- Q2 2026 revenue fell 43% YoY to $5.8M from $10.3M, driven by lower production services revenue
- Operating loss increased to $3.4M from $3.2M, despite a 32% reduction in total expenses
- Net income of $27.0M vs net loss of $6.3M in prior year, primarily from a $39.2M litigation settlement gain
- Cash and marketable securities of $40.5M, no long-term debt; additional $39.2M in escrow pending legal fee determination
- Separate 8-K filed same day announcing Amazon Prime partnership for Hundred Acre Wood franchise launching Feb 18, 2027
- Completed sale of Frederator network business in July, retaining key IP assets
- Appointed Brooke Bacon as SVP of Consumer Products and Licensing
Financial Impact
Revenue declined $4.5M YoY (43%); operating loss increased $0.2M; net income swing of $33.3M due to one-time litigation gain
Risk Factors
- Sustained revenue decline from legacy production services business
- Execution risk on IP monetization strategy (Hundred Acre Wood, Stan Lee Universe)
- Dependence on non-recurring litigation proceeds for net profitability
- Potential dilution from share issuance (shares outstanding increased 13% YoY)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001683168-26-006406 |
| Document: kartoon_8k.htm | 0001683168-26-006406 |
| Document: 0001683168-26-006406-index-headers.html | 0001683168-26-006406 |
| Document: 0001683168-26-006406-index.html | 0001683168-26-006406 |
| Document: 0001683168-26-006406.txt | 0001683168-26-006406 |
| 8-K Data (Synthetic) | 0001683168-26-006406 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 3 | $0.5020 $0.5170 | ▲ +2.99% | ▲ +3.51% | $0.5050 (+0.60%) |
Oct 20, 2026 6d ago | 8-K | $0.5168 $0.5093 | ▼ −1.45% | ▼ −1.98% | $0.5050 (−2.28%) |
Aug 14, 2026 10w ago | 8-K | $0.6319 $0.6026 | ▲ +4.64% | ▲ +4.16% | $0.5050 (+20.08%) |
Aug 12, 2026 10w ago | 8-K | $0.6538 $0.6456 | ▼ −1.25% | ▼ −1.95% | $0.5050 (−22.76%) |
Jul 17, 2026 14w ago | 8-K | $0.6191 $0.6120 | ▼ −1.15% | ▼ −0.99% | $0.5050 (−18.43%) |
Jul 2, 2026 16w ago | 8-K | $0.6700 $0.6870 | ▲ +2.54% | ▲ +1.66% | $0.5050 (−24.63%) |
Jul 2, 2026 16w ago | Press Release | $0.6700 $0.6870 | ▲ +2.54% | ▲ +1.66% | $0.5050 (−24.63%) |
Jun 16, 2026 18w ago | 8-K | $1.25 $1.07 | ▼ −14.40% | ▼ −13.15% | $0.5050 (−59.60%) |
Jun 8, 2026 20w ago | 8-K | $0.7478 $0.8702 | ▲ +16.37% | ▲ +17.94% | $0.5050 (−32.47%) |
May 15, 2026 23w ago | 8-K | $0.6300 $0.6140 | ▼ −2.54% | ▼ −2.48% | $0.5050 (−19.84%) |
US Market Status
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