The revenue miss due to production timing is a known risk for animation studios, but the 24% drop is material for a $37M market cap stock. Watch for Q2 production delivery catch-up and any franchise monetization milestones (Hundred Acre Wood, Stan Lee Universe) that could re-rate the stock. The going concern overhang from the prior 10-K remains a risk.
Price Chart
Executive Summary
Kartoon Studios reported Q1 2026 revenue of $7.2M, down 24% YoY from $9.5M, driven by timing of production deliveries at Mainframe Studios. Distribution revenue grew 15% to $2.3M, and operating loss narrowed 9% to $2.8M on a 20% decline in total operating expenses. The company highlighted record subscriber engagement on its streaming platforms and progress on flagship franchises Hundred Acre Wood and Stan Lee Universe, but the top-line decline and lack of EPS guidance make this a mixed report.
Key Financial Metrics
Key Facts
- Total revenue $7.2M in Q1 2026, down 24% from $9.5M in Q1 2025
- Distribution revenue $2.3M, up 15% YoY
- Loss from operations $2.8M, improved 9% YoY
- Total operating expenses $10.0M, down 20% YoY
- Cash & marketable securities $6.0M as of March 31, 2026
- Stockholders' equity $22.6M
- Kartoon Channel! subscriber engagement up >80% YoY; Ameba up >200%
- Licensed Masters of the Universe (2002) and American Girl (2016) from Mattel
- Prior year (2025) annual revenue was $39.4M, up 21% YoY, with operating loss improving 24%
- Prior year filing included a going concern audit opinion
Financial Impact
Revenue declined $2.3M YoY (-24%) but distribution revenue grew $0.3M (+15%). Operating loss improved by $0.3M (-9%).
Risk Factors
- Revenue decline of 24% YoY due to production timing at Mainframe Studios
- Going concern audit opinion from prior 10-K (2025) remains outstanding
- Cash burn: $6.0M cash vs $2.8M quarterly operating loss implies ~2 quarters of runway without additional financing
- Franchise monetization (Hundred Acre Wood, Stan Lee Universe) still pre-commercialization
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001683168-26-003978 |
| Document: toon_8k.htm | 0001683168-26-003978 |
| Document: 0001683168-26-003978-index-headers.html | 0001683168-26-003978 |
| Document: 0001683168-26-003978-index.html | 0001683168-26-003978 |
| Document: 0001683168-26-003978.txt | 0001683168-26-003978 |
| 8-K Data (Synthetic) | 0001683168-26-003978 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 3 | $0.5020 $0.5170 | ▲ +2.99% | ▲ +3.51% | $0.5050 (+0.60%) |
Oct 20, 2026 7d 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 19w 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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