0001683168-26-002456
SEC filingKartoon Studios reported 2025 full-year revenue of $39.4 million, up 21% year-over-year, with production services revenue surging 50% to $26.8 million and operating loss improving 24%.
Kartoon Studios announced its full-year 2025 financial results via press release on March 31, 2026, highlighting revenue growth to $39.4 million, a 21% increase from 2024, primarily driven by a 50% surge in production services revenue to $26.8 million from Mainframe Studios, fueled by demand from partners like Disney, Sony, PBS, ABC, and Spinmaster. The company achieved a 24% improvement in operating loss through cost discipline, overhead reductions, and a shift toward higher-margin IP-driven revenue streams less sensitive to energy costs. Distribution platforms showed strong momentum, with Kartoon Channel achieving record subscribers and 85% year-over-year engagement growth in Q1 2026, alongside Ameba's 206% engagement increase and 70% FAST channel watch time growth in Q4 2025, supported by content like Scary Godmother and Numberblocks. Balance sheet remains solid with $35.8 million in current assets and $27.5 million in stockholders' equity. Over 60% of 2026 production revenue is contracted, providing visibility. CEO Andy Heyward emphasized the transition to franchise monetization with launches of Hundred Acre Woods (featuring Winnie the Pooh-inspired content led by creators like Linda Woolverton and Danny Elfman) and Stan Lee Universe projects like The Excelsiors and SuperHero Pets in Q4 2026. CFO Brian Parisi noted stabilizing costs and path to improved margins from IP scaling. The 10-K includes a going concern explanatory paragraph from auditors.