Kartoon Studios Inc. (TOON) AI Stock Analysis

Kartoon Studios Inc. creates, produces, licenses, and broadcasts educational and multimedia animated content for children globally. Its show portfolio includes "Ukulele U," "Team Zenko Go!," "Rainbow Rangers," "Guava Juice," and "Shaq's Garage." The company also provides content like "Cocomelon" and "Eggventurers," alongside productions such as "Barbie Productions," "Octonauts," "Roblox Rumble," "Spin Master Productions," "Madagascar," and "Bee & PuppyCat." It distributes content through a dedicated cartoon channel across multiple platforms. Acting as a licensing agent, Kartoon Studios represents brands including "Llama Llama," "Bee & PuppyCat," and "Castlevania" for broadcasters, consumer products licensees, and online platforms.

Kartoon Studios grew revenue from $7.9M in FY2021 to $62.3M in FY2022, before sales fell 29.2% to $44.1M in FY2023 and 26.1% to $32.6M in FY2024. In FY2025, revenue rebounded 20.7% to $39.4M, delivering a 5-year revenue CAGR of 73.8% from FY2020 to FY2025. Gross margin expanded from -179.3% in FY2021 to 31.8% in FY2025. Operating margin remained negative at -30.9% in FY2025, with net income of -$24.5M. Over the trailing twelve months, revenue totaled $32.6M with a profit margin of 26.9% and an operating margin of -58.6%. In the latest quarter ended June 30, 2026, quarterly revenue fell 43.4% year-over-year.

As of June 30, 2026, Kartoon Studios held $40.5M in cash and short-term investments against total debt of $9.1M, yielding net cash of $31.4M. Shareholders' equity stood at $52.4M out of $94.5M in total assets. The company reported a current ratio of 2.00 and a debt-to-equity ratio of 0.17. In FY2025, operating cash flow was -$11.4M, free cash flow was -$11.6M, and capital expenditures were $151,000. Over a 5-year period, share count increased 135.2%.

At its last close of $0.52 on October 16, 2026, Kartoon Studios has a market capitalization of $32.6M and an enterprise value of $13.6M. The stock trades at a trailing price-to-earnings ratio of 6.5x, well below the 16.2x median of its US-listed Communication Services peers. However, its forward P/E ratio is 123.5x compared to the peer median of 14.1x. Its price-to-sales multiple of 1.0x compares to the peer median of 0.8x, while EV to EBITDA stands at 0.9x versus 10.0x for peers. Over the past year, the stock fell 26.2%, trailing the S&P 500 (SPY) return of 16.8%.

Wall Street analysts have set a mean price target of $10.00 for Kartoon Studios, which implies an increase of 1808.4% from its last close of $0.52 on October 16, 2026. Over the last 4 quarters, the company recorded 0 EPS beats against consensus estimates. Institutional investors own 31.9% of shares, insiders hold 4.6%, and short interest represents 3.0% of float. The company's next earnings report is scheduled for November 13, 2026.

This page is an AI-written research summary of Kartoon Studios Inc. (TOON). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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