Kartoon Studios Q1 2025 Revenue Soars 56% Over Prior Year - Company on Track for Profit By End of Year
Kartoon Studios (NYSE: TOON) reported strong Q1 2025 results with total revenue increasing 56.4% year-over-year to $9.5 million. The company's Mainframe Studios achieved profitability with a 137.9% revenue surge, while Kartoon Channel! maintained its position as the #1 kids' streaming app in the Apple App Store. Operating losses improved by 51.1% YoY, and G&A expenses were reduced by 24.9%.
The company has zero long-term debt and reports current assets of $25.1 million with stockholders' equity of $30.1 million. Kartoon Channel! has expanded to reach over 1.5 billion potential viewers across 61+ countries. Mainframe Studios has secured over 90% of its 2025 budget revenue through contracts with major partners including Disney, Netflix, and Sony Kids. The company expects to achieve overall profitability by Q4 2025, supported by upcoming franchises including 'Hundred Acre Woods' Winnie & Friends' and 'Stan Lee's The Excelsiors'.
Kartoon Studios (NYSE: TOON) ha riportato risultati solidi nel primo trimestre 2025, con un fatturato totale in crescita del 56,4% su base annua, raggiungendo 9,5 milioni di dollari. Il segmento Mainframe Studios ha raggiunto la redditività grazie a un aumento del fatturato del 137,9%, mentre Kartoon Channel! ha mantenuto la sua posizione di app di streaming per bambini numero 1 nell'Apple App Store. Le perdite operative sono diminuite del 51,1% rispetto all'anno precedente e le spese generali e amministrative sono state ridotte del 24,9%.
L'azienda non ha debiti a lungo termine e dichiara attività correnti per 25,1 milioni di dollari con un patrimonio netto di 30,1 milioni di dollari. Kartoon Channel! si è espansa raggiungendo oltre 1,5 miliardi di potenziali spettatori in più di 61 paesi. Mainframe Studios ha assicurato oltre il 90% del budget di ricavi previsto per il 2025 tramite contratti con partner importanti come Disney, Netflix e Sony Kids. La società prevede di raggiungere la redditività complessiva entro il quarto trimestre del 2025, supportata da nuove franchise come 'Hundred Acre Woods' Winnie & Friends' e 'Stan Lee's The Excelsiors'.
Kartoon Studios (NYSE: TOON) reportó sólidos resultados en el primer trimestre de 2025, con ingresos totales que aumentaron un 56,4% interanual hasta 9,5 millones de dólares. El segmento Mainframe Studios alcanzó la rentabilidad con un incremento de ingresos del 137,9%, mientras que Kartoon Channel! mantuvo su posición como la aplicación de streaming para niños número 1 en la Apple App Store. Las pérdidas operativas mejoraron un 51,1% interanual y los gastos generales y administrativos se redujeron un 24,9%.
La compañía no tiene deuda a largo plazo y reporta activos corrientes por 25,1 millones de dólares con un patrimonio neto de 30,1 millones. Kartoon Channel! se ha expandido alcanzando más de 1.500 millones de espectadores potenciales en más de 61 países. Mainframe Studios ha asegurado más del 90% de su presupuesto de ingresos para 2025 mediante contratos con socios importantes como Disney, Netflix y Sony Kids. La empresa espera alcanzar la rentabilidad general para el cuarto trimestre de 2025, respaldada por próximas franquicias como 'Hundred Acre Woods' Winnie & Friends' y 'Stan Lee's The Excelsiors'.
Kartoon Studios (NYSE: TOON)는 2025년 1분기 강력한 실적을 보고했으며, 총 매출은 전년 대비 56.4% 증가한 950만 달러를 기록했습니다. 회사의 Mainframe Studios는 매출이 137.9% 급증하며 수익성을 달성했고, Kartoon Channel!은 애플 앱스토어에서 어린이 스트리밍 앱 1위 자리를 유지했습니다. 영업손실은 전년 대비 51.1% 개선되었고, 일반관리비는 24.9% 감소했습니다.
회사는 장기 부채가 전혀 없으며 유동자산은 2,510만 달러, 주주 자본은 3,010만 달러를 보고했습니다. Kartoon Channel!은 61개국 이상에서 15억 명 이상의 잠재 시청자에게 도달하며 확장되었습니다. Mainframe Studios는 디즈니, 넷플릭스, 소니 키즈 등 주요 파트너와의 계약을 통해 2025년 예산 수익의 90% 이상을 확보했습니다. 회사는 'Hundred Acre Woods' Winnie & Friends'와 'Stan Lee's The Excelsiors' 등 다가오는 프랜차이즈를 바탕으로 2025년 4분기까지 전반적인 수익성 달성을 기대하고 있습니다.
Kartoon Studios (NYSE : TOON) a annoncé de solides résultats pour le premier trimestre 2025, avec un chiffre d'affaires total en hausse de 56,4 % en glissement annuel pour atteindre 9,5 millions de dollars. La division Mainframe Studios a atteint la rentabilité grâce à une augmentation de 137,9 % de ses revenus, tandis que Kartoon Channel! a conservé sa position d'application de streaming pour enfants numéro 1 sur l'Apple App Store. Les pertes d'exploitation se sont améliorées de 51,1 % en glissement annuel, et les frais généraux et administratifs ont été réduits de 24,9 %.
L'entreprise ne possède aucune dette à long terme et déclare des actifs courants de 25,1 millions de dollars ainsi qu'un fonds propres de 30,1 millions de dollars. Kartoon Channel! s'est étendu pour atteindre plus de 1,5 milliard de téléspectateurs potentiels dans plus de 61 pays. Mainframe Studios a sécurisé plus de 90 % de son budget de revenus pour 2025 grâce à des contrats avec des partenaires majeurs tels que Disney, Netflix et Sony Kids. La société prévoit d'atteindre la rentabilité globale d'ici le quatrième trimestre 2025, soutenue par les franchises à venir, notamment 'Hundred Acre Woods' Winnie & Friends' et 'Stan Lee's The Excelsiors'.
Kartoon Studios (NYSE: TOON) meldete starke Ergebnisse für das erste Quartal 2025 mit einem Gesamtumsatzanstieg von 56,4 % gegenüber dem Vorjahr auf 9,5 Millionen US-Dollar. Das Unternehmensteil Mainframe Studios erzielte mit einem Umsatzanstieg von 137,9 % die Profitabilität, während Kartoon Channel! seine Position als führende Kinder-Streaming-App im Apple App Store behauptete. Die operativen Verluste verbesserten sich um 51,1 % im Jahresvergleich, und die Verwaltungs- und Gemeinkosten wurden um 24,9 % gesenkt.
Das Unternehmen hat keine langfristigen Schulden und meldet Umlaufvermögen von 25,1 Millionen US-Dollar sowie ein Eigenkapital von 30,1 Millionen US-Dollar. Kartoon Channel! hat seine Reichweite auf über 1,5 Milliarden potenzielle Zuschauer in mehr als 61 Ländern ausgeweitet. Mainframe Studios sicherte sich über 90 % seines Budgetumsatzes für 2025 durch Verträge mit großen Partnern wie Disney, Netflix und Sony Kids. Das Unternehmen erwartet, bis zum vierten Quartal 2025 insgesamt profitabel zu sein, unterstützt durch kommende Franchises wie 'Hundred Acre Woods' Winnie & Friends' und 'Stan Lee's The Excelsiors'.
- Revenue grew 56.4% year-over-year with four consecutive quarters of growth
- Mainframe Studios achieved profitability with 137.9% revenue growth and 90% of 2025 revenue already contracted
- Operating loss improved by 51.1% YoY and 11.9% sequentially
- G&A expenses reduced by 24.9%
- Zero long-term debt with $25.1M in current assets
- Kartoon Channel! ranked #1 kids' streaming app on Apple App Store with doubled watch time
- Global reach expanded to 61+ countries with 1.5B+ potential viewers
- Company still operating at a loss, though improving
- Profitability not expected until Q4 2025
- Success of upcoming franchises (Winnie & Friends, The Excelsiors) remains unproven
Insights
Kartoon Studios shows impressive 56% revenue growth with profitable divisions, zero debt, and clear path to full profitability by year-end.
Kartoon Studios' Q1 results reveal a 56.4% year-over-year revenue increase to
The company's financial health shows significant improvement across multiple metrics. Operating losses were reduced by
What's particularly noteworthy is that two key business units have achieved profitability: Mainframe Studios and Kartoon Channel!. Mainframe has secured over
Kartoon Channel!, their streaming service, maintains its position as the #1 viewer-ranked kids' streaming app in Apple's App Store, outperforming major competitors. Their FAST channel watch time doubled year-over-year, while their global reach expanded to over 61 countries with a potential viewer base exceeding 1.5 billion.
Management's statement that they expect company-wide profitability by Q4 2025 appears credible given their current trajectory. Two upcoming franchise opportunities—"Winnie & Friends" and "Stan Lee's The Excelsiors"—could potentially generate significant IP-driven revenue streams if successful. The involvement of Linda Woolverton (writer of several billion-dollar Disney films) enhances the creative potential of their "Winnie and Friends" property.
While challenges remain in fully monetizing their content library and emerging franchises, Kartoon Studios has transformed from a cash-burning entity into a leaner operation with multiple profitable business segments and a viable path to overall profitability.
Mainframe Animation Unit Achieves Profitability, with Revenue up
Four Straight Quarters of Growth, Zero Long-Term Debt, Profitable Animation Studio (Mainframe), Profitable Kids Streaming Service (Kartoon Channel!), and Valuable IP Projects Set the Stage for Investor Value Creation
BEVERLY HILLS, Calif., May 15, 2025 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American: TOON) today announced results for the first quarter of 2025, showcasing strong revenue growth, continuing improving margins, and disciplined cost control – all accelerating the Company’s progress toward overall profitability by year-end.
Q1 2025 Financial Highlights:
- Total Revenue up
56.4% year-over-year - Production Services Revenue up
137.9% - Operating Loss improved by
51.1% YoY and11.9% sequentially - G&A expenses reduced by
24.9% - Mainframe Studios and Kartoon Channel! achieved profitability in the quarter fueled by revenue growth
Why Kartoon Studios Is Poised for Investor Growth:
56% YoY revenue growth and four consecutive quarters of topline gains- Profitable, cash-generating studio: Mainframe Studios, with
90% + of 2025 budget revenue already under contract - Profitable Kids streaming service: Kartoon Channel! U.S. streamer service continues to grow and remains the #1 viewer-ranked kids’ streaming app in the Apple App Store, outperforming Netflix, YouTube Kids, Disney+, and PBS Kids.
- Zero long-term debt and a streamlined cost structure
- Upcoming high-potential franchises: A Hundred Acre Woods’ Winnie & Friends’ and Stan Lee’s The Excelsiors coming to market by year end and poised to make significant contributions.
- Kartoon Channel! Worldwide global distribution is now available to 1.5 billion+ viewer universe across 61+ countries
“We’ve spent the last year optimizing every aspect of our business – lowering costs, deepening partnerships, and expanding distribution,” said Andy Heyward, Chairman & CEO of Kartoon Studios. “With a profitable studio division (Mainframe), scalable digital platform (Kartoon Channel!), and powerful IP on the horizon (Hundred Acre Woods’ Winnie and Friends’’; Stan Lee Universe/The Excelsiors), Kartoon Studios is now positioned to unlock long-term shareholder value.”
Mainframe Studios: Profit Engine Driving Visibility and Margin Expansion
Mainframe Studios delivered profitability in Q1 2025 and continues to serve as Kartoon Studios’ consistent and strategic revenue driver. Its deep, long-standing partnerships with industry leaders such as Disney, Netflix, Sony Kids, Mattel, Spin Master, and PBS, with major brands, speak to the studio’s unmatched ability to deliver high-quality animation at scale, on time, and on budget.
Mainframe is currently producing content for some of the world’s biggest entertainment franchises – including Barbie, CoComelon, SuperKitties, Unicorn Academy, and Octonauts – each of which commands massive global audiences. With over
Kartoon Channel! Growth Accelerates as Watch Time Doubles
Kartoon Channel! continues its dominance as the #1 kids’ streaming app on the Apple App Store, consistently outperforming YouTube Kids, Netflix, and Disney+ in the family entertainment category. In Q1, FAST (Free Ad-Supported Streaming Television) channel watch time more than doubled year-over-year, reflecting deepening viewer engagement and brand stickiness. The platform’s global reach now spans over 61 countries and more than 1.5 billion potential viewers, thanks to widespread distribution across Samsung TV Plus, LG, Roku, Apple TV, Prime Video, Xumo, Pluto TV, and more.
Supported by a growing library of premium content—including Peppa Pig, Super Mario Brothers, Kidaverse Roblox Rumble, Minecraft: Journey to the End, and originals like Shaq’s Garage and Rainbow Rangers – Kartoon Channel! combines safety, accessibility, and entertainment value in one of the fastest-growing segments of digital media. As advertisers and content partners look to align with brand-safe environments, the platform is poised to unlock significant growth in both viewership and monetization.
Franchise Building: IP That Moves Markets
With Hundred Acre Woods’ Winnie and Friends in production, Kartoon Studios is building what it believes will be a large global merchandising franchise. The project is Executive Produced by Andy Heyward and Linda Woolverton, the trailblazing screenwriter behind Disney’s Beauty and the Beast, The Lion King, Alice in Wonderland, and Maleficent, whose films have collectively grossed billions of dollars and helped redefine modern fairy tales for global audiences. Her ability to craft emotionally resonant, franchise-driven stories positions Winnie and Friends for long-term cultural and commercial impact.
Joining her is John Rivoli, a top-tier creative branding expert known for his visual work on Harry Potter, Batman, The Lord of the Rings, and SpongeBob SquarePants. Rivoli’s expertise in translating IP into iconic consumer product lines and immersive brand experiences gives Winnie and Friends a direct path into high-impact retail programs and licensing categories.
Together, Woolverton and Rivoli bring a rare combination of storytelling excellence and commercial vision—offering Kartoon Studios a powerful opportunity to transform Winnie and Friends into a globally recognized, multi-platform franchise with deep merchandising potential. Meanwhile, Stan Lee’s The Excelsiors and a new animated Christmas movie are expected to further build brand equity and long-term monetization opportunities across Kartoon Studios’ growing IP portfolio.
Financial Discipline and Strategic Investment
“Q1 is all about momentum building off our successful business recovery in 2024. The Q1 results reflect a leaner, more focused Company,” said Brian Parisi, CFO. “We’ve cut G&A nearly
Looking Ahead: Profitability in 2025, Long-Term Shareholder Value
With four consecutive quarters of revenue growth, zero long-term debt, and Mainframe Studios now profitable, Kartoon Studios expects to achieve company-wide profitability by the fourth quarter of 2025. The Company is focused on leveraging IP-driven content, and scaling monetization through licensing, theatrical, and digital channels to drive sustainable shareholder value.
For the quarter ended March 31, 2025, Kartoon Studios reported revenue of
The Company’s full financial results for the quarter ended March 31, 2025 will be available in its Form 10-Q filed with the Securities and Exchange Commission and accessible on Kartoon Studios’ website.
About Kartoon Studios
Kartoon Studios (NYSE AMERICAN: TOON) is a global creator, producer, distributor, marketer, and licensor of premium entertainment brands for children and families. The Company’s diverse portfolio includes some of the most recognized properties in kids' media, including original IP like Stan Lee’s Superhero Kindergarten starring Arnold Schwarzenegger, Shaq’s Garage starring Shaquille O’Neal, Rainbow Rangers, and Llama Llama starring Jennifer Garner.
Kartoon Studios owns a controlling interest in Stan Lee Universe, managing the legendary creator’s name, likeness, signature, voice, consumer products licensing, and original post-Marvel IP. Stan Lee is widely regarded as one of the most influential storytellers in modern history, with his characters appearing in four of the top ten highest-grossing films of all time.
Kartoon Studios’ animation powerhouse, Mainframe Studios, has delivered over 1,000 half-hour episodes and more than 60 feature-length projects. The studio’s partners include Disney, Netflix, Mattel, and Sony, with current productions such as Barbie, CoComelon, and Unicorn Academy.
Through its wholly owned Toon Media Networks—including Kartoon Channel!, Ameba, and Frederator Network—Kartoon Studios reaches audiences worldwide across linear, AVOD, SVOD, and FAST platforms. Kartoon Channel! is the #1 kids’ app on the Apple App Store and delivers thousands of hours of family-friendly content, including top-performing series like Peppa Pig Shorts, Mother Goose Club, Talking Tom & Friends, Yu-Gi-Oh!, and educational content through Kartoon Classroom and Spanish language collection KC En Español. Frederator Network operates one of the largest global animation networks on YouTube, featuring over 2,000 exclusive creators with billions of annual views.
In 2022, Kartoon Studios acquired Canada’s WOW! Unlimited Media and became the largest shareholder in Germany’s Your Family Entertainment AG, a leading European kids’ content company.
The Company also includes Beacon Media Group, a full-service kids and family agency offering integrated PR, social media, influencer, creative, and media buying services across entertainment, lifestyle, gaming, and tech verticals.
For more information, visit www.kartoonstudios.com
Forward-Looking Statements: Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements and include statements regarding being poised for revenue growth and reaching sustained profitability in 2025 with rebound in animation production pipeline and continuing profit in children’s channel; system; releasing A.A. MILNE’S WINNIE-THE-POOH sneak peek animation trailer featuring two new female characters; development plans for Stan Lee’s The Excelsiors – one of the largest initial superhero ensemble creations by the legendary Stan Lee: launching the project as a graphic novel through Legible Comics, with concurrent development for television and film adaptations, overseen by industry icon and BATMAN Executive Producer, Michael Uslan: the collaboration with LiveOne (LVO: NASDAQ) to produce, publish, and distribute all music for its Winnie-the-Pooh films and series, including original songs, albums, and soundtracks; continuing to build on the positive results achieved in the first half of the year; the Company’s ability to expand its brand globally in 2025 and beyond; the Company’s belief that its initiatives reinforce its commitment to building a dynamic, diversified, children’s entertainment portfolio that resonates with audiences worldwide, positioning the Company for long-term success; the future success of Mainframe Studios; current initiatives guiding Kartoon Studios toward profitability in 2025; operating at a sustainable expense level for the foreseeable future; and being well-positioned to capitalize on future growth opportunities and deliver long-term value for shareholders;. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation, the Company’s ability to sustain growth and profitability in 2025; the Company’s ability to expand its brand globally in 2025 and beyond; the ability of the Company to achieve profitability in 2025; the successful release of the Company’s Winnie-the-Pooh films and series; the successful production and release of the Company’s animated Christmas movie set to premiere December 24, 2025; the Company’s ability to obtain additional financing on acceptable terms, if at all; fluctuations in the results of the Company’s operations from period to period; general economic and financial conditions; the Company’s ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; the Company’s reliance on and relationships with third-party production and animation studios; the Company’s ability to market and advertise its products; the Company’s reliance on third-parties to promote its products; the Company’s ability to keep pace with technological advances; the Company’s ability to protect its intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in the Company's subsequent filings with the Securities and Exchange Commission (the "SEC"). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
MEDIA CONTACT:
pr@kartoonstudios.com
INVESTOR RELATIONS CONTACT:
ir@kartoonstudios.com
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