Kartoon Studios to Release Shareholder Letter and Business Update Including AI Animated Video Featuring Company Executives and Iconic Characters

Rhea-AI Summary

Kartoon Studios (NYSE American: TOON) will publish its annual Shareholder Letter and Business Update on March 31, 2026, accompanied by a first-of-its-kind AI-animated video featuring executives and characters from the upcoming Hundred Acre Wood series.

The presentation demonstrates Kartoon Studios' emerging AI-driven animation production approach and will accompany the company's Form 10-K for the year ended December 31, 2025, available via investor relations and digital platforms.

News Market Reaction – TOON

-4.05%

1 alert

-4.05% News Effect

On the day this news was published, TOON declined 4.05%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Anson stake: 6,581,965 shares (9.9%) Shares outstanding basis: 65,885,540 shares Warrant ownership caps: 4.99% and 9.99% +5 more

8 metrics

Anson stake 6,581,965 shares (9.9%) Schedule 13G passive stake in Kartoon Studios

Shares outstanding basis 65,885,540 shares Shares used to calculate Anson’s 9.9% ownership

Warrant ownership caps 4.99% and 9.99% Ownership caps on warrant exercises for Anson Funds

Director grant size 8,570 shares Individual equity grants to several directors on Mar 19, 2026

Director holdings 150,015 shares Total common shares held by Anthony D. Thomopoulos after Mar 19, 2026 grant

Short-form episodes 208 episodes Planned short-form content in Winnie and Friends franchise rollout

Industry family-film share ~33% of U.S. films ≥$100M 2024 stat for family/children films’ share of $100M+ box office

Reverse split ratio 10-for-1 Reverse stock split completed on February 6, 2023

Market Reality Check

Price: $0.6162 Vol: Volume 543,602 is 2.73x t...

high vol

$0.6162 Last Close

Volume Volume 543,602 is 2.73x the 20-day average of 199,380, signaling elevated interest ahead of the AI-focused update. high

Technical Shares at $0.617 are trading below the $0.72 200-day MA, 33.6% below the 52-week high and 18.65% above the 52-week low.

Peers on Argus

Sector action appears stock-specific. Only one momentum peer, AGAE, showed downs...

1 Down

Sector action appears stock-specific. Only one momentum peer, AGAE, showed downside move (~-4.24%) without news, while broader peer price changes were mixed.

Historical Context

5 past events · Latest: Dec 19 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 19	Franchise sneak peek	Positive	+6.0%	Release of official sneak peek video for Hundred Acre Wood’s series.
Dec 17	Screening event	Positive	-0.4%	Packed sneak peek screening at TCL Chinese Theatre with positive audience response.
Dec 15	Casting announcement	Positive	-4.8%	Announcement of Livingston Taylor as voice of Winnie the Pooh and franchise plans.
Dec 11	JV partnership	Positive	-1.3%	Joint venture with AETH Entertainment to launch TaleSphere Studios and new film.
Dec 9	Franchise rollout plan	Positive	+4.9%	Announcement of sneak peek and 360° global rollout for Winnie and Friends.

Pattern Detected

Recent franchise and partnership news skew positive in tone, but price reactions have been mixed, with several entertainment updates seeing short-term downside despite upbeat messaging.

Recent Company History

Over the last few months, Kartoon Studios has focused on expanding its family entertainment portfolio, especially the “Hundred Acre Wood’s: Winnie and Friends” franchise through sneak peeks, casting news, and live events. A joint venture with AETH Entertainment broadened its reach into live-action youth and family content. Market reactions to these announcements have alternated between gains and pullbacks, suggesting investors respond selectively to execution and visibility milestones. Today’s AI-driven business update fits within this broader strategy narrative.

Market Pulse Summary

This announcement pairs Kartoon Studios’ annual Shareholder Letter with an AI-animated presentation ...

Analysis

This announcement pairs Kartoon Studios’ annual Shareholder Letter with an AI-animated presentation that doubles as a demonstration of its emerging AI production model. It continues the company’s emphasis on the Hundred Acre Wood franchise while highlighting broader growth strategy and operations. Recent months also brought multiple director equity grants and a 9.9% passive stake filing. Investors may watch how these AI initiatives translate into content output, cost structure improvements, and follow-on updates in the accompanying Form 10-K.

Key Terms

form 10-k, schedule 13g, warrants, reverse stock split, +2 more

6 terms

form 10-k regulatory

"will accompany the company’s Form 10-K for the year ended December 31, 2025"

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

schedule 13g regulatory

"[SCHEDULE 13G] Kartoon Studios, Inc. Passive Investment Disclosure (>5%)"

A Schedule 13G is a formal document that investors file with the government when they acquire a large ownership stake in a company, usually for investment purposes rather than control. It helps keep the public informed about who owns significant parts of a company's shares, which can influence how the company is managed and how investors make decisions. Filing this schedule is important for transparency and understanding the ownership landscape of publicly traded companies.

warrants financial

"This total includes shares underlying warrants held by private funds they advise."

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

reverse stock split financial

"the company completed a 10-for-1 reverse stock split, where every 10 shares"

A reverse stock split is when a company reduces the number of its shares outstanding, making each share more valuable. For example, if you own 100 shares worth $1 each, a 1-for-10 reverse split would turn your 100 shares into 10 shares worth $10 each. Companies often do this to boost their stock price and appear more stable to investors.

equity award financial

"receiving a grant of 8,570 shares of Common Stock as an equity award."

An equity award is a form of pay where a company gives employees, executives or other stakeholders the right to own or buy company shares—either immediately or after meeting certain conditions. Think of it like receiving slices of the company pie now or coupons to claim slices later; it matters to investors because it affects ownership dilution, executive incentives and reported compensation costs, and signals how management is being rewarded and retained.

beneficially own regulatory

"They beneficially own 6,581,965 shares of common stock, representing 9.9%"

Beneficially own means having the economic rights and risks of a security—such as the right to receive dividends, sell the shares, or profit from price changes—whether or not your name appears on the official share register. Think of it like renting a car: you use it and reap the benefits even if the title lists someone else. Investors care because beneficial ownership determines who truly controls value, must be disclosed under securities rules, and can signal potential influence or trading activity that affects a stock’s price.

AI-generated analysis. Not financial advice.

CHARACTERS FROM THE UPCOMING HUNDRED ACRE WOOD SERIES JOIN KARTOON STUDIOS' CEO, CFO, AND HEAD OF TOON NETWORKS IN A GROUNDBREAKING PRESENTATION OUTLINING THE COMPANY’S GROWTH STRATEGY AND COMING PROPERTIES’ TRANSITION TO AI-DRIVEN ANIMATION PRODUCTION

AI-DRIVEN INVESTOR PRESENTATION TO DEMONSTRATE NEXT-GENERATION PRODUCTION MODEL

BEVERLY HILLS, Calif., March 27, 2026 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American: TOON) today announced that it will release its annual Shareholder Letter and Business Update on March 31st including a first-of-its-kind AI-animated video presentation featuring company executives alongside characters from the company’s upcoming Hundred Acre Wood series.

The innovative presentation will not only deliver a business update but also serve as a real-world demonstration of Kartoon Studios’ emerging AI-powered animation production capabilities — technology the company believes will significantly transform the speed, cost structure, and creative possibilities of animated content production.

The presentation will feature Kartoon Studios’ Founder, Chairman and CEO Andy Heyward, Chief Financial Officer Brian Parisi, and President of Toon Media Networks Todd Steinman, who together will discuss the company’s operational performance, and strategic initiatives driving the company’s next phase of growth.

Beloved characters including Winnie-the-Pooh, Piglet, Tigger, and Eeyore will join Kartoon Studios leadership in an interview set within the Hundred Acre Wood as executives outline key developments across the company’s expanding entertainment portfolio.

“Animation has always been about imagination,” said Andy Heyward, Founder, Chairman and CEO of Kartoon Studios. “Today, artificial intelligence is opening the door to an entirely new generation of storytelling and production tools. This presentation is more than a shareholder update — it is a demonstration of how Kartoon Studios intends to harness AI to help power the next era of animated content creation. By presenting our shareholder update in this format, we hope to demonstrate not only the progress we are making as a company, but also how the future of animation will be created.”

The Shareholder Letter and AI-animated Business Update will accompany the company’s Form 10-K for the year ended December 31, 2025, and will be made available to shareholders and the public through Kartoon Studios’ investor relations channels and digital platforms in the coming weeks.

About Kartoon Studios

Kartoon Studios (NYSE AMERICAN: TOON) is a global leader in children’s and family entertainment, delivering premium content and high-value animated intellectual property to millions of viewers worldwide. The Company’s portfolio features globally recognized brands, as well as holding a controlling interest in Stan Lee Universe, and operates Mainframe Studios, one of North America’s largest animation producers, with more than 22,000 minutes of award-winning programming delivered.

Through its Toon Media Networks division including Kartoon Channel!, Ameba, Kartoon Channel Worldwide and Frederator, Kartoon Studios reaches audiences across linear television, AVOD, SVOD, FAST channels, and top streaming platforms. Kartoon Channel! is consistently rated the #1 kids’ streaming app on the Apple App Store. With a global distribution footprint in over 60 territories, and a robust content pipeline, Kartoon Studios is strategically positioned for sustained growth, operational scale, and long-term shareholder value.

Mainframe Studios is a Canadian Production Entity and a Corporate Affiliate of Kartoon Studios.

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: releasing the Company’s annual Shareholder Letter and Business Update on March 31st featuring a first-of-its-kind AI-animated video presentation with company executives alongside characters from the company’s upcoming Hundred Acre Wood series; the presentation not only delivering a business update but also serving as a real-world demonstration of Kartoon Studios’ emerging AI-powered animation production capabilities; AI-powered technology significantly transforming the speed, cost structure, and creative possibilities of animated content production; demonstrating not only the progress Kartoon Studios’ is making as a company, but also how the future of animation will be created; the Shareholder Letter and AI-animated Business Update being made available through Kartoon Studios’ investor relations channels and digital platforms in the coming weeks. 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, to the Company’s ability to use AI-powered technology to transform the speed, cost structure, and creative possibilities of animated content production; 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. 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

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6120c612-a6ac-40e4-9a86-935292455cc9

FAQ

When will Kartoon Studios (TOON) release its Shareholder Letter and AI-animated Business Update?

Kartoon Studios will release the Shareholder Letter and AI-animated Business Update on March 31, 2026. According to Kartoon Studios, the release will accompany the company's Form 10-K for the year ended December 31, 2025 and be posted via investor relations channels.

What does the AI-animated video for TOON’s shareholder update demonstrate?

The video demonstrates Kartoon Studios' emerging AI-powered animation production capabilities. According to Kartoon Studios, it showcases potential improvements in speed, cost structure, and creative possibilities for animated content production.

Which Kartoon Studios executives appear in the AI-animated presentation for TOON?

The presentation features CEO Andy Heyward, CFO Brian Parisi, and President of Toon Media Networks Todd Steinman. According to Kartoon Studios, they will discuss operational performance and strategic initiatives alongside Hundred Acre Wood characters.

Will TOON’s AI-animated update include famous Hundred Acre Wood characters?

Yes, Winnie-the-Pooh, Piglet, Tigger, and Eeyore appear in the AI-animated update. According to Kartoon Studios, the characters join executives in an interview set within the Hundred Acre Wood to illustrate the production approach.

Where can investors access Kartoon Studios’ (TOON) Shareholder Letter and AI presentation after release?

Investors can access the materials via Kartoon Studios’ investor relations channels and digital platforms. According to Kartoon Studios, the Shareholder Letter and AI-animated Business Update will be made available to shareholders and the public in the coming weeks.