Kartoon Studios Inc (TOON)
AMEXCommunication ServicesEntertainmentSnapshot 2026-09-04
$0.66+2.47%
Close 2026-09-04 · 1-day change
AMEXCommunication ServicesEntertainmentSnapshot 2026-09-04
QuarterlyIQ Insights · TOON
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on owning, developing, and commercializing high-value intellectual property assets to create scalable, profitable franchises across multiple platforms.
Stated as a priority in 2 of last 2 quarters. Revenue declined from $7.2 million in 2026-Q1 to $5.8 million in 2026-Q2, reflecting timing of production deliveries, while distribution revenue grew 15% year-over-year in 2026-Q1. Management is actively reshaping the business around owned IP and stronger ownership economics, indicating early progress but mixed near-term revenue trends.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Communication Services names rated weak grew net income 53% of the time over the next year (vs 52% for the rest of the cohort, n=1891).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Strategic transformation designed to focus the Company on the ownership, development and commercialization of high-value intellectual property assets for children.”
“Executing its transition to an intellectual property-driven growth model, with early signs that the strategy is beginning to translate into operating performance.”
Grow owned distribution platforms like Kartoon Channel and Ameba, increase engagement and monetization, and license owned intellectual property to third parties.
Stated as a priority in 2 of last 2 quarters. Distribution platforms Kartoon Channel and Ameba showed strong engagement growth with 80% and 200% year-over-year increases in 2026-Q1, and a new Amazon Prime partnership was announced in 2026-Q2. These developments demonstrate delivering progress in expanding distribution and monetizing owned IP.
“Announced distribution partnership with Amazon Prime for Hundred Acre Wood, expanding streaming and merchandising opportunities.”
“Kartoon Channel and Ameba achieved record paid subscriber levels and increased engagement, supporting monetization growth.”
Continue reducing operating expenses and aligning cost structure with strategic focus to improve profitability and operating margins.
Stated as a priority in 2 of last 2 quarters. Total expenses fell 32% to $9.2 million in 2026-Q2 and operating expenses declined 20% year-over-year in 2026-Q1. Operating losses narrowed slightly despite revenue declines, indicating delivering progress in cost discipline and operating performance improvement.
“Total expenses decreased 32% to $9.2 million, reflecting continued focus on simplifying operations and aligning cost structure.”
“Total operating expenses declined 20% compared to Q1 2025, contributing to improved operating performance.”
Divest the Frederator Channel Network business to sharpen focus on owned intellectual property and monetize key Frederator Studios IP.
Newly stated in 2026-Q3 period. The Company completed the sale of the Frederator Channel Network business for $500,000 cash while retaining key intellectual property for licensing. This strategic divestiture aligns with management's focus on owned IP monetization and sharper strategic focus.
Adopt a limited duration stockholder rights plan to protect shareholders and enhance long-term shareholder value.
Newly stated in 2026-Q3 period. The Board adopted a stockholder rights plan and declared a dividend distribution of one right per share to enhance shareholder protection. This is a governance measure recently implemented with no direct financial impact reported yet.
Over the trailing year it converted -0.07x of net income into operating cash flow.
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
19 material management or governance events in the past 24 months, led by executive changes. Historically, Communication Services names rated neutral grew net income 55% of the time over the next year (vs 53% for the rest of the cohort, n=1072).
Not investment advice. As of 2026-09-04.