| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 7.24 | 23.8% |
| Total Income | 7.24 | 23.8% |
| Expenditure | 0.00 | 100.0% |
| PBT | — | |
| Net Profit | -6.37 | 2.5% |
| OPM | -38.73% | 6.33pp |
| NPM | -87.94% | 19.27pp |
| EPS | -0.10 | 28.6% |
Kartoon Studios Reports Q1 2026 Results; Distribution Revenue Climbs 15%
15 May 2026 · 15 May, 6:31 pm
Summary
Kartoon Studios reported its Q1 2026 financial results, highlighting a 15% increase in distribution revenue. The company's total revenue for the quarter was $7.2 million. Operating costs declined by 20%, leading to a 9% improvement in the loss from operations compared to the previous year. The company is focused on developing and commercializing its owned intellectual property, including 'Hundred Acre Wood' and 'Stan Lee Universe'.
Key Highlights
- 1
Kartoon Studios reported a 15% increase in distribution revenue for Q1 2026 compared to the prior year period.
- 2
Total revenue for Q1 2026 was $7.2 million.
- 3
Operating costs decreased by 20% year-over-year, reflecting continued operating discipline.
- 4
The loss from operations improved by 9% compared to Q1 2025.
- 5
Kartoon Channel! subscriber engagement increased more than 80% year-over-year during Q1 2026.
- 6
Ameba subscriber engagement increased more than 200% year-over-year during Q1 2026.
- 7
Kartoon Channel closed a deal with Mattel to license Masters of the Universe (2002) and American Girl (2016).
Management Comments
Andy Heyward
"We are now entering the phase where Kartoon Studios is translating years of investment in our platform into measurable operating performance," commented Andy Heyward, Chairman & CEO of Kartoon Studios. “This quarter reflects continued momentum across our distribution business, where we are seeing growth in both engagement and monetization, alongside meaningful progress in improving our cost structure. Our channel system continues to grow and is still ranked #1 in the Apple app store by users above all our competitors" "Kartoon Channel is extremely proud to have closed a deal with Mattel to license the animated programs of both Masters of the Universe (2002) and American Girl (2016) for our premiere streaming service,” commented Mr. Heyward.
Todd Steinman
“Our strategy at Kartoon Channel is to continually align ourselves with globally recognized franchises and culturally resonant properties that already possess deep audience affinity and multi-generational appeal. The additions of Masters of the Universe (2002) and American Girl (2016) significantly strengthen that strategy.”
Brian Parisi
“We are seeing a shift in our business and are quickly moving towards a tech-forward strategy focused on developing and deploying valuable IP across our media platform. We have the foundation in place, and our core business is shifting to align with this strategy. Overall, we are seeing the pivot of the company which is our competitive advantage – meaning we can move quicker and with purpose faster than our competitors” “Looking ahead, our focus remains on executing against our platform while continuing to expand higher-margin, IP-driven revenue streams. As these initiatives scale, we expect further improvement in operating performance and margin profile over time,” concluded Parisi.
Informational and educational content only. Not investment advice.