📊 TOON Key Takeaways
Is Kartoon Studios, Inc. (TOON) a Good Investment?
Kartoon Studios faces existential profitability and cash flow crises with a deeply broken business model generating only 1.4% gross margins while burning $11.6M in annual free cash flow against $39.4M flat revenue. With sub-3-month cash runway at current burn rates and deteriorating financial health indicators, the company lacks sustainable fundamentals for recovery without dramatic operational restructuring.
Why Buy Kartoon Studios, Inc. Stock? TOON Key Strengths
- Zero long-term debt reduces refinancing risk
- Positive stockholders equity of $26.2M provides asset base
- Current ratio above 1.0x indicates minimal immediate liquidity crisis
TOON Stock Risks: Kartoon Studios, Inc. Investment Risks
- Extreme negative gross margin (1.4%) indicates fundamental business model failure where core operations destroy value
- Operating cash burn of $11.4M annually with only $2.9M cash reserves creates imminent solvency risk
- Net losses of $24.5M on $39.4M revenue with zero revenue growth shows no path to profitability
Key Metrics to Watch
- Operating cash flow trend and cash burn rate relative to cash reserves
- Gross margin and cost structure changes
- Revenue growth rate and evidence of revenue stabilization
Kartoon Studios, Inc. (TOON) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Kartoon Studios, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
TOON Profit Margin, ROE & Profitability Analysis
TOON vs Services Sector: How Kartoon Studios, Inc. Compares
How Kartoon Studios, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kartoon Studios, Inc. Stock Overvalued? TOON Valuation Analysis 2026
Based on fundamental analysis, Kartoon Studios, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kartoon Studios, Inc. Balance Sheet: TOON Debt, Cash & Liquidity
TOON Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kartoon Studios, Inc.'s revenue has declined by 37% over the 5-year period, indicating business contraction. The most recent EPS of $-0.54 indicates the company is currently unprofitable.
TOON Revenue Growth, EPS Growth & YoY Performance
TOON Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $8.7M | -$2.1M | $-0.05 |
| Q2 2025 | $8.4M | -$5.9M | $-0.13 |
| Q1 2025 | $6.1M | -$6.5M | $-0.14 |
| Q3 2024 | $8.7M | -$2.1M | $-0.05 |
| Q2 2024 | $8.4M | -$5.9M | $-0.15 |
| Q1 2024 | $6.1M | -$7.0M | $-0.20 |
| Q3 2023 | $10.1M | -$11.2M | $-0.35 |
| Q2 2023 | $11.0M | -$13.3M | $-0.42 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kartoon Studios, Inc. Dividends, Buybacks & Capital Allocation
TOON SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kartoon Studios, Inc. (CIK: 0001355848)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TOON
What is the AI rating for TOON?
Kartoon Studios, Inc. (TOON) has an AI rating of STRONG SELL with 97% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TOON's key strengths?
Claude: Zero long-term debt reduces refinancing risk. Positive stockholders equity of $26.2M provides asset base.
What are the risks of investing in TOON?
Claude: Extreme negative gross margin (1.4%) indicates fundamental business model failure where core operations destroy value. Operating cash burn of $11.4M annually with only $2.9M cash reserves creates imminent solvency risk.
What is TOON's revenue and growth?
Kartoon Studios, Inc. reported revenue of $39.4M.
Does TOON pay dividends?
Kartoon Studios, Inc. does not currently pay dividends.
Where can I find TOON SEC filings?
Official SEC filings for Kartoon Studios, Inc. (CIK: 0001355848) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TOON's EPS?
Kartoon Studios, Inc. has a diluted EPS of $-0.49.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TOON a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Kartoon Studios, Inc. has a STRONG SELL rating with 97% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TOON stock overvalued or undervalued?
Valuation metrics for TOON: ROE of -93.6% (sector avg: 16%), net margin of -62.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy TOON stock in 2026?
Our dual AI analysis gives Kartoon Studios, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TOON's free cash flow?
Kartoon Studios, Inc.'s operating cash flow is $-11.4M, with capital expenditures of $151.0K. FCF margin is -29.4%.
How does TOON compare to other Services stocks?
Vs Services sector averages: Net margin -62.3% (avg: 10%), ROE -93.6% (avg: 16%), current ratio 1.07 (avg: 1.5).