📊 TOON Key Takeaways
Is Kartoon Studios, Inc. (TOON) a Good Investment?
Kartoon Studios is fundamentally distressed with $6.4M net losses on only $7.2M revenue (-87.9% net margin), burning $2.9M in operating cash annually with no growth. Liquidity is strained (0.98x current ratio) and the company is destroying shareholder value (ROE -29.9%) while depleting a modest $5M cash reserve at unsustainable rates.
Kartoon Studios, Inc. Key Strengths (TOON)
- Zero long-term debt eliminates refinancing risk and provides financial flexibility
- Positive gross profit of $554.2K demonstrates some revenue-to-profit conversion capability
- Modest sequential improvement in net loss (0.7% YoY) and EPS (-9.3% YoY improvement)
TOON Stock Risks: Kartoon Studios, Inc. Investment Risks
- Severe operating losses with -38.7% operating margin indicating structural business model problems
- Negative free cash flow of -$2.9M annually depleting cash reserves; $5M balance insufficient at current burn rate
- Liquidity crisis emerging with current ratio of 0.98x indicating current liabilities exceed current assets
- Stagnant revenue growth of 0% YoY with no evidence of recovery or scaling capability
- Deeply negative returns (ROE -29.9%, ROA -10.0%) destroying all shareholder capital
Key Metrics to Watch
- Operating cash flow trend and monthly cash burn rate to estimate runway
- Revenue growth rate and gross margin expansion; requires minimum positive operating margin path
- Current ratio and working capital position; watch for covenant violations or liquidity events
Kartoon Studios, Inc. (TOON) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
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 |
|---|---|---|---|
| Q1 2026 | $7.2M | -$6.4M | $-0.10 |
| 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 |
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 grade of D with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TOON's key strengths?
Claude: Zero long-term debt eliminates refinancing risk and provides financial flexibility. Positive gross profit of $554.2K demonstrates some revenue-to-profit conversion capability.
What are the risks of investing in TOON?
Claude: Severe operating losses with -38.7% operating margin indicating structural business model problems. Negative free cash flow of -$2.9M annually depleting cash reserves; $5M balance insufficient at current burn rate.
What is TOON's revenue and growth?
Kartoon Studios, Inc. reported revenue of $7.2M.
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 $-0.10.
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 grade reflects both perspectives for balanced insights.
What is TOON's fundamental grade?
Based on our AI fundamental analysis in June 2026, Kartoon Studios, Inc. has a D grade with 92% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is TOON stock overvalued or undervalued?
Valuation metrics for TOON: ROE of -29.9% (sector avg: 16%), net margin of -87.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is TOON's AI grade for 2026?
Our dual AI analysis gives Kartoon Studios, Inc. a combined D grade 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 $-2.9M, with capital expenditures of $33.0K. FCF margin is -39.9%.
How does TOON compare to other Services stocks?
Vs Services sector averages: Net margin -87.9% (avg: 10%), ROE -29.9% (avg: 16%), current ratio 0.98 (avg: 1.5).