Kartoon Studios Q1 Distribution Revenue Up 15%, Expenses Down 20%
TOON•Kartoon Studios reported Q1 revenue of $7.2 million, with distribution revenue rising 15% year-over-year and operating expenses falling 20%, narrowing the operating loss by 9%. Subscriber engagement on Kartoon Channel! and Ameba surged 80% and 200% respectively, supported by Mattel licensing deals for Masters of the Universe and American Girl.
1. Q1 Financial Performance
For the three months ended March 31, 2026, Kartoon Studios generated total revenue of $7.2 million, driven by $2.3 million in distribution revenue, up 15% year-over-year. Total operating expenses declined 20% to $10.0 million, reducing the operating loss to $2.8 million, a 9% improvement.
2. Subscriber Engagement and Platform Growth
Kartoon Channel! and Ameba achieved record paid subscriber levels during the quarter, with engagement on Kartoon Channel! up more than 80% and Ameba engagement up over 200% year-over-year. The broader distribution strategy, including YouTube, FAST and VOD, bolstered subscriber acquisition and monetization.
3. IP and Licensing Strategy
The company secured licensing deals with Mattel for Masters of the Universe (2002) and American Girl (2016), enhancing its IP-driven growth model. Flagship franchises Hundred Acre Wood and Stan Lee Universe advanced toward multi-platform commercialization across content, licensing and consumer products.
4. Balance Sheet Strength and Strategic Focus
As of March 31, 2026, Kartoon Studios held $6.0 million in cash and marketable securities, $30.7 million in current assets and $22.6 million in stockholders’ equity. Management is focused on executing its IP roadmap to transform franchises into scalable, higher-margin revenue streams.
