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Sep 30
Kartoon Studios Q3 2025 Earnings Report
Kartoon Studios posted double-digit revenue growth and improved operational metrics in Q3 2025, led by a surge in production services.
Key Takeaways
Kartoon Studios reported strong Q3 2025 results with 13% year-over-year revenue growth driven by a 45% increase in production services revenue. Operational efficiency improved, contributing to reduced losses and a stronger balance sheet.
Revenue reached $9.9 million in Q3 2025, up 13% year-over-year.
Mainframe Studios revenue surged 45% YoY, backed by contracts with Sony, Disney, and SpinMaster.
Loss from operations improved 10% over the prior quarter.
The company closed $7.3 million in financing, strengthening its financial position.
Kartoon Studios
Kartoon Studios
Forward Guidance
Kartoon Studios expects growth to continue into 2026, supported by multi-year contracts, new franchise launches, and expanded streaming distribution.
Positive Outlook
- Multi-year production contracts provide visibility through 2027.
- Toon Media Networks posted record subscriber growth and watch time in October.
- Stan Lee Universe and Winnie & Friends poised to drive future growth.
- AI animation unit 'STAN A.I.' expected to transform production efficiency.
- Strengthened balance sheet with institutional financing and reduced overhead.
Challenges Ahead
- Profitability has not yet been achieved.
- Reliance on third-party studios for animation and production.
- Shareholder dilution risk due to new financing terms.
- Uncertainty in consumer trends and streaming competition.
- Continued need for cost discipline amid growth initiatives.