Kartoon Studios reported second-quarter 2026 net income of $26.99 million, reversing a year-ago loss, but the profit was driven by a non-recurring litigation gain as revenues fell 43% to $5.82 million. The operating loss widened to $3.41 million from $3.22 million, despite a 32% drop in total operating expenses to $9.23 million. Production services revenues, the largest stream, fell 53% to $3.46 million, while content distribution declined 7% to $1.85 million, licensing and royalties dropped 29% to $61,000, and media advisory and advertising services decreased 47% to $448,000. Cash and marketable securities jumped to $40.5 million from $6.9 million at year-end 2025, aided by a $39.2-million litigation-settlement gain. Management shifted focus to owned franchises, with the Hundred Acre Wood launch expected in early 2027, and sold Frederator Networks for $0.5 million after quarter-end.
Kartoon Studios, Inc.Q2 revenues fell 43% to $5.82M and operating loss widened to $3.41M, with profit only from a one-time litigation gain.
