Kartoon Studios Q2 revenue falls 43% as production services decline

Kartoon Studios

14/08/2026 14:16

Overview
US children's entertainment firm's Q2 revenue fell 43% yr/yr as production services declined
Company posted net income, driven by non-recurring litigation settlement gain
Kartoon Studios announced Amazon Prime deal for Hundred Acre Wood franchise, shifting focus to owned IP

Outlook
Company expects Hundred Acre Wood franchise to launch on Amazon Prime in February 2027
Company says strategic focus is now on monetizing owned intellectual property franchises
Management expects improved profitability as new franchise initiatives scale

Result Drivers
PRODUCTION SERVICES DECLINE - Co said lower production services revenue and project timing at Mainframe Studios drove revenue drop
COST REDUCTION - Co reduced total expenses by 32%, mainly through lower third-party production headcount and Frederator network costs

Company press release: ID:nACS0xDwZa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$5.80 mln
 

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)