Kartoon Studios reported Q3 2025 revenue of $9.9 million, a 13% year‑over‑year increase from $8.7 million in Q3 2024. The company’s total revenue for the nine months ended September 30 rose 28% to $28.2 million, driven largely by a 45% jump in revenue for its flagship production arm, Mainframe Studios, which generated $4.5 million in the quarter versus $3.1 million a year earlier.
Mainframe Studios’ growth was underpinned by multi‑year production contracts that extend through 2027, and the studio’s client roster includes Sony, Disney, and Spin Master. The 45% revenue lift reflects both higher‑margin long‑term projects and a stronger mix of premium animation services, offsetting modest headwinds in legacy content production.
Kartoon Channel! remains the #1 kids’ app on the Apple App Store and is available in more than 60 international territories. The company is expanding its intellectual‑property portfolio with high‑profile properties such as Hundred Acre Wood’s Winnie & Friends, slated for a Christmas Eve 2025 preview, and the Stan Lee Universe, which is being monetized through new consumer products and licensing deals.
The company closed a $7.3 million equity financing round with an institutional investor in October 2025, strengthening its balance sheet amid ongoing liquidity concerns. The investor agreed not to sell securities below $1.00 until December 31, 2025, providing short‑term stability. Chief Financial Officer Brian Parisi said the financing “strengthens our financial flexibility and positions us to continue investing in high‑return verticals while maintaining disciplined cost control.”
Kartoon Studios posted a net loss of $6,515 for Q3 2025, a reduction from the $19,373 loss for the nine months ended September 30. The company’s loss from operations improved by 10% sequentially and 32% year‑to‑date, reflecting tighter cost management and higher operating leverage. No forward guidance was disclosed, but management indicated confidence in achieving company‑wide profitability by year‑end 2025.
Chairman and CEO Andy Heyward emphasized that the company’s “growth trajectory is accelerating, driven by strong demand for premium animation services and a robust pipeline of IP monetization.” He welcomed former Warner Bros. Worldwide Television Distribution President Jeffrey Schlesinger to the board, noting that his distribution expertise will help expand Kartoon Studios’ global reach and accelerate monetization of its expanding IP portfolio.
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