• A mini-Disney focused on creating and streaming original children's animation.
• A Netflix exclusively for original children's animated content and its own streaming channel.

• Content Production and Distribution: Production and development of animated series and films for children and families.
• Content Licensing and Merchandising: Licensing of intellectual property for consumer products, publishing, and digital media across various platforms.
• Streaming Platform Operations: Operation of the "Kartoon Channel!" streaming service, providing a curated library of children's entertainment.

Kartoon Studios (symbol: TOON) primarily sells its animated content and intellectual property (IP) through a business-to-business (B2B) model, licensing its library and original productions to various media companies, streaming platforms, and consumer product manufacturers. While their owned and operated Kartoon Channel! serves individual viewers directly, its distribution relies on major platform partners, and a significant portion of its revenue comes from advertising sold to other businesses.

Therefore, Kartoon Studios' major customers are primarily other companies, which include:

• Netflix (Symbol: NFLX) - A global streaming service that licenses a wide array of content, including titles from Kartoon Studios.
• Amazon (Symbol: AMZN) - Through its Amazon Prime Video service and other digital distribution channels, Amazon licenses and distributes Kartoon Studios' content.
• The Walt Disney Company (Symbol: DIS) - Various entities within Disney, such as Hulu, have licensed Kartoon Studios' programming.
• Alphabet Inc. (Symbol: GOOGL) - Through YouTube, a significant platform for content distribution and advertising, where Kartoon Channel! content is widely available.
• Roku (Symbol: ROKU) - A leading streaming platform provider where Kartoon Channel! is available as an application, serving as a major distribution partner.
• Paramount Global (Symbol: PARA) - Through its Pluto TV streaming service, which hosts Kartoon Channel! as part of its free ad-supported offerings.

It is important to note that Kartoon Studios engages in numerous licensing agreements globally with a broad network of broadcasters, streaming services, and consumer product manufacturers. The companies listed above represent some of the most prominent public distribution and content licensing partners.

Andy Heyward, Chairman & Chief Executive Officer

Andy Heyward is an Emmy Award-winning producer who has made more episodes of kids' television than any other producer. After joining Hanna-Barbera in 1975, he moved to DIC Audiovisuel in 1980. Heyward later led DIC Entertainment as Chairman and CEO. He sold a majority interest in DIC to Capital Cities/ABC in 1993, which was later purchased by The Walt Disney Company. In 2000, Heyward re-purchased DIC Entertainment with two venture capital firms, and in 2008, he sold it to Cookie Jar Group. In 2009, he founded A Squared Entertainment with his wife, which merged with Genius Brands in 2013 to form Genius Brands International (now Kartoon Studios).

Brian Parisi, Chief Financial Officer

Mr. Parisi brings 30 years of experience across the entertainment, media, and high-tech industries. Before joining Kartoon Studios, he was the Chief Financial Officer at Break the Floor Productions, an entertainment production company, where he prepared the company for sale and successfully completed two separate transactions with private equity firms.

Michael Jaffa, Chief Operating Officer

Todd Steinman, President of Toon Media Networks Worldwide

Prior to joining Kartoon Studios, Todd Steinman served as Vice President in the Direct to Consumer and International division at The Walt Disney Company, where he helped launch Disney+. He also co-founded the digital media agency M80, and after its acquisition by WPP, he led the NBCUniversal media team for WPP. His role at Kartoon Studios has expanded to lead global business for Kartoon Channel Worldwide.

Margaret Loesch, Executive Chairman, Kartoon Channel

Margaret Loesch has an extensive background in children's entertainment. She served as Chief Executive Officer and President of The Hub Network, Co-Chief Executive Officer of The Hatchery, Chief Executive Officer of the Hallmark Channel, Chief Executive Officer of Fox Kids Network, and Chief Executive Officer of Marvel Productions.

The clear emerging threat for Kartoon Studios (TOON) is the accelerating shift in children's media consumption patterns towards user-generated content (UGC) and interactive platforms, such as YouTube Kids, TikTok, and gaming environments like Roblox and Minecraft.

This trend signifies a fundamental change in how children engage with entertainment, favoring short-form, on-demand, interactive, and socially driven content over the traditional, professionally produced linear animated series and curated streaming channels that constitute the core of Kartoon Studios' business. While these platforms have been present for some time, their cumulative impact and increasing dominance in capturing children's attention are continually growing, presenting a significant and evolving challenge to traditional content providers.

Kartoon Studios (TOON) operates across several key segments within the global children's and family entertainment market. Its main products and services include animated content production and distribution, intellectual property (IP) licensing and merchandising, digital streaming platforms, and media advisory and advertising services.

Addressable Markets:

• Global Children's Entertainment Content (Animation & Streaming): Kartoon Studios is a prominent creator, producer, and distributor of animated content for children and families worldwide. While a precise market size for "children's animated content production and distribution" as a singular figure is not readily available in the provided information, the broader "children's entertainment" market is significant. However, the available data for "children's entertainment centers market" (e.g., USD 60.03 billion in 2023, projected to reach USD 122.6 billion by 2032 globally) refers to physical locations and activities rather than content production and streaming, which is Kartoon Studios' primary focus. Therefore, a direct market size for their core animated content and streaming business is not definitively available from the search results.
• Global IP Licensing & Merchandising: Kartoon Studios leverages its intellectual property (IP), including popular brands like Stan Lee Universe and Winnie and Friends, for consumer products, toys, and apparel. Stan Lee's creations have collectively generated "tens of billions of dollars in global box office and consumer products revenue". However, this figure represents the entire legacy of Stan Lee's creations, most of which are controlled by other entities. For Kartoon Studios' direct addressable market in licensing and merchandising related to its specific IP portfolio, detailed global market sizing beyond this general figure is not available in the provided data.
• Global Non-Fungible Token (NFT) Market: Kartoon Studios is involved in leveraging the Stan Lee IP for collectibles, which may include NFTs. The global non-fungible token (NFT) market was estimated at approximately USD 26.9 billion in 2023 and is projected to reach USD 211.7 billion by 2030, growing at a CAGR of 34.5% from 2024 to 2030. Another estimate puts the global NFT market size at USD 37.6 billion in 2024, projected to grow to USD 820.6 billion by 2035. North America held the largest share of the NFT market in 2023.

Based on the available information, the addressable market sizes directly relevant and quantifiable for Kartoon Studios' main products are:

• Global NFT Market: Approximately USD 26.9 billion in 2023, projected to reach USD 211.7 billion by 2030.

For its core animated content production, distribution, streaming, and IP licensing/merchandising beyond NFTs, specific, distinct, and quantifiable addressable market sizes directly attributable to Kartoon Studios' operations were not found in the provided search results. Therefore, for these segments, the specific market size is null.

Kartoon Studios (TOON) anticipates several key drivers to fuel its revenue growth over the next two to three years:

1. Increased Content Production and Distribution: Kartoon Studios' Mainframe Studios has a robust production pipeline, securing orders for 145 episodes extending through 2027. This includes new series for major clients such as Disney, Netflix, Sony Kids, and Spin Master. The company also continues to monetize its extensive content library through ongoing partnerships with major streaming services.
2. Global Expansion and Platform Growth of Kartoon Channel!: The company's owned and operated streaming platform, Kartoon Channel!, is expanding its global footprint. It is currently available in 69 countries, reaching an estimated 1.5 billion potential viewers, and has broadened its distribution to 18 platforms in the U.S., including Amazon Prime, Apple TV, Roku, and Comcast. Kartoon Channel! has also expanded internationally into regions like India, the UK, and Italy.
3. Monetization of Key Franchises and IP Development: Kartoon Studios is leveraging established and new intellectual properties for growth. This includes the "Stan Lee Universe" and the upcoming "Hundred Acre Wood's Winnie and Friends," which is set to premiere in December 2026. These franchises are expected to drive revenue through new content, licensing, and global brand expansion.
4. Growth of the Advertising Business (Beacon Media Group): Beacon Media Group, Kartoon Studios' family and kids' advertising unit, achieved profitability in 2024. This unit is positioned for continued growth in 2025 by employing high-efficiency ads and data-driven strategies, contributing to the company's overall revenue.

Capital Allocation Decisions (Last 3-5 Years)

Share Repurchases

• Kartoon Studios announced a strategic share retirement to enhance shareholder value and reduce shares outstanding, with 348,127 shares being retired.
• The company's Q2 2025 financial summary mentioned recent share repurchase activity, indicating ongoing efforts in this area.

Share Issuance

• In April 2024, Kartoon Studios completed the initial closing of a registered direct offering for up to $7.0 million, issuing 3,900,000 shares of common stock and 100,000 pre-funded warrants.
• In October 2025, the company secured approximately $7.3 million in financing from an institutional investor through the sale of 3,000,000 common shares, pre-funded warrants for up to 6,903,049 shares, and common warrants for up to 9,903,049 shares.
• Kartoon Studios settled an obligation of approximately $1.8 million in September 2025 by issuing up to 3,148,535 shares of common stock.

Inbound Investments

• Kartoon Studios secured approximately $7.3 million in equity financing from a single institutional investor in October 2025 to fuel global content rollouts and expansion.
• In December 2024, ARMISTICE CAPITAL, LLC acquired 4,607,156 shares of Kartoon Studios Inc. at $0.59 per share, establishing a 9.99% position in the company.

Outbound Investments

• In 2022, Kartoon Studios acquired Canada's WOW! Unlimited Media.
• Also in 2022, Kartoon Studios made a strategic investment to become the largest shareholder in Germany's Your Family Entertainment AG (FRA:RTV).

Capital Expenditures

• Net proceeds from the $7.3 million financing in October 2025 are earmarked for working capital and general corporate purposes, including marketing for "Winnie & Friends," "Stan Lee Universe" expansion, "Bitcoin Brigade" rollout, and content acquisition for Kartoon Channel.
• The company focuses on maintaining financial discipline and strategically investing in profitable areas such as premium content production, data-driven advertising, and licensing and merchandising.
• Mainframe Studios, a key animation production unit, has a growing sales pipeline and newly greenlit projects projected to generate over $40 million in revenue.