AI Earnings Predictions for Kartoon Studios Inc. (TOON)

EX-99.1

2 kartoon_ex9901.htm

PRESS RELEASE DATED 8-14-26

Exhibit 99.1

Kartoon Studios Reports Second Quarter 2026 Financial Results and Accelerates Strategic Transformation

8-K Filed Announcing Agreement with Amazon Prime

Strengthened Balance Sheet with $40 million in Cash and No Long-Term Debt

Focus on Intellectual Property Ownership for Next Phase of Growth

BEVERLY HILLS, Calif., August 14, 2026 -- Kartoon Studios, Inc. (NYSE American: TOON) (“Kartoon Studios” or the “Company”), a global entertainment company creating, producing, distributing and licensing children’s and family content, today announced financial results for the second quarter ended June 30, 2026, and provided an update on a strategic transformation designed to focus the Company on the ownership, development and commercialization of high-value intellectual property assets for children.

Following the receipt of approximately $39.2 million from previously announced litigation settlements, Kartoon Studios ended the quarter with approximately $40.5 million in cash and marketable securities and no long-term debt, providing substantial financial flexibility to execute its long-term growth strategy. The Company also filed a separate 8-K notice of a significant distribution partnership for its flagship Hundred Acre Wood franchise based on A.A. Milne’s Winnie-the-Pooh with Amazon Prime, while continuing to expand development initiatives surrounding the Stan Lee Universe. Together, these milestones represent important building blocks in the Company’s evolution toward a focused, scalable and profitable intellectual property-driven business model.

Recent Operational Highlights

·Ended the second quarter with approximately $40.5 million in cash and marketable securities and no long-term debt following receipt of initial litigation settlement proceeds, significantly strengthening the Company’s financial position.

·An additional $39.2 million remains in escrow and which will be distributed to the Company after legal fees are determined and paid.

·8-K disclosed an agreement with Amazon Prime for Hundred Acre Wood, based on A.A. Milne’s Winnie-the-Pooh, launching on February 18, 2027 featuring promotional support including Hero Banner placement and participation in Amazon’s Shop the Show program, creating integrated streaming and merchandising opportunities.

·In July, completed the sale of the Frederator channel network business while retaining Frederator Studios intellectual property, including Castlevania, Bee and Puppycat, among other properties, sharpening the Company’s strategic focus on owned and controlled IP assets.

·Appointed Brooke Bacon, formerly head of consumer product licensing at Activision, as Senior Vice President of Consumer Products and Licensing to lead the monetization of Kartoon Studios’ growing portfolio of owned intellectual property through licensing, retail, consumer products and strategic partnerships.

1

Strategic Update

Following a comprehensive review of its portfolio, operating structure and capital allocation priorities, Kartoon Studios has implemented a strategic transformation designed to create a leaner, more focused and more profitable enterprise centered on owned and controlled intellectual property for children.

The Company is concentrating investments on high profile animated franchises where it owns or controls the underlying rights and will participate across multiple revenue streams, including content distribution, licensing, consumer products, publishing, digital commerce and brand extensions. Management believes this pivot offers substantial long-term value creation, and a change in direction from the Company’s historical reliance on production services and third-party-owned properties.

Consistent with this transformation, the Company completed the sale of the Frederator network business in July while retaining key intellectual property assets. As the Board and management continue to evaluate all operating units and capital investments through the lens of ownership economics, and long-term profitability, the objective is to simplify the business, improve capital efficiency, accelerate franchise monetization and create durable shareholder value.

Management Commentary

“We are building a fundamentally different Kartoon Studios,” said Andy Heyward, Chairman and Chief Executive Officer. “Over the last several months, we have strengthened our balance sheet, streamlined our operations, sharpened our strategic focus, and assembled the IP building blocks for our next phase of growth.”

“With more than $40 million in cash, no long-term debt, a partnership with Amazon Prime, and ownership of valuable intellectual property including Hundred Acre Wood and the Stan Lee Universe, and another $39.2 million minus legal fees yet to be distributed to Company, we believe we are uniquely positioned to create meaningful long-term shareholder value through the development of what we believe will be enduring global fra

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