Kartoon Studios announced its results for the first quarter of 2025 on May 15, 2025, reporting revenue of $9.5 million, a 56% increase over the prior year quarter. This marks the company's fourth consecutive quarter of revenue growth, driven by optimized business operations and expanded distribution.
The Mainframe Animation Unit achieved profitability in Q1 2025, with its revenue surging 138% year-over-year and 29% sequentially. This unit, along with Kartoon Channel! and Beacon Media, are now profitable, accelerating the company's progress toward overall profitability by year-end.
The company also reported significant financial discipline, with General and Administrative (G&A) expenses cut by nearly 25% and operating losses improved by over 50%. As of March 31, 2025, Kartoon Studios maintained a debt-free balance sheet, with current assets of $25.1 million and stockholders’ equity of $30.1 million.
Kartoon Channel! continues its strong performance as the #1 kids’ streaming app on the Apple App Store, with FAST channel watch time more than doubling year-over-year. Its global reach now spans over 61 countries and 1.5 billion potential viewers, supported by a growing library of premium content.
Mainframe Studios has over 90% of its 2025 revenue already under contract and a production backlog extending into 2026, providing significant financial visibility and operational stability. The company is also advancing major IP projects like 'Hundred Acre Woods’ Winnie and Friends' and 'Stan Lee’s The Excelsiors,' which are expected to unlock long-term shareholder value.
With four consecutive quarters of revenue growth, zero long-term debt, and a profitable studio division, Kartoon Studios expects to achieve company-wide profitability by the fourth quarter of 2025. The focus remains on leveraging IP-driven content and scaling monetization through various channels.
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