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Company Retains Key Frederator Studios IP For Licensing Opportunities

Strategic Transaction Continues Company’s Realignment Towards the Monetization of Premium Intellectual Property

BEVERLY HILLS, Calif., July 17, 2026 (GLOBE NEWSWIRE) -- 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 the strategic sale of Frederator Networks' Channel Network business in an all-cash transaction. Kartoon Studios will retain key intellectual property of Frederator Studios, including Bee and PuppyCat, Bravest Warriors, Castlevania and Catbug, for distribution and product licensing opportunities.

The strategic sale advances Kartoon Studios' ongoing strategy to align its operating structure and resources on monetization of premium intellectual property, franchise development, animation production, global distribution and consumer-products commercialization.

“The transaction separates two businesses with different operating models, margin profiles and growth priorities,” commented Andy Heyward, Chairman and Chief Executive Officer of Kartoon Studios. “Key to this transaction, we are retaining key intellectual property of Frederator Studios, its creative talent and core properties, along with key channels that support our franchises. We believe this transaction makes Kartoon Studios a more focused company and better positions our team to continue executing on our strategic realignment towards the monetization of premium intellectual property.”

Total cash consideration paid to Kartoon Studios totaled $500,000 for the Frederator Networks' Channel Network business.

About Kartoon Studios
Kartoon Studios (NYSE American: TOON) is a global, vertically integrated children’s and family entertainment company turning owned and controlled intellectual property into enduring, multi-platform franchises. The Company develops, produces, distributes, licenses and monetizes content across the full value chain, creating multiple revenue opportunities and long-term brand value.

Kartoon Studios’ growth portfolio includes Hundred Acre Wood and the Stan Lee Universe, alongside established brands and an extensive programming library. The Company operates Mainframe Studios and Toon Media Networks, as well as Beacon Media Group, a full-service marketing, communications, and media agency subsidiary of Kartoon Studios focused on children and family. Together, these assets provide production capabilities, direct audience access and distribution across linear television, AVOD, SVOD, FAST channels and streaming platforms in more than 60 territories. Kartoon Studios is focused on converting its intellectual property, infrastructure and global reach into scalable franchise growth and long-term shareholder value.

For more information, visit www.kartoonstudios.com.

Important Cautions Regarding Forward-Looking Statements

Certain statements in this press release that are not historical facts may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and are subject to risks and uncertainties. Forward-looking statements include statements concerning the strategic transaction continuing the Company’s realignment towards the monetization of premium intellectual property; the strategic sale advancing Kartoon Studios' ongoing strategy to align its operating structure and resources on monetization of premium intellectual property, franchise development, animation production, global distribution and consumer-products commercialization and the transaction making Kartoon Studios a more focused company and better positioning its team to continue executing on our strategic realignment towards the monetization of premium intellectual property Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are based on the Company’s current plans, estimates, assumptions and expectations and are not guarantees that such plans, estimates or expectations will be achieved. Actual events, results and performance may differ materially from those expressed or implied by these forward-looking statements due to various risks, uncertainties and other factors, including the Company’s ability to execute its business strategy and growth initiatives; the Company’s ability to monetize premium intellectual property, the Company’s ability to protect its intellectual property and other risks described under the heading “Risk Factors” in Part I, Item 1A of the Company’s most recent Annual Report on Form 10-K and in its other filings with the Securities and Exchange Commission, which are available at www.sec.gov. Additional risks and uncertainties that are not currently known to the Company or that the Company currently considers immaterial may also cause actual events, results or performance to differ materially from those expressed or implied by the forward-looking statements. All forward-looking statements speak only as of the date of this press release, and Kartoon Studios undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

INVESTOR RELATIONS CONTACT:
Lytham Partners, LLC
Robert Blum
602-889-9700
[email protected]

BEVERLY HILLS, Calif., July 14, 2026 (GLOBE NEWSWIRE) -- 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 that it has received the initial cash payment of approximately $39.2 million from its previously announced litigation settlements.

Following receipt of the initial settlement payment, Kartoon Studios has more than $40 million in cash and cash equivalents and no debt as of June 30, 2026, providing one of the strongest balance sheets in the Company's history. Importantly, the settlement proceeds were entirely non-dilutive, strengthening the Company's financial position without issuing a single additional share of stock or incurring debt. As a result, the Company is confident in its ability to execute its current strategic growth initiatives without any present need for additional equity financing or other dilutive capital.

"This is a transformational moment for Kartoon Studios," said Andy Heyward, Chairman and CEO of Kartoon Studios. "Our balance sheet has been strengthened with non-dilutive capital, allowing us to significantly increase our financial flexibility while preserving shareholder ownership. With more than $40 million in cash and cash equivalents and no debt as of June 30, 2026, we believe we have the resources necessary to execute our strategic plan from a position of strength while maintaining our disciplined approach to capital allocation."

Heyward continued, "The timing of this capital could not be more important. After more than five years of creative development and investment in precious key IP, we are approaching what we believe will be the two most significant franchise launches in Kartoon Studios' history.

 Copyright Kartoon Studios, Inc. 2026 

Hundred Acre Wood is our reimagining of the original A.A. Milne stories that introduced the world to Winnie-the-Pooh, one of the most beloved and commercially successful children's properties ever created. Alongside it, we have launched the Stan Lee Universe, beginning with Stan Lee's Superhero Pets, inspired by the imagination of the legendary Stan Lee, creator or co-creator of many of the world's most iconic superheroes, and one of the most commercially successful creators in entertainment history.

 Copyright Kartoon Studios, Inc. 2026

These are not simply new productions. They represent the culmination of years of investment in building enduring entertainment franchises with global licensing, merchandising, publishing, and distribution potential. Together with our expanding consumer products business and our owned streaming platforms, including Kartoon Channel! and Ameba, these launches represent the foundation of the Company's next phase of growth. We now have the financial strength to invest behind these launches from a position of confidence and stability and maximize their long-term value for our shareholders."

As previously disclosed on June 17, 2026, the U.S. District Court for the Southern District of New York entered the settlement agreements reached to date in the shareholder action Augenbaum v. Anson Investments Master Fund LP et al. (Case No. 1:22-CV-00249-AS). Under those settlements, Kartoon Studios is entitled to receive aggregate settlement proceeds of approximately $78.5 million, before counsel fees and other advisor costs.

The remaining settlement proceeds are held in escrow pending payment of final counsel fees and other advisor costs, after which the Company expects to receive the remaining net balance from escrow.

The Company believes its strengthened balance sheet positions Kartoon Studios to accelerate investment across its growing portfolio of owned intellectual property as it prepares for the commercial launch of Hundred Acre Wood and the Stan Lee Universe over the coming year. Combined with expanding licensing and merchandising initiatives, strategic global distribution relationships, and owned digital distribution platforms, the Company believes it is well positioned to build higher-margin recurring revenue streams and execute its long-term strategy of becoming a scaled global children's and family entertainment company centered on valuable, wholly owned franchises with enduring worldwide appeal.

About Kartoon Studios
Kartoon Studios (NYSE American: TOON) is a global, vertically integrated children’s and family entertainment company turning owned and controlled intellectual property into enduring, multi-platform franchises. The Company develops, produces, distributes, licenses and monetizes content across the full value chain, creating multiple revenue opportunities and long-term brand value.

Kartoon Studios’ growth portfolio includes Hundred Acre Wood’s Winnie & Friends and the Stan Lee Universe, alongside established brands and an extensive programming library. The Company operates Mainframe Studios and Toon Media Networks, as well as Beacon Media Group, a full-service marketing, communications, and media agency subsidiary of Kartoon Studios focused on children and family. Together, these assets provide production capabilities, direct audience access and distribution across linear television, AVOD, SVOD, FAST channels and streaming platforms in more than 60 territories. Kartoon Studios is focused on converting its intellectual property, infrastructure and global reach into scalable franchise growth and long-term shareholder value.

For more information, visit www.kartoonstudios.com.

Important Cautions Regarding Forward-Looking Statements

Certain statements in this press release that are not historical facts may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and are subject to risks and uncertainties. Forward-looking statements include statements concerning executing the Company’s current strategic growth initiatives without any present need for additional equity financing or other dilutive capital, having the resources necessary to execute the Company’s strategic plan from a position of strength while maintaining a disciplined approach to capital allocation, approaching the two most significant franchise launches in Kartoon Studios' history, the launches representing the foundation of the Company's next phase of growth together with its expanding consumer products business and owned streaming platforms, investing behind these launches from a position of confidence and stability and maximize their long-term value for the Company’s shareholders, being positioned to accelerate investment across a growing portfolio of owned intellectual property as the Company prepares for the commercial launch of Hundred Acre Wood and the Stan Lee Universe over the coming year, the Company being well positioned to build higher-margin recurring revenue streams and execute its long-term strategy of becoming a scaled global children's and family entertainment company centered on valuable, wholly owned franchises with enduring worldwide appeal and converting the Company’s intellectual property, infrastructure and global reach into scalable franchise growth and long-term shareholder value. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are based on the Company’s current plans, estimates, assumptions and expectations and are not guarantees that such plans, estimates or expectations will be achieved. Actual events, results and performance may differ materially from those expressed or implied by these forward-looking statements due to various risks, uncertainties and other factors, including the Company’s ability to execute its business strategy and growth initiatives; changes in general economic, financial, market and industry conditions, the Company’s ability to execute its current strategic growth initiatives without any need for additional equity financing or other dilutive capital, having the resources necessary to execute the Company’s strategic plan from a position of strength, the ability to successfully launch the Company’s franchises, the Company's ability to enter its next phase of growth together and expand its consumer products business and owned streaming platforms, the ability to maximize long-term value for the Company’s shareholders, the ability to accelerate investments across a growing portfolio of owned intellectual property, the ability to obtain financing when needed; the Company’s ability to keep pace with technological advances; the Company’s ability to protect its intellectual property and other risks described under the heading “Risk Factors” in Part I, Item 1A of the Company’s most recent Annual Report on Form 10-K and in its other filings with the Securities and Exchange Commission, which are available at www.sec.gov. Additional risks and uncertainties that are not currently known to the Company or that the Company currently considers immaterial may also cause actual events, results or performance to differ materially from those expressed or implied by the forward-looking statements. All forward-looking statements speak only as of the date of this press release, and Kartoon Studios undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

INVESTOR RELATIONS CONTACT:
Lytham Partners, LLC
Robert Blum
602-889-9700
[email protected]

Photos accompanying this announcement are available at:
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June 17, 2026 09:00 ET  | Source: Kartoon Studios

Court Enters All Settlements Reached to Date in Short-Swing Profit Recovery Action

Company Well-Capitalized to Execute A.A. Milne and Stan Lee IP-Driven Growth Strategy

BEVERLY HILLS, Calif., June 17, 2026 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American: TOON) (“Kartoon Studios” or the “Company”) today announced that the U.S. District Court for the Southern District of New York has entered all settlement agreements reached to date in the shareholder action Augenbaum v. Anson Investments Master Fund LP et al. (Case No. 1:22-CV-00249-AS). Pursuant to those settlements, the Company will receive aggregate settlement payments of approximately $78.5 million, before plaintiff’s counsel fees and expenses.

The action was brought on behalf of the Company under Section 16(b) of the Securities Exchange Act, commonly known as the “short-swing profit” recovery statute, seeking to recover profits realized from certain transactions in the Company’s securities. With the Court’s latest ruling, all settlement agreements reached to date with settling defendants have now been entered. The action remains ongoing against the two remaining defendants.

The settlements represent a significant milestone in Kartoon Studios’ financial evolution. The aggregate recovery materially strengthens the Company’s balance sheet, providing a substantial capital base to execute and accelerate its children and family intellectual property-driven growth strategy without reliance on external financing, or dilution.

“This is a watershed moment for Kartoon Studios and, most importantly, for our shareholders,” said Andy Heyward, Chairman and CEO of Kartoon Studios. “These recoveries are non-dilutive, and return substantial value directly to the Company and its shareholders.

“For years, we have invested in building a platform supported by a portfolio of world-class children and family based intellectual property. This enhanced financial position will enable us to accelerate the commercialization of our flagship franchises, including Hundred Acre Wood and the Stan Lee Universe, while also pursuing strategic opportunities that were previously beyond our reach,” concluded Heyward.

The Company intends to deploy its enhanced financial resources to accelerate the development, commercialization, and monetization of its owned intellectual property portfolio; expand and strengthen its distribution platforms, including Kartoon Channel! and Ameba; and pursue strategic growth opportunities across content production, licensing, consumer products, and related initiatives. The Company intends to deploy these proceeds with the same financial discipline that has significantly reduced operating expenses and improved its operating results, supporting its continued progress toward sustained positive cash flow.

About Kartoon Studios

Kartoon Studios (NYSE AMERICAN: TOON) is a global leader in children’s and family entertainment, delivering premium content and high-value animated intellectual property to millions of viewers worldwide. The Company’s portfolio features globally recognized brands, as well as holding a controlling interest in Stan Lee Universe, and operates Mainframe Studios, one of North America’s largest animation producers, with more than 22,000 minutes of award-winning programming delivered.

Through its Toon Media Networks division including Kartoon Channel!, Ameba, Kartoon Channel Worldwide and Frederator, Kartoon Studios reaches audiences across linear television, AVOD, SVOD, FAST channels, and top streaming platforms. Kartoon Channel! is consistently rated the #1 kids’ streaming app on the Apple App Store. With a global distribution footprint in over 60 territories, and a robust content pipeline, Kartoon Studios is being positioned for sustained growth and long-term shareholder value.

For more information, visit www.kartoonstudios.com

Forward-Looking Statements: Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements and include statements regarding: the settlement providing a substantial capital base to execute and accelerate Kartoon Studios’ children and family intellectual property-driven growth strategy without reliance on external financing, or dilution; building a platform supported by a portfolio of world-class children and family based intellectual property; the enhanced financial position enabling the acceleration of the commercialization of Kartoon Studios’ flagship franchises, including Hundred Acre Wood and the Stan Lee Universe, while also pursuing strategic opportunities that were previously beyond the Company’s reach; deploying Kartoon Studios’ enhanced financial resources to accelerate the development, commercialization, and monetization of its owned intellectual property portfolio; expanding and strengthening the Company’s distribution platforms, including Kartoon Channel! and Ameba, and pursuing strategic growth opportunities across content production, licensing, consumer products, and related initiatives; deploying the proceeds from the settlements with the same financial discipline that has significantly reduced operating expenses and improved Kartoon Studios’ operating results, supporting its continued progress toward sustained positive cash flow; and being positioned for sustained growth and long-term shareholder value. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation the Company’s ability to execute its transition to an intellectual property-driven growth model; the Company’s ability to advance its flagship franchise initiatives; the Company’s ability to leverage prior investments in platform, content, and infrastructure, to support a more scalable operating foundation and the broader commercialization of the Company’s intellectual property portfolio; the Company’s ability to continue the momentum across its Company’s distribution business; the Company’s ability to advance its flagship franchises as multi-platform initiatives extending across content, licensing, and consumer products; the Company’s ability to bring properties to market and convert its franchises into scalable, higher-margin revenue opportunities to drive long-term value; the Company’s ability to launch and expand Hundred Acre Wood and the Stan Lee Universe in the US and globally as planned; the Company’s ability to capture value across the full lifecycle of its intellectual property by combining production capabilities, owned distribution platforms, marketing infrastructure, and licensing operations; the Company’s ability to move quicker and with purpose faster than its competitors; the Company’s ability to execute against its platform while continuing to expand higher-margin, IP-driven revenue streams; the Company’s ability to improve operating performance and margin profile over time as its initiatives scale; the Company’s ability to benefit from its investments in infrastructure and IP; the Company’s ability to obtain additional financing on acceptable terms, if at all; fluctuations in the results of the Company’s operations from period to period; general economic and financial conditions; the Company’s ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; the Company’s reliance on and relationships with third-party production and animation studios; the Company’s ability to market and advertise its products; the Company’s reliance on third parties to promote its products; the Company’s ability to keep pace with technological advances; the Company’s ability to protect its intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in the Company's subsequent filings with the Securities and Exchange Commission (the “SEC”). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

MEDIA CONTACT:
[email protected]

INVESTOR RELATIONS CONTACT:
[email protected]

CHARACTERS FROM THE UPCOMING HUNDRED ACRE WOOD SERIES JOIN KARTOON STUDIOS' CEO, CFO, AND HEAD OF TOON NETWORKS IN A GROUNDBREAKING PRESENTATION OUTLINING THE COMPANY'S GROWTH STRATEGY AND COMING PROPERTIES' TRANSITION TO AI-DRIVEN ANIMATION PRODUCTION

Building on 2025 Momentum as Operating Performance Improves and the Company Scales Its IP-Driven Strategy 

Distribution Revenue Climbs 15% Compared to Prior Year Period as Streamers, Kartoon Channel! and Ameba Expand Engagement and Monetization

Kartoon Channel Continues Strategic Expansion of Globally Recognized Entertainment Brands With Licensing Deal for Mattel’s Animated Series Masters of the Universe (2002) and American Girl (2016)

Operating Costs Decline 20% as Loss From Operations Continues to Narrow Year-Over-Year Reflecting Continued Operating Discipline 

Flagship Franchises, “Hundred Acre Wood” and “Stan Lee Universe”, Advance Toward Commercialization and Long-Term Monetization

BEVERLY HILLS, Calif., May 15, 2026 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American: TOON) today reported financial results for the first quarter ended March 31, 2026, building on the operational momentum established in 2025 as the Company executes its transition to an intellectual property-driven growth model, with early signs that the strategy is beginning to translate into operating performance. The Company’s franchise initiatives are anchored by ‘Hundred Acre Wood’, inspired by A.A. Milne’s Winnie-the-Pooh, and ‘Stan Lee Universe’ based on IP from the iconic superhero creator Stan Lee.

During the quarter, the Company strengthened performance across its distribution network through its streaming services, Kartoon Channel, and Ameba, improved operating efficiency, and continued advancing its flagship franchise initiatives. This reflects the impact of prior investments in platform, content, and infrastructure, supporting a more scalable operating foundation and the broader commercialization of the Company’s intellectual property portfolio.

For the quarter, the Company reported total revenue of $7.2 million, with distribution revenue increasing 15% as compared to the same quarter last year, while total operating expenses declined 20%, contributing to improved operating performance.

Q1 2026 FINANCIAL HIGHLIGHTS

Total Revenue: $7.2 million, compared to $9.5 million in Q1 2025, reflecting timing of production deliveries at Mainframe StudiosDistribution Revenue: $2.3 million, up 15% as compared to the same quarter last yearGeneral & Administrative Expenses: $5.1 million, down 10% as compared to Q1 2025Total Operating Expenses: $10.0 million, down 20% as compared to Q1 2025Loss from Operations: $2.8 million, improved 9% as compared to Q1 2025Balance Sheet: $6.0 million in cash & marketable securities and $30.7 million in total current assets as of March 31, 2026, with stockholders’ equity of $22.6 million “We are now entering the phase where Kartoon Studios is translating years of investment in our platform into measurable operating performance,” commented Andy Heyward, Chairman & CEO of Kartoon Studios. “This quarter reflects continued momentum across our distribution business, where we are seeing growth in both engagement and monetization, alongside meaningful progress in improving our cost structure. Our channel system continues to grow and is still ranked #1 in the Apple app store by users above all our competitors”

“At the same time, our strategy is increasingly centered on the development and commercialization of our owned intellectual property. Our flagship franchises, Hundred Acre Wood and the Stan Lee Universe, are advancing as multi-platform initiatives designed to extend across content, licensing, and consumer products.”

“With our platform in place and our key franchises progressing, our focus is on execution, bringing these properties to market and converting them into scalable, higher-margin revenue opportunities that we believe will drive long-term value for the Company.”

Kartoon Studios continued to expand its owned distribution ecosystem during the quarter, with Kartoon Channel! and Ameba driving higher engagement and revenue contribution. During the first quarter, both Kartoon Channel! and Ameba achieved record paid subscriber levels, while also delivering breakout increases in viewer engagement across the Company’s subscription streaming platforms. Subscriber engagement on Kartoon Channel! increased more than 80% year-over-year during Q1 2026, while Ameba subscriber engagement increased more than 200% year-over-year.

The Company’s broader digital distribution strategy continues to gain traction, with YouTube, FAST, and VOD increasingly functioning as a discovery, engagement, and monetization flywheel. Broad audience reach and discoverability across these platforms are helping drive subscriber engagement, conversion, and monetization across the Company’s owned streaming services. This momentum is being supported by strong performance from recently acquired content, increasingly data-informed acquisition and programming decisions, and the Company’s operational expertise in driving reach and engagement across digital media platforms.

DISTRIBUTION PLATFORM CONTINUES TO EXPAND REACH AND MONETIZATION; ACQUIRES TOP TIER BRANDS FROM MATTEL

“Kartoon Channel is extremely proud to have closed a deal with Mattel to license the animated programs of both Masters of the Universe (2002) and American Girl (2016) for our premiere streaming service,” commented Mr. Heyward. Todd Steinman, President of Toon Media Networks, added, “Our strategy at Kartoon Channel is to continually align ourselves with globally recognized franchises and culturally resonant properties that already possess deep audience affinity and multi-generational appeal. The additions of Masters of the Universe (2002) and American Girl (2016) significantly strengthen that strategy.”

The 15% increase in distribution revenue reflects improved performance across the Company’s owned platforms alongside continued licensing of the Company’s intellectual property to third-party services. These results highlight the value of Kartoon Studios’ strategy of combining owned distribution with broader third-party platform reach to expand audience engagement and monetization opportunities. As the ecosystem continues to scale, the Company expects these combined revenue streams to play an increasingly important role in supporting recurring revenue growth.

The year-over-year change in total revenue primarily reflects the timing of production deliveries at Mainframe Studios, with several projects shifting from the first quarter into later periods in 2026. This timing variability is consistent with the nature of animation production schedules and does not reflect any loss of business or change in underlying demand. Mainframe Studios continues to maintain an active production pipeline with leading broadcast, streaming, and production partners, including recent and upcoming releases such as It’s Andrew, co-produced with Pirate Size Productions and Infinite Studios for CBC/SRC and ABC Australia; Unicorn Academy: Secrets Revealed for Spin Master on Netflix; and Phoebe & Jay for PBS. The Company maintains visibility into its production pipeline and expects these revenues to be recognized in future periods.

COST DISCIPLINE SUPPORTS IMPROVED OPERATING PERFORMANCE

Kartoon Studios continued to improve its cost structure during the quarter, contributing to stronger operating performance. Lower operating expenses reflect efficiencies achieved as the Company moves beyond its peak investment phase and aligns its cost base with current operations. Reduced general and administrative expenses, along with broader operational improvements, supported a narrowing of operating losses year-over-year. These improvements position the Company to benefit from future revenue growth as higher-margin activities become a larger part of the business.

FRANCHISE INITIATIVES PROGRESS TOWARD MARKET INTRODUCTION

Kartoon Studios continues to advance its intellectual property portfolio through scalable, multi-platform franchise initiatives, anchored by its flagship properties Hundred Acre Wood and the Stan Lee Universe.

With its core infrastructure in place, the Company is increasingly focused on execution, bringing its properties to market and expanding opportunities across content, licensing, and consumer products.

Hundred Acre Wood

Hundred Acre Wood, inspired by the classic works of A.A. Milne, remains a central component of the Company’s franchise strategy, designed as a multi-platform brand spanning episodic content, short-form programming, holiday specials, and consumer products.

The franchise is being developed with a broad content strategy that extends across both long-form and short-form programming, tailored for global distribution across streaming and digital platforms, while also supporting expansion into consumer products and licensing.

The series is being developed by a highly experienced creative team, including Executive Producer, Linda Woolverton, Composer, Danny Elfman, and Story Editor, Elise Allen. The brand has generated strong early audience response through previews and live events, and broadcast partners will be announced shortly.

As the property moves toward launch, the Company is focused on aligning content, distribution, and consumer products initiatives to support a coordinated global rollout.

Stan Lee Universe

Complementing this initiative, Kartoon Studios is also advancing the Stan Lee Universe, built around the legacy of one of the most influential creators in modern entertainment.

The initiative is focused on building a portfolio of original properties inspired by Stan Lee’s creative vision, including titles such as The Excelsiors and SuperHero Pets, with planned expansion across animation, publishing, licensing, and consumer products. 

Development is centered on creating a cohesive slate of character-driven franchises designed for introduction across multiple formats and platforms, with an emphasis on long-term brand development and sustained audience engagement.

As these properties move closer to market, the Company is focused on aligning creative development with distribution, licensing, and consumer products strategies, positioning the Stan Lee Universe as a scalable portfolio of original intellectual property.

LEVERAGING AN INTEGRATED PLATFORM

Kartoon Studios’ vertically integrated model continues to support its franchise strategy, enabling the Company to develop, distribute, and monetize content across multiple channels. By combining production capabilities, owned distribution platforms, marketing infrastructure, and licensing operations, the Company is positioned to capture value across the full lifecycle of its intellectual property.

“We are seeing a shift in our business and are quickly moving towards a tech-forward strategy focused on developing and deploying valuable IP across our media platform. We have the foundation in place, and our core business is shifting to align with this strategy. Overall, we are seeing the pivot of the company which is our competitive advantage – meaning we can move quicker and with purpose faster than our competitors” commented Brian Parisi, Chief Financial Officer. “We have foundational stability in our production, distribution and media advisory business, which remains an important driver of recurring revenue and long-term value for the IP we develop.”

“Looking ahead, our focus remains on executing against our platform while continuing to expand higher-margin, IP-driven revenue streams. As these initiatives scale, we expect further improvement in operating performance and margin profile over time,” concluded Parisi.

About Kartoon Studios

Kartoon Studios (NYSE AMERICAN: TOON) is a global leader in children’s and family entertainment, delivering premium content and high-value animated intellectual property to millions of viewers worldwide. The Company’s portfolio features globally recognized brands, as well as holding a controlling interest in Stan Lee Universe, and operates Mainframe Studios, one of North America’s largest animation producers, with more than 22,000 minutes of award-winning programming delivered.

Through its Toon Media Networks division including Kartoon Channel!, Ameba, Kartoon Channel Worldwide and Frederator, Kartoon Studios reaches audiences across linear television, AVOD, SVOD, FAST channels, and top streaming platforms. Kartoon Channel! is consistently rated the #1 kids’ streaming app on the Apple App Store. With a global distribution footprint in over 60 territories, and a robust content pipeline, Kartoon Studios is positioned for sustained growth and long-term shareholder value.

For more information, visit www.kartoonstudios.com

Forward-Looking Statements: Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements and include statements regarding: the Company executing its transition to an intellectual property-driven growth model; early signs of that strategy beginning to translate into operating performance; continuing to advance the Company’s flagship franchise initiatives; prior investments in platform, content, and infrastructure, supporting a more scalable operating foundation and the broader commercialization of the Company’s intellectual property portfolio; entering the phase where the Company is translating years of investment in its platform into measurable operating performance; continuing the momentum across the Company’s distribution business; increasingly centering the Company’s strategy on the development and commercialization of its owned intellectual property; advancing the Company’s flagship franchises as multi-platform initiatives designed to extend across content, licensing, and consumer products; focusing on execution, bringing properties to market and converting the Company’s franchises into scalable, higher-margin revenue opportunities to drive long-term value; licensing of the Company’s intellectual property being expected to play a larger role in supporting recurring revenue and direct audience relationships; recognizing revenues from the Company’s pipeline in future periods; aligning the Company’s cost base with current operations; reduced general and administrative expenses, along with broader operational improvements, positioning the Company to benefit from future revenue growth as higher-margin activities become a larger part of the business; continuing to advance the Company’s intellectual property portfolio through scalable, multi-platform franchise initiatives, anchored by flagship properties Hundred Acre Wood and the Stan Lee Universe; being increasingly focused on execution, bringing properties to market and expanding opportunities across content, licensing, and consumer products; developing Hundred Acre Wood with a broad content strategy that extends across both long-form and short-form programming, tailored for global distribution across streaming and digital platforms, while also supporting expansion into consumer products and licensing; being focused on aligning content, distribution, and consumer products initiatives to support a coordinated global rollout as Hundred Acre Wood moves toward launch; also advancing the Stan Lee Universe; building a portfolio of original properties inspired by Stan Lee’s creative vision, including titles such as The Excelsiors and SuperHero Pets, with planned expansion across animation, publishing, licensing, and consumer products; creating a cohesive slate of character-driven franchises designed for introduction across multiple formats and platforms, with an emphasis on long-term brand development and sustained audience engagement; being focused as properties move closer to market on aligning creative development with distribution, licensing, and consumer products strategies; positioning the Stan Lee Universe as a scalable portfolio of original intellectual property; the Company’s vertically integrated model continuing to support its franchise strategy, enabling the Company to develop, distribute, and monetize content across multiple channels; being positioned to capture value across the full lifecycle of the Company’s intellectual property by combining production capabilities, owned distribution platforms, marketing infrastructure, and licensing operations; seeing a shift in the Company’s business and quickly moving towards a tech-forward strategy focused on developing and deploying valuable IP across the Company’s media platform; shifting the Company’s core business to align with its tech-forward strategy; seeing the pivot of the Company; the Company moving quicker and with purpose faster than its competitors; the Company’s production, distribution and media advisory business remaining an important driver of recurring revenue and long-term value for the IP the Company develops; remaining focused on executing against its platform while continuing to expand higher-margin, IP-driven revenue streams; expecting further improvement in operating performance and margin profile over time as the Company’s initiatives scale; and being positioned for sustained growth and long-term shareholder value. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation the Company’s ability to execute its transition to an intellectual property-driven growth model; the Company’s ability to advance its flagship franchise initiatives; the Company’s ability to leverage prior investments in platform, content, and infrastructure, to support a more scalable operating foundation and the broader commercialization of the Company’s intellectual property portfolio; the Company’s ability to continue the momentum across its Company’s distribution business; the Company’s ability to advance its flagship franchises as multi-platform initiatives extending across content, licensing, and consumer products; the Company’s ability to bring properties to market and convert its franchises into scalable, higher-margin revenue opportunities to drive long-term value; the Company’s ability to launch and expand Hundred Acre Wood and the Stan Lee Universe in the US and globally as planned; the Company’s ability to capture value across the full lifecycle of its intellectual property by combining production capabilities, owned distribution platforms, marketing infrastructure, and licensing operations; the Company’s ability to move quicker and with purpose faster than its competitors; the Company’s ability to execute against its platform while continuing to expand higher-margin, IP-driven revenue streams; the Company’s ability to improve operating performance and margin profile over time as its initiatives scale; the Company’s ability to benefit from its investments in infrastructure and IP; the Company’s ability to obtain additional financing on acceptable terms, if at all; fluctuations in the results of the Company’s operations from period to period; general economic and financial conditions; the Company’s ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; the Company’s reliance on and relationships with third-party production and animation studios; the Company’s ability to market and advertise its products; the Company’s reliance on third parties to promote its products; the Company’s ability to keep pace with technological advances; the Company’s ability to protect its intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in the Company's subsequent filings with the Securities and Exchange Commission (the "SEC"). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

MEDIA CONTACT:
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INVESTOR RELATIONS CONTACT:
[email protected]

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