GENIUS BRANDS(GNUS) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Release Highlights Overall Performance Summary Kartoon Studios achieved its fifth consecutive quarter of revenue growth in Q2 2025, with a 23% year-over-year increase, significant streaming viewership growth, and effective cost reductions, steadily progressing towards profitability by year-end 2025 - The company achieved its fifth consecutive quarter of revenue growth, with Q2 revenue increasing by 23% year-over-year[2][3] - Streaming viewership achieved triple-digit growth, with FAST viewership increasing by 221% year-over-year[2][3][11] - G&A expenses saw a double-digit decrease, as the company advances towards its 2025 profitability target[2][3] CEO's Strategic Vision CEO Andy Heyward emphasized the company's robust and scalable business model, driving margin expansion and accelerating sustained profitability through operational discipline, global expansion, and a strong content pipeline - The CEO emphasized the company's strong and scalable business model, driving margin expansion and accelerating sustained profitability through operational discipline, global reach, and content pipeline[4] - The company is executing its strategy and achieving continuous, profitable improvements, targeting profitability in 2025[4] Q2 2025 Financial Performance Key Financial Metrics The company's Q2 total revenue reached $10.3 million, up 22.6% year-over-year and 8.2% quarter-over-quarter, with production services revenue growing 44.4% year-over-year, while operating loss narrowed by 31% year-over-year, reflecting improved operational efficiency Q2 2025 Key Financial Data | Metric | Amount/Change | Notes | | :--- | :--- | :--- | | Total Revenue | $10.3M | Q-o-Q +8.2%, Y-o-Y +22.6% | | Production Services Revenue | +44.4% YoY | Q-o-Q +12% | | Operating Loss | Narrowed 31% YoY | Reflects improved operational efficiency | | G&A Expenses | Down 10.1% YoY | Demonstrates cost control | | Current Assets | $25.5M | | | Shareholders' Equity | $29.7M | | | Long-Term Debt | None | | Cost Control and Operating Efficiency Kartoon Studios achieved a 10.1% year-over-year decrease in G&A expenses and a 31% year-over-year reduction in operating loss in Q2 through stringent cost control, establishing an efficient cost structure to support profitable growth - G&A expenses decreased by 10.1% year-over-year, and operating loss narrowed by 31% year-over-year, demonstrating significant progress in cost control and operational efficiency[7][13] - The company has established an efficient cost structure to support future profitable growth and maintains no long-term debt[13][16] CFO's Financial Commentary CFO Brian Parisi highlighted Q2 as the company's fifth consecutive quarter of record revenue growth, driven by stringent cost control and zero long-term debt, emphasizing a business rebound with an efficient cost structure supporting profitable growth - The CFO emphasized Q2 as the company's fifth consecutive quarter of record revenue growth, attributed to stringent cost control and zero long-term debt[13] - The company's business has rebounded, supported by an efficient cost structure for profitable growth[13] - The company is committed to enhancing long-term shareholder value through share repurchases and open market purchases by management and board members, reflecting strong confidence in its strategic direction and business outlook[13] Operational Achievements & Growth Drivers Kartoon Channel! & Toon Media Networks Kartoon Channel! maintained its 1 ranking in the Apple App Store for kids' streaming apps and received an Amazon Operational Excellence Award, demonstrating strong user engagement and subscription momentum with significant growth in FAST viewership, Tubi watch time, and SVOD subscriptions Streaming Performance & Ratings Kartoon Channel! maintained its 1 ranking among kids' streaming apps in the Apple App Store, surpassing major competitors, while achieving significant quarter-over-quarter and year-over-year growth in FAST viewership, Tubi watch time, and app viewership, alongside seven consecutive months of SVOD subscription growth - Kartoon Channel! maintained its 1 Kids Streaming App rating in the Apple App Store[5] Kartoon Channel! Streaming Key Metric Growth | Metric | Growth Rate | | :--- | :--- | | FAST Viewership | Q-o-Q +45%, Y-o-Y +221% | | Tubi Watch Time | Y-o-Y +50% | | Kartoon Channel App Viewership | Q-o-Q +26% | | SVOD Subscriptions | 7 consecutive months of growth | Content Library & Awards Kartoon Channel!'s content library expanded with popular IPs like 'Super Mario Bros.' and 'Pac-Man and the Ghostly Adventures,' alongside originals such as 'Shaq's Garage' and 'Stan Lee's Superhero Kindergarten,' earning an Amazon Operational Excellence Award for its performance on Prime Video - Kartoon Channel! content library added popular IPs including Super Mario Bros. and Pac-Man and the Ghostly Adventures, alongside original productions such as Shaq's Garage and Stan Lee's Superhero Kindergarten[8] - Kartoon Studios received the Amazon Operational Excellence Award, validating its performance on Prime Video[11] Mainframe Studios Production Services Mainframe Studios' revenue grew 44% year-over-year, driven by strong demand from top global partners like Netflix, Mattel, and Disney, with over 90% of 2025 projected revenue secured by contracts extending into 2026 and 2027, ensuring future revenue visibility - Mainframe Studios revenue increased by 44% year-over-year, driven by strong demand from top global partners including Netflix, Mattel, and Disney[12] - Over 90% of 2025 projected revenue is secured by contracts, with production agreements extending into 2026 and 2027, ensuring strong future visibility[12] - Current production projects include notable titles such as SuperKitties, Unicorn Academy, Phoebe & Jay, Barbie, and It's Andrew[13] Intellectual Property (IP) Pipeline The company plans to launch several key IPs in H2 2025, including 'Hundred Acre Wood/Winnie the Pooh & Friends' Christmas special (premiering December 24, 2025) and 'Stan Lee's The Excellence' graphic novel (Q4 2025 release), with TV and audio versions also in development Upcoming Launches Kartoon Studios plans to launch several key IPs in H2 2025, including the 'Hundred Acre Wood/Winnie the Pooh & Friends' Christmas special by Linda Woolverton and John Rivoli, and 'Stan Lee's The Excellence' graphic novel by Michael Uslan and Aaron Waltke, with TV and audio versions in development for a Q4 2025 release - The Hundred Acre Wood/Winnie the Pooh & Friends Christmas special will debut on December 24, 2025, commemorating the 100th anniversary of A.A. Milne's Winnie the Pooh[9] - Stan Lee's The Excellence graphic novel will debut in Q4 2025, with TV and audio versions currently in development[12] Outlook and Strategic Initiatives Path to Profitability Kartoon Studios is confidently progressing towards profitability by year-end, leveraging Mainframe Studios' rapidly expanding production capabilities, an enhanced banking relationship with National Bank of Canada, and multiple high-potential franchise launches planned for 2025 - The company is confidently moving towards profitability by year-end, driven by Mainframe Studios' expanding production capabilities, collaboration with the National Bank of Canada, and multiple franchise projects in 2025[15] - The company is expanding various monetization channels, including licensing, streaming, advertising, and digital platforms, while delivering globally relevant children's content[15] Shareholder Value & Capital Structure The company is committed to driving long-term shareholder value through share repurchase activities and open market purchases by management and board members, reflecting strong confidence in its strategic direction and business outlook, while maintaining a healthy capital structure with zero long-term debt - The company is committed to enhancing long-term shareholder value through share repurchases and open market purchases by management and board members, indicating strong confidence in its strategic direction and business outlook[13] - The company maintains a healthy capital structure with zero long-term debt[13][16] About Kartoon Studios Kartoon Studios (NYSE AMERICAN: TOON) is a global leader in children's and family entertainment, offering premium content and high-value IP, operating Mainframe Studios, and maintaining Kartoon Channel! as the 1 kids' streaming app in the Apple App Store with global distribution - Kartoon Studios is a global leader in children's and family entertainment, owning globally recognized brands such as Stan Lee's Superhero Kindergarten and Shaq's Garage[17] - The company controls Stan Lee Universe and operates Mainframe Studios, one of North America's largest animation production companies, having delivered over 22,000 minutes of award-winning programming[17] - Through its Toon Media Networks division, the company reaches global audiences via linear television, AVOD, SVOD, FAST channels, and top streaming platforms, with Kartoon Channel! consistently rated as the 1 Kids Streaming App in the Apple App Store[18] Forward-Looking Statements This press release contains 'forward-looking statements' under federal securities laws, covering the company's path to 2025 profitability, business model strength, operational efficiency, IP launch plans, cost structure, shareholder value drivers, and global expansion capabilities - Forward-looking statements cover the company's 2025 profitability target, business model strength, operational efficiency, IP launch plans, cost structure, shareholder value drivers, and global expansion capabilities[19] - These statements are based on current estimates and assumptions, subject to various risks and uncertainties, including the ability to sustain growth and profitability, secure additional financing, changes in economic and market conditions, competitive pressures, and intellectual property protection[19] - The company disclaims any obligation to update or revise forward-looking statements, except as required by law[19] Contacts Provides contact information for media and investor relations - Media contact email: pr@kartoonstudios.com[20] - Investor Relations contact email: ir@kartoonstudios.com[20]