Exhibit 99.1 KARTOON STUDIOS Q1 2025 REVENUE SOARS 56% OVER PRIOR YEAR - COMPANY ON TRACK FOR PROFIT BY END OF YEAR Q1 2025 Financial Highlights: Why Kartoon Studios Is Poised for Investor Growth: "We've spent the last year optimizing every aspect of our business – lowering costs, deepening partnerships, and expanding distribution," said Andy Heyward, Chairman & CEO of Kartoon Studios. "With a profitable studio division (Mainframe), scalable digital platform (Kartoon Channel!), and powerful IP on the horizo ...

Core Insights - Kartoon Studios reported a significant revenue increase of 138% year-over-year and 29% sequentially, achieving profitability in its Mainframe Animation Unit and Kartoon Channel! [1][6][24] Financial Performance - Total revenue for Q1 2025 reached $9.5 million, with a 56.4% year-over-year increase [25] - Production services revenue surged by 137.9% [6] - Operating loss improved by 51.1% year-over-year and 11.9% sequentially [6] - General and administrative expenses were reduced by 24.9% [6] - The company maintains a debt-free balance sheet with zero long-term debt [6][24] Business Growth and Strategy - Mainframe Studios serves as a consistent revenue driver, with over 90% of its 2025 budget revenue already under contract [9] - Kartoon Channel! is the 1 kids' streaming app on the Apple App Store, outperforming competitors like Netflix and Disney+ [12][17] - The platform's global reach extends to over 1.5 billion potential viewers across 61+ countries [13] Intellectual Property and Future Projects - Upcoming franchises include "A Hundred Acre Woods' Winnie & Friends" and "Stan Lee's The Excelsiors," expected to contribute significantly to revenue [20][22] - The creative team behind "Winnie & Friends" includes industry veterans known for successful franchises, enhancing its market potential [21][22] Operational Efficiency - The company has focused on optimizing operations, resulting in a leaner structure and improved financial metrics [4][23] - With four consecutive quarters of revenue growth, Kartoon Studios is positioned for sustained profitability by the end of 2025 [24]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 001-37950 KARTOON STUDIOS, INC. (Exact name of registrant as specified in its charter) (State or other ...

Financial Performance - Total revenue for Q4 2024 increased by 8.2% sequentially and 7.0% year-over-year, reaching $9.4 million[3] - Production services revenue surged by 44.7% in Q4 2024 compared to Q4 2023, driven by strong demand for premium animation content[3] - Total operating expenses decreased by 66.0% in Q4 2024 compared to Q4 2023 and by 57.4% for the full year 2024 compared to 2023[3] - Loss from operations improved by 88.0% in Q4 2024 compared to Q4 2023, indicating a strong path towards profitability in 2025[3] Market Position and Audience Reach - Kartoon Channel! remains the 1 ranked streamer in the Apple App Store, reaching over 1.5 billion viewers worldwide across various platforms[6] - Mainframe Studios has over 90% of its 2025 revenue target already contracted, with a backlog of orders expected to surpass 2025 levels[4] Profitability and Growth Strategies - Beacon Media Group achieved profitability in 2024 through high-efficiency ads and data-driven strategies, poised for continued growth in 2025[9] - Frederator Networks turned profitable in 2024 and plans to expand e-commerce capabilities on YouTube and social media in 2025[6] - The company is poised for revenue growth and aims to achieve sustained profitability by 2025, driven by a rebound in its animation production pipeline and continued profits in its children's channel[23] - Current initiatives are guiding the company toward profitability in 2025 while operating at a sustainable expense level[23] - The company is well-positioned to capitalize on future growth opportunities and deliver long-term value for shareholders[23] Upcoming Projects and Releases - Upcoming animated series, "Hundred Acre Woods' Winnie and Friends" and "The Excelsiors," are set for broad launches in 2025 and 2026, expected to unlock substantial new revenue streams[8] - The company plans to release a sneak peek animation trailer for A.A. Milne's Winnie-the-Pooh, featuring two new female characters[23] - Development plans include Stan Lee's The Excelsiors, launching as a graphic novel with concurrent television and film adaptations overseen by Michael Uslan[23] - The company is collaborating with LiveOne to produce, publish, and distribute all music for its Winnie-the-Pooh films and series, including original songs and soundtracks[23] - The successful release of the animated Christmas movie is set for December 24, 2025[23] Risk Management and Forward-Looking Statements - The company acknowledges various risks and uncertainties that could affect its ability to sustain growth and profitability in 2025[23] - The company disclaims any obligation to update forward-looking statements except as required by law[23]

Operating Expenses Decreased by 57.4% in 2024; Operating Loss Improved by 76.5% in 2024 BEVERLY HILLS, Calif., March 31, 2025 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE:TOON) today provided a business update for the fourth quarter of 2024, highlighting continued momentum in revenue growth across all units, substantial improvements in cost efficiency and noteworthy progress toward profitability expected in 2025. Key Financial Highlights for Q4 2024: "In 2024, Kartoon Studios made significant progress across a ...

Financial Performance - For the year ended December 31, 2024, Kartoon Studios generated net revenues of $32.6 million, a decrease from $44.1 million in the previous year, and incurred a net loss of $20.7 million compared to a net loss of $77.1 million in the prior year[79]. - Total revenue for the year ended December 31, 2024, was $44,085,000, a decrease of 26% compared to $32,591,000 in 2023[171]. - Production services revenue decreased by 33% to $17,850,000 in 2024 from $26,799,000 in 2023, primarily due to a lower volume of animation projects[171]. - Content distribution revenue decreased by 18% to $9,607,000 in 2024, largely due to a $1.7 million decline in revenue from Frederator's YouTube creator network[172]. - Licensing and royalties revenue fell by 54% to $298,000 in 2024, mainly due to lower earnings from consumer products and music licensing agreements[173]. - Media advisory and advertising services revenue decreased by 2% to $4,836,000 in 2024, attributed to lower renewal activity and fewer media purchases[174]. - Total expenses for the year ended December 31, 2024, decreased to $49.6 million from $116.5 million in 2023, representing a 57% reduction[175]. - The company recognized a decrease in net noncash expenses to $9.9 million in 2024 from $59.3 million in 2023, primarily due to the absence of prior impairment expenses[190]. Capital and Financing - Kartoon Studios closed a registered direct offering of 3,900,000 shares at $1.00 per share, generating approximately $4,000,000 in gross proceeds[35]. - The company raised approximately $4.0 million from the April 2024 Offering and $4.5 million from the December 2024 Offering, totaling gross proceeds of about $8.5 million[182]. - As of December 31, 2024, cash increased by $4.3 million to $8.4 million, supported by $10.0 million from investing activities despite $3.5 million used in operating activities[180]. - The company has production loan facility obligations of approximately $9.2 million and an outstanding margin loan of $0.9 million[118]. - The company plans to utilize liquidity to fund material cash requirements, with future minimum purchase obligations totaling approximately $27.1 million over the next five years[194]. Strategic Initiatives - The company launched a $30.0 million joint venture for the "Winnie-the-Pooh" project, with a profit split of 60% to Kartoon Studios and 40% to Catalyst Venture Partners[36]. - The "Andrew The Big BIG Unicorn" series is set for delivery in March 2026, consisting of 40 episodes targeting preschool audiences[38]. - Kartoon Studios aims to generate awareness through a 360-degree marketing approach, including social media influencers and strategic partnerships[51]. - The company is focused on a strategic positioning of "content with a purpose" to differentiate itself in the competitive children's media space[52]. Market and Competition - The company faces competition from larger entities like The Walt Disney Company and Nickelodeon Studios, which may impact its market position and profitability[95]. - The reliance on third-party production studios for animated content poses risks; failures or delays could negatively affect profitability and marketability[97]. - The company is subject to various regulations, including the Children's Online Privacy Protection Act (COPPA) and the Consumer Product Safety Act, which may impact its operations[55][57]. Operational Insights - The company employs 344 full-time employees and 68 independent contractors as of December 31, 2024[67]. - The company has rights to valuable intellectual property through its controlling interest in Stan Lee Universe, LLC[30]. - The company holds rights to over 150 motion pictures and over 525 different television shows across partnerships with more than 150 licensors[63]. - The company operates a subscription-based streaming service, Ameba, which significantly enhances its digital footprint and revenue streams[49]. Risks and Challenges - Economic downturns and inflation could reduce demand for the company's products, adversely affecting revenue and earnings[88]. - Recent global events have led to increased market volatility and economic uncertainty, which could negatively impact the company's operations[89]. - Material weaknesses in internal controls over financial reporting have been identified, with one remaining in the information technology general controls area as of December 31, 2024[92]. - Changes in foreign, state, and local tax incentives may increase the cost of original programming, adversely affecting financial condition[120]. - The stock price may be subject to substantial volatility due to limited public float and low trading volume[124]. Legal and Compliance - The company has no material pending legal proceedings as of December 31, 2024, except for ongoing securities litigation[137]. - The District Court dismissed all claims against one defendant in the securities litigation, but allowed one claim to proceed related to statements about the "Rainbow Rangers" cartoon[138]. - The company is a nominal defendant in several shareholder derivative lawsuits, which are stayed pending the outcome of the securities litigation[145]. Future Outlook - The company expects to address future cash needs through cost reductions, optimization of working capital, and securing licensing and distribution advances[186]. - The company does not expect to pay dividends in the foreseeable future, with any return on investment limited to stock price appreciation[128]. - The company plans to invest approximately $0.2 million in cybersecurity enhancements following a minor cybersecurity incident[134].

Core Insights - Kartoon Studios (NYSE:TOON) will report Q4 2024 results on March 31, 2025, before the market opens [1] - A video Q&A session with CEO Andy Heyward and CFO Brian Parisi will follow the results announcement, hosted by Bryce McNallie [2] Company Overview - Kartoon Studios is a global creator, producer, distributor, marketer, and licensor of entertainment brands, with a diverse IP portfolio including original animated content [3] - The company acquired WOW! Unlimited Media in 2022, enhancing its production capabilities and becoming the largest shareholder in Your Family Entertainment AG, a leading European distributor [4] Digital Distribution Network - Toon Media Networks, a wholly-owned digital distribution network, includes Kartoon Channel!, Frederator Network, and Ameba, providing content across multiple platforms [5]

Core Insights - Kartoon Studios has announced the appointment of Linda Woolverton as Executive Producer for the new production "Hundred Acre Wood's Winnie and Friends," marking the largest project in the company's history [4][12] - John Rivoli has been named Creative Director for the same project, bringing his extensive experience from successful franchises like Harry Potter and Batman [5][12] - The production will feature over 200 six-minute shorts and five holiday specials, utilizing a unique 'yarn-based' animation style that combines AI and hand-drawn elements [12][13] Company Overview - Kartoon Studios (NYSE:TOON) is a global creator, producer, distributor, marketer, and licensor of entertainment brands, with a diverse IP portfolio including original animated content and partnerships with major franchises [14] - The company has made strategic acquisitions, including WOW! Unlimited Media and a significant stake in Your Family Entertainment AG, enhancing its position in the family entertainment sector [14] - Kartoon Channel! is a key distribution platform for the company, achieving near full penetration in the U.S. market and consistently ranking high in viewer ratings [14]

Core Insights - Kartoon Studios has announced the appointment of Linda Woolverton as Executive Producer for the ambitious project "Hundred Acre Wood's Winnie and Friends," which is based on A.A. Milne's characters [2][3] - John Rivoli has been named as the Creative Director for the same project, bringing his extensive experience from successful franchises like Harry Potter and Batman [3] - The production will feature over 200 six-minute shorts and five holiday specials, utilizing a unique 'yarn-based' animation style that combines AI and hand-drawn elements [7][8] Company Overview - Kartoon Studios (NYSE American: TOON) is a global creator, producer, distributor, marketer, and licensor of entertainment brands, with a diverse IP portfolio including original animated content and partnerships with notable franchises [9] - The company has made strategic acquisitions, including WOW! Unlimited Media and a significant stake in Your Family Entertainment AG, enhancing its position in the family entertainment sector [9] - Kartoon Channel! is a key digital distribution platform for the company, achieving near full penetration in the U.S. market and consistently ranking high in viewer ratings [9]

Core Insights - Kartoon Studios has expanded its distribution through a partnership with Samsung TV Plus, making Kartoon Channel! available to tens of millions of households in the U.S. and Canada [2][4] - The channel focuses on gaming-related content, including popular titles like Kidaverse: Roblox Rumble, and features a variety of animated series appealing to young audiences [3][4] - Kartoon Channel! is currently the top-ranked children's viewing platform in the Apple app store, surpassing competitors like Netflix and Disney+ [4] Company Overview - Kartoon Studios (NYSE American: TOON) is a global creator, producer, distributor, marketer, and licensor of entertainment brands, with a diverse IP portfolio that includes original animated content [5] - The company acquired WOW! Unlimited Media in 2022, enhancing its production capabilities and expanding its brand offerings [6] - Toon Media Networks, a wholly-owned digital distribution network of Kartoon Studios, includes Kartoon Channel!, Frederator Network, and Ameba, available on multiple platforms [7]