Free cash flow remains highly erratic, swinging from a positive $4.1 million in 2023Q4 to a negative $2.9 million in 2026Q1, reflecting significant liquidity strain.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | -12.48M | -11.41M | -3.49M | -16.09M | -25.92M | -23.82M | -8.05M | -6.25M | -8.01M | -7.19M | -3.72M | -3.4M | -2.48M | -1.12M |
| Operating CF Margin % | - | -28.98% | -10.71% | -36.5% | -41.61% | -302.54% | -324.37% | -105.81% | -806.08% | -134.69% | -428.7% | -374.08% | -268.09% | -43.82% |
| Operating CF Growth % | -372.04% | -226.91% | 78.32% | 37.92% | -8.83% | -195.74% | -28.84% | 21.94% | -11.43% | -93.39% | -9.41% | -36.85% | -121.54% | - |
| Net Income | -24.37M | -24.53M | -20.94M | -77.2M | -44.53M | -126.37M | -401.67M | -11.48M | -9M | -4.91M | -6.21M | -3.48M | -3.73M | -7.22M |
| Depreciation & Amortization | 5.1M | 3.49M | 4.38M | 5.96M | 10.91M | 2.23M | 1.36M | 2.57M | 1.17M | 2.66M | 310.48K | 133.91K | 109.75K | 160.65K |
| Stock-Based Compensation | 393K | 331K | 667K | 2.67M | 10.89M | 16.45M | 8.93M | 184.26K | 306.02K | 793.96K | 1.62M | 31.92K | 127.2K | 706.45K |
| Deferred Taxes | -135K | -135K | 7K | -973K | -45K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 19.66M | 25.58M | 20.81M | 72.26M | 25.53M | 90.25M | 384.48M | 5.05M | 1.82M | 11.24M | 1.41M | 249.63K | 253.68K | 4.15M |
| Working Capital Changes | -12.98M | -16.14M | -8.41M | -18.81M | -28.69M | -6.39M | -1.15M | -2.58M | -2.9M | -5.8M | 813.34K | -328.92K | 755.97K | 1.08M |
| Change in Receivables | -1.17M | -9.6M | -4.43M | -16.31M | -11.63M | -276K | 2.33M | -1.92M | 2.65M | -4.78M | 294.79K | 65.32K | 603.29K | 279.8K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 9K | 6.54K | 1.77K | -11.03K | 518 | 4.61K | 37.7K | 101.72K |
| Change in Payables | 1.14M | 108K | -4.9M | 5.35M | 2.75M | -169K | -389K | 250.49K | 588.3K | -266.64K | 289.2K | 0 | 0 | 0 |
| Cash from Investing | 2.49M | -1.63M | 10.01M | 73.86M | -30.94M | -128.73M | -1.4M | -26.98K | -42.98K | -107.19K | -11.49K | -294.21K | -97.99K | 212.91K |
| Capital Expenditures | -164K | -151K | -117K | -72K | -592K | -302K | -76K | -26.98K | -42.98K | -107.19K | -11.49K | -182.99K | -4.16K | -2.83K |
| CapEx % of Revenue | 1.47% | 0.38% | 0.36% | 0.16% | 0.95% | 3.84% | 3.06% | 0.46% | 4.33% | 2.01% | 1.33% | 20.15% | 0.45% | 0.11% |
| Acquisitions | 0 | 0 | 0 | 0 | -50.74M | -11.18M | -1.3M | 0 | 0 | 0 | 0 | 0 | 0 | 283.2K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -8.05M | -14.2M | 83K | 1.33M | -1.59M | -2.28M | -26K | 0 | -21.36K | -44.79K | -5.65K | -111.22K | -93.83K | -67.46K |
| Cash from Financing | 12.54M | 8.15M | -3.13M | -60.8M | 54.44M | 62.17M | 109.61M | 3.5M | 3.64M | 11.9M | 1.43M | 4.58M | 6.35M | 986.97K |
| Debt Issued (Net) | 4.7M | 378K | -10.26M | -65.78M | 56.24M | 4.91M | 5.21M | -868.7K | 2.04M | 2.8M | 1.32M | 0 | 0 | 308.69K |
| Equity Issued (Net) | 7.53M | 1K | 7.52M | 0 | -285K | 0 | 98.58M | 3.02M | 0 | 5.7M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -285K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 303K | 7.77M | -393K | 4.98M | -1.51M | 57.27M | 5.82M | 1.35M | 1.6M | 3.4M | 110K | 4.58M | 6.35M | 678.27K |
| Net Change in Cash | 2.24M | -5.44M | 4.29M | -3.34M | -2.63M | -90.4M | 100.15M | -2.78M | -4.41M | 4.61M | -2.3M | 886.52K | 3.77M | 79.56K |
| Free Cash Flow | -12.64M | -11.56M | -3.61M | -16.16M | -26.54M | -25.13M | -8.16M | -6.28M | -8.05M | -7.29M | -3.73M | -3.58M | -2.49M | -1.12M |
| FCF Margin % | -113.65% | -29.37% | -11.06% | -36.67% | -42.6% | -319.18% | -328.47% | -106.27% | -810.41% | -136.7% | -430.02% | -394.23% | -268.54% | -43.93% |
| FCF Growth % | -36.57% | -220.49% | 77.69% | 39.09% | -5.6% | -208.1% | -29.91% | 22.02% | -10.38% | -95.67% | -4.14% | -43.98% | -121.36% | - |
| FCF per Share | -0.20 | -0.23 | -0.09 | -0.48 | -0.85 | -0.84 | -0.57 | -5.27 | -9.19 | -11.99 | -9.52 | -14.31 | -11.92 | -23.84 |
| FCF Conversion (FCF/Net Income) | 0.52x | 0.46x | 0.17x | 0.21x | 0.57x | 0.19x | 0.02x | 0.54x | 0.89x | 1.46x | 0.60x | 0.47x | 0.67x | 0.16x |
| Interest Paid | -24K | 0 | 129K | 1.82M | 252K | 19K | 470K | 516.96K | 271.24K | 3.23K | 2.67K | 2.58K | 6.06K | 0 |
| Taxes Paid | 0 | 0 | 0 | 64K | 19K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and operational sustainability
According to recent financial disclosures, Kartoon Studios exhibits a persistent divergence between net income and operating cash flow, with the OCF/NI ratio frequently fluctuating, as seen in 2026Q1's 0.45 reading, which suggests that accounting losses are not being fully mitigated by cash-generative operational activities.
The lack of a consistent, positive relationship between net income and operating cash flow indicates that the company's earnings quality is heavily impacted by non-cash charges and accruals. Investors should monitor whether this gap reflects aggressive capitalization of content costs that may not translate into actual liquidity.
As reported in quarterly filings, TOON's free cash flow trajectory remains highly erratic, swinging from a positive $4.1 million in 2023Q4 to a negative $2.9 million in 2026Q1, which underscores the inherent instability of a business model reliant on lumpy, project-based licensing and production revenue.
The inability to maintain positive free cash flow suggests that the company's current scale is insufficient to cover its operational overhead and content investment requirements. This volatility warrants further investigation into whether the firm can achieve self-sustaining cash generation without recurring external capital injections.
Based on the provided cash flow statements, Kartoon Studios has experienced consistent working capital drains, with negative changes reaching $4.8 million in 2025Q1, indicating that the company is struggling to efficiently manage its cash conversion cycle amidst its ongoing content production and distribution efforts.
These persistent outflows suggest that the company may be facing challenges in collecting receivables or managing inventory levels effectively. Such trends appear to exacerbate the firm's liquidity constraints, making it increasingly difficult to fund operations through internal cash flows alone.
As indicated by historical data, the company's cash flow statement is significantly influenced by substantial depreciation and amortization charges, which averaged near $1 million per quarter, masking the underlying cash burn required to maintain the studio's library of celebrity-anchored intellectual property assets.
The reliance on high D&A to reconcile net income to operating cash flow suggests that the company is heavily reinvesting in content that may not be yielding immediate cash returns. Analysts should be wary of whether these capitalized costs will eventually require significant impairment charges if the IP fails to perform.
Quick answers to the most common questions about buying TOON stock.
Kartoon Studios Inc. (TOON) generated $-11.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Kartoon Studios Inc. (TOON) reported negative free cash flow of $11.6M in 2025, indicating capital requirements exceeded cash from operations.
Kartoon Studios Inc. (TOON) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.