AETH Entertainment and Kartoon Studios Partner To Launch TaleSphere Studios; Will Focus On Live-Action With ‘Real Santa’ As Debut Film

Kartoon Studios (NYSE: TOON) reported Q2 2026 revenue of about $5.8M and EPS of about $0.38, with net income of $27.0M largely from a $39.2M non-recurring litigation settlement gain. The company said it ended Q2 with about $40.5M cash and marketable securities and no long-term debt. It also outlined a shift toward owned IP, including an Amazon Prime Video deal for “Hundred Acre Wood” in Feb. 2027.

Kartoon Studios (NYSE American: TOON) reported Q2 2026 results and said it is shifting toward owning and monetizing children’s IP. After litigation settlements, it ended June 30 with about $40.5M cash and marketable securities and no long-term debt, with $39.2M remaining in escrow. It also disclosed an Amazon Prime distribution deal for Hundred Acre Wood launching Feb. 18, 2027.

Kartoon Studios, Inc. (TOON) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Kartoon Studios Reports Second Quarter 2026 Financial Results and Accelerates Strategic Transformation 8-K Filed Announcing Agreement with Amazon Prime Strengthened Balance Sheet with $40 million in Cash and No Long-Term Debt Focus on Intellectual Property Ownership

Kartoon Studios (NYSE American: TOON) said the U.S. District Court for the Southern District of New York has entered all settlement agreements reached so far in Augenbaum v. Anson Investments Master Fund LP et al. under Section 16(b) “short-swing profit” recovery. The company expects aggregate payments of about $78.5 million before fees/expenses; two defendants remain.

The US approved a potential $24.3B sale of 48 Lockheed Martin F-35 fighter jets to Saudi Arabia, including engines and support equipment. The sale, a policy shift, may alter Middle East military balance and test US commitment to Israel's military edge. Saudi Arabia has long sought the advanced jets to modernize its air force and counter regional threats, particularly from Iran.

The US State Department approved a potential $24.3B sale of 48 F-35A fighters and 49 engines to Saudi Arabia, including support equipment and training. Lockheed Martin, the manufacturer, and RTX subsidiary Pratt & Whitney are involved. The deal requires congressional review and could face opposition due to security concerns. If finalized, it would make Saudi Arabia the 20th operator of the F-35.