Kartoon Studios Inc. reported its year end financials late last month.

The Beverly Hills children’s content producer and distributor said on March 31 that it had a net loss of $20.7 million last year, compared to a net loss of $77.1 million the previous year. Revenue dropped by 26% from the prior year to $32.6 million.

Still, Kartoon Studios Chief Executive Andy Heyward said that last year the company had made significant progress across all core business segments and toward profitability this year and beyond.

“Virtually all of our operating units have reached profitability, including tentpole children’s broadcaster, Kartoon Channel, tentpole family and kids advertising unit, Beacon Media Group and Frederator Networks, (the owner of the largest animation focused creator network on YouTube with over 2,500 channels),” Heyward said in a statement.

Operating expenses fall

Brian Parisi, Kartoon’s chief financial officer, said the company’s financial performance last year reflects the success of its disciplined approach to cost efficiencies.

“Significant reductions in operating expenses and G&A (general and administrative) costs and improved efficiency across our divisions have substantially strengthened our bottom line and positioned us for profitable growth,” Parisi said in a statement.

Operating expenses during the fourth quarter dropped by 66.0% in Q4 2024 compared to Q4 2023 and by 57.4% for the full year 2024 compared to 2023.