TOONDoubtfulC
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Compliance Status

Doubtful

Screened on Oct 11, 2026 · AAOIFI Standard 21

C

Marginal

40Score

Is Kartoon Studios Inc. (TOON) halal? Doubtful. Based on AAOIFI screening, Kartoon Studios Inc. passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 40/100 (Grade: C).

Quote this verdict

HalalScreener rates Kartoon Studios Inc. (TOON) Doubtful, 40/100, grade C under AAOIFI Standard 21, screened Oct 11, 2026. Source: https://halalscreener.app/en/stock/TOON

Business activity

Its main business is permissible, with some incidental non-compliant revenue.

Passed

Company debt

Close to the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

28.3% of 30.0% limit
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Screened according to AAOIFI Standard 21

What this means for you

You may own TOON, with caution

Its numbers sit close to AAOIFI limits. Cautious investors may prefer alternatives or ask a scholar first.

Purification amount is Pro

We have screened TOON's prohibited income, but the exact share you would need to purify is part of Pro.

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Kartoon Studios Inc.

TOON: Is Kartoon Studios Inc. Halal?

Kartoon Studios Inc.

AMEXCommunication ServicesUS

$0.54

Market Cap: 32.2M

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About Kartoon Studios Inc.

Kartoon Studios Inc., which operated as Genius Brands International, Inc. until its renaming in June 2023, is a dynamic content and brand management company. Its core business involves developing, producing, licensing, and broadcasting educational and multimedia animated entertainment specifically for children around the world. The company boasts an extensive portfolio of intellectual properties and shows, including the live-action preschool music series "Ukulele U," the CGI streaming children's program "Team Zenko Go!," and "Rainbow Rangers," an animated series featuring seven magical girls. Other offerings encompass the 2D animated "Guava Juice," "Shaq's Garage" detailing secret adventures, "Cocomelon" with its 3D animated nursery rhymes, the preschool series "Eggventurers," animated "Barbie Productions," and the book-based "Octonauts." Its roster also includes "Roblox Rumble," a competitive reality show, as well as contributions to "Spin Master Productions," "Madagascar," and "Bee & PuppyCat." Beyond content creation, Kartoon Studios operates its own cartoon channel accessible across various platforms. It also serves as a licensing agent for well-known properties such as "Llama Llama," "Bee & PuppyCat," and "Castlevania." The company collaborates with a diverse group of clients and partners, including broadcasters, consumer product licensees, and online streaming services. Incorporated in 2006, Kartoon Studios Inc. maintains its headquarters in Beverly Hills, California.

Sector: Communication Services · Industry: Entertainment

Why This Stock Is Doubtful

  • Interest-bearing debt is 28.3% of market cap, only 1.7 points below the 30% AAOIFI limit.

Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 11, 2026

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Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Peripheral exposure (still halal, purify this share)
3.0%

Primary business is permissible. AAOIFI allows up to 5% revenue from incidental non-compliant sources, provided the share is purified.

  • •Estimated 3.0% of revenue from non-compliant sources. This is an average for Entertainment, not a figure the company reports.

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The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

Compliance History

  1. Doubtfulnow

    since Sep 2026

  2. Not Halal

    until the change above

Tracked since Aug 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR
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Frequently Asked Questions

Is Kartoon Studios Inc. (TOON) halal to invest in?
Kartoon Studios Inc. (TOON) is rated Doubtful under AAOIFI Standard 21. It passes the business activity screen but one or more financial ratios are approaching (though not yet exceeding) the AAOIFI thresholds (30% for debt and interest deposits, 5% for prohibited income). Consult a qualified Islamic finance scholar for a personal ruling.
Why did Kartoon Studios Inc. get a C compliance rating?
Kartoon Studios Inc. (TOON) received a grade of C (Marginal) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 28.3% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Kartoon Studios Inc.'s Shariah verdict?
Kartoon Studios Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Kartoon Studios Inc. re-screened for Shariah compliance?
Kartoon Studios Inc. (TOON) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 11, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.