Grom Social Enterprises, Inc. (GROM): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of Grom Social Enterprises, Inc.'s business model, and frankly, it's a study in contrasts: a COPPA-compliant social network that leans heavily on its animation production arm, which accounted for about 83.54% of its $4.04 million revenue back in 2023. To be clear, the near-term picture is challenging; with a market capitalization hovering around a mere $902.00 as of December 2025 and a projected 2025 loss of -$18.16 per share, understanding the mechanics is key. This canvas lays out exactly how they try to balance safe social engagement with high-cost content creation, so check out the nine blocks below to see the real structure behind the story.

Grom Social Enterprises, Inc. (GROM) - Canvas Business Model: Key Partnerships

Arctic7, Inc. (LOI to acquire for gaming development)

The non-binding letter of intent for the 100% equity transaction was announced in March 2024.

International media companies for animation production

The Manila-Based Subsidiary secured new assignments for 2D animation content.

Brand sponsors for COPPA-compliant advertising

Revenue generation relies on advertising partnerships, branded integrations, and content licensing agreements targeting the pre-teen demographic.

• Monthly Active Users (MAUs) on Grom Social platform as of March 1, 2024: approximately 1,550.
• Annual Sales (TTM) as of December 4, 2025: $3.72 million.
• Forecasted Annual Revenue for 2024-12-31: 8MM.

Educational organizations for content and platform enrichment

The company operates web filtering services to schools and government agencies.

• The company provides web filtering services to schools and government agencies.

Financial institutions for debt and equity financing

Financing milestones include a public offering and historical seed funding.

Total number of institutional investors: 2.

Grom Social Enterprises, Inc. (GROM) - Canvas Business Model: Key Activities

Producing 2D animated films and television series

• Secured over $1 million in new assignments for 2D animation content production via Top Draw Animation (historical activity informing current key activity).
• A subsidiary earned over $2.9MM from a single contract to bring animated series to life (historical activity informing current key activity).

Operating and maintaining the COPPA-compliant social network

• The flagship service is designed to comply with the Children's Online Privacy Protection Act (COPPA).
• The company operates a social media network for children under the age of 13 years.

Developing and monetizing original intellectual property (IP)

• The company acquires, develops, and builds commercial potential of kids and family entertainment properties.

Providing web filtering services to schools and government

• Provides web filtering services to schools and government agencies.

Securing advertising and content licensing agreements

Revenue is generated primarily through advertising partnerships, branded integrations, and content licensing agreements.

The trailing twelve month (TTM) total revenue as of the latest available data was $3.72 million.

• TTM Net Income was -$15.09 million.
• Revenue for the quarter ending March 31, 2024, was $874.23K.

Grom Social Enterprises, Inc. (GROM) - Canvas Business Model: Key Resources

You're looking at the core assets that Grom Social Enterprises, Inc. (GROM) relies on to operate and generate revenue. These are the things they own or control that are essential to their business model.

Top Draw Animation studio (Manila-based 2D animation team)

This wholly-owned subsidiary is a production powerhouse, creating animated content for major international media companies. The studio is based in Manila, Philippines, and has a history spanning over 20 years in the industry. It serves as a centerpiece for GROM's content offerings.

Curiosity Ink Media (Original IP and content library)

Grom Social Enterprises, Inc. holds an 80% stake in Curiosity Ink Media. This division focuses on developing, acquiring, and maximizing the commercial potential of Kids and Family entertainment properties. The library forms the basis for original content development.

• Original IP includes the preschool train series Baldwin.
• Develops programming for the parent company's social platform and third-party streaming services.
• The IP catalog is leveraged alongside Top Draw Animation's production expertise.

Grom Social platform technology (COPPA-compliant)

The flagship asset is the Grom Social platform, a digital media and advertising service specifically designed for children under 13. Its core technological resource is its compliance with the Children's Online Privacy Protection Act (COPPA), ensuring a brand-safe environment for advertisers.

The platform delivers content via web portal and apps, allowing children to interact, access news, and play proprietary games while learning digital citizenship.

Grom Educational Services web filtering technology

This service provides web filtering solutions. Its primary customers include K-12 schools, government entities, and private businesses needing controlled digital environments. This technology leverages the company's focus on online safety protocols.

Limited cash reserves; market capitalization of only $902.00 (Dec 2025)

The financial position reflects a micro-cap entity with significant operational burn. The market capitalization figure is starkly low, indicating minimal investor valuation as of December 2025. The latest reported quarter shows a negative change in cash, underscoring the need for efficient resource management.

The platform's reported sales for the latest quarter were $0.87 million (or 874.23K). To be fair, the platform claimed an aggregate user base of 17 million (including parents) back in 2019, but current monetization efficiency is the key metric now.

Finance: draft 13-week cash view by Friday.

Grom Social Enterprises, Inc. (GROM) - Canvas Business Model: Value Propositions

For Advertisers: Brand-safe, COPPA-compliant access to pre-teen audiences.

Grom Social Enterprises, Inc. offers access to an audience under the age of 13, a demographic with strict data collection limitations under the Children's Online Privacy Protection Act (COPPA). The Federal Trade Commission (FTC) published final amendments to the COPPA Rule on April 22, 2025, which will take effect on June 23, 2025, with a compliance deadline of April 22, 2026. These amendments expand requirements for operators collecting personal information from children under 13, including requiring separate parental consent before disclosing data to any third party for purposes like advertising. Grom Social Enterprises, Inc. positions its platform as inherently compliant with these evolving standards, offering advertisers a protected environment.

For Kids: Safe, moderated social media and family-friendly entertainment.

The platform provides a fully secure social media environment where parents and caregivers are invited to play an active role in keeping children safe from online dangers. The company states it limits digital profile building for children and collects only necessary analytical data, such as parent email, birthdate, gender, and country locations. The platform is designed to celebrate users for their positive digital footprint and foster a community of respect and understanding.

For Content Buyers: High-quality, cost-effective 2D animation production.

Through its subsidiaries, Grom Social Enterprises, Inc. develops original content and acquires kids and family entertainment properties, including the production of animated television series and movies. The company's operations include content development leveraging both advertising and subscription models. One subsidiary is based in Manila, Philippines, with principal activities in the production of animated television series and movies.

For Schools: Web filtering and internet safety for K-12 students.

Grom Social Enterprises, Inc. provides web filtering and internet safety solutions to schools and government agencies, ensuring safe online environments for students. This service is part of its broader offering of network monitoring and security solutions.

Here's a quick look at the financial context surrounding the business as of late 2025:

The effectively zero price-to-sales and price-to-book multiples are cited by supporters as signaling deep undervaluation if management can modestly grow its revenue base and monetize strategic alliances. Still, the company has negative earnings, with a TTM loss per share of -10.13.

Finance: draft 13-week cash view by Friday.

Grom Social Enterprises, Inc. (GROM) - Canvas Business Model: Customer Relationships

You're looking at how Grom Social Enterprises, Inc. (GROM) manages its connections with different customer groups as of late 2025. The structure clearly divides relationships based on the service provided.

Dedicated account management for B2B animation clients is tied to the Animation segment, which historically generated the majority of revenue. Direct sales force efforts likely target the Social & Technology segment for web filtering contracts. Strategic alliance management supports brand integrations within the content ecosystem.

Here's a look at the financial context surrounding these customer-facing activities, using the latest available figures:

The overall financial performance context shows the scale of operations these relationships support. The trailing twelve-month revenue as of March 31, 2024, was $3.72M.

For the social media user base, the relationship is managed through platform features:

• A library of 3D avatar assets (Gromatars) with hundreds of custom options.
• Easy-to-use video recording and in-app editing functions.
• Interactive feeds and a kid-only social forum.
• Positive in-app messaging focused on safe social media use.
• Nightly shutdown of the app wall feed to promote responsible screen time.

Parental oversight tools are a key part of the relationship for the Social & Technology segment:

• A separate in-app parental platform for full visibility.
• New video authorization system requiring parental consent.
• Parental control over notification settings.
• Ability for parents to set daily time limits for screen time.

Regarding B2B animation clients, historical commitments give some scale to this relationship type. Top Draw Animation had secured an additional $1.7 million in new business commitments as of July 2021, increasing its overall backlog to approximately $8.0MM.

The projected financial outlook for the end of 2025, which reflects the outcome of these customer relationships, included a forecasted annual earnings per share (EPS) of -$18.16 per share for the 2025-12-31 period. As of December 4, 2025, the market capitalization was reported as $902.00.

For brand integrations, revenue generation relies on advertising partnerships, branded integrations, and content licensing agreements.

Finance: review the Q3 2025 customer acquisition cost by segment by next Tuesday.

Grom Social Enterprises, Inc. (GROM) - Canvas Business Model: Channels

You're looking at how Grom Social Enterprises, Inc. gets its offerings-from educational services to its social platform-into the hands of users and customers as of late 2025. The distribution strategy relies on a mix of direct sales, digital storefronts, and strategic content partnerships.

Direct sales team for Grom Educational Services (B2B) focuses on institutional clients, like schools and government agencies, for web filtering and educational content delivery. While specific direct sales team revenue figures for this B2B channel aren't broken out separately, the company's overall revenue for the latest reported quarter was $970.24K. The Animation segment, which supports content creation for these services, represented 83.54% of the total revenue breakdown, amounting to $3.38M in that period. This segment is a key channel output for B2B delivery.

For the social media distribution, the primary channel is digital storefronts. App stores (Apple App Store, Google Play) for social media distribution serve as the gateway for the COPPA-compliant social network aimed at children under 13. The Social & Technology segment, which encompasses this platform, accounted for 10.58% of the revenue breakdown, equating to $427.69K in the same reporting period. The company has 126 employees supporting these technology and content operations.

Content licensing deals with major international media companies are channeled through its subsidiaries, like Top Draw Animation. A specific example from mid-2024 noted that Top Draw Animation secured over $1 Million in new assignments to produce 2D animation content, which feeds into licensing and content distribution channels. The Original Content segment, another output of this channel strategy, contributed 5.88% of the revenue breakdown, or $237.58K.

Direct advertising sales and branded content integrations are monetized through the brand-safe environment of the social platform and original content. The company's focus on COPPA-compliant, brand-safe content is a key differentiator for advertisers targeting pre-teen audiences. The forecasted annual revenue for the full year ending December 31, 2024, was $8MM. Furthermore, in a strategic financing move in July 2024, the company committed to using 35% of net proceeds to repay outstanding debt, indicating a focus on strengthening the financial base to support these sales channels.

Here's a look at how the core revenue streams map to the business segments that utilize these channels:

The company's overall financial structure shows the challenge in scaling these channels, as the market capitalization as of December 4, 2025, was reported at $902.

You should review the Q3 2025 revenue of $970.24K against the 2024 forecast of $8MM to gauge near-term channel performance. Finance: draft 13-week cash view by Friday.

Grom Social Enterprises, Inc. (GROM) - Canvas Business Model: Customer Segments

You're looking at the core groups Grom Social Enterprises, Inc. (GROM) serves, which is critical for understanding their revenue drivers, especially given their micro-cap status.

The primary user base is defined by age and compliance requirements. A fully functional user account requires parental verification, meaning parents and caregivers are the necessary entry point for the social platform component.

• Pre-teen children (users under 13)
• Parents who register for a Grom Social account
• Students or faculty using the NetSpective web filtering platform

The platform's focus on being COPPA-compliant gives it a specific niche with commercial partners seeking to reach this demographic safely. The company operates in the United States and the Philippines.

Here's a quick look at the scale and financial context as of late 2025 data points available:

Advertisers are segmented by their need for COPPA-compliant, brand-safe environments. The company also generates revenue through content licensing agreements.

For the web filtering service, the customer is defined as any student or faculty member utilizing the NetSpective platform, which is a distinct service line from the social network itself.

• Revenue is generated primarily through advertising partnerships, branded integrations, and content licensing agreements.
• The company has 126 employees.

If onboarding for schools takes 14+ days, churn risk rises.

Grom Social Enterprises, Inc. (GROM) - Canvas Business Model: Cost Structure

The Cost Structure for Grom Social Enterprises, Inc. (GROM) is heavily weighted toward personnel and operational overhead, reflecting its dual focus on content production and platform maintenance.

Animation production labor costs are a significant variable expense, directly tied to the subsidiary Top Draw Animation's project pipeline. While specific labor costs are not itemized, the scale of work indicates substantial expenditure in this area. For context, Top Draw Animation secured new assignments totaling over $2.9 million in May 2024.

Selling, General & Admin (SG&A) expenses were $9.22 million in 2023. This line item captures the fixed and semi-fixed costs necessary to run the corporate and administrative functions across the various segments.

Technology development and platform maintenance costs are embedded within the overall operating expenses, which were $9.81 million in fiscal year 2023. A specific, isolated figure for technology spend is not publicly itemized in the available data, but it is a core component of the Social and Technology segment's cost base.

Content acquisition and intellectual property development costs are also integrated into the Cost of Revenue and Operating Expenses. The Cost of Revenue for fiscal year 2023 was $2.67 million. This figure encompasses direct costs related to content creation, including animation production labor.

The result of these expenditures is reflected in the company's high operating losses. For instance, the Operating Income for fiscal year 2023 was -$8.44 million. Looking ahead, 2025 earnings are forecasted at -$18.16 per share.

Here's a snapshot of key cost-related financial figures from the 2023 fiscal year:

You're looking at a cost structure where overhead is high relative to current revenue, which is typical for a company scaling technology and content assets. The key cost drivers you need to watch are:

• Animation production labor costs (tied to Top Draw assignments).
• SG&A, which has been consistently near or above $8.5 million since 2021.
• Technology platform scaling expenses.

Finance: draft 13-week cash view by Friday.

Grom Social Enterprises, Inc. (GROM) - Canvas Business Model: Revenue Streams

You're looking at the income sources for Grom Social Enterprises, Inc. (GROM) as of late 2025, focusing strictly on the hard numbers from their operations.

The total 2023 revenue for Grom Social Enterprises, Inc. was reported as $4.04 million. As of the Trailing Twelve Months (TTM) ending in early 2025, revenue stood at approximately $3.71 Million USD.

The revenue generation is heavily weighted toward content creation services, which is typical for their operational structure involving subsidiaries like Top Draw Animation. For instance, in a period corresponding to the 2023 revenue, the animation segment was the clear driver.

Here's a look at the composition of revenue streams based on the latest segment data that aligns with the 2023 total:

The Animation production service fees represent the largest segment. To be defintely clear, this segment is where the bulk of the income comes from, with one report noting that Top Draw Animation secured new assignments totaling over $1 Million in one instance, and another report citing $1.3M in new assignments.

The remaining revenue streams, which include Advertising and branded content revenue, Content licensing and distribution agreements, and Web filtering service fees (Grom Educational Services), are encompassed within the Social & Technology and Original Content segments, alongside other potential minor sources. The company explicitly generates revenue through advertising partnerships, branded integrations, and content licensing agreements.

You can see the distribution across the primary reported segments here:

• Animation production service fees: Largest segment, approx. 83.54% of revenue.
• Advertising and branded content revenue: Contributes via branded integrations and sponsored programming.
• Content licensing and distribution agreements: A stated source of revenue generation.
• Web filtering service fees (Grom Educational Services): Provided to schools and government agencies.

The total 2023 revenue was $4.04 million.