ALLIANCE ENTERTAINMENT HOLDING (AENT) Company Report

Alliance Entertainment reported a net income of $9.4 million and Adjusted EBITDA of $18.5 million for Q2 2026, with gross margin expanding by 210 basis points to 12.8%.
Net revenue for Q2 2026 was $369 million, a decrease from the prior year, attributed to softness in lower-margin categories like gaming hardware and a strategic shift towards higher-value products.
Physical movie revenue increased 33% year-over-year to $114 million, and collectibles revenue grew 31% year-over-year in Q2 2026.
The company established a new exclusive partnership with Amazon MGM Studios, effective January 1, 2026, to further strengthen its premium physical media portfolio.
Alliance Entertainment refinanced its credit facility with a new $120 million senior secured revolving credit facility with Bank of America, reducing borrowing costs by up to 250 basis points and extending maturity to 5 years.

Feb 12, 2026, 9:30 PM

Transcript

Alliance Entertainment Reports Strong Q2 2026 Earnings and Strategic Progress

AENT

Earnings

New Projects/Investments

M&A

Alliance Entertainment reported a strong Q2 2026, with net income increasing year-over-year to $9.4 million and Adjusted EBITDA rising to $18.5 million, alongside a 210 basis point expansion in gross margin to 12.8%.
The company's strategic shift towards higher-value products drove significant growth in key segments, with physical movie revenue up 33% year-over-year to $114 million and collectibles revenue increasing 31% year-over-year.
New exclusive content partnerships, including the Amazon MGM Studios agreement effective January 1, 2026, and the acquisition of NState for its NState Authentic platform, are central to strengthening its premium physical media and collectibles offerings and enabling technology-driven authentication.
Despite an overall revenue decrease of $25 million in Q2 2026, largely due to declines in gaming hardware ($24 million) and arcade sales ($34 million), the company remains confident in its durable margin profile and is focused on scaling Alliance Authentic and expanding its collectibles portfolio.

Feb 12, 2026, 9:30 PM

Transcript

Alliance Entertainment Holding Reports Strong Q2 2026 Profitability and Strategic Growth

AENT

Earnings

Product Launch

New Projects/Investments

Alliance Entertainment reported strong Q2 2026 financial results, with net income increasing to $9.4 million and Adjusted EBITDA rising to $18.5 million, while gross margin expanded by 210 basis points to 12.8%.
The company's focus on higher-value products drove significant growth, with physical movie revenue up 33% year-over-year to $114 million and collectibles revenue increasing 31% year-over-year.
Strategic initiatives include a new exclusive partnership with Amazon MGM Studios effective January 1, 2026, and the development of the Endstate Authentic platform for product authentication and lifecycle monetization.
Alliance Entertainment also strengthened its financial position by refinancing its credit facility with a new $120 million senior secured revolving credit facility, reducing borrowing costs by up to 250 basis points.

Feb 12, 2026, 9:30 PM

Transcript

Alliance Entertainment Holding Reports Q2 2026 Results

AENT

Earnings

New Projects/Investments

For the three months ended December 31, 2025 (Q2 FY26), Alliance Entertainment Holding reported Net Income of $9,388 thousand and Net Income per Share of $0.18, with Adjusted EBITDA reaching $18,453 thousand.
Year-to-date for FY26 (six months ended December 31, 2025), Net Income increased to $14,268 thousand and Adjusted EBITDA grew to $30,661 thousand, while Net Revenues remained flat at $622,685 thousand compared to the prior year period.
The company's Gross Margin improved to 12.8% for Q2 FY26 and 13.5% for year-to-date FY26, reflecting enhanced profitability.
DTC sales contributed 37% of net revenue, and the Alliance Entertainment Retail Group (AERG) achieved 10.3% year-over-year growth in the quarter. Operating activities used $13.8 million in cash for the six months ended December 31, 2025, primarily due to a planned inventory build for new business.

Feb 12, 2026, 9:30 PM

Presentation

Alliance Entertainment reports record quarter and announces key strategic initiatives

AENT

Revenue Acceleration/Inflection

New Projects/Investments

M&A

Alliance Entertainment reported a record-breaking quarter for the period ending September 30, 2025, with EBITDA growing over 250% year-over-year due to increased gross profit from high-margin products and a shift from low-margin hardware sales.
The company secured an exclusive agreement with MGM Amazon for home entertainment distribution, effective January 1, 2026, which is expected to significantly boost revenue.
Alliance Entertainment acquired Nstate, a technology company specializing in anti-counterfeiting, to enhance its Alliance Authentic initiative for collectible products.
The Handmade by Robots line is targeted to reach $100 million in revenue and $40 million in EBITDA within three years, with new licensing agreements including Disney's Star Wars and Peanuts characters.
The company transitioned to a new line of credit with Bank of America on October 1, 2025, significantly reducing borrowing costs from SOFR + 4.5% to SOFR + 1.625%.

Jan 5, 2026, 9:15 PM

Transcript

Alliance Entertainment Reports Strong Q1 FY2026 Results and Announces Strategic Initiatives

AENT

Revenue Acceleration/Inflection

New Projects/Investments

M&A

Alliance Entertainment reported a record-breaking quarter ending September 30, 2025, with trailing 12-month earnings per share of $0.38 and adjusted EBITDA of 4.2%. Gross profit margin increased from 11.2% to 14.6%, driven by a focus on higher-margin sales.
The company secured a significant exclusive home entertainment distribution agreement with MGM Amazon, effective January 1, 2026, which is anticipated to contribute similarly to the Paramount agreement.
AENT acquired Nstate at the end of December 2025, a technology company specializing in anti-counterfeiting, to support its new Alliance Authentic initiative for collectibles.
A refinancing of its line of credit on October 1, 2025, reduced borrowing costs from SOFR + 4.5% to SOFR + 1.625%, with expectations to reduce the current $65 million debt to $30 million in upcoming quarters through free cash flow generation.

Jan 5, 2026, 9:15 PM

Transcript

Alliance Entertainment Reports Strong Q3 FY2026 Results, Secures MGM Amazon Deal, and Acquires Endstate

AENT

Earnings

M&A

Revenue Acceleration/Inflection

Alliance Entertainment reported a record-breaking quarter ending September 30, 2025, with earnings per share (EPS) of $0.10 for the quarter and $0.38 for the trailing 12 months. Adjusted EBITDA for the trailing 12 months reached 4.2%, up from 3.4% in FY 2025 and 2.2% in FY 2024.
The company secured a new exclusive agreement with MGM Amazon for Home Entertainment, effective January 1, 2026, which is anticipated to contribute similarly to the Paramount agreement. Alliance Entertainment also became the Category Advisor for Walmart Video.
Strategic growth initiatives include the acquisition of Endstate in December 2025, a technology company for anti-counterfeiting, which will be integrated into the Alliance Authentic platform planned for 2026. The Handmade by Robots line aims for $100 million in revenue within three years, adding approximately $40 million to EBITDA.
Operational improvements, including a shift to higher-margin sales and a new, lower-cost line of credit with Bank of America, contributed to EBITDA growth of over 250% year-over-year in Q1 FY26.

Jan 5, 2026, 9:15 PM

Transcript

Alliance Entertainment Reports Strong Q1 FY2026 Results

AENT

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Alliance Entertainment reported net revenues of $254 million for its fiscal first quarter ended September 30, 2025, an 11% increase year-over-year.
Net income for the quarter was $4.9 million, or $0.10 per diluted share, a significant increase from $0.4 million in the prior-year quarter.
Adjusted EBITDA grew 259% to $12.2 million, and the gross margin expanded 340 basis points to 14.6%.
The company ended the quarter with $53.2 million in working capital, and interest expense declined 17% year-over-year.
AI implementation is delivering early productivity gains across sales and operations, enhancing sales enablement and lead prioritization.

Nov 12, 2025, 9:56 PM

8-K

Alliance Entertainment Reports Significant Q1 FY26 Growth

AENT

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Alliance Entertainment (AENT) reported a strong Q1 FY26, with revenue increasing to $254 million from $229 million in Q1 FY25.
Adjusted EBITDA for Q1 FY26 soared by 259% year-over-year to $12.2 million, up from $3.4 million in Q1 FY25.
Net Income significantly improved to $4.9 million, resulting in Earnings Per Share of $0.10 for Q1 FY26, compared to $0.4 million and $0.01 respectively in Q1 FY25.
The company generated $2.7 million in cash from operating activities in Q1 FY26.
Alliance Entertainment was appointed as the Category Advisor for Walmart's video category, and Direct-to-Consumer (DTC) sales contributed 37% of net revenue.

Nov 12, 2025, 9:30 PM

Presentation

Alliance Entertainment Reports Strong Q1 2026 Results

AENT

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Alliance Entertainment (AENT) reported strong Q1 2026 results, with revenue growing 11% year-over-year to $254 million and Adjusted EBITDA increasing 259% to $12.2 million.
Gross margin expanded by 340 basis points to 14.6%, and adjusted EBITDA margin reached 4.8%, which management views as a new baseline for fiscal 2026 and beyond.
The company strengthened its financial flexibility by closing a new five-year, $120 million senior secured revolving credit facility with Bank of America, expected to reduce borrowing costs by up to 250 basis points.
Strategic initiatives include advancing AI-powered sales transformation and expanding its exclusive content portfolio with a new distribution agreement with Virgin Music Group.
The Handmade by Robots brand is scaling rapidly, and direct-to-consumer sales now contribute 37% of total net revenue.