- Alliance Entertainment reported strong financial results for fiscal year 2025, with **net income increasing 229% to $15.1 million** and **Adjusted EBITDA growing 51% to $36.5 million**, while **earnings per share more than tripled to $0.30**.  **[1823584_2137542_1]** **[1823584_2137542_2]** 
- The company achieved significant margin expansion, with fiscal year 2025 gross margin improving to **12.5%** and Q4 2025 gross margin reaching **15.8%**, driven by an improved product mix, automation benefits, and disciplined expense management.  **[1823584_2137542_1]** **[1823584_2137542_2]**  These margins are expected to be sustainable into fiscal year 2026 and beyond.  **[1823584_2137542_1]** **[1823584_2137542_5]** 
- Strategic initiatives contributing to performance include exclusive partnerships, such as the Paramount Pictures distribution agreement, which accounted for over **$350 million** in revenue in fiscal year 2025, and growth in direct-to-consumer fulfillment, which represented **37%** of gross revenue.  **[1823584_2137542_3]** **[1823584_2137542_4]** 
- Alliance also strengthened its balance sheet by reducing revolver debt by **22%** and generating **$26.8 million** in cash flow from operating activities in fiscal year 2025, supporting future growth investments and M&A.  **[1823584_2137542_1]** **[1823584_2137542_2]** **[1823584_2137542_7]**

Alliance Entertainment Reports Strong Fiscal Year 2025 Earnings Driven by Margin Expansion and Strategic Partnerships

- Alliance Entertainment Holding reported strong fiscal year 2025 results, with **net income increasing 229% to $15.1 million** and **Adjusted EBITDA growing 51% to $36.5 million**, leading to **earnings per share of $0.30**.  **[1823584_2136982_1]** **[1823584_2136982_2]** 
- The company achieved significant margin expansion, with gross margin improving to **12.5%** for FY 2025 and **15.8%** for Q4 2025, driven by a more profitable product mix, automation benefits, and disciplined expense management.  **[1823584_2136982_1]** **[1823584_2136982_2]** 
- Key strategic initiatives contributing to this performance include the exclusive home entertainment license agreement with **Paramount Pictures** (effective January 1, 2025) and the acquisition of the **Handmade by Robots** brand in December 2024.  **[1823584_2136982_3]** **[1823584_2136982_4]** 
- The company was also selected by **Walmart** as its video category advisor, effective August 11, 2025, and expects the achieved margin profile to be sustainable into fiscal year 2026 and beyond, leading to continued EPS growth.  **[1823584_2136982_5]** **[1823584_2136982_7]**

Alliance Entertainment Holding Reports Strong Q4 and Fiscal Year 2025 Financial Results

- Alliance Entertainment reported strong financial results for **fiscal year 2025**, with **net income increasing 229% to $15.1 million** and **Adjusted EBITDA growing 51% to $36.5 million**.  **[1823584_2137499_1]** **[1823584_2137499_2]**  Earnings per share rose to **$0.30**, more than tripling the prior year's **$0.09**.  **[1823584_2137499_1]** **[1823584_2137499_2]** 
- The company's **gross margin improved to 12.5%** for fiscal year 2025 and **15.8% for Q4 2025**, with management stating these improved margins are **sustainable** due to structural improvements, including a more profitable product mix, automation benefits, and disciplined expense management.  **[1823584_2137499_1]** **[1823584_2137499_2]** **[1823584_2137499_5]** **[1823584_2137499_9]** 
- Key drivers of performance include exclusive distribution and licensing agreements, which accounted for over **$350 million** in revenue in fiscal year 2025, and the direct-to-consumer fulfillment model, which grew to **37%** of gross revenue.  **[1823584_2137499_3]** **[1823584_2137499_4]** 
- Alliance Entertainment also strengthened its balance sheet by reducing revolver debt by **22%** and generating **$26.8 million** in cash flow from operating activities in fiscal year 2025.  **[1823584_2137499_1]** **[1823584_2137499_2]**

ALLIANCE ENTERTAINMENT HOLDING (AENT)