- Alliance Entertainment Holding Corporation (AENT) closed a **new $120 million senior secured revolving credit facility** with Bank of America, effective **October 1, 2025**.  **[1823584_0001493152-25-016711_ex99-1.htm:0]** **[1823584_0001493152-25-016711_form8-k.htm:1]** 
- This **five-year facility**, maturing on **October 1, 2030**, replaces the company's previous asset-based lending (ABL) facility and is expected to cut borrowing costs by up to **250 basis points**.  **[1823584_0001493152-25-016711_ex99-1.htm:0]** **[1823584_0001493152-25-016711_form8-k.htm:1]** 
- The interest rate is set at **SOFR plus 150 basis points** through March 2026, and thereafter at **SOFR plus 162.5 basis points**.  **[1823584_0001493152-25-016711_ex99-1.htm:0]** **[1823584_0001493152-25-016711_form8-k.htm:1]** **[1823584_0001493152-25-016711_ex10-1.htm:5]** 
- At closing, the loan balance under the facility was **$68.5 million**, with **$51.5 million** in total undrawn availability.  **[1823584_0001493152-25-016711_ex99-1.htm:0]** 
- The proceeds from the new facility were used to repay outstanding obligations under the prior ABL facility and a **$10 million subordinated loan**.  **[1823584_0001493152-25-016711_form8-k.htm:1]**

Alliance Entertainment Secures New $120 Million Credit Facility

- Alliance Entertainment Holding Corporation (AENT) reported strong Q4 results with **EPS more than doubling from $0.05 to $0.11**, and gross profit increasing from **$11.4 million to $15.8 million**, attributed to operational efficiencies and licensing opportunities.  **[1823584_2145738_2]** 
- The company is expanding licensing agreements, notably taking over Paramount's home entertainment department, which is expected to significantly boost gross profit.  **[1823584_2145738_1]** **[1823584_2145738_2]** **[1823584_2145738_4]**  Discussions are ongoing with other major studios for similar opportunities.  **[1823584_2145738_4]** **[1823584_2145738_6]** 
- Operational efficiency improvements, such as the **$10 million** AutoStore system, have resulted in annual payroll savings of **$3 million to $3.5 million** and reduced distribution and fulfillment expenses.  **[1823584_2145738_2]** **[1823584_2145738_5]** **[1823584_2145738_6]** 
- AENT is actively reducing its loan balance, which dropped from **$70 million to $55 million** year-over-year, with a target of **$25 million to $30 million** by next June 30th.  **[1823584_2145738_4]**  The company is also securing new financing at a lower interest rate of **SOFR + 1.625**.  **[1823584_2145738_5]** 
- Maxim has initiated coverage with a **$10 target price** on AENT's stock.  **[1823584_2145738_5]**  Insiders own a substantial portion of the company, holding approximately **48 million** of the **51 million** outstanding shares, leading to a low public float.  **[1823584_2145738_4]**

Alliance Entertainment Reports Strong Q4 EPS Growth and Strategic Initiatives

- 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)