ALLIANCE ENTERTAINMENT HOLDING (AENT) Company Report

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%.

5 days ago

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.

5 days ago

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.

5 days ago

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.

Nov 12, 2025, 9:30 PM

Transcript

Alliance Entertainment Secures New $120 Million Credit Facility

AENT

Debt Issuance

Alliance Entertainment Holding Corporation (AENT) closed a new $120 million senior secured revolving credit facility with Bank of America, effective October 1, 2025.
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.
The interest rate is set at SOFR plus 150 basis points through March 2026, and thereafter at SOFR plus 162.5 basis points.
At closing, the loan balance under the facility was $68.5 million, with $51.5 million in total undrawn availability.
The proceeds from the new facility were used to repay outstanding obligations under the prior ABL facility and a $10 million subordinated loan.

Oct 2, 2025, 8:21 PM

8-K

Alliance Entertainment Reports Strong Q4 EPS Growth and Strategic Initiatives

AENT

Earnings

New Projects/Investments

Debt Issuance

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.
The company is expanding licensing agreements, notably taking over Paramount's home entertainment department, which is expected to significantly boost gross profit. Discussions are ongoing with other major studios for similar opportunities.
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.
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. The company is also securing new financing at a lower interest rate of SOFR + 1.625.
Maxim has initiated coverage with a $10 target price on AENT's stock. Insiders own a substantial portion of the company, holding approximately 48 million of the 51 million outstanding shares, leading to a low public float.

Sep 16, 2025, 5:00 PM

Transcript

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

AENT

Earnings

New Projects/Investments

M&A

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.
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. These margins are expected to be sustainable into fiscal year 2026 and beyond.
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.
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.

Sep 10, 2025, 8:30 PM

Transcript

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

AENT

Earnings

M&A

New Projects/Investments

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.
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.
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.
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.