Research News and Market Data on AENT
GAAP diluted EPS increased 50% to $0.15 as net income reached $7.6 million
Gross profit increased 13% to $42.1 million; gross margin expanded to 15.1%
Physical movie revenue increased 20%; vinyl revenue rose 14% and CD revenue grew 22%
Collectibles revenue increased 87%
PLANTATION, Fla., Nov. 12, 2026 (GLOBE NEWSWIRE) — Alliance Entertainment Holding Corporation (Nasdaq: AENT), a scaled entertainment commerce and collectibles platform serving content owners, brands, retailers and fans across music, movies, gaming, licensed merchandise and collectibles, with proprietary brands, authentication technology and reach across more than 35,000 retail and e-commerce storefronts, today reported its financial and operational results for the first quarter of fiscal 2027, ended September 30, 2026.
First Quarter Fiscal 2027 Financial Highlights
- Net Revenues: Increased 10% to $278.8 million, compared with $254.0 million in the first quarter of fiscal 2026.
- Gross Profit and Margin: Gross profit increased 13% to $42.1 million from $37.2 million, while gross margin expanded 50 basis points to 15.1% from 14.6%.
- GAAP Net Income and EPS: Net income increased 56% to $7.6 million, compared with $4.9 million in the prior-year quarter. GAAP diluted earnings per share increased 50% to $0.15 from $0.10.
- Operating Income: Operating income was $10.6 million, compared with $10.5 million in the prior-year quarter.
- Adjusted EBITDA: Increased approximately 1% to $12.3 million, compared with $12.2 million in the prior-year quarter.
- Adjusted Net Income and Adjusted Diluted EPS: Adjusted net income was $7.2 million, compared with $7.3 million in the prior-year quarter, while adjusted diluted earnings per share remained unchanged at $0.14.
- Interest Expense: Decreased 49% to $1.2 million from $2.3 million, reflecting lower borrowing costs following the Company’s October 2025 refinancing.
- Operating Cash Flow: Net cash provided by operating activities increased 58% to $4.3 million, compared with $2.7 million in the prior-year quarter.
- Liquidity: The Company ended the quarter with approximately $48.9 million of availability under its $120 million revolving credit facility, along with $33.4 million of additional collateral-supported borrowing capacity above the facility’s current commitment limit. This excess collateral capacity could support a future expansion of the credit facility, subject to applicable conditions and lender approval.
“Fiscal 2027 is off to a strong start, with 10% revenue growth, higher gross margins and significant improvement in GAAP net income and earnings per share,” said Jeff Walker, Chief Executive Officer of Alliance Entertainment. “Physical music, movies and collectibles all grew, with collectibles revenue up 87%. For a long time, so much of the conversation was about streaming replacing physical formats. But what we’ve seen consistently is that fans who can listen to an album or watch a movie online still want something special they can own and collect. The entertainment industry is increasingly recognizing the value of these highly engaged consumers-the superfans-and the growing demand for physical products that we’ve been seeing for years.”
“We believe everybody is a superfan of something, and those fans want products that bring them closer to what they love,” Walker continued. “And when you offer a limited edition or an exclusive collectible, that adds another dimension, because now they have a unique product not everybody else has. This is right in our wheelhouse. We have the studio and label relationships, the retail reach and the fulfillment capabilities to get these products into fans’ hands. What’s exciting is that as more content owners look for ways to serve these fans, they need partners who understand both the products and how to bring them to market. That creates a lot of opportunity for Alliance.”
“First-quarter results reflect continued revenue growth and gross margin improvement, along with the benefits of our strengthened financing structure,” said Amanda Gnecco, Chief Financial Officer of Alliance Entertainment. “Gross profit increased approximately 13%, outpacing revenue growth, while interest expense declined nearly 49% following our refinancing with Bank of America. GAAP net income increased 56% to $7.6 million, benefiting from lower borrowing costs and a favorable non-cash change in the fair value of warrant liabilities.”
“We also made progress on our objective of improving cash generation,” Gnecco added. “Operating cash flow increased to $4.3 million from $2.7 million a year ago, despite continued investment in inventory to support customer demand and anticipated sales activity as we enter the holiday season. As we move through fiscal 2027, our priorities remain focused on profitable growth, working-capital efficiency, expense discipline and improving operating leverage. With lower borrowing costs and substantial availability under our revolving credit facility, we believe we have the financial flexibility to support our strategic initiatives while continuing to strengthen the business.”
Strategic & Operating Highlights
- Physical Movie Growth Supported by Major Studio Relationships: Physical movie revenue increased 20% to $101.1 million, compared with $84.0 million in the prior-year quarter. Growth benefited from new releases and expanded retail availability through the Company’s exclusive physical-media distribution relationships with Paramount and Amazon MGM Studios.
- Vinyl and CDs Delivered Double-Digit Growth: Vinyl revenue increased 14% to $86.7 million from $75.8 million, while CD revenue increased 22% to $41.2 million from $33.9 million. New releases, reissues and collectible editions supported physical music demand, with both formats benefiting from higher unit sales and average selling prices.
- Collectibles Revenue Increased 87%: Collectibles revenue increased to $11.9 million from $6.4 million, supported by expanded licensed merchandise offerings, broader sourcing initiatives and vendor relationships, and the Company’s owned Handmade by Robots™ brand. Collectibles represented 4.3% of quarterly revenue, compared with 2.5% in the prior-year period.
- Distribution and Fulfillment Revenue Increased 18%: Distribution and fulfillment fee revenue increased to $5.7 million from $4.8 million, reflecting higher demand for the Company’s distribution, fulfillment and value-added logistics services.
- Authentication and Digital Product Identity Development Continued: Alliance continued developing NFC-enabled authentication and digital product identity capabilities through Endstate Authentic and Alliance Authentic™. These initiatives are designed to support product verification, provenance, preservation and authenticated resale across premium physical entertainment and collectibles.
- Technology and Automation Initiatives Focused on Productivity: Alliance continued investing in warehouse automation and expanding its use of artificial intelligence to streamline workflows and improve financial and operational processes. These efforts are intended to reduce manual work and support more efficient operations as the business grows.
First Quarter Fiscal 2027 Financial Review
Net revenues for the first quarter of fiscal 2027 increased $24.9 million, or 10%, to $278.8 million from $254.0 million in the prior-year quarter. Revenue growth was driven primarily by higher sales of physical movies, vinyl records, CDs and collectibles, partially offset by declines in gaming and digital downloads.
Physical movie revenue increased $17.1 million, or 20%, to $101.1 million, supported by higher unit volumes and the Company’s expanding relationships with major studios. Vinyl revenue increased $10.9 million, or 14%, to $86.7 million, while CD revenue increased $7.3 million, or 22%, to $41.2 million. Collectibles revenue increased $5.5 million, or 87%, to $11.9 million, reflecting continued expansion in licensed merchandise and proprietary products. These increases were partially offset by an $18.4 million decline in gaming revenue, primarily reflecting lower product availability and the absence of certain prior-year sales associated with the Nintendo Switch 2 launch.
Gross profit increased $5.0 million, or approximately 13%, to $42.1 million from $37.2 million in the prior-year quarter. Gross margin improved 50 basis points to 15.1% from 14.6%, reflecting stronger product margins and favorable contributions from the Company’s evolving product mix.
Total operating expenses increased to $31.5 million from $26.6 million in the prior-year quarter, primarily reflecting higher selling, general and administrative expenses and distribution and fulfillment costs. Distribution and fulfillment expenses increased to $12.0 million from $9.9 million, driven primarily by higher warehouse payroll and operating costs associated with increased business activity, specialized product handling and fulfillment requirements. Selling, general and administrative expenses increased to $17.9 million from $15.1 million, reflecting higher employee-related expenses, professional-service costs and investments supporting the Company’s strategic initiatives.
Operating income was $10.6 million, compared with $10.5 million in the prior-year quarter. The increase in gross profit was substantially offset by higher operating expenses as the Company continued supporting revenue growth and investing in its operational capabilities.
Interest expense decreased $1.1 million, or 49%, to $1.2 million from $2.3 million in the prior-year quarter. The decrease primarily reflected a reduction in the Company’s average effective interest rate to 5.3% from 8.4% following the October 2025 refinancing of its revolving credit facility with Bank of America. Lower borrowing costs more than offset the impact of higher average borrowings during the quarter.
GAAP net income increased $2.7 million, or 56%, to $7.6 million from $4.9 million in the prior-year quarter. GAAP diluted earnings per share increased 50% to $0.15 from $0.10. The year-over-year improvement reflected lower interest expense and a favorable change in the fair value of warrant liabilities, partially offset by higher income tax expense. The Company recorded a non-cash gain of approximately $0.9 million related to warrant remeasurement during the quarter, compared with a non-cash loss of approximately $1.5 million in the prior-year period.
Adjusted EBITDA increased approximately 1% to $12.3 million from $12.2 million in the prior-year quarter. Adjusted net income was $7.2 million, while adjusted diluted earnings per share remained unchanged at $0.14. These non-GAAP measures exclude certain items that management does not consider representative of ongoing operating performance, including non-cash warrant remeasurement adjustments.
Net cash provided by operating activities increased to $4.3 million from $2.7 million in the prior-year quarter. Operating cash flow benefited from the Company’s higher earnings and changes in working capital, including increased accounts payable, partially offset by higher inventory and receivables. Inventory increased to $152.0 million at September 30, 2026, from $126.6 million at June 30, 2026, reflecting investment to support sales growth and anticipated customer demand.
At September 30, 2026, the Company had approximately $70.8 million outstanding under its $120 million revolving credit facility, with approximately $49.2 million of availability. The Company remained in compliance with applicable credit facility covenants. Management continues to prioritize working-capital efficiency, inventory productivity, receivable collections and disciplined capital allocation while supporting growth across physical entertainment, collectibles, fulfillment and authentication technologies.
Conference Call
Alliance Entertainment Chief Executive Officer Jeff Walker, Chief Financial Officer Amanda Gnecco, and Executive Chairman Bruce Ogilvie will host the conference call, which will be followed by a question-and-answer session. A presentation will accompany the call and can be viewed during the webcast or accessed via the investor relations section of the Company’s website here.
To access the call, please use the following information:
| Date: | Thursday, November 12, 2026 |
| Time: | 4:30 p.m. Eastern Time, 1:30 p.m. Pacific Time |
| Toll-free dial-in number: | 1-844-825-9789 |
| International dial-in number: | 1-412-317-5180 |
| Conference ID: | 10213070 |
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact RedChip Companies at 1-407-644-4256.
The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1781348&tp_key=9221210ff0 and via the investor relations section of the Company’s website here.
A telephone replay of the call will be available approximately three hours after the call concludes and can be accessed through December 12, 2026, using the following information:
| Toll-free replay number: | 1-844-512-2921 |
| International replay number: | 1-412-317-6671 |
| Replay ID: | 10213070 |
About Alliance Entertainment
Alliance Entertainment (NASDAQ: AENT) is a premier distributor and fulfillment partner for the entertainment and pop culture collectibles industry. With more than 340,000 unique in-stock SKUs – including over 57,300 exclusive titles across compact discs, vinyl LPs, DVDs, Blu-rays, and video games – Alliance offers the largest selection of physical media in the market. Our vast catalog also includes licensed merchandise, toys, retro gaming products, and collectibles, serving over 35,000 retail locations and powering e-commerce fulfillment for leading retailers. Alliance also owns and operates proprietary collectibles brands, including Handmade by Robots™, a stylized vinyl figure line featuring licensed characters from leading entertainment franchises, and Alliance Authentic™, a premium platform for authentic, certified, and individually numbered entertainment collectibles. In addition, Alliance operates Endstate Authentic, a dedicated NFC-enabled authentication and digital product identity platform supporting authenticated collectibles, resale, and brand protection. Leveraging decades of operational expertise, exclusive sourcing relationships, and a capital-light, scalable infrastructure, Alliance connects fans and collectors to the products, franchises, and experiences they value across formats and generations. For more information, visit www.aent.com.
Forward Looking Statements
Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These statements are based on various assumptions, whether identified in this Press Release, and on the current expectations of Alliance’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Alliance. These forward-looking statements are subject to a number of risks and uncertainties, including risks relating to the anticipated growth rates and market opportunities; changes in applicable laws or regulations; the ability of Alliance to execute its business model, including market acceptance of its systems and related services; Alliance’s reliance on a concentration of suppliers for its products and services; increases in Alliance’s costs, disruption of supply, or shortage of products and materials; Alliance’s dependence on a concentration of customers, and failure to add new customers or expand sales to Alliance’s existing customers; increased Alliance inventory and risk of obsolescence; Alliance’s significant amount of indebtedness; our ability to refinance our existing indebtedness; risks that a breach of the revolving credit facility could result in the lender declaring a default and that the full outstanding amount under the revolving credit facility could be immediately due in full, which would have severe adverse consequences for the Company; known or future litigation and regulatory enforcement risks, including the diversion of time and attention and the additional costs and demands on Alliance’s resources; Alliance’s business being adversely affected by increased inflation, uncertainty regarding tariffs, higher interest rates and other adverse economic, business, and/or competitive factors; geopolitical risk and changes in applicable laws or regulations; as well as our financial condition and results of operations; substantial regulations, which are evolving, and unfavorable changes or failure by Alliance to comply with these regulations; product liability claims, which could harm Alliance’s financial condition and liquidity if Alliance is not able to successfully defend or insure against such claims; availability of additional capital to support business growth; and the inability of Alliance to develop and maintain effective internal controls.
For investor inquiries, please contact:
Dave Gentry
RedChip Companies, Inc.
1-800-REDCHIP (733-2447)
1-407-644-4256
[email protected]
