Alliance Entertainment Holding Corp (AENT) (Q4 2026) Earnings Call Highlights: Revenue Climbs …

• AENT
  +3.96%

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• Net Revenue: Increased 8% to $1.15 billion vs. $1.06 billion in fiscal 2025.

• Q4 Revenue: Rose 18% year-over-year to $268.1 million.

• Gross Profit: Up 15% to $152.3 million from $132.9 million.

• Gross Margin: Expanded 80 basis points to 13.3% from 12.5%.

• SG&A Expenses: Increased to $66 million from $56 million.

• GAAP Operating Income: $27.2 million vs. $30.1 million, including a $7.8 million non-cash vendor rebate write-off.

• Net Income: $13.1 million vs. $15.1 million in the prior year.

• Adjusted EBITDA: Increased 14% to $41.5 million from $36.5 million.

• Adjusted Net Income: Rose 24% to $23.4 million.

• Adjusted Diluted EPS: Increased 24% to $0.46 from $0.37.

• Interest Expense: Declined 28% to $7.6 million from $10.6 million; average effective interest rate improved to 6.1% from 9.2%.

• Operating Cash Flow: Net cash used in operating activities of $1.7 million vs. $26.8 million provided in fiscal 2025.

• Working Capital: Increased to $62.4 million at June 30, 2026, from $45.4 million a year earlier.

• Vinyl Revenue: Increased 13% to $383 million.

• CD Revenue: Increased 25% to $156 million.

• Physical Movie Revenue: Increased 22% to $339 million.

• Collectibles Revenue: Increased 45% to $32 million.

• Distribution and Fulfillment Fee Revenue: Increased 26% to $18.6 million.

• Revolving Credit Facility: $74.3 million outstanding under $120 million facility; $45.7 million availability; up to $50 million additional borrowing capacity subject to conditions.

• Debt Repayment: Repaid $10 million of related party borrowings.

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Release Date: September 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Revenue increased 8% to $1.15 billion, with gross margin expanding 80 basis points to 13.3% and adjusted EBITDA growing 14% to $41.5 million.

• Physical music, home entertainment, and collectibles all showed strong growth: vinyl revenue up 13%, CD revenue up 25%, physical movie revenue up 22%, and collectibles revenue up 45%.

• New exclusive distribution partnerships with Paramount and Amazon MGM Studios are driving growth and position Alliance Entertainment Holding Corp (NASDAQ:AENT) as a key partner for major studios.

• Fulfillment fee revenue increased 26% to $18.6 million, and the company continues to invest in automation (e.g., adding 5,000 AutoStore totes) to support scalable growth.

• Strategic initiatives like Alliance Authentic, Endstate Authentic, and Handmade by Robots offer higher-margin opportunities and expand the company’s presence in authentication and premium collectibles.