AENT · Alliance Entertainment Holding Corporation

Alliance Entertainment reported strong fiscal third quarter results for the period ended March 31, 2026, with net revenues increasing 21.2% year-over-year to $258.2 million. The growth was broad-based across core physical product categories, including vinyl records (up 15% to $99 million), compact discs (up 90% to $39 million), physical movies (up 5% to $61 million), collectibles (up 48% to $8 million), gaming (up 12% to $33 million), and electronics (up 53% to $4 million). Gross profit rose 13.4% to $33.0 million, while gross margin contracted slightly to 12.8% from 13.6% in the prior-year period, reflecting product mix shifts. Net income increased 25% to $2.3 million, or $0.05 per diluted share, compared to $1.9 million, or $0.04 per share, in the same quarter last year. Adjusted EBITDA grew 4.1% to $5.1 million. Operating leverage improved, with total operating expenses declining to 11.5% of net revenue from 12.0%, driven by higher revenue scale and productivity gains. Management highlighted the launch of Alliance Authentic™, an NFC-enabled authentication platform for premium collectibles, as a strategic initiative to extend the company's role beyond distribution into ownership and product lifecycle participation. The company ended the quarter with working capital of approximately $60 million and $56 million of availability under its revolving credit facility, providing ample liquidity. For the nine months ended March 31, 2026, net revenues increased 5% to $880.9 million, net income surged 78% to $16.6 million, and Adjusted EBITDA rose 47% to $35.7 million, underscoring the scalability and earnings power of the platform.