AENT

PLANTATION, Fla., Aug. 27, 2026 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (Nasdaq: AENT), a premier distributor, logistics provider, and omnichannel fulfillment partner to the entertainment and pop culture collectibles industry, supplying more than 340,000 unique SKUs across physical media, video games, toys, licensed merchandise, and exclusive collectibles to over 35,000 retail and e-commerce storefronts, will hold a conference call on Thursday, September 10, at 4:30 p.m. Eastern Time to discuss its results for the fiscal year ended June 30, 2026. A press release detailing these results will be issued prior to the 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: 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=1774079&tp_key=92e32c8d84 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 October 10, 2026, using the following information: 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. For investor inquiries, please contact: Dave GentryRedChip Companies, Inc.1-800-REDCHIP (733-2447)[email protected]

Image source: The Motley Fool. Thursday, May 14, 2026 at 4:30 p.m. ET Chief Executive Officer — Jeffrey Walker Chief Financial Officer — Amanda Gnecco Executive Chairman — Bruce Ogilvie Need a quote from a Motley Fool analyst? Email [email protected] Jeff Walker, Chief Executive Officer; and Amanda Gnecco, Chief Financial Officer, will present the results of operations for the third quarter and nine months ended March 31, 2026. Bruce Ogilvie, Executive Chairman, is also on the line and will participate during the Q&A session. At this time, I will turn the call over to Alliance Entertainment's CEO, Jeff Walker. Jeffrey Walker: Thank you, Paul, and good afternoon, everyone. We appreciate you joining us today. I want to begin by framing the third quarter in very clear terms because the most important takeaway this quarter is that we are now seeing both sides of our model working together, sustained revenue growth and continued earnings expansion driven by the structural shift in our business. During the third quarter, Alliance delivered a strong top line growth with net revenue increasing 21% year-over-year alongside continued profitability with net income increasing 25% and adjusted EBITDA reaching $5.1 million. For the year-to-date period, net income is up 78% and adjusted EBITDA has increased 47%. These results are important not just because of the growth, but because of how that growth is being generated. What we're seeing is the continued execution of a strategy we've been building over the last several years, a shift toward higher-value products, stronger mix and a more scalable operating model. The revenue growth this quarter was broad-based across our core categories, including Music, Video, Gaming and Collectibles, and it reflects both underlying demand and our ability to align inventory, content and distribution with where the collectors are going. At the same time, we continue to operate with discipline, even as we scale the business, we're maintaining a cost structure that allows us to generate operating leverage and sustain profitability. That balance, growth with discipline is what defines the earnings profile we're building. Stepping back, what's important is that the performance is not being driven by short-term factors. It reflects a structural shift in how collectors engage with physical products today. We've been very clear in how we think about this. We are not in a declining physical media business. We are in the Collectible business. And what we're seeing in the market continues to validate that. Collectors are buying vinyl, CDs and premium video formats, not because they need access to content, but because they want to own something tied to the artists, franchises and brands they care about. That shift towards ownership, scarcity and premium formats is driving stronger demand, better pricing and more consistent sell-through across our portfolio. It is also reinforcing our position as a key partner to studios, labels and licensors who are increasingly looking to Alliance to manage the full life cycle of these products. At the same time, we are extending that model beyond traditional distribution, during the quarter, we advanced the next phase of our strategy with the launch of Alliance Authentic and the continued integration of Endstate. These initiatives begin to layer authentication, provenance and life cycle engagement into the products we already distribute at scale, moving us towards a platform that supports Collectibles from initial sale through resale. Taken together, the third quarter reinforces that Alliance is evolving into a more scalable, high-quality business, one that combines growth, profitability and increasing participation across the full life cycle of Collectible products. With that context, I'd like to walk through the key drivers behind this performance, starting with how our content strategy and category focus are shaping results across the portfolio. During the third quarter, we saw strong growth in Music and Video. Vinyl revenue increased 15% year-over-year to $99 million. CD revenue increased a staggering 90% to $39 million and Physical Movie revenue grew 5% to $61 million. What's notable here is not just the growth itself, but the breadth of that performance. We're seeing strength across multiple formats, price points and release types. In Music, demand continues to be driven by both new releases and ongoing catalog engagement with particularly strong performance in Collectible-oriented segments such as limited editions and international titles, including K-pop. At an industry level, this trend continues to build with U.S. Vinyl sales surpassing $1 billion last year, marking nearly two decades of consistent growth. And what's important is how consumers are engaging with that product. When you look at major releases, whether it's Taylor Swift or other top artists, millions of Vinyl records and CDs are being sold alongside streaming access that is readily available. Those purchases are not about access. They're about ownership. People want something tangible, connected to the artist, and that's what continues to drive demand in the category. We also saw incremental demand tied to event-driven moments like Record Store Day, which continues to expand in both scale and participation. This year was the largest Record Store Day ever, and we shipped over 700,000 units to independent retailers, reflecting both the strength of the event and our role in enabling it at scale. In Video, while the category has gone through a long period of decline, what we're seeing now is a more stable demand environment, supported by a steady cadence of new releases and continued interest in premium formats such as 4K, UltraHD and Collectible additions such as SteelBooks. Industry data shows that 4K UltraHD formats grew approximately 12% in 2025, reinforcing the shift towards higher-quality collector-focused home entertainment. Over the past year, we've significantly expanded our access to high-quality content through our license agreements with Paramount, which became effective at the beginning of calendar 2025 and MGM Studios, which we added at the start of calendar 2026. Together, these partnerships give us distribution rights to some of the most valuable franchises in the industry, strengthening our position with both retailers and collectors. Just as importantly, they allow us to consistently bring premium high-demand releases to the market, which supports stronger sell-through, better pricing and improved visibility across key retail channels. What we're also seeing is that scale matters more in this environment. As the market shifts towards Premium and Collectible formats, retailers and licensors increasingly rely on partners who can manage complexity, whether that's broader SKU assortments, shorter production runs or more targeted release strategy. That plays directly into our strengths in distribution, fulfillment and inventory management. So when you look at the Physical Media category today, the takeaway is that it's becoming more focused, more premium and more execution driven. And within that environment, our role continues to expand, not just as a distributor, but as a partner that helps bring these products to market in a way that maximize value across the entire ecosystem. Turning to Collectibles. This continues to be one of the most important areas of our growth and value creation in the business. During the third quarter, Collectibles revenue increased 48% year-over-year. That growth was driven by a combination of higher average selling prices, expanded sourcing activity and continued improvement in product mix towards more premium and differentiated offerings. What we're focused on in this category is very deliberate. We're not trying to scale Collectibles through volume alone. We're focused on building a portfolio that emphasize licensed higher-value products that resonate with collectors and carry stronger margin characteristics. This aligns with what we're seeing more broadly across the industry. Large retailers like Target are increasing investment in pop culture and Collectibles categories, while specialty players such as GameStop are seeing Collectibles becoming a growing share of their overall business. What that tells us is that this is not isolated demand. It's a broader structural shift towards higher-value fan-driven products. And that reinforces our focus on building a more differentiated Premium Collectibles portfolio. That approach starts with sourcing, but it extends well beyond that. Over the past year, we've expanded our vendor base and added new relationships that are bringing incremental high-quality product into the portfolio. At the same time, we've been refining the mix within existing brands, moving away from more commoditized items and towards products with stronger fan engagement, better pricing power and more consistent sell-through. The result is a Collectible business that is not only growing but improving in quality with higher average selling prices, stronger margins and better inventory efficiency. That positions us to scale the category in a way that drives both revenue and profitability over time. A key contributor to that progress is Handmade by Robots. Since transitioning to an owned brand, Handmade by Robots have given us a much greater control over product design, licensing and go-to-market strategy. We've expanded the licensing pipeline, increased retail distribution and are continuing to invest in new product development. What's important here is that this is not just a revenue contributor, it's a margin driver, and it represents a scalable model that we can apply across additional owned and controlled brands over time. More broadly, what we are seeing in Collectibles is very consistent with what we are seeing across the rest of the business. Demand is being driven by fans who are looking for products that are unique, limited and connected to the content they care about. That creates an opportunity to introduce high-quality products, manage supply more intentionally and ultimately improve both margins and inventory efficiency. As we continue to build out this category, we see Collectibles both complementary to our core distribution business and increasingly important to our overall earnings profile. It deepens our relationship with licensors, expands our presence with retailers and allows us to participate more directly in the value creation of the products we sell. Building on that foundation, the next phase of our strategy is extending beyond the product itself and into the full life cycle of Collectibles. During the quarter, we advanced that effort with the launch of Alliance Authentic and the integration of Endstate Authentic. Alliance Authentic represents the first commercial application of this strategy within our portfolio. We began with premium vinyl Collectibles encapsulated individually numbered releases that are authenticated at the point of origin and designed specifically for collectors. These products are not just sold, but curated with scarcity, provenance and long-term value in mind. What Endstate Authentic enables is the infrastructure behind that. Through NFC-enabled authentication and digital product identity, we can verify each item, track it over time and connect it to a digital record that supports ownership, authenticity and resale. That allows us to extend our role beyond initial distribution and supporting the product throughout its entire life cycle. This matters because as Collectibles become more valuable, the importance of trust, verification and transparency increases. Collectors want to know what they own, where it came from and that is authentic. Licensors want to protect their brands and marketplaces require a reliable way to validate transactions. What we're building addresses all three. Over time, this creates additional opportunities that did not previously exist in physical products, including authenticated resale, direct engagement with collectors and participation in secondary market activity. Importantly, this is more than near-term revenue contribution. It's about establishing the infrastructure and ecosystem that can support long-term value creation across a growing base of Collectible products. We are already moving forward to expand this model beyond Vinyl into other categories, and we're continuing to explore partnerships, both within and outside of our existing portfolio. This is a natural extension of the business we built. We already source, distribute and fulfill these products at scale. What we're now adding is the ability to track, authenticate and engage with those products over time. That evolution moves us from a transactional model towards a platform that participates more fully in the value of products we bring to market. With that, I'll turn it over to Amanda to walk through the financial results in more detail. Amanda Gnecco: Thanks, Jeff. I'll start with our financial performance for the third quarter. Net revenue for the quarter was $258 million, an increase of 21% compared to $213 million in the prior year period. This growth reflects broad-based strength across our core categories, as Jeff discussed, and continued alignment of our product mix with areas of higher consumer demand. Cost of revenue increased 22% year-over-year to $225 million, generally in line with the revenue growth, reflecting the higher volume of products flowing through the business. Gross profit for the quarter was $33 million compared to $29.1 million in the prior year period. Gross margin was 12.8% compared to 13.6% last year. The year-over-year change primarily reflects category and product mix within the quarter, including the relative contribution of certain lower-margin categories as we scaled revenue. Importantly, we continue to see the benefits of mix improvement and pricing discipline across higher-value categories, which support the overall earnings profile of the business over time. Net income for the quarter increased 25% to $2.3 million or $0.05 per diluted share compared to $1.9 million or $0.04 per share in the prior year period. Adjusted EBITDA was approximately $5.1 million, up from $4.9 million last year, representing a 4% increase. While EBITDA growth was more modest than revenue growth in the quarter, it reflects the continued scaling of the business alongside targeted investments in growth initiatives, including technology and platform capabilities. Overall, the third quarter reflects a business that is growing, generating consistent profitability and continuing to operate with discipline as we invest in areas that support long-term expansion. Turning now to our year-to-date results, which provides a broader view of the underlying momentum in the business. For the nine months ended March 31, 2026, net revenue was $881 million, an increase of 5% compared to $836 million in the prior year period. While overall revenue growth was more modest on a year-to-date basis, it reflects continued strength in higher-value categories and the impact of mix improvements across the portfolio. That mix shift is clearly reflected in profitability. Gross profit for the nine-month period increased to $117.3 million compared to $96.9 million in the prior year, and gross margin expanded by 170 basis points to 13.3%. This improvement was driven by increased contribution from Premium Physical Media, Collectibles and Exclusive Content as well as continued discipline in pricing and inventory management. Net income for the 9-month period increased 78% to $16.6 million or $0.32 per diluted share compared to $9.3 million or $0.18 per share in the prior year period. Adjusted EBITDA increased 47% to $35.7 million, up from $24.4 million last year. What these results demonstrate is the operating leverage inherent in our model. As we continue to shift the business towards higher-value products and more efficient execution, we are seeing a disproportionate improvement in earnings relative to revenue. Importantly, this performance reflects consistency across multiple quarters. The margin expansion and earnings growth we are delivering are not isolated to a single period, but the result of deliberate changes in mix, cost structure and operating discipline that are compounding over time. Overall, our year-to-date results reinforce that we are building a structurally stronger business with improving profitability and increasing scalability as we continue to grow. Before I turn it back to Jeff, I'll touch on our balance sheet and liquidity position. We ended the quarter with approximately $60 million in working capital, reflecting continued discipline in managing both inventory and payables as we support growth across the business. Inventory increased during the quarter, consistent with higher revenue and the timing of inbound product. Importantly, our inventory levels remain aligned with current demand and reflect our focus on higher value, faster-moving categories where we have strong visibility into sell-through. From a liquidity standpoint, we ended the quarter with approximately $56 million of availability under our revolving credit facility. This provides us with ample flexibility to support working capital needs, invest in inventory tied to exclusive partnerships and fund strategic initiatives across the business. More broadly, our balance sheet remains well positioned to support both near-term operating requirements and longer-term growth. We continue to take a measured approach to capital management with a focus on maintaining liquidity, managing risk and preserving flexibility as we scale the business. I'll close with a brief comment on our approach to capital allocation. Our framework remains consistent and disciplined. We prioritize investments that directly support the strategy Jeff outlined and that enhance the quality and durability of our earnings. First, we continue to allocate capital towards inventory and exclusive content partnerships where we have strong demand visibility and attractive returns. These investments support higher-value products, improve overall mix and reinforce our relationships with key licensors and retail partners. Second, we invest selectively in technology and infrastructure that improve scalability and efficiency. This includes automation, systems that support our exclusive partnerships and capabilities tied to initiatives like Alliance Authentic and Endstate Authentic. These investments are targeted and are evaluated based on clear operational and financial returns. Throughout all of this, maintaining flexibility remains a priority. We are not pursuing growth for growth's sake, and we remain focused on deploying capital in a way that balances near-term performance with long-term value creation. That discipline has been an important contributor to the earnings growth and operating leverage we've delivered, and it will continue to guide our decision-making going forward. With that, I'll turn it back to Jeff. Jeffrey Walker: Thanks, Amanda. Before we open the call for questions, I want to spend a few minutes on how we're thinking about the business from here. As we look at the third quarter and year-to-date performance, what's most important is the consistency we're seeing across the model. We've now demonstrated the ability to grow revenue, expand earnings and maintain discipline all at the same time. That's a meaningful shift from where the business was even a few years ago. Looking ahead, we remain confident in the trajectory we're building. From an execution standpoint, our priorities are clear. We're focused on continuing to scale our core categories, particularly in areas where we're seeing strong demand and favorable mix, including Premium Physical Media and higher-value Collectibles. The pipeline of new releases, exclusive content and licensed products remains strong, and we believe that supports continued growth and earnings quality as we move forward. We are also continuing to expand our owned and controlled brands. Handmade by Robots is a good example of how we can create additional value by controlling design, licensing and distribution, and we see opportunities to extend that model across new categories and partnerships over time. We are also expanding the Platform side of the business, which is becoming an increasingly important part of how we create value across the ecosystem. That includes Alliance Authentic, where we are bringing premium authenticated Collectibles directly to market through curated limited releases designed specifically for collectors. This allows us to participate more directly in product design, scarcity and pricing and deliver higher value offerings to our consumer base. Alongside that, Endstate Authentic provides the underlying infrastructure that enables authentication, providence and lifestyle tracking through NFC-enabled technology. Our focus there is on building out that foundation, deepening integrations and expanding use cases across additional products and partners. And most recently, we relaunched Moviesunlimited website as a curated destination for collectors, supporting high-value purchasing behaviors like preorders and limited editions and strengthening the collector lifetime value. Taken together, these platforms extend our role beyond traditional distribution. We will continue to manage the business with a focus on profitability, operating leverage and return on capital while investing selectively in areas that support long-term growth. Stepping back, what we're building is a more scalable and more differentiated business. We're moving beyond a traditional distribution model and towards a platform that connects content owners, retailers and collectors across the full life cycle of the products we bring to market. That evolution is already reflected in the quality of our earnings and the strength of our performance, and we believe it positions Alliance to create durable long-term value for our shareholders. Before we turn to questions, I want to thank our employees across the organization for their continued execution and commitment. I'd also like to thank our partners, customers and shareholders for their ongoing support. Operator, we're ready to open the line for questions. Operator: [Operator Instructions] The first question comes from the line of Thomas Forte with Maxim Group. Thomas Forte: Great. So first off, Bruce, Jeff and Amanda, I apologize in advance if you touched on these in your prepared remarks. I'm juggling multiple calls right now. And then I'm going to ask both questions at once, and thank you in advance for your answers. So the first question is, this past Record Store Day, you offered Handmade by Robots, a limited release of Ozzy Osbourne and a Hello Kitty SKU. How would you characterize the success of the initiative, including to drive brand awareness for Handmade by Robots? And then my second question is, you added Amazon MGM Studios just ahead of its breakout box office hit, Project Hail Mary, which was an amazing movie. Can one title be a needle mover for your DVD business? Jeffrey Walker: Thank you, Tom. This is Jeff. I'll start with the Handmade and the Record Store Day there. It's really the first time that Record Store Day had approved a Collectible, their focus on vinyl records there. And we have a huge business with the Record Stores and Record Store Day. On those two titles, one of the things that's important for Record Store Day is to make sure that there's not an oversupply of the product. So, we made 2,000 units of each of those. We actually had orders come in for just over 6,000 units on each of them. So, the stores were allocated down on their orders. And then on top of that, we added another little wrinkle. They all did sell out in the stores. The stores were extremely happy with them. They were hit. We actually started a new Record Store series on them. So you will see on the outside of the packaging, it says Record Store Day exclusive, and it's a 001 and 002. So, as we move forward, there will be additional ones. We do have titles presented to them for November Record Store Day and next April that we're working on with licensors right now. Then the other part that was a huge home run in that with those Handmade was that we encapsulated 30 units of each of the characters. In the encapsulation through Alliance Authentic, we added an NFC chip to those. And it was, those were the hot tickets. A store got, some of the top stores got one of those. And what you see a lot after Record Store Day is there's some resellers that sell them on eBay and things. We were seeing the Ozzy and the Hello Kitty in that $75 range on eBay. The encapsulated ones, we saw ones in the $400 to $500 range. When you look at it, people really wanted those characters. There's 2,000 of them, but there's only 30 of them that are encapsulated, uncirculated with an NFC chip. The people that have those 30 are going to have a fantastic investment over time because you can imagine we continue to drive this over the next 10 to 20 years. That's going to be a very famous two pieces that we created with Handmade. On Project Hail Mary, yes, that's going to be a home run title for us. Its release date is in August. And yes, it's one of the, I think it's the biggest theatrical release we've had last, in calendar '25 and here into '26. So, we're doing a lot of different planning and preparation for that right now. And we expect that to be a very good release and high volume on DVD in all formats. Operator: Next question comes from the line of Michael Kupinski with NOBLE Capital Markets. Unknown Analyst: It is Jacob Muchler on for Michael today. So, my first question is also regarding Alliance Authentic. I was just curious if you could talk about some of the products that might hit Alliance Authentic next. I understand that it could be multiple different kinds of Collectibles could be put on to the platform. But I am just curious if there's some additional Collectible categories that seem most likely to reach a platform next. Jeffrey Walker: Yes. We're, we have vinyl in there right now. Those are numbered Collectibles. And then we have launched Funko Pops encapsulated as well as our Handmade by Robots. In the future, we do have cases right now for DVD SteelBook, and we have cases for video games, PlayStation, Xbox and Nintendo Switch. There is the aspect within all of this that it's, we're really looking at preserving uncirculated copies of all these types of products and put an NFC digital chip with it, encapsulate it and it has become a piece of history. When you think about going backwards and think about products that came out years ago, the idea here is that these get encapsulated at the beginning and over time, 5, 10, 20 years down the road, even 50 years down the road, it's really a substantial piece of history, and we know it's authentic, and we know it's encapsulated. That's the intention with this product. I think we're on to something really big in this category here. Unknown Analyst: Got you. And would you be able to talk about some of the favorable undercurrents in the music industry this year and also the video game industry. It looks like there's a number of high-profile album releases and then also Grand Theft Auto VI in the back half of the year. Just curious what your expectations are this year with a big release schedule. Jeffrey Walker: Yes. We're all pretty excited on the release schedule. On the Music side, we just keep getting significant great artist releases. This last quarter that we're reporting here, we had a big Bruno Mars release, big release from Harry Styles, and then we topped it off with the BTS release. Those were huge titles for us. They're continuing to come hot and heavy. And then with that, we're also seeing some crazy numbers on vinyl sales and CD sales were off the chart. There's a lot of social media conversation about building your own collection and music, having your own collection of CDs and vinyl. That conversation is bleeding over into video and DVDs right now. People want to own stuff and collect it and have their collections. And it's a big push on social media right now we're seeing. With respect to Grand Theft Auto, it's going to be a home run for Q4, there's huge numbers being projected in the industry for it. We will be selling the game. We do buy direct from Take-Two. So it will be a huge release for us. We even, on top of that, we just came back from Music Biz this week, and we got like a home run coming out of Music Biz because there's a Grand Theft Auto soundtrack that is coming. Same thing in November. It's got, I think, 20-plus songs on it. all the A-list artists each have a song on it. It's a compilation of artists. Some of the songs are in the game. Some of the songs are additional songs. It's going to be a home run vinyl release for us also revolving around that Grand Theft Auto. So we're pretty excited about that one coming in fourth quarter. Operator: Next question comes from the line of Linda Bolton Weiser with Water Tower Research. Unknown Analyst: With regard to your adding Handmade by Robots to your portfolio, do you envision looking for more similar acquisitions? And do you think you'll stick mostly in the Collectible figure category? Or do you see opportunity in some other product categories as well? Jeffrey Walker: Thank you, Linda. From an acquisition standpoint, we're heavily engaged in lots of potential acquisition opportunities. And we've got several NDAs out right now in conversations that we're in. We do like licensed products. And so there could be other collectible stuff. It could be in a lot of other categories. With the wide range of products that we carry and that aspect, it does widen the net for what we can look at for acquisitions that become accretive to Alliance. So that's a good thing. If we're only in one really tight category, it makes it hard for acquisitions. But for us, we're pretty diversified in a lot of different areas. And if we have an opportunity to pick up a company that really can be accretive through Alliance and create new sales opportunities for us, maybe new vendor opportunities. That's a home run, and we're actively looking at those right now. Operator: We have no questions at this point of time. Over to you, Paul. Thank you. Paul Kuntz: We do have several webcast questions. We had a couple around CDs. So I'm just going to combine these two. One was, can you provide a bit more color on the strong CD sales? And then a related question was the growth in vinyl and CDs this quarter related primarily to Record Store Day? Or was it more of a structural shift toward collecting? Jeffrey Walker: Before I answer that one, I'm going to go back to Linda's question real quick. If anybody knows of any possible acquisitions that you think would be a good fit for Alliance, definitely reach out to me on that. I'm always looking for new leads and new opportunities there. So that's a request from the community out there. If there's anything you think you have an insight to or anything you think would be a good fit for us, definitely reach out to me, and we'd be, I'd be definitely interested in looking at that. Paul, on the question with CDs, I mean I've been selling CDs since I started in 1990 with the music store. And it was hotter than hot in 1990 when everybody was buying CDs. And we are honestly shocked right now is the growth we're seeing on the CD side. It definitely is a trend, and we saw the trend on the vinyl side. If you look back in our business 7 or 8 years ago, we were doing $5 million a year in vinyl, and we stayed in it. We never were out of it, and we've organically seen that business now. We just finished the quarter at $99 million in vinyl for a quarter. So with fourth quarter sales and stuff, I mean, that's more than $400 million run rate. On the CD, that's a significant growth over last year. And I will go back one second to 2025. On the vinyl side, we sold 16.8 million units of vinyl. On the CD side, it was 13.5 million. It wasn't a small number. And now we're looking at this type of growth here on the CD side, we're continuing to see it go here. I think the other piece on CD is kind of happened in the vinyl as vinyl was coming back and seeing a resurgence. You're starting to see the record labels refocusing on CD as far as marketing it and also making sure that they have stock on hand, their stock available on CD. We had a little stretch a few years ago where people kind of had an eye off the ball on the CD, and we were not getting our fill percentages and stuff from our vendors as good, but people are improving that right now because of the demand. When an artist is bringing out a new release, we're seeing vinyl and CD. And it's, that music side is extremely strong right now. And last thing I want to say is we've seen a lot of DVD decline over the last 10 years. The rate of decline on DVD has been shrinking over the last two years. And there's definitely a real possibility that we're going to be at a bottom out on the DVD, and we could see DVD start to move similar to what we're seeing on the CD side right now because as it bottoms out and these conversations continue with collectors and people want their fans and they want to have a DVD collection on their wall, that's what's driving this. Paul Kuntz: And our next question, can you comment on how you're developing the direction of Endstate authentic? Will they ultimately authenticate in all sports and music, for example? Jeffrey Walker: So we acquired Endstate Authentic, Bennett and Stephanie, who lead that division. I've been working super closely with them over the last four months here. And we're in a lot of very interesting conversations. They do work with accounts outside of Alliance Authentic with companies that do watch authentication and there are several other different categories that we're in. We are in very active conversations with new customers on that Endstate Authentic side. And I think over this next fiscal year, you're going to see some pretty good inroads with the Endstate aspect there and what we can do. I really can't disclose too much as to a lot of those conversations under NDAs right now. Paul Kuntz: Thank you. And our next question, are you seeing overlap between customers that are buying media and those that are buying Collectibles or electronics? Or are those all still fairly distinct customer groups? Jeffrey Walker: Well, there's, yes, they're definitely all intermixed for sure. And, and there is a crossover between music and video and the Collectibles. I will say, in a lot of cases, there's a lot of ways to kind of divide up the fans and what they collect. There's also collectors that are in different genres, so you have collectors that are huge fans and followers of horror. So they like horror movies. They like horror Collectibles. You have fans of anime and they like everything related around anime. Then you have your music fans that are all around everything music, not only the music itself, but anything they can collect of their favorite movie music artists. Then you have fans that are revolving around movies and their movie bus and anything they can get their hands on with respect to all types of movies. So we work across all those different channels and really try to put all the pieces together. There's a lot of synergies between our different departments. So, and I just even an example there on Grand Theft Auto. So we got a big video game. So our gaming team, and now we got a music vinyl record with it. There's, we're probably going to be seeing some other products that are relating to that franchise. Across all of our purchasing teams and sales teams, there's a lot of cohesive work happening here at Alliance to cross-sell those. And so somebody who has a store that's a gaming store and doesn't really sell vinyl, they might come in and say, "Hey, I can sell 60 units of that vinyl record because I'm going to have this huge amount of customers coming in to pick up the video game and so forth there. So that's where we're seeing a lot of this win that we talk about to everybody. We're seeing that cross being very robust for us right now. Paul Kuntz: Thanks, Jeff. Our next question, with Alliance Authentic and Endstate Authentic, how should we think about the pacing of that opportunity? What are the key milestones that would signal it's becoming a meaningful contributor? Jeffrey Walker: Well, both of those are in extreme start-up phase. I call it concentration right now. We are, we have a lot of resources on it. We got a lot of people on it. We got a lot of focus from me and other leaders to really develop both of those, the Alliance Authentic and the Endstate Authentic. I think here in fiscal '27, we're going to start to see some aspects where, on the Alliance Authentic, we started getting some more key titles encapsulated and seeing some solid demand on those. stuff like the Ozzy and Hello Kitty start to make people think about it. Now all of a sudden, the music stores saw those. They saw what happened to it. It's a training. We got to educate people on what those products are and so forth. And we're making good progress with that. Record labels are starting to really understand what the product is and the importance of that product in the history and life cycle of vinyl records. We're trying to encapsulate a limited quantity of those that become the ultimate vinyl Collectible of that album. And on the Endstate side, there's a lot of different types of businesses that could really use an NFC chip in what they're doing. And we're in a lot of conversations on that side. So I think in this next fiscal year, you're going to see quite a few announcements of deals that we've been able to make for both of those areas. And I can't communicate any of the details until we have those deals in place, and we'll have press releases and things revolving around those. Paul Kuntz: It looks like we have one more question at this point. You called out strength across multiple categories this quarter. Are you seeing any meaningful differences in how demand is trending across those categories? Or is it fairly broad-based right now? Jeffrey Walker: I would say it's fairly broad-based. I mean, even our gaming side has been pretty solid. We are cautiously optimistic even on gaming right now with the change over there at Microsoft on the Xbox side with new leadership there. So we're, as I said, cautiously optimistic about maybe a little more push towards consoles and physical product compared to where Microsoft was kind of leaning in the last couple of years. Our Collectible business is super strong and that side of it. It's a combination on, in Collectibles of expanding sales and adding new stores and customers and adding even more Collectibles in the music stores and things like that. But it's also, we brought on quite a few Collectible suppliers into our distribution side. I'll give you a quick example. If we bring on a supplier and their product line through our sales channels, we can generate $3 million a year on that supplier's product. That's as valuable as bringing on a customer that can buy $3 million a year. So we're working on both sides of those, right? So when we're at toy fair or a convention like that. We have our whole sales team there working on selling to customers that are there, but we have our whole purchasing team talking with our current vendors and working on opportunities to bring in product from vendors that we aren't currently supplying. That's why you're seeing some really strong numbers on the Collectible side right now because it's not only adding new accounts and expanding the product that we have into more accounts. And so we're adding significant amount of vendors on the Collectible side. And that's, so we're getting that doubling of the growth in that space. Operator: Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Alliance Entertainment, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alliance Entertainment wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $468,861!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,445,212!* Now, it’s worth noting Stock Advisor’s total average return is 1,013% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 15, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. AENT Q3 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Net Revenue: $258 million, an increase of 21% year-over-year. Net Income: $2.3 million, up 25% from the prior year. Adjusted EBITDA: $5.1 million, a 4% increase from last year. Gross Profit: $33 million, compared to $29.1 million in the prior year. Gross Margin: 12.8%, down from 13.6% last year. Vinyl Revenue: Increased 15% to $99 million. CD Revenue: Increased 90% to $39 million. Physical Movie Revenue: Grew 5% to $61 million. Collectibles Revenue: Increased 48% year-over-year. Year-to-Date Net Revenue: $881 million, a 5% increase from the prior year. Year-to-Date Net Income: $16.6 million, up 78% from the prior year. Year-to-Date Adjusted EBITDA: $35.7 million, a 47% increase from last year. Working Capital: Approximately $60 million at the end of the quarter. Revolving Credit Facility Availability: Approximately $56 million. Warning! GuruFocus has detected 4 Warning Signs with AENT. Is AENT fairly valued? Test your thesis with our free DCF calculator. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Alliance Entertainment Holding Corp (NASDAQ:AENT) reported a 21% year-over-year increase in net revenue for the third quarter, reflecting strong top-line growth. Net income increased by 25% year-over-year, demonstrating continued profitability. The company saw significant growth in its music and video segments, with vinyl revenue increasing by 15% and CD revenue by 90%. Collectibles revenue grew by 48% year-over-year, driven by higher average selling prices and improved product mix. The launch of Alliance Authentic and integration of Endstate are advancing the company's strategy to support the full lifecycle of collectible products. Gross margin decreased from 13.6% to 12.8% year-over-year, primarily due to category and product mix changes. Adjusted EBITDA growth was modest at 4%, not keeping pace with the revenue growth. The cost of revenue increased by 22% year-over-year, slightly outpacing revenue growth. The company is in the early stages of developing Alliance Authentic and Endstate Authentic, which are not yet significant contributors to revenue. There is a cautious outlook on the gaming segment, with uncertainties around leadership changes at Microsoft affecting the market. Q: How successful was the Handmade by Robots initiative during Record Store Day, and can a single title like Project Hail Mary significantly impact your DVD business? A: Jeffrey Walker, CEO, explained that the Handmade by Robots initiative was a success, with limited releases selling out and generating high resale values. The encapsulated versions with NFC chips were particularly valuable. Regarding Project Hail Mary, Walker noted it is expected to be a major release, potentially impacting DVD sales significantly. Q: What products might be added to Alliance Authentic, and what are the expectations for the music and video game industries this year? A: Walker mentioned that Alliance Authentic currently includes vinyl, Funko Pops, and Handmade by Robots. Future additions could include DVD SteelBooks and video games. He expressed excitement about upcoming music releases and the anticipated success of Grand Theft Auto VI, which is expected to boost sales in both music and gaming. Q: Are there plans for more acquisitions like Handmade by Robots, and what categories are you considering? A: Walker stated that Alliance is actively exploring acquisition opportunities across various categories, not limited to collectibles. The company is open to acquiring businesses that can be accretive and create new sales opportunities. Q: Can you provide more insight into the strong CD sales and whether the growth in vinyl and CDs is due to Record Store Day or a structural shift? A: Walker noted that CD sales have been surprisingly strong, reflecting a broader trend similar to the resurgence of vinyl. The growth is attributed to a structural shift towards collecting, rather than being solely driven by Record Store Day. Q: How is Endstate Authentic developing, and will it expand into sports and music authentication? A: Walker indicated that Endstate Authentic is in active discussions with potential customers and is exploring various categories, including sports and music. The company expects to make significant progress in the next fiscal year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Alliance Entertainment Holding Corporation? Here are five stocks we like better. Alliance Entertainment posted strong fiscal Q3 results, with revenue up 21% year over year to $258 million and net income up 25% to $2.3 million. Management said the gains reflect continued strength in higher-margin, premium products. The company is leaning into collectibles and premium physical media rather than traditional distribution, with collectibles revenue up 48% and solid growth in vinyl, CDs and movie formats. Executives highlighted demand for authenticated, fan-focused products like Handmade by Robots and premium video editions. Alliance is also building out authentication and owned-brand initiatives such as Alliance Authentic and Endstate Authentic, though management described them as early-stage. The company expects more product launches and potential deal announcements in fiscal 2027 while continuing to pursue acquisitions. 3 Small-Cap Stocks With Big Growth Potential Alliance Entertainment (NASDAQ:AENT) reported higher fiscal third-quarter revenue and profit, with management saying the company is benefiting from a shift toward premium physical media, collectibles and authenticated products aimed at fans and collectors. On the company’s third-quarter fiscal 2026 earnings call, Chief Executive Officer Jeff Walker said net revenue rose 21% year over year to $258 million for the quarter ended March 31, 2026. Net income increased 25% to $2.3 million, or $0.05 per diluted share, compared with $1.9 million, or $0.04 per share, in the prior-year period. Adjusted EBITDA was $5.1 million, up from $4.9 million a year earlier. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? “The most important takeaway this quarter is that we are now seeing both sides of our model working together, sustained revenue growth and continued earnings expansion driven by the structural shift in our business,” Walker said. Walker said the company is positioning itself less as a traditional physical media distributor and more as a collectibles platform. “We are not in a declining physical media business. We are in the collectible business,” he said, arguing that consumers are buying vinyl, CDs and premium video formats because they want ownership of items connected to artists, franchises and brands. → Micron Investors Face a High-Stakes Moment After the Latest Rally Revenue growth was broad-based across music, video, gaming and collectibles, according to management. Walker said vinyl revenue increased 15% year over year to $99 million, CD revenue rose 90% to $39 million, and physical movie revenue grew 5% to $61 million. He also highlighted demand tied to Record Store Day, saying Alliance shipped more than 700,000 units to independent retailers for what he described as the largest Record Store Day ever. In video, Walker said demand has become more stable after years of category decline, supported by new releases and premium formats such as 4K Ultra HD and collectible editions such as Steelbooks. He also pointed to distribution agreements with Paramount, effective at the beginning of calendar 2025, and MGM Studios, added at the start of calendar 2026, as expanding the company’s access to major franchises. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? Collectibles remained a major growth area in the quarter, with revenue increasing 48% year over year. Walker said growth was driven by higher average selling prices, expanded sourcing and a mix shift toward more premium and differentiated offerings. He said the company is emphasizing licensed, higher-value products rather than pursuing volume alone. Handmade by Robots, which Alliance has transitioned into an owned brand, was cited as a contributor to revenue and margins because it gives the company more control over product design, licensing and distribution. During the Q&A session, Maxim Group analyst Tom Forte asked about limited-release Handmade by Robots products tied to Ozzy Osbourne and Hello Kitty for Record Store Day. Walker said Alliance produced 2,000 units of each character, received orders for just over 6,000 units for each, and allocated shipments to stores. He said the products sold out in stores and that Alliance started a Record Store Day series for the line. Walker also said Alliance encapsulated 30 units of each character through Alliance Authentic with NFC chips. He said standard versions were appearing on eBay in the $75 range, while encapsulated versions were seen in the $400 to $500 range. Walker said Alliance advanced its authentication strategy during the quarter with the launch of Alliance Authentic and continued integration of Endstate Authentic. Alliance Authentic began with premium vinyl collectibles that are encapsulated, individually numbered and authenticated at the point of origin. Endstate Authentic provides NFC-enabled authentication and digital product identity, allowing items to be verified and tracked over time. Walker said the goal is to support ownership, authenticity and resale, extending Alliance’s role beyond initial distribution. In response to a question from Noble analyst Jacob Mutchler, Walker said Alliance Authentic currently includes vinyl, Funko Pops and Handmade by Robots products. He added that the company has cases for DVD Steelbooks and video games for PlayStation, Xbox and Nintendo Switch. Asked about the pacing of the opportunity, Walker described both Alliance Authentic and Endstate Authentic as being in an “extreme startup phase,” but said he expects fiscal 2027 to bring more key encapsulated titles and potential deal announcements. He said some discussions are under nondisclosure agreements. Chief Financial Officer Amanda Gnecco, who was introduced as presenting the financial results, said year-to-date net revenue for the nine months ended March 31, 2026, was $881 million, up 5% from $836 million in the prior-year period. Gross profit increased to $117.3 million from $96.9 million, while gross margin expanded 170 basis points to 13.3%. Net income for the nine-month period rose 78% to $16.6 million, or $0.32 per diluted share, compared with $9.3 million, or $0.18 per share, a year earlier. Adjusted EBITDA increased 47% to $35.7 million from $24.4 million. Gnecco said the results demonstrate operating leverage from shifting toward higher-value products and more efficient execution. She said Alliance ended the quarter with about $60 million in working capital and approximately $56 million of availability under its revolving credit facility. Inventory increased during the quarter, which she said was consistent with higher revenue and inbound product timing. During the question-and-answer portion of the call, Walker said upcoming releases are expected to support demand across categories. He pointed to recent music releases from Bruno Mars, Harry Styles and BTS as major titles in the reported quarter. He also said Grand Theft Auto VI is expected to be a “home run” for the fourth quarter and that Alliance buys directly from Take-Two. Walker added that a Grand Theft Auto soundtrack on vinyl is expected in November and includes more than 20 songs from A-list artists. On the video side, Walker said the MGM title Project Hail Mary is expected to be a strong release for Alliance, with a street date in August and expected high volume across DVD formats. Walker also said Alliance is actively evaluating acquisition opportunities, including licensed products and other collectibles categories. He said the company has “several NDAs out right now” and is looking for businesses that could be accretive and create new sales or vendor opportunities. Looking ahead, Walker said Alliance will focus on scaling core categories, expanding owned and controlled brands, building Alliance Authentic and Endstate Authentic, and maintaining discipline around profitability and return on capital. Alliance Entertainment (NASDAQ: AENT) is a distributor of physical media and related entertainment products, serving retailers, public libraries and online merchants. The company’s core business revolves around the wholesale distribution of music and video titles on CD, DVD and Blu-ray formats, as well as vinyl records, audiobooks, video games and select gift and novelty items. By maintaining a broad catalog of new and catalog titles, Alliance Entertainment enables brick-and-mortar and e-commerce channels to access an extensive range of products from major and independent labels. In addition to its product offerings, Alliance Entertainment provides supply-chain and logistics services designed to streamline inventory management and order fulfillment. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Alliance Entertainment Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Alliance Entertainment Holding Corporation (AENT) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +150.00%. A quarter ago, it was expected that this company would post earnings of $0.31 per share when it actually produced earnings of $0.18, delivering a surprise of -41.94%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Alliance Entertainment Holding Corporation, which belongs to the Zacks Media Conglomerates industry, posted revenues of $258.2 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 15.74%. This compares to year-ago revenues of $213.04 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Alliance Entertainment Holding Corporation shares have lost about 15% since the beginning of the year versus the S&P 500's gain of 8.8%. While Alliance Entertainment Holding Corporation has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Alliance Entertainment Holding Corporation was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.04 on $228.95 million in revenues for the coming quarter and $0.33 on $1.07 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Media Conglomerates is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Reservoir Media, Inc. (RSVR), has yet to report results for the quarter ended March 2026. This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +25%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Reservoir Media, Inc.'s revenues are expected to be $44.47 million, up 7.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alliance Entertainment Holding Corporation (AENT) : Free Stock Analysis Report Reservoir Media, Inc. (RSVR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Net revenues increased 21% year-over-year Net income increased 25% year-over-year to $2.3M; year-to-date net income grew 78% to $16.6M Adjusted EBITDA increased to $5.1M in Q3; year-to-date Adjusted EBITDA up 47% to $35.7M PLANTATION, Fla., May 14, 2026 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (Nasdaq: AENT), a premier distributor, logistics provider, and omnichannel fulfillment partner to the entertainment and pop culture collectibles industry, supplying more than 340,000 unique SKUs across music, video, video games, licensed merchandise, and exclusive collectibles to over 35,000 retail and e-commerce storefronts, reported its financial and operational results for its fiscal third quarter ended March 31, 2026. Third Quarter FY 2026 Highlights Revenue Growth and Sustained Profitability: Net revenues increased 21.2% year-over-year to $258.2 million, driven by broad-based strength across core physical product categories. Net income increased to $2.3 million, or $0.05 per diluted share, compared to $1.9 million, or $0.04 per share, in the prior-year period, reflecting continued execution against the Company’s profitability framework. Adjusted EBITDA was approximately $5.1 million, compared to $4.9 million in Q3 FY25. For the nine months ended March 31, 2026, net revenues increased 5% to $880.9 million, compared to $835.7 million in the prior-year period, while net income increased 78% to $16.6 million, or $0.32 per diluted share, compared to $9.3 million, or $0.18 per share. Adjusted EBITDA was approximately $35.7 million, up 47% from $24.4 million in the prior-year period. Launch of Endstate Authentic and Alliance Authentic™: The Company continued to advance its technology strategy following the acquisition of Endstate on December 31, 2025, establishing Endstate Authentic, an NFC-enabled authentication and digital product identity platform that supports authenticated ownership, provenance, and verified resale across premium physical goods. During the quarter, Alliance also launched Alliance Authentic™, representing the Company’s first application of these capabilities within its own product ecosystem, initially focused on premium vinyl collectibles. The platform has since expanded to include additional categories, including Handmade by Robots™ and select third-party collectibles such as Funko figures. These initiatives extend Alliance’s role beyond distribution into ownership and participation across the product lifecycle, while creating a scalable foundation for new authentication, collectibles, and platform revenue opportunities. Strength in Physical Media: Vinyl record sales increased 15% year-over-year to $99 million, driven by higher unit volumes and sustained interest in limited-edition releases. Compact disc (CD) sales increased 90% year-over-year to $39 million, reflecting both higher unit volumes and improved pricing, driven by strong demand for major releases and collectible formats, including continued strength in international and K-pop titles. Physical movie sales increased 5% year-over-year to $61 million, supported by a steady cadence of new releases and continued consumer demand for premium formats such as 4K Ultra HD and collectible editions. Performance in the category continued to benefit from the Company’s exclusive studio partnerships, including Paramount and Amazon MGM Studios Distribution, which expanded title availability and supported growth across key retail channels. Collectibles Growth Driven by Premium Mix: Collectibles revenue increased 48% year-over-year to $8 million, driven by increased average selling prices and a continued shift toward higher-value, premium products. Growth was supported by expanded sourcing efforts and the addition of new vendor relationships, which contributed incremental sales during the quarter. Performance also benefited from the transition of Handmade by Robots™ to an owned brand, as well as improved margins across certain legacy brands following prior inventory optimization initiatives, reflecting continued progress in enhancing product mix and profitability within the collectibles category. Growth in Gaming and Electronics: Gaming revenue increased 12% year-over-year to $33 million, supported by continued demand for next-generation consoles, including the Nintendo Switch II, along with related software and accessories. Electronics revenue increased 53% year-over-year to $4.0 million, driven by higher unit volumes and a favorable mix shift toward higher-priced audio playback devices and accessories, including turntables, CD players, headphones, and speakers. Growth in electronics continued to benefit from strong demand for vinyl and physical media, which drives attachment sales of complementary hardware. Performance in both categories reflects the Company’s ability to align product mix with evolving consumer preferences while capturing incremental demand across hardware and content ecosystems. Operating Leverage and Expense Discipline: Total operating expenses improved to 11.5% of net revenue, compared to 12.0% in the prior-year period. Selling, general and administrative expenses improved to 6.5% of net revenue, compared to 6.7% in the prior year, while distribution and fulfillment expenses declined to 4.3% of net revenue, compared to 4.7% in Q3 FY25. The improvement was driven by higher revenue scale, productivity gains, and the Company’s flexible labor model, which continues to support efficient fulfillment operations while enabling targeted investments in infrastructure, technology, and automation to support future growth. Balance Sheet and Liquidity Strength: The Company ended the quarter with working capital of approximately $60.0 million, reflecting disciplined management of inventory and payables to support ongoing growth. The Company had approximately $56 million of availability under its revolving credit facility at quarter end, providing ample liquidity and financial flexibility to support working capital needs and strategic initiatives. “Our third quarter results reflect continued strength across our core categories and the operating leverage inherent in our model,” said Jeff Walker, Chief Executive Officer of Alliance Entertainment. “We delivered over 21% revenue growth in the quarter and strong year-to-date earnings expansion, demonstrating that our platform is scaling and that improvements in product mix and cost structure are translating into durable profitability.” “We are also seeing continued validation of the broader shift toward physical media as a collectible category, where ownership, scarcity, and premium formats are driving collector purchasing behavior,” Walker added. “This trend is increasingly supported by collector-driven discovery and community engagement across social media platforms, particularly among younger consumers who are prioritizing intentional listening, tangible ownership, and long-term value. Our exclusive partnerships and curated assortment position us at the center of that trend, while our direct-to-consumer and platform initiatives are enabling us to capture more value across the lifecycle of each product.” “During the quarter, we advanced the next phase of our strategy with the launch of Alliance Authentic™, extending our platform into authenticated collectibles,” Walker continued. “Importantly, this represents the first commercial application of Endstate Authentic, our NFC-enabled authentication platform, and extends our role beyond distribution into ownership, provenance, and the full lifecycle of collectible products. Subsequent to quarter end, we further expanded our platform strategy with the relaunch of Movies Unlimited as a curated, collector-focused destination designed to deepen engagement and increase customer lifetime value. Together, these initiatives build on our existing scale to enhance product value, strengthen customer relationships, and create additional long-term growth opportunities.” Amanda Gnecco, Chief Financial Officer of Alliance Entertainment, said, “We delivered strong financial performance in the third quarter, with revenue up 21% and net income increasing 25% year-over-year. For the first nine months of fiscal year 2026, net income increased 78% to $16.6 million, and Adjusted EBITDA increased 47% to $35.7 million, highlighting the growing earnings power and scalability of our platform.” “We are seeing clear operating leverage across the business, with operating expenses declining as a percentage of revenue even as we continue to invest in infrastructure, technology, and growth initiatives. At the same time, we maintained a strong liquidity position, ending the quarter with approximately $60 million in working capital and $56 million of availability under our revolving credit facility. With a more efficient cost structure and continued momentum in higher-value categories, we believe we are well positioned to sustain both revenue growth and meaningful earnings expansion.” Third Quarter FY 2026 Financial Results Net revenues for the fiscal third quarter ended March 31, 2026, were $258.2 million, up 21.1% from $213 million in the same period of fiscal 2025. Gross profit for the fiscal third quarter ended March 31, 2026, was $33.0 million, up 13.4% from $29.1 million in the same period of fiscal 2025. Gross margin for the fiscal third quarter ended March 31, 2026, was 12.8%, compared to 13.6% in the same period of fiscal 2025. Net income for the fiscal third quarter ended March 31, 2026, was $2.3 million, or $0.05 per diluted share, up 25.0% from net income of $1.9 million, or $0.04 per diluted share for the same period of fiscal 2025. Adjusted EBITDA for the fiscal third quarter ended March 31, 2026, was $5.1 million, up 4.1% from Adjusted EBITDA of $4.9 million for the same period of fiscal 2025. Nine-Months FY 2026 Financial Results Net revenues for the nine months ended March 31, 2026, were $880.9 million, up 5.0% from $835.7 million in the same period of fiscal 2025. Gross profit for the nine months ended March 31, 2026, was $117.3 million, up 21.0% from $96.9 million in the same period of fiscal 2025. Gross margin for the nine months ended March 31, 2026, was 13.3%, up 170 basis points from 11.6% in the same period of fiscal 2025. Net income for the nine months ended March 31, 2026, was $16.6 million, or $0.32 per diluted share, up 78% from net income of $9.3 million, or $0.18 per diluted share for the same period of fiscal 2025. Adjusted EBITDA for the nine months ended March 31, 2026, was $35.7 million, up 47% from Adjusted EBITDA of $24.4 million for the same period of fiscal 2025. 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: 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=1760227&tp_key=0154ad6f3e 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 June 14, 2026, using the following information: 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; our ability to continue as a going concern absent access to sources of liquidity; 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] Non-GAAP Financial Measures: For the three months ended March 31, 2026, we had non-GAAP Adjusted EBITDA of approximately $5.1 million compared with Adjusted EBITDA of approximately $4.9 million in the prior year period, or a year-over-year improvement of $0.2 million. For the nine months ended March 31, 2026, we had non-GAAP Adjusted EBITDA of approximately $35.7 million compared with Adjusted EBITDA of approximately $24.4 million in the prior year period, or a year-over-year improvement of $11.3 million. We define Adjusted EBITDA as net income (loss) adjusted to exclude: (i) income tax expense; (ii) interest expense; (iii) depreciation and amortization; (iv) changes in the fair value of warrant liabilities; and (v) other non-recurring or non-cash items, including transaction costs and stock-based compensation. Our method of calculating Adjusted EBITDA may differ from other companies and accordingly, this measure may not be comparable to measures used by other companies. We use Adjusted EBITDA to evaluate our own operating performance and as an integral part of our planning process. We present Adjusted EBITDA as a supplemental measure because we believe such a measure is useful to investors as a reasonable indicator of operating performance. We believe this measure is a financial metric used by many investors to compare companies. This measure is not a recognized measure of financial performance under GAAP in the United States and should not be considered as a substitute for operating earnings (losses), net earnings (loss) from continuing operations or cash flows from operating activities, as determined in accordance with GAAP. See the table below for a reconciliation, for the periods presented, of our GAAP net income (loss) to Adjusted EBITDA.

PLANTATION, Fla., April 30, 2026 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (Nasdaq: AENT), a premier distributor, logistics provider, and omnichannel fulfillment partner to the entertainment and pop culture collectibles industry, supplying more than 340,000 unique SKUs across physical media, video games, toys, licensed merchandise, and exclusive collectibles to over 35,000 retail and e-commerce storefronts, will hold a conference call on Thursday, May 14, at 4:30 p.m. Eastern Time to discuss its results for the third quarter of fiscal year 2026 ended March 31, 2026. A press release detailing these results will be issued prior to the 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: 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=1760227&tp_key=0154ad6f3e 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 June 14, 2026, using the following information: 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. For investor inquiries, please contact: Dave Gentry RedChip Companies, Inc. 1-800-REDCHIP (733-2447) 1-407-644-4256 [email protected]

This article first appeared on GuruFocus. Release Date: February 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Alliance Entertainment Holding Corp (NASDAQ:AENT) reported a significant increase in net income to $9.4 million and adjusted EBITDA to $18.5 million, reflecting strong profitability. Gross margin expanded by 210 basis points to 12.8%, driven by structural improvements in product mix and disciplined operating execution. The company saw a 33% year-over-year increase in physical movie revenue, highlighting strong demand for premium formats like 4K ultra HD and collectible editions. Exclusive content partnerships, such as those with Paramount Pictures and Amazon MGM Studios, have enhanced pricing, sell-through, and retail visibility. The collectibles segment experienced a 31% revenue increase, supported by expanded sourcing, higher value product launches, and a focus on licensed differentiated collectibles. Net revenue decreased to $369 million from $394 million in the prior year, reflecting softness in lower margin categories like gaming hardware. The gaming hardware segment faced challenges due to supply issues with Microsoft consoles and a $34 million decline in arcade business sales. Despite margin improvements, the market expected a gross margin around 15%, indicating potential concerns about meeting investor expectations. The transition of the arcade business ownership has led to uncertainties and a significant revenue decline in that segment. The company is not providing formal guidance for the remainder of the year, which may create uncertainty for investors regarding future performance. Warning! GuruFocus has detected 2 Warning Signs with AENT. Is AENT fairly valued? Test your thesis with our free DCF calculator. Q: Can you talk about your ability to sign additional exclusive deals with studios, and any thoughts on Warner Brothers in addition to your ability to sign additional studios beyond Paramount and MGM? A: Jeff Walker, CEO, mentioned that Alliance Entertainment is in active conversations with both small and large studios. The company is seen as a premier solution for studios looking to move into a licensing model for physical DVD products. However, he refrained from commenting on the Warner and Paramount Netflix situation, noting that any transaction would lead to strategic decisions beneficial for Alliance. Q: Regarding the gaming hardware front, to what extent are external forces driving your revenue performance versus internal emphasis on other categories? A: Jeff Walker explained that the gaming hardware segment is influenced by supply issues, particularly with Microsoft consoles, which have been short on supply. The company has strong numbers with Nintendo due to the new Switch. The arcade business, categorized under gaming hardware, saw a decline due to ownership transitions, but Alliance is in talks to distribute new products in 2026. Q: What are your thoughts on strategic M&A opportunities currently available? A: Jeff Walker stated that Alliance Entertainment is constantly engaged in robust M&A conversations across various categories. The focus is on finding the right opportunities with the right financial metrics. The company remains optimistic about acquisition opportunities that are financially accretive. Q: Can you clarify the $34 million swing in the arcade business and the expected trends for the gaming division in the second half of the fiscal year? A: Jeff Walker confirmed the $34 million decline in arcade sales and noted that both gaming hardware and arcade sales were down significantly. However, he expects moderating trends as the company moves into 2026, with potential improvements in arcade business during the next holiday season. Q: Could you provide more color on the launch of Alliance Authentic and any strategic opportunities it presents? A: Jeff Walker highlighted the opportunities with NFC digital chips and authentication technology, which are being explored with music labels, video studios, and gaming companies. The technology allows for enhanced content and collectible value, and discussions are ongoing to integrate these solutions into special edition products. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Adjusted EBITDA up 15% to $18.5M; Gross Margin expands 210 basis points to 12.8% Net Income increased to $9.4M, or $0.18 per share, compared to $7.1M, or $0.14 per share, in Q2 FY25 Strengthened balance sheet, ending quarter with $74.1M in working capital PLANTATION, Fla., Feb. 12, 2026 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (Nasdaq: AENT), a premier distributor, logistics provider, and omnichannel fulfillment partner to the entertainment and pop culture collectibles industry, supplying more than 340,000 unique SKUs across music, video, video games, licensed merchandise, and exclusive collectibles to over 35,000 retail and e-commerce storefronts, reported its financial and operational results for its fiscal second quarter ended December 31, 2025. Second Quarter FY 2026 Highlights Sustained Profitability and Margin Execution: Net income increased year-over-year to approximately $9.4 million, or $0.18 per share, up from $7.1 million, or $0.14 per share in Q2 FY25, reflecting continued execution against the Company’s established profitability baseline. Adjusted EBITDA was approximately $18.5 million, an increase of $2.4 million year-over-year. Adjusted EBITDA margin was approximately 5%, compared to 4.1% in Q2 FY25, a 200 basis point improvement over the margin profile achieved in the trailing 12-months ended September 30, 2025. Gross margin expanded 210 basis points year-over-year to 12.8%, driven by favorable mix and higher-value products. A reconciliation of non-GAAP financial measures to the most comparable GAAP measure is provided at the end of this release. Launch of Authentication and Digital Product Identity Platform: On December 31, 2025, the Company completed the acquisition of Endstate, establishing Endstate Authentic, a dedicated NFC-enabled authentication and digital product identity platform. The platform expands Alliance’s role beyond physical product distribution by enabling authenticated ownership, provenance, and verified resale across premium physical goods, supporting the full lifecycle of collectible products from initial sale through secondary markets. Designed as a scalable, enterprise-grade platform, Endstate Authentic is intended to support both Alliance’s internal initiatives and third-party brands, licensors, and ecosystem partners, adding a technology-enabled layer that enhances trust, differentiation, and long-term value creation across the collectibles and premium goods market. Subsequent to quarter end, Alliance launched Alliance Authentic™, a premium vinyl collectibles platform that represents the first commercial application of these capabilities within the Company’s portfolio. Strength in Physical Media: Physical movie revenue increased 33% year-over-year to $114 million, benefiting from sustained demand for premium formats such as 4K Ultra HD and collectible SteelBook editions, as well as the Company’s exclusive distribution partnerships. Alliance was named the exclusive physical media distribution partner for Amazon MGM Studios in North America, effective January 1, 2026, further strengthening its leadership in premium home entertainment and collector-focused releases. Vinyl record sales increased 3% year-over-year, supported by continued consumer demand for collectible and limited-edition releases. Compact disc (CD) sales increased approximately 5% year-over-year, supported by higher unit volumes and the Company’s first full quarter as the exclusive distributor for Virgin Music Group through its AMPED Distribution division. Collectibles Growth and Portfolio Expansion: Collectibles revenue increased 31% year-over-year, driven by higher average selling prices and a continued shift toward premium, licensed products. Results benefited from expanded sourcing activity, new vendor additions, and the continued integration of the Company’s owned brand, Handmade by Robots™. Operational Discipline and Infrastructure Investment: Operating income increased year-over-year to $17.3 million, up from $14.8 million in Q2 FY25, reflecting continued operating leverage and disciplined cost management. Total operating expenses rose modestly, driven by targeted investments in technology, personnel, and infrastructure to support exclusive content partnerships and long-term scalability. Distribution and fulfillment costs were 3.3% of net revenue, consistent with 3.2% in Q2 FY25, supported by warehouse automation initiatives and ongoing efficiencies from prior facility consolidation. Balance Sheet and Liquidity Strength: The Company ended the quarter with working capital of approximately $74.1 million, reflecting disciplined management of inventory and payables. During the quarter, the Company refinanced its asset-based lending agreement with a new $120 million senior secured credit facility from Bank of America, enhancing liquidity and financial flexibility, with availability at quarter end of $35 million. “Our second quarter results reflect continued execution against the profitability baseline we established last year,” said Jeff Walker, Chief Executive Officer of Alliance Entertainment. “For the six months ended December 31, 2025, earnings per share increased to $0.28, up from $0.15 in the prior-year period, demonstrating the earnings leverage created by our structurally improved margin profile. “Physical media continues to perform as a collectible category, supported by exclusive partnerships and strong consumer demand for premium formats,” Walker added. “With the launch of Alliance Authentic™, we’re extending that strategy into premium vinyl collectibles by introducing The Ultimate Vinyl Collectible™, enabling fans and collectors to Own a Piece of Vinyl History™ through authentic, certified, and individually numbered releases sourced directly from rights holders. This initiative builds on our strengths in physical media and reinforces our focus on high-value, enthusiast-driven products. With a structurally stronger margin profile and a growing pipeline of exclusive content, we believe Alliance is well positioned to deliver durable profitability and long-term value for our shareholders.” Amanda Gnecco, Chief Financial Officer of Alliance Entertainment, said, “Net income in the second quarter increased 33% year-over-year to $9.4 million, and adjusted EBITDA margin improved 92 basis points year-over-year to 5.0%, reflecting the durability of our cost structure and the benefits of our improving product mix. “During the quarter, we strengthened our balance sheet by refinancing our credit facility with Bank of America, reducing borrowing costs by up to 250 basis points and extending the maturity to five years. We ended the quarter with just over $74 million in working capital and enhanced liquidity, providing greater financial flexibility to support premium inventory, exclusive partnerships, and strategic initiatives while maintaining disciplined capital management,” continued Gnecco. “As we look ahead, we’re building on a much stronger foundation,” Walker continued. “The acquisition of Endstate and the launch of Endstate Authentic mark an important step in expanding Alliance beyond distribution into authenticated collectibles, digital product identity, and recurring platform-driven revenue. This technology allows us to extend the value of physical products across their entire lifecycle—from initial sale through authenticated resale—while strengthening trust, provenance, and margins across our ecosystem. With the launch of Alliance Authentic™, we are also creating new opportunities in the collectible vinyl market by applying authentication, scarcity, and provenance to products we already source and distribute at scale. “Separately, our new exclusive partnership with Amazon MGM Studios strengthens our leadership in premium physical home entertainment,” Walker added. “By combining our scale, operational execution, and exclusive studio relationships, we continue to elevate physical movies as collectible formats for fans and enthusiasts. Together, these initiatives reflect a disciplined approach to growth that leverages our scale, exclusivity, and financial flexibility to create long-term shareholder value.” Second Quarter FY 2026 Financial Results Net revenues for the fiscal second quarter ended December 31, 2025, were $369 million, compared to $394 million in the same period of fiscal 2025. Gross profit for the fiscal second quarter ended December 31, 2025, was $47.1 million, compared to $42.3 million in the same period of fiscal 2025. Gross margin for the fiscal second quarter ended December 31, 2025, was 12.8%, up 210 basis points from 10.7% in the same period of fiscal 2025. Net income for the fiscal second quarter ended December 31, 2025, was $9.4 million, or $0.18 per diluted share, compared to net income of $7.1 million, or $0.14 per diluted share for the same period of fiscal 2025. Adjusted EBITDA for the fiscal second quarter ended December 31, 2025, was $18.5 million, compared to Adjusted EBITDA of $16.1 million for the same period of fiscal 2025. Six-Months FY 2026 Financial Results Net revenues for the six months ended December 31, 2025, were $623 million, compared to $623 million in the same period of fiscal 2025. Gross profit for the six months ended December 31, 2025, was $84.3 million, compared to $67.8 million in the same period of fiscal 2025. Gross margin for the six months ended December 31, 2025, was 13.5%, up 260 basis points from 10.9% in the same period of fiscal 2025. Net income for the six months ended December 31, 2025, was $14.3 million, or $0.28 per diluted share, compared to net income of $7.5 million, or $0.15 per diluted share for the same period of fiscal 2025. Adjusted EBITDA for the six months ended December 31, 2025, was $30.7 million, compared to Adjusted EBITDA of $19.5 million for the same period of fiscal 2025. 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: 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=1749656&tp_key=d0dfe4e261 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 March 12, 2026, using the following information: 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; our ability to continue as a going concern absent access to sources of liquidity; 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] ALLIANCE ENTERTAINMENT HOLDING CORP. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS ALLIANCE ENTERTAINMENT HOLDING CORP. CONSOLIDATED BALANCE SHEETS ALLIANCE ENTERTAINMENT HOLDING CORP. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS Non-GAAP Financial Measures: For the three months ended December 31, 2025, we had non-GAAP Adjusted EBITDA of approximately $18.5 million compared with Adjusted EBITDA of approximately $16.1 million in the prior year period, or a year-over-year improvement of $2.4 million. For the six months ended December 31, 2025, we had non-GAAP Adjusted EBITDA of approximately $30.7 million compared with Adjusted EBITDA of approximately $19.5 million in the prior year period, or a year-over-year improvement of $11.2 million. We define Adjusted EBITDA as net gain or loss adjusted to exclude: (i) income tax expense; (ii) other income (loss); (iii) interest expense; (iv) depreciation and amortization expense; and (v) other non- recurring expenses. Our method of calculating Adjusted EBITDA may differ from other companies and accordingly, this measure may not be comparable to measures used by other companies. We use Adjusted EBITDA to evaluate our own operating performance and as an integral part of our planning process. We present Adjusted EBITDA as a supplemental measure because we believe such a measure is useful to investors as a reasonable indicator of operating performance. We believe this measure is a financial metric used by many investors to compare companies. This measure is not a recognized measure of financial performance under GAAP in the United States and should not be considered as a substitute for operating earnings (losses), net earnings (loss) from continuing operations or cash flows from operating activities, as determined in accordance with GAAP. See the table below for a reconciliation, for the periods presented, of our GAAP net income (loss) to Adjusted EBITDA.

Profitability improved despite lower revenue: Q2 revenue fell to $369 million, but gross profit rose to $47.1 million, net income increased to $9.4 million ($0.18/share), and adjusted EBITDA grew to about $18.5 million with margin expansion year-over-year. Shift to premium physical media and collectibles is driving growth: Management is prioritizing higher‑value formats and exclusives (notably deals with Paramount and the new Amazon MGM Studios partnership), helping physical movie revenue jump 33% and collectibles climb 31%, supported by owned brands and the NState Authentic NFC platform. Balance-sheet and liquidity strengthened for execution: Alliance replaced its prior facility with a $120 million senior secured revolver that cuts borrowing costs by up to 250 bps and extends maturity, ending the quarter with about $74 million in working capital while managing category headwinds like gaming hardware. Interested in Alliance Entertainment Holding Corporation? Here are five stocks we like better. 3 Small-Cap Stocks With Big Growth Potential Alliance Entertainment (NASDAQ:AENT) reported higher profitability in its fiscal second quarter, as management emphasized the impact of a deliberate shift toward premium physical media and collectibles alongside continued cost discipline. The company said it is prioritizing “earnings quality” and “margin durability” even as certain lower-margin categories weigh on revenue comparisons. For the quarter ended December 31, 2025, Alliance reported net revenue of $369 million, down from $394 million in the prior-year period. Chief Financial Officer Amanda Gnecco said the year-over-year decline reflected “continued softness in certain lower margin categories, most notably gaming hardware,” as well as a deliberate mix shift toward higher-value products across physical media and collectibles. → Once Upon A Farm: Buy the $1B Growth Story? Despite lower revenue, gross profit rose to $47.1 million from $42.3 million, and gross margin expanded 210 basis points to 12.8%. Net income increased to $9.4 million, or $0.18 per diluted share, compared with $7.1 million, or $0.14 per share, a year earlier. Adjusted EBITDA rose to about $18.5 million, up $2.4 million year-over-year, with adjusted EBITDA margin improving to roughly 5% from 4.1%. Chief Executive Officer Jeff Walker said the margin expansion was driven by “structural improvements in product mix,” operating discipline, and “the leverage we’ve built into our infrastructure,” rather than one-time or short-term actions. → No Rally? Coca-Cola’s Results Still Look Like a Sweet Deal For the six months ended December 31, 2025, Alliance reported net revenue of $623 million, which management described as essentially flat versus the prior-year period. Profitability improved markedly: gross profit increased to $84.3 million from $67.8 million, and gross margin expanded 260 basis points to 13.5%. Net income for the six-month period rose to $14.3 million, or $0.28 per diluted share, compared with $7.5 million, or $0.15 per share, in the prior-year period. Adjusted EBITDA increased to approximately $30.7 million from $19.5 million, a year-over-year improvement of more than $11 million, according to the company. → AI Power Crunch: Why Bloom Energy Is the Hidden Winner Walker argued that Alliance does not view physical media as a “legacy business,” describing it instead as a collectible market driven by “enthusiasts, premium formats, and exclusivity.” In the quarter, physical movie revenue increased 33% year-over-year to $114 million, which he attributed to demand for premium formats such as 4K, Ultra HD, and collectible Steelbook editions. Management highlighted its exclusive studio partnerships as central to the strategy. Walker pointed to the Paramount Pictures exclusive agreement, effective January 1, 2025, saying it expanded access to catalog and new-release content and supported higher average selling prices and stronger sell-through on premium formats. He also discussed a new exclusive partnership with Amazon MGM Studios that became effective January 1, 2026, which the company expects to add recognizable franchises and curated releases suitable for collectible formats. In the Q&A, Walker said Alliance is in “active conversations with small and large studios” and suggested that industry change tends to be favorable for Alliance when companies reassess the status quo. He declined to comment in detail on developments involving Warner Bros., but said decision-making and transactions in the space can lead participants to re-evaluate business approaches. Alliance reported that collectibles revenue increased 31% year-over-year, driven by expanded sourcing, higher-value launches, and a mix shift toward licensed and differentiated products. Walker said the integration of Handmade by Robots has contributed to revenue growth and margin improvement since it became an owned brand, giving Alliance more control over design, sourcing, and product lifecycle management. The company also discussed its acquisition of NState and the introduction of NState Authentic, which uses NFC-enabled authentication and digital product identity to verify and track products across their lifecycle, including potential secondary-market activity. Walker said the initiative is intended to build “platform optionality,” including opportunities tied to authenticated resale, brand protection, and collector engagement, rather than near-term revenue. During the webcast Q&A, Walker said the NState team is engaged in discussions across internal applications and third-party opportunities with record labels, studios, and gaming companies, as well as with grading and authentication firms interested in authenticated resale use cases. Gnecco said Alliance ended the quarter with about $74 million in working capital and noted modest seasonal inventory increases that remained aligned with demand. She also highlighted a refinancing completed early in the quarter: Alliance replaced its prior asset-based lending agreement with a new $120 million senior secured revolving credit facility with Bank of America. Management said the new facility reduces borrowing costs by up to 250 basis points, extends maturity to five years, and increases flexibility for working capital and strategic initiatives. On category trends, management addressed weakness in gaming hardware and arcade products. Walker said Microsoft console supply constraints have pressured hardware results and noted that arcade sales were down $34 million year-over-year in the quarter as Arcade1Up transitioned ownership to Basic Fun!. He said the company is in discussions with Basic Fun! about distribution and expects to see arcade products again “as we move into the middle of 2026,” with the holiday season next year expected to be stronger than the most recent one. Walker also offered an update on music, calling vinyl and CD sales “extremely strong.” He cited a company statistic that in 2025 Alliance sold over 16 million vinyl records and over 13 million CDs, and he pointed to upcoming releases (including Bruno Mars, Harry Styles, and BTS) that were showing “good pre-order” activity. Looking ahead, Walker said Alliance is not providing formal guidance, but expressed confidence in the durability of the margin profile being built. He outlined priorities including scaling Alliance Authentic in a “thoughtful and controlled way,” executing the Amazon MGM Studios exclusive partnership, expanding collectibles and owned brands, and deepening integrations and partnerships around digital authentication. Alliance Entertainment (NASDAQ: AENT) is a distributor of physical media and related entertainment products, serving retailers, public libraries and online merchants. The company’s core business revolves around the wholesale distribution of music and video titles on CD, DVD and Blu-ray formats, as well as vinyl records, audiobooks, video games and select gift and novelty items. By maintaining a broad catalog of new and catalog titles, Alliance Entertainment enables brick-and-mortar and e-commerce channels to access an extensive range of products from major and independent labels. In addition to its product offerings, Alliance Entertainment provides supply-chain and logistics services designed to streamline inventory management and order fulfillment. The article "Alliance Entertainment Q2 Earnings Call Highlights" was originally published by MarketBeat.