Alliance Entertainment (NASDAQ:AENT) Releases Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Alliance Entertainment (NASDAQ:AENT) posted its quarterly earnings data on Thursday. The company reported $0.13 EPS for the quarter, topping analysts’ consensus estimates of $0.01 by $0.12, Zacks reports. Alliance Entertainment had a return on equity of 20.35% and a net margin of 1.14%.The company had revenue of $268.10 million for the quarter, compared to the consensus estimate of $234.95 million.

Here are the key takeaways from Alliance Entertainment’s conference call:

• Fiscal 2026 results improved: Revenue rose 8% to $1.15 billion, gross margin expanded to 13.3%, and adjusted EBITDA increased 14% to $41.5 million. Fourth-quarter revenue grew 18% year over year to $268.1 million.
• Demand was broad-based, with vinyl revenue up 13%, CD revenue up 25%, physical movie revenue up 22%, collectibles up 45%, and fulfillment fees up 26%. Management expects continued momentum from premium formats, exclusive content, and major releases such as Grand Theft Auto VI.
• Paramount and Amazon MGM relationships are expanding the company’s physical-media catalog, while Alliance Authentic, Endstate Authentic, Handmade by Robots, and the planned AI-enabled Webb-AMP platform provide potential higher-margin growth opportunities.
• Operating cash flow deteriorated to a $1.7 million use from $26.8 million of cash generation in the prior year, primarily because inventory and receivables grew faster than revenue. Management identified working-capital discipline, inventory productivity, and collections as key fiscal 2027 priorities.

Alliance Entertainment Price Performance

NASDAQ AENT opened at $6.42 on Friday. The company has a quick ratio of 0.63, a current ratio of 1.33 and a debt-to-equity ratio of 0.54. The stock has a market capitalization of $327.23 million, a PE ratio of 24.69 and a beta of 0.42. Alliance Entertainment has a 12-month low of $4.36 and a 12-month high of $8.80. The company has a 50 day moving average price of $5.65 and a two-hundred day moving average price of $6.16.

Analyst Ratings Changes

Separately, Weiss Ratings raised shares of Alliance Entertainment from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, June 17th. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $10.00.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Rothschild Wealth LLC bought a new stake in shares of Alliance Entertainment during the 4th quarter worth about $525,000. O Shaughnessy Asset Management LLC raised its stake in shares of Alliance Entertainment by 91.5% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 130,855 shares of the company’s stock valued at $1,057,000 after acquiring an additional 62,510 shares in the last quarter. Marshall Wace LLP bought a new position in shares of Alliance Entertainment in the 4th quarter valued at approximately $422,000. Jacobs Levy Equity Management Inc. acquired a new stake in Alliance Entertainment in the 3rd quarter worth approximately $193,000. Finally, Millennium Management LLC boosted its position in Alliance Entertainment by 29.2% during the third quarter. Millennium Management LLC now owns 85,510 shares of the company’s stock worth $582,000 after purchasing an additional 19,325 shares during the period. Institutional investors own 0.27% of the company’s stock.

Alliance Entertainment Company Profile

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.