Alliance Entertainment (NASDAQ:AENT) Issues Earnings Results, Beats Estimates By $0.03 EPS

Alliance Entertainment (NASDAQ:AENT) issued its earnings results on Thursday. The company reported $0.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.02 by $0.03, Zacks reports. The company had revenue of $258.20 million during the quarter, compared to analyst estimates of $226.09 million. Alliance Entertainment had a return on equity of 20.53% and a net margin of 2.06%.

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

• Alliance delivered strong Q3 growth, with net revenue up 21% year over year to $258 million, net income up 25%, and adjusted EBITDA of $5.1 million. Year to date, net income rose 78% and adjusted EBITDA increased 47%, underscoring improving operating leverage.
• Music and video remained strong, led by vinyl revenue of $99 million (+15%), CD revenue of $39 million (+90%), and physical movie revenue of $61 million (+5%). Management said demand is being driven by ownership, collector behavior, and premium formats rather than simple access to content.
• Collectibles continued to accelerate, with revenue up 48% year over year as the company shifted toward higher-value, more differentiated products. Management highlighted Handmade by Robots as an important margin driver and said the category is benefiting from stronger pricing power and better inventory efficiency.
• Alliance Authentic and Endstate Authentic are being positioned as new growth platforms that add authentication, provenance, and resale support to collectibles. The company said these initiatives could expand beyond vinyl into video games, Steelbooks, and other categories over time.
• Management sounded optimistic about the pipeline, citing major upcoming releases like Project Hail Mary, Grand Theft Auto VI, and additional licensed content as potential demand drivers. The company also said it is actively pursuing acquisitions and expects more announcements tied to its authenticity platform in fiscal 2027.

Alliance Entertainment Stock Performance

Shares of NASDAQ AENT traded up $0.73 during trading on Thursday, reaching $7.60. 131,545 shares of the company traded hands, compared to its average volume of 59,162. The firm’s fifty day simple moving average is $6.99 and its 200 day simple moving average is $6.94. The stock has a market cap of $387.27 million, a P/E ratio of 17.67 and a beta of 0.50. Alliance Entertainment has a 12-month low of $2.36 and a 12-month high of $8.80. The company has a current ratio of 1.35, a quick ratio of 0.79 and a debt-to-equity ratio of 0.72.

Hedge Funds Weigh In On Alliance Entertainment

A number of institutional investors have recently modified their holdings of the stock. Bridgeway Capital Management LLC raised its stake in shares of Alliance Entertainment by 8.6% during the 4th quarter. Bridgeway Capital Management LLC now owns 145,927 shares of the company’s stock valued at $1,179,000 after buying an additional 11,562 shares during the last quarter. O Shaughnessy Asset Management LLC grew its position in shares of Alliance Entertainment by 91.5% during 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 during the period. Empowered Funds LLC grew its position in shares of Alliance Entertainment by 10.3% during the 4th quarter. Empowered Funds LLC now owns 123,727 shares of the company’s stock valued at $1,000,000 after acquiring an additional 11,562 shares during the period. Millennium Management LLC boosted its holdings in Alliance Entertainment by 29.2% in the 3rd quarter. Millennium Management LLC now owns 85,510 shares of the company’s stock worth $582,000 after buying an additional 19,325 shares during the last quarter. Finally, Rothschild Wealth LLC acquired a new stake in Alliance Entertainment in the 4th quarter worth about $525,000. Hedge funds and other institutional investors own 0.27% of the company’s stock.

Analysts Set New Price Targets

AENT has been the subject of a number of research analyst reports. Maxim Group set a $8.00 target price on Alliance Entertainment in a research note on Friday, February 13th. Wall Street Zen lowered Alliance Entertainment from a “strong-buy” rating to a “hold” rating in a research note on Saturday, February 14th. Weiss Ratings reiterated a “hold (c)” rating on shares of Alliance Entertainment in a research note on Monday, April 20th. Finally, Zacks Research upgraded Alliance Entertainment from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 14th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $10.00.

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.