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

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

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 Trading Up 16.5%

Shares of AENT stock opened at $6.42 on Friday. The company has a 50 day moving average of $5.65 and a 200-day moving average of $6.16. The company has a quick ratio of 0.63, a current ratio of 1.33 and a debt-to-equity ratio of 0.54. Alliance Entertainment has a 12-month low of $4.36 and a 12-month high of $8.80. The firm has a market cap of $327.23 million, a P/E ratio of 24.69 and a beta of 0.42.

Hedge Funds Weigh In On Alliance Entertainment

Several institutional investors and hedge funds have recently bought and sold shares of AENT. Bridgeway Capital Management LLC increased its position in Alliance Entertainment by 8.6% in the fourth quarter. Bridgeway Capital Management LLC now owns 145,927 shares of the company’s stock worth $1,179,000 after buying an additional 11,562 shares during the last quarter. O Shaughnessy Asset Management LLC increased its holdings in Alliance Entertainment by 91.5% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 130,855 shares of the company’s stock worth $1,057,000 after acquiring an additional 62,510 shares during the last quarter. Empowered Funds LLC increased its holdings in Alliance Entertainment by 10.3% in the 4th quarter. Empowered Funds LLC now owns 123,727 shares of the company’s stock worth $1,000,000 after acquiring an additional 11,562 shares during the last quarter. Millennium Management LLC raised its stake in Alliance Entertainment by 29.2% in the 3rd quarter. Millennium Management LLC now owns 85,510 shares of the company’s stock valued at $582,000 after acquiring an additional 19,325 shares during the period. Finally, Rothschild Wealth LLC bought a new stake in Alliance Entertainment in the 4th quarter valued at about $525,000. 0.27% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

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