Alliance Entertainment Holding (AENT) AI Stock Analysis

• Market Cap: $352.12M
• Dividend Yield: N/A
• Average Volume (3M): 49.23K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.66
• Revenue Growth: -1.29%
• EPS Growth: 131.68%
• Country: US
• Employees: 657
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.10
• Shares Outstanding: 50,957,370
• 10 Day Avg. Volume: 47,055
• 30 Day Avg. Volume: 49,230
• PEG Ratio: 0.05
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 7.16
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 3.07
• Enterprise Value/Ebitda: 10.32
• 1Y Price Target: $10.50
• Price Target Upside: 51.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.58
• Revenue Forecast (FY): $1.12B

• Rating: 77 Outperform
• Price Target: $8.00 ▲(15.77% Upside)

Alliance Entertainment Holding's strong earnings call and technical momentum are the primary drivers of its stock score. Financial performance shows improvement, but profitability remains a concern. Valuation is fair, but the lack of a dividend yield is a drawback for some investors.

Positive Factors

Revenue and margin expansion

Sustained revenue growth paired with multi-hundred basis point gross margin expansion and sharply higher adjusted EBITDA indicate improving product mix, pricing power, and operational leverage. These structural improvements support durable cash generation and reinvestment capacity over the medium term.

Improved cash generation

High FCF growth and near-1 conversion of net income to free cash flow point to stronger underlying cash conversion. That durable improvement reduces reliance on external financing, funds working capital and capex, and improves resilience through economic cycles over the next several quarters.

Stronger leverage profile

Lower leverage and a healthy ROE reflect better capital structure management and efficient use of equity. Improved balance-sheet flexibility and returns enhance the company’s ability to make strategic investments or withstand revenue volatility without jeopardizing long-term operations.

Negative Factors

Low net profitability

A sub-2% net margin signals limited margin buffer after operating costs, making sustained profitability sensitive to supply, pricing, or cost shocks. Low bottom-line conversion constrains reinvestment, limits free cash flow upside, and requires continued margin improvement to support long-term growth.

High inventory vs. liquidity

Heavy inventory relative to cash ties up working capital and raises liquidity and obsolescence risk in a product-driven wholesale model. This structural working-capital intensity can pressure cash flow and financing needs if sales slow or product mix shifts over coming quarters.

Delayed impact from growth initiatives

Key strategic initiatives with multi-year timelines mean near-term financial improvement relies on existing channels. The delay extends payback periods on R&D and go-to-market investments, increasing execution risk and making sustained uplift contingent on long-term scale achievement.

Alliance Entertainment Holding Business Overview & Revenue Model

Company Description

Alliance Entertainment Holding Corporation operates as a wholesaler, distributor, and e-commerce provider for the entertainment industry worldwide. It offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. The company also provides third party logistics products and services. It distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company was founded in 1990 and is headquartered in Plantation, Florida.

How the Company Makes Money

Alliance Entertainment generates revenue primarily through the distribution of entertainment products to retailers and online platforms. The company operates a multi-faceted revenue model that includes wholesale distribution to brick-and-mortar stores, direct-to-consumer sales via e-commerce channels, and licensing agreements for digital content. Key revenue streams consist of sales from physical media, digital downloads, and subscription services. Additionally, partnerships with major record labels, film studios, and gaming companies enhance AENT's product offerings and expand its market reach, contributing significantly to its earnings.

Alliance Entertainment Holding Financial Statement Overview

Summary

Alliance Entertainment Holding shows modest revenue growth and improved cash flow generation. However, profitability remains a concern with low net profit margins and operational inefficiencies. The balance sheet reflects better leverage management.

Income Statement

Alliance Entertainment Holding shows a modest revenue growth rate of 2.35% TTM, indicating a recovery from previous declines. The gross profit margin of 12.49% TTM is stable, but net profit margin remains low at 1.42% TTM, suggesting limited profitability. The EBIT and EBITDA margins are weak, reflecting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.25 TTM, indicating better leverage management compared to previous years. Return on equity is healthy at 15.70% TTM, showing effective use of equity. However, the equity ratio is not provided, limiting full assessment of asset financing.

Cash Flow

Free cash flow growth is strong at 52.35% TTM, demonstrating improved cash generation. The operating cash flow to net income ratio is 0.16 TTM, indicating adequate cash flow relative to earnings. Free cash flow to net income is nearly 1, suggesting efficient conversion of earnings to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.09B	1.06B	1.10B	1.16B	1.42B	1.32B
Gross Profit	143.21M	132.85M	128.89M	103.93M	182.38M	182.68M
EBITDA	42.55M	34.62M	19.98M	-26.12M	50.36M	59.56M
Net Income	19.56M	15.08M	4.58M	-35.40M	28.62M	34.18M
Balance Sheet
Total Assets	382.99M	361.23M	340.81M	389.53M	473.04M	388.96M
Cash, Cash Equivalents and Short-Term Investments	3.22M	1.24M	1.13M	865.00K	1.47M	4.03M
Total Debt	90.13M	90.94M	109.83M	155.71M	152.04M	72.04M
Total Liabilities	274.86M	258.01M	253.18M	310.00M	364.11M	308.66M
Stockholders Equity	108.13M	103.22M	87.63M	79.53M	108.93M	80.30M
Cash Flow
Free Cash Flow	51.42M	26.75M	55.59M	2.56M	-83.60M	74.07M
Operating Cash Flow	51.56M	26.81M	55.77M	3.39M	-83.55M	74.72M
Investing Cash Flow	-7.63M	-8.13M	-117.00K	-824.00K	-50.00K	-66.06M
Financing Cash Flow	-47.66M	-18.57M	-55.39M	-3.16M	81.04M	-5.98M

Alliance Entertainment Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AENT, the sentiment is Negative. The current price of 6.91 is below the 20-day moving average (MA) of 7.61, below the 50-day MA of 7.41, and above the 200-day MA of 5.55, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 37.24 is Neutral, neither overbought nor oversold. The STOCH value of 23.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AENT.

Alliance Entertainment Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AENT	77 Outperform	$352.12M	18.00	19.94%	―	-1.29%	131.68%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AMCX	57 Neutral	$335.59M	―	-12.87%	―	-7.38%	-483.59%
GAIA	56 Neutral	$84.89M	-17.47	-5.63%	―	12.98%	27.93%
CNVS	48 Neutral	$38.30M	―	-3.49%	―	77.29%	97.98%
STRZ	45 Neutral	$167.14M	-8.36	―	―	-2.85%	75.96%
LVO	43 Neutral	$55.94M	-2.04	―	―	-32.17%	-135.06%

Alliance Entertainment Holding Corporate Events

Alliance Entertainment Reports Strong Fiscal 2026 Start

On November 12, 2025, Alliance Entertainment reported a strong start to fiscal 2026 with a notable 11% increase in revenue to $254 million, driven by physical media and collectibles. The company saw a 259% rise in adjusted EBITDA to $12.2 million and a significant improvement in net income to $4.9 million. The implementation of AI tools has enhanced sales and operational efficiency, while strategic investments in technology and infrastructure have strengthened their market position. The company’s exclusive content partnerships and AI-driven productivity gains are expected to support sustained growth and long-term shareholder value.

The most recent analyst rating on (AENT) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Alliance Entertainment Holding stock, see the AENT Stock Forecast page.

Alliance Entertainment Elects New Board Directors

On November 6, 2025, Alliance Entertainment Holding held its Annual Meeting where stockholders voted on the election of three Class II directors to the company’s Board. The nominees, Terilea Wielenga, Dmitry Kozko, and Sheila Bangalore, were elected to serve until the 2028 Annual Meeting, with each receiving significant support from the stockholders.

The most recent analyst rating on (AENT) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Alliance Entertainment Holding stock, see the AENT Stock Forecast page.