Alliance Entertainment Holding (AENT)
NASDAQ:AENT
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Alliance Entertainment Holding
(NASDAQ:AENT)
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Rating:62Neutral
Price Target:
$7.00
▼(-1.69% Downside)
Action:Reiterated
Date:05/19/26
The score is driven by improving financial fundamentals and a positive earnings-call outlook (growth and profitability trending up, leverage reduced, and free cash flow positive). These strengths are meaningfully offset by very weak valuation (extreme P/E) and bearish technical positioning with price below key moving averages and negative MACD.
Positive Factors
Free Cash Flow Generation
Sustained positive free cash flow (~$31.6M TTM, roughly matching net income) indicates the business converts earnings to cash, supporting reinvestment in inventory, platform rollouts and continued deleveraging. Durable cash generation improves financial optionality over the medium term.
Negative Factors
Thin & Pressured Margins
Margins are structurally thin and recently compressed; with gross margin near mid-teens and EBITDA low single digits, the business has limited cushion for cost inflation or adverse mix. Durable profitability depends on sustaining premium mix and platform monetization to expand margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Sustained positive free cash flow (~$31.6M TTM, roughly matching net income) indicates the business converts earnings to cash, supporting reinvestment in inventory, platform rollouts and continued deleveraging. Durable cash generation improves financial optionality over the medium term.
Read all positive factors
Alliance Entertainment Holding (AENT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$314.00M
Dividend YieldN/A
Average Volume (3M)109.43K
Price to Earnings (P/E)36015.5
Beta (1Y)1.30
Revenue Growth3.36%
EPS Growth88.97%
CountryUS
Employees657
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.43
Shares Outstanding50,974,630
10 Day Avg. Volume53,365
30 Day Avg. Volume109,427
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.86
Price to Sales (P/S)0.18
P/FCF Ratio7.16
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit2.67
Enterprise Value/Ebitda8.67
Forecast
1Y Price Target
$8.50Price Target Upside19.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.36
Revenue Forecast (FY)$1.08B
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, collectib...
How the Company Makes Money
AENT primarily makes money by purchasing physical and collectible entertainment products from content owners, labels, studios, publishers, and other suppliers and reselling those products to customers (e.g., retailers and other downstream channels...
Alliance Entertainment Holding Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive trajectory: strong top-line growth (Q3 +21%), notable category wins (CDs +90%, Collectibles +48%, vinyl +15%), and substantial year-to-date earnings expansion (YTD net income +78%, adjusted EBITDA +47%). Management is executing strategic initiatives—platform authentication, owned brands and expanded licensing—that should enhance longer-term margins and engagement. Near-term headwinds include quarter-level gross margin compression, modest quarterly EBITDA growth relative to revenue due to targeted investments, higher inventory tied to timing and the early-stage nature of platform businesses. Overall, the positive operational and financial momentum, ample liquidity, and clear strategic roadmap outweigh the execution and timing risks highlighted.Positive Updates
Strong Quarterly Revenue Growth
Net revenue for Q3 was $258.0M, up 21% year-over-year from $213.0M, driven by broad-based strength across core categories.
Negative Updates
Quarterly Gross Margin Compression
Q3 gross margin declined to 12.8% from 13.6% a year ago (down ~80 basis points) with gross profit of $33.0M vs $29.1M, attributed to category and product mix (greater contribution from some lower-margin categories as revenue scaled).
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Quarterly Revenue Growth
Net revenue for Q3 was $258.0M, up 21% year-over-year from $213.0M, driven by broad-based strength across core categories.
Read all positive updates
Company Guidance
Management gave directional (not numeric) forward guidance: they remain confident in the trajectory and expect continued revenue growth and earnings expansion driven by Premium Physical Media and higher‑value Collectibles, citing Q3 and YTD metrics as the basis — Q3 net revenue $258M (+21% YoY), net income $2.3M ($0.05/diluted, +25%), adjusted EBITDA ~$5.1M (+4%); category results included Vinyl $99M (+15%), CDs $39M (+90%), Physical Movie $61M (+5%), and Collectibles +48%; nine‑month results were net revenue $881M (+5%), gross profit $117.3M (gross margin 13.3%, +170 bps), net income $16.6M ($0.32, +78%) and adjusted EBITDA $35.7M (+47%); the company closed the quarter with ~ $60M working capital and ~$56M revolver availability, expects near‑term product catalysts (Project Hail Mary in August and Grand Theft Auto in Q4) to be “home runs,” and said Alliance Authentic/Endstate will scale in fiscal ’27 with upcoming encapsulation rollouts and commercial deals that would signal meaningful contribution.Alliance Entertainment Holding Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Sep 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.11B | 1.06B | 1.10B | 1.16B | 1.42B | 1.32B |
| Gross Profit | 149.30M | 132.85M | 128.89M | 103.93M | 182.38M | 182.68M |
| EBITDA | 45.89M | 34.62M | 19.98M | -26.12M | 50.36M | 59.56M |
| Net Income | 22.34M | 15.08M | 4.58M | -35.40M | 28.62M | 34.18M |
Balance Sheet | ||||||
| Total Assets | 387.10M | 361.23M | 340.81M | 389.53M | 473.04M | 388.96M |
| Cash, Cash Equivalents and Short-Term Investments | 1.24M | 1.24M | 1.13M | 865.00K | 1.47M | 4.03M |
| Total Debt | 85.42M | 90.94M | 109.83M | 155.71M | 152.04M | 72.04M |
| Total Liabilities | 267.15M | 258.01M | 253.18M | 310.00M | 364.11M | 308.66M |
| Stockholders Equity | 119.95M | 103.22M | 87.63M | 79.53M | 108.93M | 80.30M |
Cash Flow | ||||||
| Free Cash Flow | 31.64M | 26.75M | 55.59M | 2.56M | -83.60M | 74.07M |
| Operating Cash Flow | 32.31M | 26.81M | 55.77M | 3.39M | -83.55M | 74.72M |
| Investing Cash Flow | -9.32M | -8.13M | -117.00K | -824.00K | -50.00K | -66.06M |
| Financing Cash Flow | -27.24M | -18.57M | -55.39M | -3.16M | 81.04M | -5.98M |
Alliance Entertainment Holding Technical Analysis
Negative
7.12
Price Trends
6.99
Negative
6.90
Negative
6.68
Negative
Market Momentum
-0.24
Positive
37.61
Neutral
23.05
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 7.12 is above the 20-day moving average (MA) of 7.06, above the 50-day MA of 6.99, and above the 200-day MA of 6.68, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 37.61 is Neutral, neither overbought nor oversold. The STOCH value of 23.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AENT.
Alliance Entertainment Holding Risk Analysis
Alliance Entertainment Holding disclosed 64 risk factors in its most recent earnings report. Alliance Entertainment Holding reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alliance Entertainment Holding Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $405.89M | ― | 5.30% | ― | -3.42% | ― | |
62 Neutral | $314.00M | 36,015.47 | 19.91% | ― | 3.36% | 88.97% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $364.50M | ― | -44.91% | ― | ― | ― | |
54 Neutral | $63.03M | -13.79 | -5.46% | ― | 7.48% | 15.04% | |
52 Neutral | $52.17M | -10.97 | -24.20% | ― | -23.64% | 43.97% | |
50 Neutral | $93.49M | -3.34 | 128.06% | ― | -38.49% | -61.52% |
* Communication Services Sector Average
AENT
Alliance Entertainment Holding
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135.11%
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Alliance Entertainment Holding Corporate Events
Business Operations and StrategyFinancial Disclosures
Alliance Entertainment Posts Strong Q3 Growth, Expands Platforms
Positive
May 14, 2026
Alliance Entertainment reported strong results for its fiscal third quarter ended March 31, 2026, with net revenues rising 21.1% year over year to $258.2 million and net income increasing 25% to $2.3 million. For the first nine months of fiscal 20...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.