Alliance Entertainment Holding (AENT) AI Stock Analysis

• Market Cap: $333.52M
• Dividend Yield: N/A
• Average Volume (3M): 58.96K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 1.61
• Revenue Growth: -3.36%
• EPS Growth: 230.98%
• Country: US
• Employees: 657
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.11
• Shares Outstanding: 50,957,370
• 10 Day Avg. Volume: 80,189
• 30 Day Avg. Volume: 58,960
• PEG Ratio: 54.55
• Price to Book (P/B): 1.86K
• Price to Sales (P/S): 180.19
• P/FCF Ratio: 7.16K
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 2.06
• Enterprise Value/Ebitda: 51.24
• 1Y Price Target: $10.50
• Price Target Upside: 60.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.61
• Revenue Forecast (FY): $1.09B

• Rating: 65 Neutral
• Price Target: $7.50 ▲(14.68% Upside)

Alliance Entertainment Holding's overall stock score is driven by a positive earnings call and strong technical indicators. Financial performance is stable but challenged by revenue growth issues. Valuation is moderate, with no dividend yield to attract income investors.

Positive Factors

Strategic Partnerships

Strategic partnerships, such as with Paramount Pictures, enhance product offerings and market reach, contributing significantly to revenue and competitive positioning.

Improved Cash Flow

Improved cash flow indicates strong operational efficiency, providing resources for future investments and debt reduction, supporting long-term financial health.

New Credit Facility

The new credit facility enhances financial flexibility, supporting growth initiatives and operational needs, which is crucial for sustaining long-term business expansion.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in market demand or competitive pressures, which could impact future earnings and market position.

High Debt Levels

High debt levels can strain financial resources and limit flexibility, posing risks if earnings do not improve, potentially affecting long-term stability.

Low Net Profit Margin

A low net profit margin suggests inefficiencies in cost management or pricing strategies, which could hinder profitability and long-term financial performance.

Alliance Entertainment Holding Business Overview & Revenue Model

Company Description

Alliance Entertainment Holding (AENT) is a leading distributor and wholesaler of entertainment products in the United States, specializing in the distribution of music, movies, and video games. The company operates across various sectors, including retail, e-commerce, and digital media, providing a wide range of physical and digital entertainment products to consumers and businesses. AENT's core offerings include vinyl records, CDs, DVDs, and gaming merchandise, along with a robust catalog of digital downloads and streaming services.

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 a stable but challenging financial situation. Improvements in cash flow and some balance sheet metrics are positive, but hurdles in revenue growth and profitability remain.

Income Statement

Alliance Entertainment Holding has shown a mixed performance in its income statement. The gross profit margin has slightly improved over the years, indicating some efficiency in cost management. However, the net profit margin remains low, reflecting challenges in translating revenue into profit. Revenue growth has been negative, which is a concern for future earnings potential. The EBIT and EBITDA margins have fluctuated, showing inconsistency in operational profitability.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved, indicating better leverage management, but it remains relatively high, posing a risk if earnings do not improve. Return on equity has been volatile, with recent improvements suggesting better utilization of equity. The equity ratio is stable, providing some assurance of asset backing.

Cash Flow

Cash flow analysis shows a positive trend with improving free cash flow growth, which is crucial for sustaining operations and funding future growth. The operating cash flow to net income ratio indicates a healthy conversion of earnings into cash, although it has decreased recently. The free cash flow to net income ratio is strong, suggesting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2022	Dec 2022	Dec 2020
Income Statement
Total Revenue	1.06B	1.06B	1.10B	1.42B	1.16B	775.60M
Gross Profit	132.85M	132.85M	128.89M	182.38M	103.93M	119.11M
EBITDA	5.33M	34.62M	19.98M	50.36M	-26.12M	25.05M
Net Income	15.08M	15.08M	4.58M	28.62M	-35.40M	5.36M
Balance Sheet
Total Assets	361.23M	361.23M	340.81M	473.04M	389.53M	276.83M
Cash, Cash Equivalents and Short-Term Investments	1.24M	1.24M	1.13M	1.47M	865.00K	1.33M
Total Debt	25.67M	25.67M	109.83M	148.66M	148.68M	56.31M
Total Liabilities	258.01M	258.01M	253.18M	364.11M	310.00M	223.91M
Stockholders Equity	103.22M	103.22M	87.63M	108.93M	79.53M	52.92M
Cash Flow
Free Cash Flow	26.75M	26.75M	55.59M	-83.60M	2.56M	24.69M
Operating Cash Flow	26.81M	26.81M	55.77M	-83.55M	3.39M	27.39M
Investing Cash Flow	-8.13M	-8.13M	-117.00K	-50.00K	-824.00K	-5.26M
Financing Cash Flow	-18.57M	-18.57M	-55.39M	81.04M	-3.16M	-23.35M

Alliance Entertainment Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AENT, the sentiment is Positive. The current price of 6.54 is above the 20-day moving average (MA) of 6.17, above the 50-day MA of 6.40, and above the 200-day MA of 4.68, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 49.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AENT.

Alliance Entertainment Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AENT	65 Neutral	$333.52M	22.12	15.80%	―	-3.36%	230.98%
CNVS	62 Neutral	$49.53M	19.33	9.22%	―	77.07%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GAIA	53 Neutral	$106.71M	―	-5.63%	―	12.98%	27.93%
AMCX	47 Neutral	$314.53M	―	-17.26%	―	-7.38%	-483.59%
STRZ	41 Neutral	$180.43M	-9.03	―	―	-2.85%	75.96%
LVO	39 Underperform	$59.67M	-2.49	―	―	-18.76%	-21.71%

Alliance Entertainment Holding Corporate Events

Alliance Entertainment Secures $120M Credit Facility

On October 1, 2025, Alliance Entertainment Holding Corporation entered into a new $120 million senior secured revolving credit facility with Bank of America, replacing its previous asset-based lending facility. This new five-year agreement, which aims to enhance financial flexibility and support growth initiatives, includes a $3 million sub-limit for letters of credit and allows for additional borrowings under certain conditions. The facility is secured by a first priority security interest on the company’s assets and includes customary covenants and financial reporting requirements. The initial borrowings were used to repay existing obligations, including a $10 million subordinated loan, without incurring early termination penalties. This strategic financial move is expected to strengthen Alliance’s balance sheet and support its strategy for disciplined, profitable growth.

The most recent analyst rating on (AENT) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Alliance Entertainment Holding stock, see the AENT Stock Forecast page.

Alliance Entertainment’s Earnings Call Highlights Growth

Alliance Entertainment Holding Corp’s recent earnings call painted a largely positive picture of the company’s financial health, despite a slight decline in revenue. The sentiment was buoyed by significant increases in net income and EBITDA, alongside improved debt and cash flow management. Strategic partnerships also played a crucial role in the company’s success, although the year-over-year revenue decline remains a challenge.

Alliance Entertainment Reports Strong FY2025 Financial Growth

Alliance Entertainment Holding Corp, a leading distributor and logistics provider in the entertainment and pop culture collectibles industry, reported its financial results for the fourth quarter and fiscal year 2025, highlighting significant growth and strategic advancements.

Alliance Entertainment Reports 229% Net Income Growth

Alliance Entertainment reported significant financial growth for the fiscal year ending June 30, 2025, with a 229% increase in net income to $15.1 million and a rise in earnings per share from $0.09 to $0.30. The company strengthened its market position through strategic partnerships, including an exclusive distribution agreement with Paramount Pictures and Master Replicas, and expanded its product offerings in premium collectibles and physical media. The launch of Alliance Home Entertainment and a focus on automation and warehouse consolidation contributed to operational efficiency and profitability. The company also emphasized its commitment to leveraging AI for future growth and operational improvements.

The most recent analyst rating on (AENT) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Alliance Entertainment Holding stock, see the AENT Stock Forecast page.