Alliance Entertainment Holding (AENT)
NASDAQ:AENT
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Alliance Entertainment Holding
(NASDAQ:AENT)
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Rating:62Neutral
Price Target:
$8.00
▲(15.61% Upside)
Action:ReiteratedDate:03/04/26
The score is driven mainly by improved financial performance (profitability turnaround and reduced leverage) and a constructive earnings call highlighting margin expansion and liquidity improvement. These positives are tempered by weaker technical momentum and lingering top-line/cash-flow consistency risks, with valuation appearing reasonable but not strongly compelling without dividend support.
Positive Factors
Margin expansion and profitability
Margin expansion to 12.8% and adjusted EBITDA margin near 5% reflects a durable improvement in unit economics driven by a shift to higher-value products and operating leverage. Sustained higher margins increase resilience to volume swings and support continued profitability even if revenue growth is uneven.
Negative Factors
Choppy and declining revenue trends
Top-line inconsistency with negative TTM revenue growth and a Q2 decline undermines operating leverage and makes earnings and cash flow more dependent on timely product mix shifts and studio deal timing. Persistent top-line weakness complicates planning and heightens execution risk for margin gains to be durable.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion and profitability
Margin expansion to 12.8% and adjusted EBITDA margin near 5% reflects a durable improvement in unit economics driven by a shift to higher-value products and operating leverage. Sustained higher margins increase resilience to volume swings and support continued profitability even if revenue growth is uneven.
Read all positive factors
Alliance Entertainment Holding (AENT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$352.63M
Dividend YieldN/A
Average Volume (3M)109.43K
Price to Earnings (P/E)11.0
Beta (1Y)1.37
Revenue Growth-1.29%
EPS Growth131.68%
CountryUS
Employees657
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.18
Shares Outstanding50,957,370
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 Cap1.30
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit3.12
Enterprise Value/Ebitda9.67
Forecast
1Y Price Target
$8.50Price Target Upside22.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.44
Revenue Forecast (FY)$1.09B
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 entertainment products and related merchandise from content owners, brands, and other suppliers and reselling them to retailers and online sellers at a markup. Its core revenue stream is product sa...
Alliance Entertainment Holding Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 25, 2026
Earnings Call Sentiment Positive
The call emphasized strong margin expansion, improving profitability, and strategic progress (exclusive studio partnerships, collectibles growth, Endstate acquisition and Alliance Authentic rollout, and a strengthened credit facility). These positive developments offset a modest year-over-year revenue decline driven by weakness in gaming hardware and arcade categories. While Endstate/Authentic and additional studio deals present execution and timing risk, the underlying trend toward higher-value mix and scalable operating leverage makes the tone constructive.Positive Updates
Margin Expansion and Profitability
Gross margin expanded by 210 basis points to 12.8% in Q2; gross profit rose to $47.1M from $42.3M (≈+11.4% YoY). Net income increased to $9.4M ($0.18 per diluted share) from $7.1M ($0.14), an increase of ≈+32.4% YoY. Adjusted EBITDA rose to $18.5M (up $2.4M YoY), and adjusted EBITDA margin improved to ~5.0% from 4.1% (+0.9 percentage points).
Negative Updates
Quarterly Revenue Decline
Net revenue for Q2 fell to $369M from $394M in the prior-year period (≈-6.4% YoY). Management attributes the decline to softness in certain lower-margin categories (notably gaming and hardware) and a deliberate mix shift toward higher-value products.
Read all updates
Q2-2026 Updates
Positive
Negative
Margin Expansion and Profitability
Gross margin expanded by 210 basis points to 12.8% in Q2; gross profit rose to $47.1M from $42.3M (≈+11.4% YoY). Net income increased to $9.4M ($0.18 per diluted share) from $7.1M ($0.14), an increase of ≈+32.4% YoY. Adjusted EBITDA rose to $18.5M (up $2.4M YoY), and adjusted EBITDA margin improved to ~5.0% from 4.1% (+0.9 percentage points).
Read all positive updates
Company Guidance
Management gave no formal numerical guidance but said they are “confident” in the durability of the new margin baseline and expect continued earnings quality into the back half of FY2026 while investing selectively (notably scaling Alliance Authentic/Endstate and executing the Amazon MGM partnership). Key metrics cited on the call: Q2 net revenue $369.0M (vs. $394.0M prior year), net income $9.4M ($0.18/diluted share) (vs. $7.1M, $0.14), gross profit $47.1M (gross margin 12.8%, +210 bps), adjusted EBITDA ~$18.5M (~5.0% margin vs. 4.1% prior); six‑month net revenue $623M (flat), gross profit $84.3M (gross margin 13.5%, +260 bps), six‑month net income $14.3M ($0.28 vs. $7.5M/$0.05 prior), and six‑month adjusted EBITDA $30.7M (vs. $19.5M, +~$11.2M). Additional datapoints: physical movie revenue +33% to $114M, collectibles revenue +31% YoY, company sold >16M vinyl and >13M CDs in 2025, working capital ~ $74M, and a new $120M senior secured revolver that cuts borrowing cost by up to 250 bps and extends maturity to five years; management also noted quarter-specific headwinds in gaming hardware (down ~$24M) and arcades (down ~$34M) but expects easier comps and gradual recovery.Alliance Entertainment Holding Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Sep 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.06B | 1.06B | 1.10B | 1.16B | 1.42B | 1.32B |
| Gross Profit | 146.73M | 132.85M | 128.89M | 103.93M | 182.38M | 182.68M |
| EBITDA | 47.43M | 34.62M | 19.98M | -26.12M | 50.36M | 59.56M |
| Net Income | 21.88M | 15.08M | 4.58M | -35.40M | 28.62M | 34.18M |
Balance Sheet | ||||||
| Total Assets | 434.06M | 361.23M | 340.81M | 389.53M | 473.04M | 388.96M |
| Cash, Cash Equivalents and Short-Term Investments | 1.38M | 1.24M | 1.13M | 865.00K | 1.47M | 4.03M |
| Total Debt | 107.22M | 90.94M | 109.83M | 155.71M | 152.04M | 72.04M |
| Total Liabilities | 316.48M | 258.01M | 253.18M | 310.00M | 364.11M | 308.66M |
| Stockholders Equity | 117.58M | 103.22M | 87.63M | 79.53M | 108.93M | 80.30M |
Cash Flow | ||||||
| Free Cash Flow | 13.18M | 26.75M | 55.59M | 2.56M | -83.60M | 74.07M |
| Operating Cash Flow | 13.63M | 26.81M | 55.77M | 3.39M | -83.55M | 74.72M |
| Investing Cash Flow | -9.10M | -8.13M | -117.00K | -824.00K | -50.00K | -66.06M |
| Financing Cash Flow | -9.10M | -18.57M | -55.39M | -3.16M | 81.04M | -5.98M |
Alliance Entertainment Holding Technical Analysis
Positive
6.92
Price Trends
6.47
Positive
6.93
Negative
6.39
Positive
Market Momentum
0.12
Negative
53.29
Neutral
72.15
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 6.92 is above the 20-day moving average (MA) of 6.86, above the 50-day MA of 6.47, and above the 200-day MA of 6.39, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 53.29 is Neutral, neither overbought nor oversold. The STOCH value of 72.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $352.63M | 10.96 | 20.53% | ― | -1.29% | 131.68% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $70.94M | -20.19 | -5.18% | ― | 12.98% | 27.93% | |
55 Neutral | $50.26M | -10.97 | -24.20% | ― | 77.29% | 97.98% | |
52 Neutral | $53.82M | -3.34 | 128.06% | ― | -32.17% | -135.06% | |
52 Neutral | $244.50M | -2.36 | -19.80% | ― | -2.85% | 75.96% | |
50 Neutral | $319.93M | -1.88 | 9.18% | ― | -7.38% | -483.59% |
* Communication Services Sector Average
AENT
Alliance Entertainment Holding
6.92
4.01
137.80%
AMCX
AMC Networks
7.49
1.24
19.84%
CNVS
Cineverse
2.36
-0.33
-12.27%
GAIA
Gaia
2.84
-0.72
-20.22%
LVO
LiveOne
4.62
-1.98
-30.01%
STRZ
Starz Entertainment Corp
14.57
4.14
39.69%
Alliance Entertainment Holding Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Alliance Entertainment Extends CEO, Chairman Employment Agreements
Positive
Feb 13, 2026
Alliance Entertainment reported fiscal second-quarter 2026 results for the period ended Dec. 31, 2025, highlighting a 15% rise in adjusted EBITDA to $18.5 million and a 210-basis-point gross margin expansion to 12.8%, even as net revenue eased to ...
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.