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Alliance Entertainment Holding (AENT)
NASDAQ:AENT
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Alliance Entertainment Holding
(NASDAQ:AENT)
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Rating:77Outperform
Price Target:
$9.00
▲(15.38% 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 Growth
The 11% YoY revenue growth indicates strong demand across key channels, supporting the company's market position and long-term growth potential.
Operational Advancements
AI-powered sales and operational efficiencies enhance productivity, reducing costs and improving margins, which supports sustainable growth.
Strengthened Financial Position
The new credit facility enhances financial flexibility, supporting growth initiatives and improving the company's balance sheet health.
Negative Factors
Low Net Profit Margin
Persistently low net profit margins indicate profitability challenges, which may hinder reinvestment capabilities and long-term financial health.
Operational Inefficiencies
Weak EBIT and EBITDA margins suggest ongoing operational inefficiencies, potentially limiting the company's ability to improve profitability.
Limited Impact of New Ventures
The delayed financial impact of new ventures like Handmade by Robots may slow the company's ability to diversify revenue streams and enhance growth.
Alliance Entertainment Holding (AENT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$397.72M
Dividend YieldN/A
Average Volume (3M)51.67K
Price to Earnings (P/E)20.3
Beta (1Y)1.69
Revenue Growth-1.29%
EPS Growth131.68%
CountryUS
Employees657
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.10
Shares Outstanding50,957,370
10 Day Avg. Volume54,995
30 Day Avg. Volume51,670
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 Cap1.09
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit3.03
Enterprise Value/Ebitda10.20
Forecast
1Y Price Target
$10.50Price Target Upside34.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.57
Revenue Forecast (FY)$1.09B
Alliance Entertainment Holding Business Overview & Revenue Model
Company DescriptionAlliance 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 MoneyAlliance 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 Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, significant improvements in EBITDA, and strategic expansions in exclusive content. The company also strengthened its financial position and made operational advancements. However, the limited immediate financial impact from Handmade by Robots was noted. Overall, the call conveyed a positive sentiment with a focus on sustainable growth and strategic positioning.Q1-2026 Updates
Positive Updates
Strong Revenue Growth
Revenue grew 11% year over year to $254 million, reflecting solid demand across physical media, collectibles, and direct-to-consumer channels.
Significant Improvement in EBITDA
Adjusted EBITDA increased to $12.2 million from $3.4 million a year ago, a 259% improvement, while gross margin expanded 340 basis points to 14.6%.
Expansion of Exclusive Content Portfolio
New distribution agreement with Virgin Music Group and ongoing success with Handmade by Robots and Paramount Pictures partnerships.
Strengthened Financial Position
Secured a new five-year $120 million senior secured revolving credit facility with Bank of America, reducing borrowing costs by up to 250 basis points.
Operational Advancements
Advancement in AI-powered sales transformation and operational efficiency gains through automation and AI initiatives.
Negative Updates
Limited Impact of Handmade by Robots
While Handmade by Robots is growing, it is not expected to significantly impact financials until fiscal 2027 and 2028 due to its current scale relative to the overall business.
Company Guidance
During the first quarter of fiscal year 2026, Alliance Entertainment reported significant financial growth and operational advancements. Revenue increased by 11% year over year to $254 million, driven by strong demand across physical media, collectibles, and direct-to-consumer channels. Adjusted EBITDA rose to $12.2 million, marking a 259% increase compared to the previous year. Gross margin expanded by 340 basis points to 14.6%, highlighting the effectiveness of the company's content portfolio and expense management strategies. The company also achieved a trailing twelve-month revenue of nearly $1.1 billion and adjusted EBITDA of $45.3 million, reflecting substantial structural improvements. Earnings per share increased to $0.38, underscoring Alliance's efficient business model. The firm closed the quarter with $3.2 million in cash, inventory of $121.7 million, and debt of $66 million, while also securing a new $120 million credit facility with Bank of America to enhance financial flexibility. Alliance's investment in AI initiatives and automation contributed to these results, further strengthening its operational capabilities.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
Neutral
7.80
Price Trends
7.15
Positive
6.68
Positive
5.25
Positive
Market Momentum
0.20
Positive
50.24
Neutral
33.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AENT, the sentiment is Neutral. The current price of 7.8 is above the 20-day moving average (MA) of 7.75, above the 50-day MA of 7.15, and above the 200-day MA of 5.25, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 50.24 is Neutral, neither overbought nor oversold. The STOCH value of 33.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $397.72M | 20.34 | 19.94% | ― | -1.29% | 131.68% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $371.28M | -2.34 | -12.87% | ― | -7.38% | -483.59% | |
52 Neutral | $91.15M | -18.04 | -5.63% | ― | 12.98% | 27.93% | |
46 Neutral | $39.26M | -24.80 | -3.49% | ― | 77.29% | 97.98% | |
45 Neutral | $189.23M | -9.47 | ― | ― | -2.85% | 75.96% | |
43 Neutral | $46.87M | -1.71 | ― | ― | -32.17% | -135.06% |
* Communication Services Sector Average
AENT
Alliance Entertainment Holding
7.81
1.92
32.51%
AMCX
AMC Networks
8.78
0.33
3.91%
CNVS
Cineverse
2.14
-1.28
-37.43%
GAIA
Gaia
3.50
-0.71
-16.86%
LVO
LiveOne
4.03
-7.37
-64.65%
STRZ
Starz Entertainment Corp
11.31
0.88
8.44%
Alliance Entertainment Holding Corporate Events
Business Operations and StrategyFinancial Disclosures
Alliance Entertainment Reports Strong Fiscal 2026 Start
Positive
Nov 12, 2025
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.
Executive/Board ChangesShareholder Meetings
Alliance Entertainment Elects New Board Directors
Neutral
Nov 7, 2025
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.
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.