The division will be led by Robert Oram, recently appointed Executive Vice President, and includes a veteran leadership team spanning core disciplines across the home entertainment value chain: PLANTATION, Fla., June 10, 2025 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (NASDAQ: AENT), a premier distributor and fulfillment partner of entertainment and pop culture collectibles, today announced the formation of a new division: Alliance Home Entertainment. The new division combines the capabi ...

Initial launch features fan-favorite heroes Izuku Midoriya and Shoto Todoroki from My Hero Academia — a top-grossing anime franchise with over 100 million manga copies sold worldwidePLANTATION, Fla., June 03, 2025 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (Nasdaq: AENT), a premier distributor and fulfillment partner of entertainment and pop culture collectibles, today announced that its Handmade by Robots™ division has officially entered the anime category with the launch of its first l ...

Appointment underscores Alliance’s investment in category leadership and long-term studio partnership successPLANTATION, Fla., May 29, 2025 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (Nasdaq: AENT) (“Alliance” or the “Company”), a premier distributor and fulfillment partner of entertainment and pop culture collectibles, today announced the appointment of Robert Oram as Executive Vice President. A 30-year home entertainment industry veteran, Oram will oversee Alliance’s filmed entertainme ...

INVESTOR PRESENTATION WORLD OF COLLECTIBLES WE BUILD YOUR COLLECTION COLLECT THE WORLD Nasdaq: AENT LEGAL DISCLAIMER This presentation (together with oral statements made in connection herewith, this "Presentation") is for informational purposes only. This Presentation shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful. No representa ...

Company Overview - Alliance Entertainment Holding Corporation (NASDAQ: AENT) is categorized as a microcap company in the physical media and collectibles distribution sector, which is relatively unknown to many investors [1]. Investment Focus - The analysis primarily targets small- to mid-cap companies, as these are often overlooked by the broader investment community. Occasionally, larger-cap companies are also reviewed to provide a comprehensive view of the equity markets [1].

Alliance Entertainment (AENT) Q3 2025 Earnings Call May 15, 2025 04:30 PM ET Company Participants Paul Kuntz - Director of CommunicationsJeff Walker - CEO and CFOAmanda Gnecco - Chief Accounting Officer Operator Greetings, and welcome to the Alliance Entertainment Fiscal twenty twenty five Third Quarter Financial Results Conference Call. At this time, all participants are in listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. ...

Financial Data and Key Metrics Changes - For Q3 FY2025, net revenue was $213 million, a slight increase from $211.2 million in Q3 FY2024 [14] - Gross profit rose 3.7% year over year to $29.1 million, with gross margin improving to 13.6% from 13.2% [14] - Net income was $1.9 million or $0.04 per share, compared to a net loss of $3.4 million or $0.07 per share in Q3 of last year [15] - Adjusted EBITDA grew 66% year over year to $4.9 million, up from $2.9 million [15] - For the nine-month period, net revenue was $835.7 million, down from $863.5 million last year, primarily due to timing of shipments [16] - Net income increased to $9.3 million or $0.18 per diluted share, up from $2.1 million or $0.04 per share last year, representing a 349% improvement [18] Business Line Data and Key Metrics Changes - Exclusive agreements accounted for nearly a quarter of overall revenue, with $250 million generated from these partnerships over the trailing twelve months [20] - Direct-to-consumer fulfillment accounted for an estimated 40% of gross revenue in Q3, up from 33% in the same period last year [24] Market Data and Key Metrics Changes - The company reported strong performance in high-margin categories, despite a decline in overall revenue [16] - The gaming segment faced challenges due to limited hardware allocation from Microsoft and tough comparisons from the previous year [36] Company Strategy and Development Direction - The company focuses on expanding its licensing partnerships and acquiring emerging brands to enhance its position in the collectibles market [12] - The new exclusive license agreement with Paramount Pictures is expected to significantly contribute to revenue and earnings, allowing the company to be the exclusive distributor of Paramount's physical media catalog [21][56] - The company aims to improve its EBITDA margin, targeting a return to closer to 5% by FY2026 [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential driven by new product releases and strategic partnerships, particularly with major franchises [22][56] - The company is optimistic about the impact of the new Nintendo console on sales throughout 2025 [33] - Management highlighted the importance of automation and warehouse optimization in driving cost efficiencies and improving service levels [26][28] Other Important Information - The company has reduced its revolver debt and improved liquidity while maintaining strong supplier relationships [18] - The acquisition of Handmade by Robots is expected to enhance the company's licensing pipeline and position in the collectibles market [29] Q&A Session Summary Question: Do you have a good relationship with Nintendo with the arrival of the upcoming Switch two? - Yes, the company has a significant relationship with Nintendo and is excited about the upcoming hardware and software releases, which are expected to help sales [32] Question: How is Handmade by Robots going? Can you provide an update? - The company is excited about the brand and has plans for new character releases in the second half of 2025, indicating strong progress since the acquisition [34] Question: What do you attribute the decline in gaming revenue to? - The decline is attributed to limited hardware allocation from Microsoft and tough comparisons from the previous year, with expectations for stronger sales with new Nintendo hardware [36] Question: Do you have a long-term target margin range for the business? - The company aims to exceed a 3% EBITDA margin in FY2026, with a focus on improving both gross and net profit margins [39] Question: What type of impact are tariffs having on Alliance's business? - Music and video products are not affected by tariffs, while the company is managing the impact of tariffs on gaming products and Handmade by Robots [41][42] Question: How do you see your financial flexibility evolving over the next few quarters? - The company has made significant improvements in working capital and debt reduction, with availability on its line of credit for potential acquisitions [46] Question: Can you talk about what's driving increased adoption of direct-to-consumer fulfillment? - The growth is driven by the ability of retailers to offer a wider selection of products without holding inventory, benefiting both retailers and consumers [49] Question: Can you tell me more about the Paramount exclusive license agreement? - The agreement allows the company to be the exclusive distributor of Paramount's physical media catalog, which is expected to significantly boost revenue and extend the life of physical DVDs [53][56]

Revenue Performance - Net revenues increased from $211 million to $213 million (+$1.8 million, +1%) for the three months ended March 31, 2025[138] - Vinyl record sales rose from $78 million to $86 million (+$8 million, +11%) for the three months ended March 31, 2025, driven by an 18.8% increase in volume[138] - Physical movie sales increased from $42 million to $58 million (+$16 million, +39%) for the three months ended March 31, 2025, with a 27.6% rise in average selling price[140] - Net revenues decreased from $864 million to $836 million (-$28 million or -3.2%) for the nine months ended March 31, 2025[151] - Vinyl record sales increased from $242 million to $266 million ($24 million or 10%) for the nine months ended March 31, 2025[152] - Physical movie sales increased from $159 million to $197 million (+$39 million or +25%) for the nine months ended March 31, 2025[154] - Gaming product revenue declined from $43 million to $29 million (-$14 million, -32%) due to limited hardware availability and broader industry slowdown[142] - Gaming product revenue decreased from $287 million to $226 million (-$61 million or -21%) for the nine months ended March 31, 2025[156] Cost and Expenses - Total cost of revenues, excluding depreciation and amortization, increased from $183 million to $184 million (+$1 million, +0.4%) year over year[143] - Total operating expenses decreased from $88.4 million to $76.4 million (-$11.9 million or -13.5%) for the nine months ended March 31, 2025[158] - Total distribution and fulfillment expense declined from $38 million to $31.4 million for the nine months ended March 31, 2025[158] - Gross margin dollars decreased from $102 million to $97 million, resulting in a slight margin decline from 11.8% to 11.6% for the nine months ended March 31, 2025[157] Profitability Metrics - Non-GAAP Adjusted EBITDA improved from approximately $2.9 million to $4.9 million, a year-over-year increase of $2.0 million for the three months ended March 31, 2025[147] - Non-GAAP Adjusted EBITDA improved to approximately $24.4 million, up $2.2 million from approximately $22.2 million for the prior year period[162] - Net income increased to $9.3 million for the nine months ended March 31, 2025, compared to $2.1 million for the same period in 2024[163] Cash Flow and Liquidity - Cash provided by operating activities was $16.1 million, a decrease from $46.1 million in the prior year[169] - Cash availability increased from $47 million to $52 million (+$5 million, +11%) as of March 31, 2025[167] - Cash used in investing activities was $7.6 million for the nine months ended March 31, 2025, primarily due to the acquisition of Handmade by Robots[170] - Net cash used in financing activities improved to $7.6 million from $45.2 million in the prior year, reflecting tighter cash management controls[170] Debt and Financing - The Company entered into a three-year $120 million senior secured asset-based credit facility on December 21, 2023[164] - The revolver balance was reduced from $73 million to $68 million (-$5 million, -6.8%) year-over-year[166] - Interest expense decreased from $3.1 million to $2.4 million (-$0.6 million or -20.2%) for the three months ended March 31, 2025[145] - Total interest expense decreased from $9.5 million to $8.1 million (-$1.4 million, -14.9%) for the nine months ended March 31, 2025[159] Strategic Initiatives - The acquisition of Handmade by Robots for $7.6 million diversifies the product offerings with licensed vinyl figures[125] - Alliance entered into an exclusive distribution agreement with Paramount Pictures, enhancing its home entertainment distribution capabilities[123] - Direct-to-consumer (DTC) solutions accounted for approximately 35% of gross revenue for the three months ended March 31, 2025[138] - The company expects strong future demand for gaming hardware and accessories as the market awaits the next generation of consoles[142] Inventory Management - Inventory decreased by $15 million (14%) from approximately $108 million at March 31, 2024, to approximately $93 million at March 31, 2025[169]

Core Insights - Alliance Entertainment Holding Corporation reported a net income of $1.9 million for the third quarter of FY 2025, marking a $5.3 million improvement year-over-year, indicating strong operational execution and margin gains [1][11] - The company reduced its revolver debt by 25% year-over-year, enhancing its balance sheet and liquidity position [1][11] - Direct to Consumer sales accounted for 35% of gross revenue, up from 33% in the same quarter of the previous year, reflecting a growing trend in consumer fulfillment [1][10] Financial Performance - Net revenues for the third quarter ended March 31, 2025, were $213.0 million, a 1% increase from $211.2 million in the same period of 2024 [15] - Gross profit for the third quarter was $29.1 million, up 3.7% from $28.0 million year-over-year, with a gross profit margin of 13.6%, compared to 13.2% in the prior year [15] - Adjusted EBITDA for the quarter was $4.9 million, reflecting a 66% increase from $2.9 million in the same period of 2024 [11][15] Operational Highlights - The company launched a distribution partnership with Paramount Pictures, becoming the exclusive licensee of Paramount's physical media in the U.S. and Canada, which strengthens its position in the home entertainment market [6][5] - Physical movie sales surged 39% year-over-year, increasing from $42 million to $58 million, driven by new exclusive content partnerships [6] - Vinyl record sales increased by 11% year-over-year, rising from $78 million to $86 million, supported by strong consumer demand [6] Inventory and Cost Management - Inventory levels improved to $93.2 million, down 13% from $108.0 million at March 31, 2024, indicating better inventory turnover and working capital efficiency [6] - Total operating expenses decreased by 11.4% year-over-year, with distribution and fulfillment costs declining by 10.2% due to automation initiatives [6] - Interest expense declined by 20.2% year-over-year, reflecting a lower revolving credit balance and improved financial efficiency [6]

PLANTATION, Fla., May 08, 2025 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (Nasdaq: AENT), a premier distributor and fulfillment partner of entertainment and pop culture collectibles, will hold a conference call on Thursday, May 15, at 4:30 p.m. Eastern Time to discuss its results for the third quarter ended March 31, 2025. A press release detailing these results will be issued prior to the call. Alliance Entertainment Chief Executive Officer and Chief Financial Officer Jeff Walker and Ch ...