Alliance Entertainment (AENT) Status Update summary

Financial performance and growth

• Achieved a record-breaking quarter with growth across all categories and improved earnings per share, reaching $0.38 trailing 12 months as of September 30, 2025.

• Revenue remains steady at around $1.1 billion, with adjusted EBITDA margin increasing to 4.2% over the trailing 12 months.

• Net income and EBITDA both increased year-over-year, with EPS for the latest quarter at $0.10.

• SG&A as a percentage of revenue and interest expenses have declined due to lower borrowing and a new line of credit.

• Inventory turns are strong at seven per year, supporting efficient cash flow and balance sheet management.

Strategic partnerships and licensing

• Secured exclusive agreements with Paramount Pictures and MGM Amazon for home entertainment distribution, driving significant revenue and margin growth.

• Added Virgin Music Group to the AMPED division, contributing to its best year ever.

• Now serves as Category Advisor for Walmart Video, enhancing competitive positioning and deepening retailer relationships.

• Distributes over $365 million in exclusive licensed content annually, with new deals expected to add $40 million or more.

Product and operational innovation

• Introduced HubSpot to drive sales growth without increasing headcount.

• AutoStore automation in the Kentucky warehouse delivers $3–3.5 million in annual labor savings and increased storage capacity.

• Dropshipping accounts for 37–40% of revenue, reducing inventory risk for retail partners.

• Direct-to-consumer and B2B channels are equally profitable, with D2C now at 37% of net revenue.