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Alliance Entertainment Holding
(NASDAQ:AENT)
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Rating:56Neutral
Price Target:
$4.50
▼(-18.33% Downside)
Action:Reiterated
Date:09/16/26
Overall score reflects improved financial structure and a favorable FY27 narrative, offset by near-term cash-flow deterioration and a technically weak share-price trend. The sharp debt reduction and optimistic earnings-call guidance support the score, but negative operating/free cash flow and the stock trading below all key moving averages materially limit upside confidence.
Positive Factors
Revenue and margin growth
The combination of top-line growth, gross-margin expansion, and higher adjusted EBITDA indicates improving operating performance across the distribution platform. If sustained, better mix and operating leverage can strengthen earnings capacity and support reinvestment in higher-value categories over the next several quarters.
Negative Factors
Negative cash conversion
The reversal to negative operating and free cash flow indicates that reported profitability is not currently converting efficiently into liquidity. Higher working-capital needs can absorb funds needed for growth and increase execution risk if inventory productivity and receivable collections do not improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin growth
The combination of top-line growth, gross-margin expansion, and higher adjusted EBITDA indicates improving operating performance across the distribution platform. If sustained, better mix and operating leverage can strengthen earnings capacity and support reinvestment in higher-value categories over the next several quarters.
Read all positive factors
Alliance Entertainment Holding (AENT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$227.37M
Dividend YieldN/A
Average Volume (3M)324.87K
Price to Earnings (P/E)17.7
Beta (1Y)1.39
Revenue Growth8.04%
EPS Growth-13.38%
CountryUS
Employees724
SectorCommunication Services
Sector Strength97
IndustryMedia & Entertainment
Share Statistics
EPS (TTM)0.25
Shares Outstanding50,979,630
10 Day Avg. Volume31,777
30 Day Avg. Volume324,866
Financial Highlights & Ratios
PEG Ratio-1.68
Price to Book (P/B)2.55K
Price to Sales (P/S)259.04
P/FCF Ratio-107.29K
Enterprise Value/Market Cap1.72
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit2.63
Enterprise Value/Ebitda9.93
Forecast
1Y Price Target
$8.50Price Target Upside54.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.42
Revenue Forecast (FY)$1.17B
Alliance Entertainment Holding Business Overview & Revenue Model
Company Description
Alliance Entertainment Holding Corporation operates as a wholesaler 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...
How the Company Makes Money
AENT primarily makes money by selling entertainment and related products on a wholesale basis and by providing distribution and fulfillment services. Key revenue streams typically include: (1) Wholesale distribution revenue: purchasing products fr...
Alliance Entertainment Holding Earnings Call Summary
Earnings Call Date:Sep 10, 2026
(Q4-2026)
| Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call was strongly optimistic, supported by 8% annual revenue growth, 18% fourth-quarter revenue growth, expanding gross margins, higher adjusted EBITDA and earnings, strong growth in physical music, movies, collectibles, and fulfillment, improved borrowing economics, and multiple planned growth initiatives. The main challenges were weaker GAAP income, increased SG&A, a $7.8 million noncash write-off, negative operating cash flow caused by higher working capital requirements, weaker gaming performance relative to the broader portfolio, and the continued long-term decline in DVD. Highlights significantly outweighed the lowlights.Positive Updates
Fiscal 2026 Revenue and Profitability Growth
Alliance described fiscal 2026 as a year of acceleration. Revenue increased 8% to $1.15 billion, gross margin expanded 80 basis points to 13.3%, and adjusted EBITDA increased 14% to $41.5 million.
Negative Updates
Operating Expense Increase
Selling, general, and administrative expenses increased to $66 million from $56 million in fiscal 2025. The increase primarily reflected higher payroll and employee-related costs to support the larger business, as well as higher consulting and professional service costs associated with strategic initiatives and public company operations.
Read all updates
Q4-2026 Updates
Positive
Negative
Fiscal 2026 Revenue and Profitability Growth
Alliance described fiscal 2026 as a year of acceleration. Revenue increased 8% to $1.15 billion, gross margin expanded 80 basis points to 13.3%, and adjusted EBITDA increased 14% to $41.5 million.
Read all positive updates
Company Guidance
For fiscal 27, Alliance intends to build on the exceptional momentum in physical music, capture a full year of Amazon MGM, accelerate its higher margin collectibles business and owned brands, expand Alliance Authentic and Endstate Authentic into additional product categories, and continue growth in fulfillment; its objective is to pair growth in these higher value areas with better operating leverage and stronger cash conversion, including moderating working capital growth relative to revenue, improving inventory productivity, and strengthening receivable collections. The new WebAMI platform is scheduled to launch in first quarter 27, with management planning to launch this in January 2027; management expects DVD to reach the bottom of its decline in 2027 or 2028 and to start increasing, expects Grand Theft Auto VI to make for a huge fourth quarter and calls it a “Grand Theft Auto Christmas,” and said a new James Bond movie may be in theaters at the end of 27 and go into DVD in 2028, while the new Beatles movie is coming out in April 2028.Alliance Entertainment Holding Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Sep 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.15B | 1.06B | 1.10B | 1.16B | 1.42B |
| Gross Profit | 152.32M | 132.85M | 128.89M | 103.93M | 182.38M |
| EBITDA | 41.20M | 34.62M | 19.98M | -26.12M | 60.01M |
| Net Income | 13.06M | 15.08M | 4.58M | -35.40M | 28.62M |
Balance Sheet | |||||
| Total Assets | 397.60M | 361.23M | 340.81M | 389.53M | 473.04M |
| Cash, Cash Equivalents and Short-Term Investments | 814.00K | 1.24M | 1.13M | 865.00K | 1.47M |
| Total Debt | 93.20M | 90.94M | 109.83M | 155.71M | 152.04M |
| Total Liabilities | 280.98M | 258.01M | 253.18M | 310.00M | 364.11M |
| Stockholders Equity | 116.62M | 103.22M | 87.63M | 79.53M | 108.93M |
Cash Flow | |||||
| Free Cash Flow | -2.77M | 26.75M | 55.59M | 2.56M | -83.60M |
| Operating Cash Flow | -1.70M | 26.81M | 55.77M | 3.39M | -83.55M |
| Investing Cash Flow | -2.02M | -8.13M | -117.00K | -824.00K | -50.00K |
| Financing Cash Flow | 3.30M | -18.57M | -55.39M | -3.16M | 81.04M |
Alliance Entertainment Holding Technical Analysis
Negative
5.51
Price Trends
5.22
Negative
5.53
Negative
6.25
Negative
Market Momentum
-0.23
Positive
37.65
Neutral
26.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AENT, the sentiment is Negative. The current price of 5.51 is above the 20-day moving average (MA) of 4.82, above the 50-day MA of 5.22, and below the 200-day MA of 6.25, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 37.65 is Neutral, neither overbought nor oversold. The STOCH value of 26.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $33.86M | 7.37 | 32.16% | ― | -96.27% | ― | |
56 Neutral | $227.37M | 17.68 | 11.30% | ― | 8.04% | -13.38% | |
52 Neutral | $632.94M | 70.02 | 2.34% | ― | 11.41% | 15.57% | |
48 Neutral | $710.60M | 25.56 | 7.05% | 2.20% | -2.53% | ― | |
48 Neutral | $3.31B | -27.15 | 9.60% | 4.20% | -8.00% | 41.10% | |
46 Neutral | $45.40M | -3.26 | -27.24% | ― | 6.28% | -410.92% |
* Communication Services Sector Average
AENT
Alliance Entertainment Holding
4.46
-1.96
-30.53%
CNVS
Cineverse
1.91
-1.30
-40.50%
SCHL
Scholastic
38.60
11.24
41.06%
TOON
Kartoon Studios
0.54
-0.21
-27.47%
RSVR
Reservoir Media
9.60
1.91
24.84%
LION
Lionsgate Studios
11.13
5.04
82.76%
Alliance Entertainment Holding Corporate Events
Business Operations and StrategyFinancial Disclosures
Alliance Entertainment Posts Strong Fiscal 2026 Growth
Positive
Sep 10, 2026
For the fiscal year ended June 30, 2026, Alliance Entertainment reported net revenues up 8% to $1.15 billion, with gross profit rising 15% and gross margin expanding 80 basis points to 13.3%, while adjusted EBITDA grew 14% to $41.5 million and adj...
Business Operations and StrategyRegulatory Filings and Compliance
Alliance Entertainment Voids Unapproved Charter Amendment, Restores Prior Certificate
Neutral
Aug 28, 2026
On July 29, 2026, Alliance Entertainment Holding filed a Third Amended and Restated Certificate of Incorporation in Delaware that would have eliminated the voting rights of its Class E common stock, except where voting is required by law. On Augus...
Business Operations and StrategyRegulatory Filings and Compliance
Alliance Entertainment Updates Charter, Alters Voting Structure
Neutral
Jul 29, 2026
On June 24, 2026, majority stockholders of Alliance Entertainment Holding Corporation, including trusts associated with Executive Chairman Bruce Ogilvie and Chief Executive Officer Jeffrey Walker, executed a written consent to fully amend and rest...
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.