Alliance Entertainment(NASDAQ) AENT

Alliance Entertainment helps retailers stock music, movies, and games. It ships physical media like vinyl and collectibles to stores worldwide. The company also sells products directly to fans through online shops.

Media, Games, and Plastic Figures

• Vinyl Records: Physical music albums on vinyl; accounted for approximately 33% of revenue in the fiscal year ended June 30, 2026.
• Digital Video: DVDs, Blu-rays, and UltraHD discs; represented approximately 30% of revenue in the fiscal year ended June 30, 2026.
• Gaming Products: Hardware and software for Nintendo and Microsoft; made up approximately 16% of revenue in the fiscal year ended June 30, 2026.
• Compact Discs: Physical music CDs; contributed approximately 14% of revenue in the fiscal year ended June 30, 2026.
• Collectibles and Electronics: Action figures, branded toys, and audio equipment; totaled approximately 4% of revenue in the fiscal year ended June 30, 2026.

Building a Distribution Empire

• Became the exclusive distributor for Paramount Pictures physical media content on Jan. 1, 2025.
• Entered an exclusive license agreement with Amazon MGM Studios for physical media distribution on Jan. 1, 2026.
• Acquired Handmade by Robots, a designer of licensed vinyl collectible figures, in Dec. 2024.
• Purchased Endstate Authentic LLC on Dec. 31, 2025, to integrate digital authentication and resale technology.
• Implemented the OPEX Sure Sort X system in April 2024 to automate the sorting of non-standard size products.

Tech for Faster Shipping

The company manages over 340,000 individual product codes and serves more than 35,000 retail locations in 75 countries. Its automated warehouse systems, such as the AutoStore storage network, help the company process large orders with high accuracy and speed.

The Fiscal Scorecard

• Net revenue increased 8% to $1.1 billion for the fiscal year ended June 30, 2026.
• Operating income was $27.2 million for the fiscal year ended June 30, 2026, down 9.7% year over year.
• Net income reached $13.1 million for the fiscal year ended June 30, 2026, compared to $15.1 million in the prior year.
• Non-GAAP Adjusted EBITDA was $41.5 million for the fiscal year ended June 30, 2026, up from $36.5 million in the prior year.
• Vinyl record sales increased 13% to $383 million for the fiscal year ended June 30, 2026.

Evolution of a Wholesaler

Alliance Entertainment has moved beyond traditional wholesaling by adding high-tech warehouse automation and exclusive studio partnerships. These strategic shifts into premium collectibles and digital identity tools help the company maintain its role as a key distribution partner in the physical media market.