# Alliance Entertainment (AENT) Q4 2025 Financial Results Summary
PLANTATION, Fla., September 10, 2025 — Alliance Entertainment Holding Corporation (NASDAQ: AENT) has reported its financial and operational results for the fourth quarter and fiscal year ended June 30, 2025.
## Fourth Quarter & Fiscal Year 2025 Highlights:
– **Net Income**:
– Delivered **$15.1 million** in net income for fiscal year 2025, up **229%** from **$4.6 million** in fiscal year 2024.
– **$5.8 million** net income for Q4 2025, compared to **$2.5 million** in Q4 2024.
– **Earnings Per Share (EPS)**:
– Fiscal Year 2025 EPS increased to **$0.30**, up from **$0.09** in FY24.
– Q4 EPS was **$0.11**, compared to **$0.05** per diluted share for the same period in 2024.
– **Adjusted EBITDA**:
– Q4 Adjusted EBITDA rose to **$12.2 million**, marking a **481%** increase year-over-year from **$2.1 million** in Q4 2024.
– FY 2025 Adjusted EBITDA grew **51%** to **$36.5 million** from **$24.3 million** in FY 2024.
– **Gross Margin**:
– Q4 Gross Margin increased to **15.8%**, up from **11.4%** in Q4 2024, a **38.6%** improvement.
– For FY 2025, Gross Margin was **12.5%**, increased from **11.7%** in FY 2024.
– **Debt Reduction**:
– Reduced revolver debt by **22%** or **$15.7 million** year-over-year, enhancing financial stability.
– **Revenue**:
– Q4 net revenues were **$227.8 million**, down from **$236.9 million** in the same quarter of 2024.
– FY 2025 revenues were **$1.06 billion**, a slight decrease from **$1.10 billion** in FY 2024.
– **Retail Distribution**:
– Direct-to-Consumer Fulfillment sales represented **37%** of gross revenue for FY 2025, up from **36%** in FY 2024.
– Expanded assortment of exclusive products, including collectibles tied to iconic franchises such as DC Comics, Disney, and Marvel.
– **Operating Expenses**:
– Total operating expenses decreased by **10.5%** year-over-year in FY 2025.
– Distribution and fulfillment costs as a percentage of revenue declined by **0.6%** through automation efforts.
– **Interest Expense**:
– Interest expenses decreased by **13.7%** year-over-year, attributed to lower revolving credit balances.
## Additional Strategic Initiatives:
– Launched Alliance Home Entertainment, consolidating Distribution Solutions and strategic hires into a centralized distribution platform.
– Secured a key category advisory role with Walmart, enhancing distribution capabilities for physical media.
– Increased vinyl record sales by **2%** year-over-year to **$337 million**, supported by RSD demand and limited editions.
– The company is leveraging AI initiatives to boost sales growth and operational efficiency as it enters FY 2026.
## Conclusion:
Alliance Entertainment has reported strong financial results for the fourth quarter and fiscal year 2025, showing significant improvements in various key performance metrics, including net income and EPS, alongside substantial operational efficiencies. With a focus on expanding its exclusive product offerings, reducing debt, and enhancing distribution capabilities, the company is positioning itself for continued growth and shareholder value.
### Dividends and Share Repurchase
The results summary does not indicate any declared quarterly dividend or share repurchase program.
The company remains focused on leveraging its operational expertise and expanding its market presence in the entertainment and pop culture collectibles industry.
| Year Ended | Year Ended | |
|---|---|---|
| June 30, 2025 | June 30, 2024 | |
| Net Revenues | $1,063,457 | $1,100,483 |
| Cost of Revenues (excluding depreciation and amortization) | 930,605 | 971,594 |
| Operating Expenses | ||
| Distribution and Fulfillment Expense | 40,375 | 48,818 |
| Selling, General and Administrative Expense | 56,172 | 57,651 |
| Depreciation and Amortization | 5,154 | 5,880 |
| Transaction Costs | 957 | 2,086 |
| Restructuring Cost | 73 | 280 |
| (Gain) Loss on Disposal of Fixed Assets | (15) | 33 |
| Total Operating Expenses | 102,716 | 114,748 |
| Operating Income | 30,136 | 14,141 |
| Other Expenses | ||
| Interest Expense, Net | 10,575 | 12,247 |
| Change in Fair Value of Warrants | 853 | 41 |
| Total Other Expenses | 11,428 | 12,288 |
| Income Before Income Tax Expense | 18,708 | 1,853 |
| Income Tax Expense (Benefit) | 3,630 | (2,728) |
| Net Income | 15,078 | 4,581 |
| Other Comprehensive Income (Loss) | ||
| Foreign Currency Translation | 3 | (2) |
| Total Comprehensive Income | 15,081 | 4,579 |
| Net Income per Share – Basic and Diluted | $0.30 | $0.09 |
| Weighted Average Common Shares Outstanding – Basic | 50,957,370 | 50,828,548 |
| Weighted Average Common Shares Outstanding – Diluted | 51,067,270 | 50,837,148 |
| June 30, 2025 | June 30, 2024 | |
|---|---|---|
| Assets | ||
| Current Assets | ||
| Cash | $1,236 | $1,129 |
| Trade Receivables, Net of Allowance for Credit Losses of $867 and $648, respectively | 107,246 | 92,357 |
| Inventory, Net | 102,848 | 97,429 |
| Other Current Assets | 6,802 | 5,298 |
| Total Current Assets | 218,132 | 196,213 |
| Property and Equipment, Net | 11,291 | 12,942 |
| Operating Lease Right-Of-Use Assets | 19,214 | 22,124 |
| Goodwill | 89,116 | 89,116 |
| Intangibles, Net | 18,475 | 13,381 |
| Other Long-Term Assets | 789 | 503 |
| Deferred Tax Asset, Net | 4,211 | 6,533 |
| Total Assets | $361,228 | $340,812 |
| Liabilities and Stockholders’ Equity | ||
| Current Liabilities | ||
| Accounts Payable | $155,300 | $133,221 |
| Accrued Expenses | 9,548 | 9,371 |
| Current Portion of Operating Lease Obligations | 3,229 | 1,979 |
| Current Portion of Finance Lease Obligations | 3,075 | 2,838 |
| Contingent Liability | 1,577 | 511 |
| Total Current Liabilities | 172,729 | 147,920 |
| Revolving Credit Facility, Net | 55,268 | 69,587 |
| Finance Lease Obligation, Non- Current | 1,931 | 5,016 |
| Operating Lease Obligations, Non-Current | 17,432 | 20,413 |
| Shareholder Loan (subordinated), Non-Current | 10,000 | 10,000 |
| Warrant Liability | 646 | 247 |
| Total Liabilities | 258,006 | 253,183 |
| Commitments and Contingencies (Note 11) | ||
| Stockholders’ Equity | ||
| Preferred Stock: | ||
| Par Value $0.0001 per share, Authorized | ||
| 1,000,000 shares, Issued and Outstanding | 0 | 0 |
| Common Stock: | ||
| Par Value $0.0001 per share, Authorized | ||
| 550,000,000 shares at June 30, 2025, and | 5 | 5 |
| at June 30, 2024 | ||
| Paid In Capital | 48,759 | 48,058 |
| Accumulated Other Comprehensive Loss | (76) | (79) |
| Retained Earnings | 54,723 | 39,645 |
| Total Stockholders’ Equity | 103,222 | 87,629 |
| Total Liabilities and Stockholders’ Equity | $361,228 | $340,812 |
