Alliance Entertainment FY2026: Revenue Climbs 8% to $1.15B, but a $7.8M Vendor Loss and Negative Cash Flow Weigh on Results
AENT sits 26% above its 52-week low of $4.36.
Summary
Alliance Entertainment reported FY2026 revenue of $1.149B (+8%) but net income fell to $13.1M. A $7.8M vendor write-off, negative operating cash flow, and a $35M+ litigation exposure offset strong vinyl and physical media growth.
Key Events · Earnings and Guidance · AENT
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FY2026 Revenue Up 8% to $1.15B
Net revenue reached $1.149B, driven by vinyl (+13% to $383M), CDs (+25% to $156M), and physical movies (+22% to $339M). Gaming declined 27% to $187M.
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Net Income Falls to $13.1M
Net income declined from $15.1M to $13.1M. A $7.8M non-cash vendor transaction loss from Tastemakers' insolvency and higher SG&A offset gross margin improvement to 13.3%.
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Operating Cash Flow Turns Negative
Operating cash flow swung from +$26.8M to -$1.7M due to a $23.8M inventory build and $17.5M receivables increase. Cash on hand is just $0.8M against $74M revolver debt.
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New $120M Bank of America Credit Facility
Refinanced the prior White Oak facility on October 1, 2025. $74M outstanding, $46M availability, fixed charge coverage ratio covenant of 1.0x, matures October 2030.
Analysis · AENT · Trade & Services
Alliance Entertainment's first annual report as a non-emerging growth company paints a mixed picture. Revenue grew 8% to $1.149 billion, powered by vinyl (+13%), CDs (+25%), and physical movies (+22%), while gaming sales fell 27%. Net income slipped to $13.1 million from $15.1 million, and operating cash flow swung from +$26.8M to -$1.7M due to a $23.8M inventory build and $17.5M receivables increase. Key risks include a $7.8M non-cash write-off from the Tastemakers vendor insolvency and a $35M+ litigation exposure (Office Create) with only $2.5M insurance coverage. The new $120M Bank of America credit facility provides liquidity runway, but the company has just $0.8M cash on hand against $74M revolver debt.
How filings like this one have moved
In the 30 days to Sep 10, 2026, 30% of the 1963 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.14%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, AENT was trading at $5.51 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $280.9M. The 52-week trading range was $4.36 to $8.80. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.