Alliance Entertainment Holding Corporation (AENT) AI Stock Analysis

Alliance Entertainment Holding Corporation, headquartered in Plantation, Florida, operates as a global wholesaler, distributor, and e-commerce platform specializing in the entertainment industry. Founded in 1990, the company distributes vinyl records, video games, DVDs, Blu-rays, toys, CDs, collectibles, and consumer entertainment goods. In addition to physical media, entertainment products, hardware, and accessories distribution, it provides comprehensive third-party logistics solutions. The company utilizes a multi-channel strategy catering to retail outlets, online platforms, and direct consumer channels worldwide.

In FY2026, revenue increased 8.0% to $1.15B, reversing declines from $1.10B in FY2024 and $1.06B in FY2025. Between FY2022 and FY2026, 5-year revenue CAGR was -4.1%. Gross margin expanded from 9.0% in FY2023 to 13.3% in FY2026, while operating margin improved to 3.1% from -2.8% over the same period. Net income was $13.1M in FY2026, down slightly from $15.1M in FY2025 but up from a net loss of -$35.4M in FY2023. For the quarter ended June 30, 2026, quarterly revenue grew 17.7% year-over-year and quarterly earnings rose 24.8%. TTM revenue stood at $1.15B with a profit margin of 1.1%.

As of June 30, 2026, Alliance Entertainment held cash and short-term investments of $814,000 alongside total debt of $93.2M, resulting in net debt of $92.4M. Shareholders' equity was $116.6M, producing a debt-to-equity ratio of 0.80 and a current ratio of 1.34. In FY2026, operating cash flow turned to -$1.7M, and capital expenditures of $1.1M brought free cash flow to -$2.8M. Additionally, the company's share count increased 255.1% over 5 years.

Alliance Entertainment closed at $4.50 on October 16, 2026, trading at a trailing P/E of 17.3x and a forward P/E of 9.3x. In comparison, the median of its US-listed Communication Services peers had a trailing P/E of 16.2x and a forward P/E of 14.1x. The company's price-to-sales ratio was 0.2x versus the peer median of 0.8x, while its EV-to-EBITDA ratio was 10.8x compared to the peer median of 10.0x. Over the past year, the stock fell 24.9% against a 16.8% return for the S&P 500 (SPY), and over 5 years it declined 54.2% while the index gained 83.0%.

Alliance Entertainment has 3 covering analysts, with 2 Strong Buy ratings and 1 Buy rating. The mean price target is $9.00, representing 100.0% upside compared to the last close of $4.50. For the fiscal year ending June 30, 2027, consensus estimates project EPS of $0.52 and revenue of $1.17B. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 11, 2026.

This page is an AI-written research summary of Alliance Entertainment Holding Corporation (AENT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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