Alliance 2025 Q4 Earnings Record Net Income Growth of 129.8%

Alliance (AENT) reported its fiscal 2025 Q4 earnings on September 10, 2025, showing a significant increase in profitability despite a modest revenue decline. The company’s net income surged 129.8% year-over-year, and it maintained strong gross and EBITDA margin growth. Management also provided confidence in continued margin expansion and earnings per share growth into fiscal 2026.

Revenue
The total revenue of Alliance decreased by 3.9% to $227.75 million in 2025 Q4, down from $236.93 million in 2024 Q4.

Earnings/Net Income
Alliance's EPS rose 129.6% to $0.05 in 2025 Q4 from $0.02 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $5.76 million in 2025 Q4, marking 129.8% growth from $2.51 million in 2024 Q4. Remarkably, in 2025 Q4, the company set a new record high for fiscal Q4 net income, the highest in 3 years. Alliance demonstrated a strong ability to improve bottom-line performance despite the revenue contraction.

Price Action
The stock price of Alliance has surged 15.02% during the latest trading day, has jumped 14.26% during the most recent full trading week, and has surged 39.40% month-to-date.

Post-Earnings Price Action Review
The company's share price has experienced a sharp upward trajectory following the earnings release, with significant gains in both daily and weekly trading sessions. The stock has posted a 39.40% increase in the month-to-date period, reflecting investor optimism in the company’s earnings performance and future outlook.

CEO Commentary
Jeffrey Walker, CEO & Director, emphasized Alliance’s strong 2025 fiscal performance, highlighting a 229% increase in net income to $15.1 million and adjusted EBITDA growth of 51% to $36.5 million. He attributed this to improved product mix, automation benefits, and disciplined expense management. Walker emphasized exclusivity as a key differentiator, noting that exclusive partnerships generated over $350 million in revenue, or one-third of total sales. He also highlighted the acquisition of Handmade by Robots, which is already showing growth in new product launches and partnerships. Walker expressed optimism about fiscal 2026, citing the momentum from the Paramount license, strong holiday season demand, and the scalability of the consumer direct fulfillment model.

Guidance
Jeffrey Walker, CEO & Director, stated that Alliance expects to maintain its Q4 2025 gross margin of 15.8% and adjusted EBITDA margin above 5% into fiscal 2026. He noted the company is preparing for significant new releases in the first half of fiscal 2026 across major entertainment franchises and anticipates continued margin expansion and earnings per share growth. Walker also mentioned that the company is investing in AI initiatives to improve merchandising, forecasting, and fulfillment efficiency.

Additional News
On September 9, 2025, Nigeria’s Punch newspaper reported that Larry Ellison, founder of Oracle, had overtaken Elon Musk as the world’s richest man. Oracle shares surged over 35% following a series of major AI deals. In another development, the Nigerian government was reported to have collected N600 billion in VAT from Facebook and other international companies. Meanwhile, the UK upgraded Kaduna state to 'amber' on its travel advisory, lifting a previous travel ban. Political developments also included the arrest of a man claiming to be 'Obi of Lagos' ahead of his planned installation. These events reflect broader economic and political shifts across the region and beyond.