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- **Revenue Growth**: 11% YoY to $254M, with gross margin up 340bps to 14.6% and EBITDA surging 259% to $12.2M.
- **AI Adoption**: Microsoft Co-Pilot and HubSpot tools boost efficiency, with 280 employees leveraging AI daily.
- **Financial Strength**: $120M credit facility cuts interest costs by 250bps, enabling 12-month EBITDA margin of 4.2% vs. 1.5% prior year.
- **Collectibles Momentum**: Handmade by Robots driving 37% of revenue, with new licenses for Sanrio, Jurassic World, and SpongeBob.
- **Paramount Partnership**: 59% YoY growth in physical movie sales, solidifying Alliance as North America's premium distributor.

**【CEO Summary Section】**
- Revenue grew 11% year-over-year to $254 million, driven by physical media and collectibles. Gross margin expanded 340 basis points to 14.6%, with adjusted EBITDA rising 259% to $12.2 million.
- Handmade by Robots brand contributed significantly, with new collectible launches and retail placements, expected to drive future growth.
- AI adoption through Microsoft Co-Pilot and HubSpot improved lead prioritization and operational efficiency, supporting Q4 holiday sales momentum.
- New $120 million credit facility reduced borrowing costs by 250 basis points, enhancing financial flexibility.

**【CFO Financial Commentary】**
- GAAP net income of $4.9 million ($0.10 per share) vs. $0.4 million ($0.01 per share) prior year, with operating expenses down 5% YoY due to cost control.
- Cash balance of $3.2 million, inventory at $121.7 million, and debt stable at $66 million, reflecting disciplined capital management.
- Trailing 12-month EBITDA margin of 4.2%, up from 1.5% prior year, supported by higher-margin content and automation.

**【Q&A Highlights】**
- Vinyl sales strong due to new releases and collectible demand, with Paramount partnership driving 59% YoY growth in physical movie sales.
- AI tools (Co-Pilot, HubSpot) enhance sales efficiency, with 280 employees actively using AI for daily tasks.
- Holiday season expected to benefit from exclusive content, including Handmade by Robots collaborations with Sanrio, Jurassic World, and others.
- Financial flexibility from new credit facility supports seasonal inventory needs and future growth initiatives.

Alliance Entertainment Holding Corporation (AENT) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

AENT

AENT fundamentals

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