Cash flow generation is highly erratic, with OCF/NI ratios swinging from -29.27 in 2025Q1 to 9.15 in 2026Q3, reflecting extreme dependency on working capital management.
| Cash from Operations | 32.31M | 26.81M | 55.77M | 3.39M | -83.55M | 74.72M | 27.39M |
| Operating CF Margin % | - | 2.52% | 5.07% | 0.29% | -5.9% | 5.65% | 3.53% |
| Operating CF Growth % | 863.64% | -51.93% | 1546.19% | 104.05% | -211.83% | 172.78% | - |
| Net Income | 22.34M | 15.08M | 4.58M | -35.4M | 28.62M | 34.18M | 5.36M |
| Depreciation & Amortization | 5.29M | 5.33M | 5.88M | 6.63M | 8.26M | 11.39M | 15.78M |
| Stock-Based Compensation | 124K | 58K | 1.39M | 216K | 0 | 0 | 0 |
| Deferred Taxes | 0 | 2.32M | -3.63M | -8.17M | -1.18M | 1.54M | 1.29M |
| Other Non-Cash Items | 8.58M | 6.22M | 1.58M | 11.56M | 661K | 648K | 515K |
| Working Capital Changes | -2.3M | -2.2M | 45.98M | 28.56M | -119.92M | 26.95M | 4.45M |
| Change in Receivables | 7.29M | -6.08M | 11.9M | -4.38M | 13.37M | 8.21M | 12.05M |
| Change in Inventory | 41.09M | -4.67M | 49.33M | 99.73M | -107.78M | -8.62M | 35.82M |
| Change in Payables | -52.06M | 22.08M | -18.4M | -68.95M | -16.15M | 18.69M | -38.76M |
| Cash from Investing | -9.32M | -8.13M | -117K | -824K | -50K | -66.06M | -5.26M |
| Capital Expenditures | -671K | -54K | -183K | -825K | -50K | -650K | -2.7M |
| CapEx % of Revenue | 0.06% | 0.01% | 0.02% | 0.07% | 0% | 0.05% | 0.35% |
| Acquisitions | -8.69M | -7.59M | 0 | 1K | 0 | -65.41M | -2.56M |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 40K | -485K | 66K | 0 | 0 | 0 | 0 |
| Cash from Financing | -27.24M | -18.57M | -55.39M | -3.16M | 81.04M | -5.98M | -23.35M |
| Debt Issued (Net) | -26.64M | -18.57M | -53.31M | -3.16M | 77.66M | 1.33M | -27.21M |
| Equity Issued (Net) | 0 | 0 | 2.13M | 0 | 0 | 0 | 3.86M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -6.81M | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -596K | 0 | -4.21M | 0 | 3.38M | -500K | 0 |
| Net Change in Cash | -4.25M | 107K | 264K | -604K | -2.56M | 2.7M | -1.54M |
| Free Cash Flow | 31.64M | 26.75M | 55.59M | 2.56M | -83.6M | 74.07M | 24.69M |
| FCF Margin % | 2.85% | 2.52% | 5.05% | 0.22% | -5.9% | 5.6% | 3.18% |
| FCF Growth % | 45.21% | -51.87% | 2068.94% | 103.07% | -212.87% | 200% | - |
| FCF per Share | 0.00 | 0.53 | 1.09 | 0.05 | -5.82 | 1.56 | 3.58 |
| FCF Conversion (FCF/Net Income) | 1.42x | 1.78x | 12.17x | -0.10x | -2.92x | 2.19x | 5.11x |
| Interest Paid | 5.79M | 9.17M | 12.25M | 11.43M | 2.88M | 2.08M | 3.27M |
| Taxes Paid | 1.89M | 1.73M | 444K | 648K | 9.35M | 6.54M | 362K |
Extreme working capital volatility
According to the provided financial data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -29.27 in 2025Q1 to 9.15 in 2026Q3, indicating that reported earnings are frequently decoupled from actual cash generation due to significant accrual adjustments.
The extreme variance in the OCF/NI ratio suggests that net income is a poor proxy for the company's underlying cash-generating capability. Investors should monitor whether these swings are driven by seasonal inventory builds or potential delays in customer collections, as the lack of correlation implies high earnings quality risk.
As reported in the quarterly cash flow statements, AENT's free cash flow trajectory is characterized by sharp, unpredictable swings, ranging from a $25.2M inflow in 2025Q4 to an $11.6M outflow in 2025Q1, reflecting a business model that struggles to maintain consistent cash conversion across fiscal periods.
The inability to generate stable free cash flow suggests that the company's operational model is highly sensitive to timing differences in working capital. This volatility complicates long-term capital planning and may force the company to rely on external financing to bridge gaps during periods of negative cash flow.
Based on the reported figures, working capital changes are the primary determinant of cash flow, with quarterly fluctuations as large as $43.5M in 2024Q2, which highlights the company's extreme dependency on managing inventory and receivables to maintain its thin liquidity cushion in a low-margin environment.
The massive swings in working capital indicate that AENT's cash position is essentially a byproduct of its inventory cycle rather than operational profitability. This reliance on working capital management suggests that any disruption in retail sell-through could rapidly deplete the company's limited cash reserves.
Data from recent filings indicates that AENT maintains an exceptionally low capital intensity, with CapEx/Revenue ratios consistently near 0.0% to 0.1%, suggesting that the company is deferring significant investment in its distribution infrastructure to preserve cash in the face of structural industry headwinds.
While low capital intensity protects short-term cash flow, it may indicate a lack of investment in the warehouse automation necessary to improve long-term operating margins. Analysts should investigate whether this under-investment is a strategic choice or a necessity driven by the company's constrained liquidity position.
Quick answers to the most common questions about buying AENT stock.
Alliance Entertainment Holding Corporation (AENT) generated $26.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alliance Entertainment Holding Corporation (AENT) generated $26.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Alliance Entertainment Holding Corporation (AENT) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.