Operating margins remain structurally constrained, compressing to as low as 0.2% in 2024Q4, which highlights the company's inability to effectively scale fixed costs.
| Sales/Revenue | 1.11B | 1.06B | 1.1B | 1.16B | 1.42B | 1.32B | 775.6M |
| Revenue Growth % | 3.36% | -3.36% | -5.03% | -18.25% | 7.09% | 70.65% | - |
| Cost of Goods Sold | 959.34M | 930.61M | 971.59M | 1.05B | 1.23B | 1.14B | 656.49M |
| COGS % of Revenue | - | 87.51% | 88.29% | 91.03% | 87.13% | 86.2% | 84.64% |
| Gross Profit | 149.3M | 132.85M | 128.89M | 103.93M | 182.38M | 182.68M | 119.11M |
| Gross Margin % | 13.47% | 12.49% | 11.71% | 8.97% | 12.87% | 13.8% | 15.36% |
| Gross Profit Growth % | - | 3.07% | 24.01% | -43.01% | -0.16% | 53.37% | - |
| Operating Expenses | 107.98M | 102.72M | 114.75M | 136.68M | 140.28M | 134.78M | 109.85M |
| OpEx % of Revenue | - | 9.66% | 10.43% | 11.8% | 9.9% | 10.18% | 14.16% |
| Selling, General & Admin | 94.44M | 96.37M | 106.47M | 121.9M | 122.37M | 114.13M | 85.88M |
| SG&A % of Revenue | - | 9.06% | 9.67% | 10.52% | 8.63% | 8.62% | 11.07% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 6.35M | 8.28M | 14.78M | 17.91M | 20.64M | 23.97M |
| Operating Income | 41.31M | 30.14M | 14.14M | -32.75M | 42.1M | 47.91M | 9.26M |
| Operating Margin % | 3.73% | 2.83% | 1.29% | -2.83% | 2.97% | 3.62% | 1.19% |
| Operating Income Growth % | - | 113.11% | 143.18% | -177.79% | -12.13% | 417.3% | - |
| EBITDA | 46.75M | 35.47M | 20.02M | -26.12M | 50.36M | 59.3M | 25.05M |
| EBITDA Margin % | 4.22% | 3.34% | 1.82% | -2.25% | 3.55% | 4.48% | 3.23% |
| EBITDA Growth % | 78.49% | 77.16% | 176.66% | -151.86% | -15.08% | 136.78% | - |
| D&A (Non-Cash Add-back) | 5.44M | 5.33M | 5.88M | 6.63M | 8.26M | 11.39M | 15.78M |
| EBIT | 40.46M | 29.28M | 14.1M | -32.75M | 42.1M | 47.91M | 9.26M |
| Net Interest Income | -9.84M | -10.57M | -12.25M | -11.71M | -4.06M | -2.94M | -3.52M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 9.84M | 10.57M | 12.25M | 11.71M | 4.06M | 2.94M | 3.52M |
| Other Income/Expense | -11.69M | -11.43M | -12.29M | -11.72M | -4.06M | -2.94M | -3.52M |
| Pretax Income | 29.62M | 18.71M | 1.85M | -44.46M | 38.04M | 44.97M | 5.74M |
| Pretax Margin % | 2.67% | 1.76% | 0.17% | -3.84% | 2.68% | 3.4% | 0.74% |
| Income Tax | 7.28M | 3.63M | -2.73M | -9.06M | 9.42M | 10.79M | 376K |
| Effective Tax Rate % | 24.58% | 19.4% | -147.22% | 20.37% | 24.77% | 24% | 6.55% |
| Net Income | 22.34M | 15.08M | 4.58M | -35.4M | 28.62M | 34.18M | 5.36M |
| Net Margin % | 2.01% | 1.42% | 0.42% | -3.06% | 2.02% | 2.58% | 0.69% |
| Net Income Growth % | 88.9% | 229.14% | 112.94% | -223.71% | -16.26% | 537.53% | - |
| Net Income (Continuing) | 22.34M | 15.08M | 4.58M | -35.4M | 28.62M | 34.18M | 5.36M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.00 | 0.30 | 0.09 | -0.74 | 1.99 | 0.72 | 0.78 |
| EPS Growth % | 84.87% | 232.96% | 112.18% | -137.19% | 176.39% | -7.69% | - |
| EPS (Basic) | - | 0.30 | 0.09 | -0.74 | 1.99 | 0.72 | 0.78 |
| Diluted Shares Outstanding | 50.84B | 50.84M | 50.84M | 48.14M | 14.38M | 47.5M | 6.89M |
| Basic Shares Outstanding | 50.83B | 50.83M | 50.84M | 48.14M | 14.38M | 47.5M | 6.89M |
| Dividend Payout Ratio | - | - | - | - | - | 19.93% | - |
Thin liquidity and margin compression
According to the provided quarterly financial data, AENT's revenue exhibits significant seasonal volatility, with a 21.2% year-over-year growth in 2026Q3 contrasting with persistent quarterly contractions in prior periods, suggesting that the company's top-line remains highly sensitive to release cycles rather than consistent organic expansion.
The revenue trajectory appears heavily dependent on the timing of major entertainment releases and holiday-driven demand, which masks the underlying structural decline of legacy physical media formats. Investors should monitor whether the recent growth in 2026Q3 represents a sustainable pivot toward higher-margin collectibles or merely a temporary spike in seasonal volume.
As reported in the income statement, AENT maintains a structurally thin gross margin profile, fluctuating between 10.7% and 15.8% over the last ten quarters, which underscores the company's limited pricing power as a wholesale intermediary in a commoditized physical media distribution market.
The inability to consistently expand gross margins suggests that the company remains a price-taker within the retail supply chain. Any meaningful margin improvement appears contingent on a successful shift toward third-party logistics services, where the company can leverage its infrastructure without assuming the inventory risks inherent in its current wholesale model.
Based on the historical income statement figures, AENT's operating income demonstrates extreme sensitivity to revenue fluctuations, with operating margins compressing to as low as 0.2% in 2024Q4, indicating that the company lacks the scale to effectively absorb fixed warehouse costs during periods of lower volume.
The data suggests that SG&A expenses are relatively rigid, preventing the company from achieving meaningful operating leverage even when revenue spikes. This lack of scalability implies that the business model may remain perpetually vulnerable to minor shifts in demand or unexpected increases in logistics and labor costs.
Financial statements reveal a precarious liquidity position, with cash reserves of only $1.2M against quarterly revenues exceeding $250M, which suggests that the company's operational continuity is heavily reliant on credit facilities and the timely collection of accounts receivable from major retail partners.
Short-sellers would likely focus on this razor-thin cash cushion as a primary indicator of potential insolvency risk should a major retail partner delay payments or if inventory turnover slows. The reliance on external financing to bridge working capital gaps warrants further investigation into the sustainability of the company's current debt-to-equity structure.
Quick answers to the most common questions about buying AENT stock.
For fiscal year 2025, Alliance Entertainment Holding Corporation (AENT) reported total revenue of $1.06B. This represents a 37.1% increase compared to $775.6M in 2020.
Alliance Entertainment Holding Corporation (AENT) is profitable, generating $15.1M in net income for the fiscal year ending 2025 with a net profit margin of 1.4%.
Alliance Entertainment Holding Corporation (AENT) reported an operating income of $30.1M, resulting in an operating profit margin of 2.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Alliance Entertainment Holding Corporation (AENT) generated $132.9M in gross profit for the year, representing a gross profit margin of 12.5%. This demonstrates the company's core pricing power and production efficiency.