Alliance Entertainment Reports 229% Net Income Growth FY2025

Alliance Entertainment Holding Corp reported strong financial results for fiscal year 2025, with net income surging 229% to $15.1 million and earnings per share increasing to $0.30, despite a slight decline in revenue to $227.8 million in Q4. The company's adjusted EBITDA jumped 481% in Q4 to $12.2 million, driven by margin expansion to 15.8% and operational efficiencies from automation and warehouse consolidation efforts. Strategic moves, including exclusive distribution agreements with Paramount Pictures and Master Replicas and the launch of the Alliance Home Entertainment division, have bolstered the company's market position and profitability. Direct-to-consumer fulfillment now accounts for 37% of gross revenue, reflecting the company's shift toward higher-margin channels amid a challenging sales environment. Alliance also reduced its revolver debt by 22% and lowered operating expenses by 10.5%, enhancing its balance sheet strength. Wall Street analysts remain bullish, with a consensus price target significantly above the current stock price, indicating confidence in the company's growth and margin expansion strategies.