Alliance Entertainment posts strong Q3 2026 results

Exhibit
99.1

Alliance
Entertainment Reports Third Quarter Fiscal Year 2026 Results

Net
revenues increased 21% year-over-year

Net
income increased 25% year-over-year to $2.3M; year-to-date net income grew 78% to $16.6M

Adjusted
EBITDA increased to $5.1M in Q3; year-to-date Adjusted EBITDA up 47% to $35.7M

PLANTATION,
Fla., May 14, 2026 (GLOBE NEWSWIRE) — Alliance Entertainment Holding Corporation (Nasdaq: AENT), a premier distributor, logistics
provider, and omnichannel fulfillment partner to the entertainment and pop culture collectibles industry, supplying more than 340,000
unique SKUs across music, video, video games, licensed merchandise, and exclusive collectibles to over 35,000 retail and e-commerce storefronts,
reported its financial and operational results for its fiscal third quarter ended March 31, 2026.

Third
Quarter FY 2026 Highlights

“Our
third quarter results reflect continued strength across our core categories and the operating leverage inherent in our model,”
said Jeff Walker, Chief Executive Officer of Alliance Entertainment. “We delivered over 21% revenue growth in the quarter and strong
year-to-date earnings expansion, demonstrating that our platform is scaling and that improvements in product mix and cost structure are
translating into durable profitability.”

“We
are also seeing continued validation of the broader shift toward physical media as a collectible category, where ownership, scarcity,
and premium formats are driving collector purchasing behavior,” Walker added. “This trend is increasingly supported by collector-driven
discovery and community engagement across social media platforms, particularly among younger consumers who are prioritizing intentional
listening, tangible ownership, and long-term value. Our exclusive partnerships and curated assortment position us at the center of that
trend, while our direct-to-consumer and platform initiatives are enabling us to capture more value across the lifecycle of each product.”

“During
the quarter, we advanced the next phase of our strategy with the launch of Alliance Authentic™, extending our platform into authenticated
collectibles,” Walker continued. “Importantly, this represents the first commercial application of Endstate Authentic, our
NFC-enabled authentication platform, and extends our role beyond distribution into ownership, provenance, and the full lifecycle of collectible
products. Subsequent to quarter end, we further expanded our platform strategy with the relaunch of Movies Unlimited as a curated, collector-focused
destination designed to deepen engagement and increase customer lifetime value. Together, these initiatives build on our existing scale
to enhance product value, strengthen customer relationships, and create additional long-term growth opportunities.”

Amanda
Gnecco, Chief Financial Officer of Alliance Entertainment, said, ““We delivered strong financial performance in the third
quarter, with revenue up 21% and net income increasing 25% year-over-year. For the first nine months of fiscal year 2026, net income
increased 78% to $16.6 million, and Adjusted EBITDA increased 47% to $35.7 million, highlighting the growing earnings power and scalability
of our platform.”

“We
are seeing clear operating leverage across the business, with operating expenses declining as a percentage of revenue even as we continue
to invest in infrastructure, technology, and growth initiatives. At the same time, we maintained a strong liquidity position, ending
the quarter with approximately $60 million in working capital and $56 million of availability under our revolving credit facility. With
a more efficient cost structure and continued momentum in higher-value categories, we believe we are well positioned to sustain both
revenue growth and meaningful earnings expansion.”

Third
Quarter FY 2026 Financial Results

Nine-Months
FY 2026 Financial Results

Conference
Call

Alliance
Entertainment Chief Executive Officer Jeff Walker, Chief Financial Officer Amanda Gnecco, and Executive Chairman Bruce Ogilvie will host
the conference call, which will be followed by a question-and-answer session. A presentation will accompany the call and can be viewed
during the webcast or accessed via the investor relations section of the Company’s website here.

To
access the call, please use the following information:

Please
call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you
have any difficulty connecting with the conference call, please contact RedChip Companies at 1-407-644-4256.

The
conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1760227&tp_key=0154ad6f3e
and via the investor relations section of the Company’s website here.

A
telephone replay of the call will be available approximately three hours after the call concludes and can be accessed through June 14,
2026, using the following information:

About
Alliance Entertainment

Alliance
Entertainment (NASDAQ: AENT) is a premier distributor and fulfillment partner for the entertainment and pop culture collectibles industry.
With more than 340,000 unique in-stock SKUs — including over 57,300 exclusive titles across compact discs, vinyl LPs, DVDs, Blu-rays,
and video games — Alliance offers the largest selection of physical media in the market. Our vast catalog also includes licensed
merchandise, toys, retro gaming products, and collectibles, serving over 35,000 retail locations and powering e-commerce fulfillment
for leading retailers. Alliance also owns and operates proprietary collectibles brands, including Handmade by Robots™, a stylized
vinyl figure line featuring licensed characters from leading entertainment franchises, and Alliance Authentic™, a premium platform
for authentic, certified, and individually numbered entertainment collectibles. In addition, Alliance operates Endstate Authentic, a
dedicated NFC-enabled authentication and digital product identity platform supporting authenticated collectibles, resale, and brand protection.
Leveraging decades of operational expertise, exclusive sourcing relationships, and a capital-light, scalable infrastructure, Alliance
connects fans and collectors to the products, franchises, and experiences they value across formats and generations. For more information,
visit www.aent.com.

Forward
Looking Statements

Certain
statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor
provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied
by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,”
“intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,”
“seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate
future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited
to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These
statements are based on various assumptions, whether identified in this Press Release, and on the current expectations of Alliance’s
management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only
and are not intended to serve as and must not be relied on by an investor as, a guarantee, an assurance, a prediction, or a definitive
statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions.
Many actual events and circumstances are beyond the control of Alliance. These forward-looking statements are subject to a number of
risks and uncertainties, including risks relating to the anticipated growth rates and market opportunities; changes in applicable laws
or regulations; the ability of Alliance to execute its business model, including market acceptance of its systems and related services;
Alliance’s reliance on a concentration of suppliers for its products and services; increases in Alliance’s costs, disruption
of supply, or shortage of products and materials; Alliance’s dependence on a concentration of customers, and failure to add new
customers or expand sales to Alliance’s existing customers; increased Alliance inventory and risk of obsolescence; Alliance’s
significant amount of indebtedness; our ability to refinance our existing indebtedness; our ability to continue as a going concern absent
access to sources of liquidity; risks that a breach of the revolving credit facility could result in the lender declaring a default and
that the full outstanding amount under the revolving credit facility could be immediately due in full, which would have severe adverse
consequences for the Company; known or future litigation and regulatory enforcement risks, including the diversion of time and attention
and the additional costs and demands on Alliance’s resources; Alliance’s business being adversely affected by increased inflation,
uncertainty regarding tariffs, higher interest rates and other adverse economic, business, and/or competitive factors; geopolitical risk
and changes in applicable laws or regulations; as well as our financial condition and results of operations; substantial regulations,
which are evolving, and unfavorable changes or failure by Alliance to comply with these regulations; product liability claims, which
could harm Alliance’s financial condition and liquidity if Alliance is not able to successfully defend or insure against such claims;
availability of additional capital to support business growth; and the inability of Alliance to develop and maintain effective internal
controls.

For investor inquiries, please contact:

Dave Gentry

RedChip Companies, Inc.

1-800-REDCHIP (733-2447)

1-407-644-4256

[email protected]

ALLIANCE
ENTERTAINMENT HOLDING CORP.

UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS

ALLIANCE
ENTERTAINMENT HOLDING CORP.

CONSOLIDATED
BALANCE SHEETS

ALLIANCE
ENTERTAINMENT HOLDING CORP.

UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS

Non-GAAP
Financial Measures: For the three months ended March 31, 2026, we had non-GAAP Adjusted EBITDA of approximately $5.1 million compared
with Adjusted EBITDA of approximately $4.9 million in the prior year period, or a year-over-year improvement of $0.2 million. For the
nine months ended March 31, 2026, we had non-GAAP Adjusted EBITDA of approximately $35.7 million compared with Adjusted EBITDA of approximately
$24.4 million in the prior year period, or a year-over-year improvement of $11.3 million. We define Adjusted EBITDA as net income (loss)
adjusted to exclude: (i) income tax expense; (ii) interest expense; (iii) depreciation and amortization; (iv) changes in the fair value
of warrant liabilities; and (v) other non-recurring or non-cash items, including transaction costs and stock-based compensation. Our
method of calculating Adjusted EBITDA may differ from other companies and accordingly, this measure may not be comparable to measures
used by other companies. We use Adjusted EBITDA to evaluate our own operating performance and as an integral part of our planning process.
We present Adjusted EBITDA as a supplemental measure because we believe such a measure is useful to investors as a reasonable indicator
of operating performance. We believe this measure is a financial metric used by many investors to compare companies. This measure is
not a recognized measure of financial performance under GAAP in the United States and should not be considered as a substitute for operating
earnings (losses), net earnings (loss) from continuing operations or cash flows from operating activities, as determined in accordance
with GAAP. See the table below for a reconciliation, for the periods presented, of our GAAP net income (loss) to Adjusted EBITDA.

Exhibit 99.2