Alliance Entertainment headquarters in Plantation, Fla.
November 12, 2025
Alliance Entertainment Nov. 12 reported first quarter ended Sept. 30 net income of $4.9 million on revenue of $253.9 million, which was up from a profit of $397,000 on revenue of $229,000 in the previous-year period.
Physical movie sales, encompassing the DVD, Blu-ray Disc and Ultra HD formats, rose nearly 59% to $84 million from $52.9 million in the same period in the prior year.
A 2.5% increase in average unit selling price, together with higher unit shipments, drove substantial year-over-year revenue growth. The strong performance reflected a consistent flow of theatrical releases and sustained consumer interest in premium formats such as 4K Ultra HD and collectible Steelbooks, according to Alliance.
“Physical media remains a powerful driver, led by our exclusive Paramount agreement and sustained interest in premium 4K and SteelBook formats,” CEO Jeff Walker said in a statement.
Walker said company-owned and-licensed collectibles brands also continue to expand, with “Handmade by Robots” and “Master Replicas” performing ahead of expectations.
“Our consumer direct fulfillment channel remains a cornerstone of our model — capital-light, scalable, and increasingly critical for retailers as they navigate hybrid physical and digital demand,” Walker said.
The executive said the distributor is seeing “tangible” results from its AI initiative embedding tools such as HubSpot and Microsoft Co-Pilot into company workflows, improving sales enablement, speed to market, and customer responsiveness.
“These innovations are making our teams more productive and our operations more agile heading into the holiday season, which historically represents our strongest quarter of the year,” Walker said.
Meanwhile, collectibles revenue grew almost 32% from $4.8 million to $6.4 million despite a 27.5% unit volume decline, offset by 81.9% increase in average selling price.
Electronics revenue totaled $1.9 million, down from $2.4 million in the prior year. The decline was primarily driven by a 34.2% reduction in average selling price, partially offset by a 21.6% increase in unit volume.
“The lower pricing reflects ongoing competitive pressures and changes in product mix, while the increase in volume suggests that demand remained relatively stable compared with the prior-year period,” Alliance said in the 10Q filing.
Gaming product revenue declined 20.2% from $57.1 million to $45.6 million, reflecting a broader slowdown in the gaming industry. Unit volume increased 42% year-over-year, while the average selling price fell 43.8%, partly due to a pause in arcade hardware purchases following a reassessment of vendor partnerships, as well as limited hardware availability and delays in major game releases. Despite these factors, Alliance said the demand remains strong, with the market anticipating next-generation high-performance consoles.
“We continue to adjust our offerings to align with consumer trends and maximize profitability, while monitoring potential supply challenges arising from market volatility and trade tensions with China,” the company stated.
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