Jeff Walker<\/strong> said they could not comment on outcomes they do not control. Walker added that Alliance is \u201cdoing a fantastic job with Paramount\u201d and said early feedback from MGM has been positive.<\/p>\nOgilvie emphasized profitability improvements. He cited earnings per share rising from \u201c$0.09 per share\u201d in FY 2024 to \u201c$0.30 per share\u201d in FY 2025, and \u201c$0.43 per share\u201d over the trailing 12 months. He also reported adjusted EBITDA margin expansion from 2.2% to 3.4% to 4.5%, and said the quarter ended Dec. 31, 2025 came in at \u201c5.01%.\u201d<\/p>\n
For the quarter, Ogilvie reported EPS increasing from \u201c$0.14 to $0.18,\u201d net income from \u201c$7.1 million\u2013$9.4 million,\u201d adjusted EBITDA from \u201c$16.1 million to $18.5 million,\u201d and gross margin improving from \u201c10.7%\u201312.8%.\u201d He noted quarterly revenue declined and said the market reacted negatively to the top-line pressure tied to gaming, which he attributed to external factors rather than execution.<\/p>\n
On operations, Ogilvie highlighted investments in warehouse automation, including an AutoStore system. He said the company reduced vinyl picking headcount from 41 to 7, saving \u201canywhere from $3 million\u2013$3.5 million a year,\u201d and described broader \u201cpaperless pick\u201d workflows and sortation equipment. He also said direct-to-consumer fulfillment represents 37% of revenue, supported by white-label drop shipping for major online retailers.<\/p>\n
Management framed physical media as increasingly collectible-driven. Walker said consumers are choosing vinyl and CDs even though streaming makes ownership unnecessary, arguing that physical products are increasingly purchased \u201cjust because they want to collect something.\u201d He pointed to major releases\u2014citing artists including Taylor Swift, Bruno Mars, Harry Styles, and BTS\u2014as evidence of ongoing demand for physical formats as collectibles.<\/p>\n
Ogilvie outlined growth initiatives intended to raise gross profit, including Handmade by Robots<\/strong>, a collectible figurine line based on licensed IP. He said the company believes the brand could grow to \u201clike $100 million a year business,\u201d which he estimated could add \u201cabout $40 million a year of gross profit\u201d if achieved. He also referenced Record Store Day as a demand driver for vinyl, calling the upcoming April event \u201cgoing to be a monster for us.\u201d<\/p>\nWalker also detailed Alliance Authentic<\/strong>, an encapsulated, numbered vinyl collectible concept designed to ensure mint condition and prevent counterfeits using NFC-based authentication. He said the company is not entering the grading business, but instead focuses on new, uncirculated items. Walker described a longer-term vision that could include blockchain-linked media such as videos of artists signing autographs and a marketplace where collectors can buy and sell authenticated items, with Alliance earning a transaction fee.<\/p>\nOn acquisitions, Walker said the company evaluates both consolidating deals in existing categories and new IP or capability additions. He said Alliance is active in conversations but passes on opportunities that do not fit return thresholds.<\/p>\n
Ogilvie discussed the company\u2019s acquisition of Endstate, describing it as a $2 million purchase price with potential earn-outs \u201cup to $20 million paid over a 3-year period.\u201d He said the technology helps combat counterfeiting and may have broader applications, including compliance-related product tracking in Europe beginning in 2027 under the EU Ecodesign for Sustainable Products Regulation.<\/p>\n
On the balance sheet, Ogilvie addressed questions about cash and working capital. He said liquidity includes borrowing availability under an asset-based lending facility and cited \u201cover $35 million worth of availability\u201d in addition to cash on the balance sheet as of Dec. 31. He also explained higher receivables as a function of larger customers like Amazon and Walmart having \u201cusually 90-day terms,\u201d and said the company stopped using a receivables acceleration program after refinancing its borrowing costs from \u201cSOFR + 9.5%\u201d to \u201cSOFR + 1.625.\u201d<\/p>\n
Separately, Ogilvie said Alliance is seeking to recover an estimated \u201c$8.5 million\u201d deposit related to a Diamond distribution matter, adding that the outcome depends on a judge\u2019s ruling and is \u201ccoming to a conclusion here pretty soon.\u201d<\/p>\n
Looking ahead, Walker said the company is investing to scale newer, higher-margin initiatives and does not expect a major earnings impact in fiscal 2027, with more meaningful profitability contributions anticipated in fiscal 2028 and fiscal 2029.<\/p>\n
Alliance Entertainment (NASDAQ: AENT) is a distributor of physical media and related entertainment products, serving retailers, public libraries and online merchants. The company\u2019s core business revolves around the wholesale distribution of music and video titles on CD, DVD and Blu-ray formats, as well as vinyl records, audiobooks, video games and select gift and novelty items. By maintaining a broad catalog of new and catalog titles, Alliance Entertainment enables brick-and-mortar and e-commerce channels to access an extensive range of products from major and independent labels.<\/p>\n
In addition to its product offerings, Alliance Entertainment provides supply-chain and logistics services designed to streamline inventory management and order fulfillment.<\/p>\n
The article “Alliance Entertainment Webinar: Amazon MGM Deal, Margin Gains, and New Authentication Growth Push<\/a>” was originally published by MarketBeat.<\/p>\n<\/p><\/div>\n \u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n \u2018 Some details of this article were extracted from the following source finance.yahoo.com \u2019 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"Alliance Entertainment logo Alliance has secured major studio outsourcing deals \u2014 including distributing Disney and Paramount home-entertainment catalogs and the newly announced Amazon MGM relationship \u2014 which management says bring higher gross margins and expand retailer access (e.g., Amazon, Walmart). The company reported meaningful margin and earnings improvement (EPS rose from $0.09 in FY2024 to […]<\/p>\n","protected":false},"author":2,"featured_media":2279692,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"footnotes":""},"categories":[25172],"tags":[430296,361641,23763,459179,345811,459180,431505,441466,111735,459181],"class_list":["post-2363359","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment","tag-alliance-authentic","tag-alliance-entertainment","tag-amazon","tag-bruce-ogilvie","tag-gross-margin","tag-gross-margins","tag-growth-initiatives","tag-jeff-walker","tag-walmart","tag-warehouse-automation"],"jetpack_featured_media_url":"https:\/\/celebrity.land\/en\/wp-content\/uploads\/2026\/02\/Alliance-Entertainment-Q2-Earnings-Call-Highlights.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2363359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/comments?post=2363359"}],"version-history":[{"count":1,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2363359\/revisions"}],"predecessor-version":[{"id":2363360,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2363359\/revisions\/2363360"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media\/2279692"}],"wp:attachment":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media?parent=2363359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/categories?post=2363359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/tags?post=2363359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}