Alliance Entertainment Reports First Quarter Fiscal 2027 Revenue Growth of 10% and GAAP Net Income Growth of 56%
Globe Newswire•12/11/2026•08:30 ET
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Key Highlights
- ➤Revenue $278.8M, up 10% year over year
- ➤GAAP net income $7.6M, up 56%; diluted EPS $0.15
- ➤Gross profit $42.1M, up 13%; gross margin expanded to 15.1%
- ➤Collectibles revenue $11.9M, up 87%
- ➤Physical movie revenue $101.1M, up 20%
Expert Statements
Jeff Walker, Chief Executive Officer of Alliance Entertainment
“Fiscal 2027 is off to a strong start, with 10% revenue growth, higher gross margins and significant improvement in GAAP net income and earnings per share”
Jeff Walker, Chief Executive Officer of Alliance Entertainment
“Physical music, movies and collectibles all grew, with collectibles revenue up 87%. For a long time, so much of the conversation was about streaming replacing physical formats. But what we've seen consistently is that fans who can listen to an album or watch a movie online still want something special they can own and collect. The entertainment industry is increasingly recognizing the value of these highly engaged consumers—the superfans—and the growing demand for physical products that we've been seeing for years.”
Jeff Walker, Chief Executive Officer of Alliance Entertainment
“We believe everybody is a superfan of something, and those fans want products that bring them closer to what they love”
Jeff Walker, Chief Executive Officer of Alliance Entertainment
“And when you offer a limited edition or an exclusive collectible, that adds another dimension, because now they have a unique product not everybody else has. This is right in our wheelhouse. We have the studio and label relationships, the retail reach and the fulfillment capabilities to get these products into fans’ hands. What’s exciting is that as more content owners look for ways to serve these fans, they need partners who understand both the products and how to bring them to market. That creates a lot of opportunity for Alliance.”
Amanda Gnecco, Chief Financial Officer of Alliance Entertainment
“First-quarter results reflect continued revenue growth and gross margin improvement, along with the benefits of our strengthened financing structure.”
Amanda Gnecco, Chief Financial Officer of Alliance Entertainment
“Gross profit increased approximately 13%, outpacing revenue growth, while interest expense declined nearly 49% following our refinancing with Bank of America. GAAP net income increased 56% to $7.6 million, benefiting from lower borrowing costs and a favorable non-cash change in the fair value of warrant liabilities.”
Amanda Gnecco, Chief Financial Officer of Alliance Entertainment
“We also made progress on our objective of improving cash generation”
Amanda Gnecco, Chief Financial Officer of Alliance Entertainment
“Operating cash flow increased to $4.3 million from $2.7 million a year ago, despite continued investment in inventory to support customer demand and anticipated sales activity as we enter the holiday season. As we move through fiscal 2027, our priorities remain focused on profitable growth, working-capital efficiency, expense discipline and improving operating leverage. With lower borrowing costs and substantial availability under our revolving credit facility, we believe we have the financial flexibility to support our strategic initiatives while continuing to strengthen the business.”
GAAP diluted EPS increased 50% to $0.15 as net income reached $7.6 million
Gross profit increased 13% to $42.1 million; gross margin expanded to 15.1%
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