Alliance Entertainment Holding Corporation — Cyborg Score 6/10

Strategic Profile

In fiscal 2025, the company delivered $1.06B in revenue and net income of $15.1M, with earnings per share of $0.30. Noble Research initiated coverage in November 2025 with a favorable cash flow and earnings outlook, expecting adjusted EBITDA to increase 69% to $51.5 million in fiscal 2026.

Cyborg Score Rationale

FY2025 showed significant margin improvement with net income up 229% and profit margin expanding to 1.4%, demonstrating operational leverage. However, the company faces structural headwinds as a physical media distributor in a digital-first market, with earnings declining 11% per year over the past 5 years.

Top Insights

• (November 2025) Noble Research initiated coverage with favorable EBITDA growth expectations and price target of $9
• (FY2025) Net income surged 229% year-over-year to $15.1M, with EPS at $0.30 vs $0.09 prior year
• (FY2025) Profit margin expanded to 1.4% from 0.4%, driven by lower operating expenses
• Company operates 340,000+ SKUs across music, movies, video games, and collectibles serving both retail and e-commerce channels

Named Competitors

• Fulfillment Services — E-commerce fulfillment and logistics
• Music/Video Distribution — Entertainment distributor
• Record Retail — Independent music retailers

Recent Developments

• (December 2023) Closed new $120M senior secured asset-based credit facility with White Oak Commercial Finance
• (July 2023) Closed public offering of 1.335M shares at $3.00 per share, raising $4.0M gross proceeds
• (May 2025) Record Store Day 2025 distribution with approximately 650,000 units to independent retailers

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