• Alliance Entertainment posted net income of $2.31 million for quarter ended March 31, 2026, up from $1.85 million a year earlier.
• Net revenues climbed 21.2% to $258.2 million, while operating income edged down to $3.32 million.
• Gross margin narrowed 80 basis points to 12.8%, attributed to a lower mix of higher-margin digital sales, reduced trade spending and vendor rebates, slightly higher freight costs, and increased product returns.
• Interest expense fell 35.6% to $1.57 million on a lower effective rate following transition of revolving credit facility to Bank of America, despite higher average revolver borrowings.
• Exclusive physical media agreements expanded with Amazon MGM Studios Distribution in January 2026, following Paramount deal signed in January 2025; company also completed Endstate Authentic acquisition on Dec. 31, 2025 to launch Alliance Authentic using NFC-enabled authentication technology.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Alliance Entertainment Holding Corporation published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001493152-26-023051), on May 14, 2026, and is solely responsible for the information contained therein.