AENT Q3 2026 Earnings Transcript

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DATE

Thursday, May 14, 2026 astatine 4:30 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Jeffrey Walker

• Chief Financial Officer — Amanda Gnecco

• Executive Chairman — Bruce Ogilvie

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Full Conference Call Transcript

Jeff Walker, Chief Executive Officer; and Amanda Gnecco, Chief Financial Officer, volition contiguous the results of operations for the 3rd 4th and 9 months ended March 31, 2026. Bruce Ogilvie, Executive Chairman, is besides connected the enactment and volition enactment during the Q&A session. At this time, I volition crook the telephone implicit to Alliance Entertainment's CEO, Jeff Walker.

Jeffrey Walker: Thank you, Paul, and bully afternoon, everyone. We admit you joining america today. I privation to statesman by framing the 3rd 4th successful precise wide presumption due to the fact that the astir important takeaway this 4th is that we are present seeing some sides of our exemplary moving together, sustained gross maturation and continued net enlargement driven by the structural displacement successful our business. During the 3rd quarter, Alliance delivered a beardown apical enactment maturation with nett gross expanding 21% year-over-year alongside continued profitability with nett income expanding 25% and adjusted EBITDA reaching $5.1 million. For the year-to-date period, nett income is up 78% and adjusted EBITDA has accrued 47%.

These results are important not conscionable due to the fact that of the growth, but due to the fact that of however that maturation is being generated. What we're seeing is the continued execution of a strategy we've been gathering implicit the past respective years, a displacement toward higher-value products, stronger premix and a much scalable operating model. The gross maturation this 4th was broad-based crossed our halfway categories, including Music, Video, Gaming and Collectibles, and it reflects some underlying request and our quality to align inventory, contented and organisation with wherever the collectors are going. At the aforesaid time, we proceed to run with discipline, adjacent arsenic we standard the business, we're maintaining a outgo operation that allows america to make operating leverage and prolong profitability.

That balance, maturation with subject is what defines the net illustration we're building. Stepping back, what's important is that the show is not being driven by short-term factors. It reflects a structural displacement successful however collectors prosecute with carnal products today. We've been precise wide successful however we deliberation astir this. We are not successful a declining carnal media business. We are successful the Collectible business. And what we're seeing successful the marketplace continues to validate that. Collectors are buying vinyl, CDs and premium video formats, not due to the fact that they request entree to content, but due to the fact that they privation to ain thing tied to the artists, franchises and brands they attraction about.