ALLIANCE ENTERTAINMENT HOLDING CORP — Form 8-K

Alliance Entertainment reported fiscal 2026 (ended June 30, 2026) net revenues of $1.149 billion (+8% YoY), with gross margin expansion of 80 basis points to 13.3%. GAAP net income was $13.1 million ($0.26/diluted share); adjusted net income rose 24% to $23.4 million with adjusted EPS increasing 24% to $0.46. Key drivers: vinyl revenue +13% to $383M, CD revenue +25% to $156M, physical movie revenue +22% to $339M (supported by Paramount exclusive deal and new Amazon MGM Studios relationship), and collectibles +45% to $32M. However, operating cash flow turned negative at $(1.7)M vs. +$26.8M prior year due to increased inventory and receivables supporting growth; a $7.8M non-cash vendor rebate write-off also impacted reported earnings. The company maintained $45.7M liquidity on a $120M revolving facility and repaid $10M of related-party debt.