The following is a summary of the Alliance Entertainment Holding Corporation (AENT) Q1 20254 Earnings Call Transcript:

Financial Performance:

• Alliance Entertainment reported a net revenue of $229 million for Q1 2025, up from $226.8 million in the first quarter of fiscal 2024.

• Gross margin for the quarter was 11.2%, which is slightly below last year's 11.6%.

• They recorded a net income of $400,000 for the quarter, turning around from a $3.5 million net loss in the same period last year.

• Adjusted EBITDA stood at $3.4 million, marking the sixth consecutive quarter of positive adjusted EBITDA.

Business Progress:

• Alliance announced their exclusive North American distribution partnership with Arcade1Up, driving a revenue increase of over 20% for this partnership in Q1 2025 compared to the previous year.

• Built on a foundation of strategic acquisitions, they plan to continue expanding into new product categories across music, home video movies, video gaming, and collectibles.

Opportunities:

• Seeing substantial opportunities in licensing for videos and collectibles which promise significant margin improvements.

• Aim to capture more market share and improve financial performance through continuing strategic mergers and acquisitions.

Risks:

• Experiencing normalization in the demand for physical media following the pandemic surge, which may impact growth trajectories.

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