Investment Thesis
Alliance Entertainment faces severe operational deterioration with revenue collapsing 99.7% YoY while reporting anomalous profitability metrics that lack credibility given the revenue base. Negative operating cash flow of -$13.8M, minimal cash reserves of $1.4M, and deteriorating liquidity ratios indicate the company is burning capital and faces potential viability concerns.
AENTW Strengths
- Positive operating cash flow conversion not yet negative at full scale
- Current ratio of 1.35x provides minimal short-term liquidity cushion
- Total assets of $434.1M provide some asset base for potential restructuring
AENTW Risks
- Revenue collapse of 99.7% YoY indicates business model failure or data anomaly
- Negative free cash flow of -$14.5M with only $1.4M cash on hand creates imminent solvency risk
- Reported net margin of 891.8% on $1.6M revenue is mathematically inconsistent and suggests financial statement reliability issues
- Operating cash flow of -$13.8M contradicts reported $27.8M operating income, indicating potential earnings quality problems
- Zero insider filings in last 90 days suggests possible management disengagement during crisis period
- Quick ratio of 0.79x indicates potential working capital strain and inability to meet short-term obligations
Key Metrics to Watch
- Quarterly revenue trend and customer retention rates to confirm viability
- Operating cash flow versus reported earnings quality
- Cash burn rate and months of runway remaining
- Debt covenant compliance status and refinancing prospects
AENTW Financial Metrics
AENTW Profitability Ratios
AENTW Balance Sheet & Liquidity
AENTW 5-Year Financial Trend
5-Year Trend Summary: ALLIANCE ENTERTAINMENT HOLDING CORP's revenue has declined by 22% over the 5-year period, indicating business contraction. The most recent EPS of $0.09 reflects profitable operations.
AENTW Growth Metrics (YoY)
AENTW Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $368.7M | $397.0K | $0.14 |
| Q1 2026 | $229.0M | $397.0K | $0.01 |
| Q3 2025 | $211.2M | $397.0K | $0.04 |
| Q2 2025 | $393.7M | $397.0K | $0.11 |
| Q1 2025 | $226.8M | $397.0K | $0.01 |
| Q3 2024 | $211.2M | $2.1M | $0.04 |
| Q2 2024 | $425.6M | -$3.5M | $0.11 |
| Q3 2023 | $227.7M | $3.7M | $0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AENTW Capital Allocation
AENTW SEC Filings
Access official SEC EDGAR filings for ALLIANCE ENTERTAINMENT HOLDING CORP (CIK: 0001823584)