Alliance Entertainment Holding Corp (NASDAQ: AENT) is a physical media and entertainment products distribution company that warehouses and ships over 340,000 SKUs across vinyl records, DVDs, Blu-ray, CDs, gaming products, and collectibles to retailers and direct-to-consumer buyers. Revenue is transactional, generated by selling and distributing physical entertainment inventory to both bulk B2B retail customers and through its consumer-direct subsidiary, DirectToU LLC. Alliance holds exclusive distribution rights for approximately 175 film and music studios and labels, and also provides vendor managed inventory (VMI) and dropship fulfillment services on behalf of omnichannel retail partners. Total net revenue was $1,063 million for the fiscal year ended June 30, 2025, down from $1,100 million in the prior fiscal year. The company is headquartered with primary warehouse operations in Shepherdsville, Kentucky and had approximately 697 employees as of June 30, 2025. Alliance went public via a reverse merger with Adara Acquisition Corp., completed February 10, 2023.

Revenue model

Transactional product sales to B2B retail customers and direct-to-consumer buyers. DirectToU LLC, the direct-to-consumer subsidiary, contributed approximately 37% of gross revenue for the fiscal year ended June 30, 2025, up from 36% in the prior year. Value-added services include VMI solutions and automated dropship fulfillment on behalf of retail partners.

Products and services

Five primary product categories for fiscal year ended June 30, 2025: vinyl records (32% of consolidated revenue, $340 million), DVD/Blu-ray/UltraHD (26%, $279 million), gaming products including Nintendo, Microsoft, and Arcade1Up (24%, $255 million), compact discs (12%), and collectibles and consumer electronics (4%). Alliance also distributes licensed pop culture collectibles through its Handmade by Robots acquisition.

Customers and end markets

B2B bulk retail customers including brick-and-mortar and omnichannel retailers, as well as direct-to-consumer buyers served through DirectToU LLC. End markets include physical music, physical video, video gaming, and pop culture collectibles. The filing identifies Barnes and Noble, Best Buy, and hundreds of independent retailers as historical customer types.

Value-chain role

Wholesale distributor and fulfillment operator sitting between studios, labels, and game publishers on one side and retailers or end consumers on the other. Alliance provides stocking, warehousing, shipping, dropship order automation, and VMI solutions. Warehouse automation at Shepherdsville, Kentucky includes an AutoStore Automated Storage and Retrieval System (implemented December 2022) and the OPEX Sure Sort X sortation system (implemented April 2024).

Geographic exposure

Primary operations in the United States. The filing references economic conditions in the United States and abroad as relevant to operations but does not specify non-U.S. revenue percentages.

Source: SEC 10-K, filed 2025-09-10

Industry: Wholesale-Durable Goods, NEC Peers: Amcon Distributing Co EZRaider Co. Funko Inc Genuine Parts Co LKQ Corp Pool Corp WEYCO Group Inc