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Alliance Entertainment (AENT) Reports FQ2 2026 Net Income of $9.4M Driven by 33% Physical Movie Revenue Growth

By Maham Fatima | February 24, 2026, 9:32 AM

Alliance Entertainment Holding Corporation (NASDAQ:AENT) is one of the most undervalued penny stocks to buy right now. On February 12, Alliance Entertainment reported earnings for FQ2 2026, which was marked by a net income of $9.4 million and an adjusted EBITDA of $18.5 million. Performance was particularly supported by a 33% surge in physical movie revenue, which was driven by premium 4K Ultra HD and collectible editions and a 31% increase in the collectibles segment.

Partnerships with major studios like Paramount and Amazon MGM have further enhanced the company’s retail visibility and pricing power. Despite the profitability gains, total net revenue declined to $369 million from $394 million in the prior year. This drop was largely fueled by a $34 million slump in the arcade business and supply chain constraints affecting Microsoft gaming consoles.

Alliance Entertainment (AENT) Reports FQ2 2026 Net Income of $9.4M Driven by 33% Physical Movie Revenue Growth
Copyright: dmitrymoi / 123RF Stock Photo

While the company saw success with Nintendo products, the broader gaming hardware category remained soft. Alliance Entertainment Holding Corporation (NASDAQ:AENT) is now actively exploring M&A opportunities and the launch of ‘Alliance Authentic,’ which uses NFC technology to add digital value to physical collectibles.

Alliance Entertainment Holding Corporation (NASDAQ:AENT) operates as a wholesaler and e-commerce provider for the entertainment industry. It offers vinyl records, video games, digital video discs, Blu-rays, toys, compact discs, collectibles, and other entertainment products.

While we acknowledge the potential of AENT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Most Profitable Undervalued Stocks to Buy and 11 Best Mining Stocks to Buy According to Wall Street.

Disclosure: None.

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