Exclusive Distribution Partnership with Paramount
Alliance Entertainment secured an exclusive home entertainment license agreement with Paramount, effective January 1, 2025, for DVD, BluRay, and UHD formats in the U.S. and Canada, expected to significantly impact financial performance with releases like Gladiator 2.
Growth in Vinyl and Physical Movie Sales
Vinyl sales grew 12% to $109 million and physical movie sales surged 23% to $86 million year-over-year, driven by demand for 4K UHD and collectible editions.
Strategic Acquisition of Handmade by Robots
The acquisition of Handmade by Robots strengthens Alliance Entertainment's position in the collectibles market with plans for new character releases in mid-2025.
Successful Cost Reductions
Operating expenses declined 6% year-over-year to $27.5 million, with distribution and fulfillment costs down 18% due to automation and warehouse consolidation.
Improved Financial Flexibility
Revolver balance reduced by 31% year-over-year to $70 million, improving liquidity availability from $19 million to $50 million.