Alliance Entertainment Partners with Amazon MGM for Exclusive Distribution of 340,000 SKUs
- Exclusive Partnership: Alliance Entertainment has entered into a new agreement with Amazon MGM Studios, becoming the exclusive physical media distributor in the U.S. and Canada, marking a significant milestone that is expected to enhance market share and brand influence.
- Product Range Expansion: The agreement covers over 340,000 unique SKUs, including iconic franchises like James Bond and Rocky, which not only enriches the product line but also boosts consumer demand for physical media, driving sales growth.
- Market Responsiveness: With its strengths in inventory management and rapid replenishment, Alliance can achieve higher customer responsiveness under the new agreement, thereby enhancing retail partner satisfaction and loyalty, further solidifying its market position.
- Strategic Development Focus: By collaborating with Amazon, Alliance Entertainment can leverage its tech-driven solutions to introduce more premium physical formats in future releases, meeting evolving consumer demands and driving long-term growth for the company.
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- Earnings Call Scheduled: Alliance Entertainment will hold its earnings call on February 12, 2026, at 4:30 PM ET to discuss Q2 2026 results ending December 31, 2025, with a press release detailing these results to be issued beforehand.
- Executive Participation: The call will be hosted by CEO Jeff Walker, CFO Amanda Gnecco, and Executive Chairman Bruce Ogilvie, followed by a Q&A session to enhance interaction between investors and management.
- Dial-in Information: Participants are advised to dial in 5-10 minutes prior to the start time using the toll-free number 1-877-407-0784 for U.S. calls, with the international number being 1-201-689-8560, and Conference ID 13758224 to ensure smooth access.
- Replay Service: A telephone replay will be available approximately three hours after the call concludes and can be accessed until March 12, 2026, using the toll-free replay number 1-844-512-2921 and international replay number 1-412-317-6671, with the same replay ID of 13758224 for those unable to attend live.

- Earnings Revision Ratings: Several mid-to-low cap consumer discretionary stocks, including Alliance Entertainment (AENT) and American Eagle Outfitters (AEO), have received an A+ earnings revision rating, indicating a significant increase in analysts' confidence regarding their profitability outlook, which may attract more investor interest.
- Market Appeal: The A+ ratings for these stocks reflect optimistic future earnings expectations from analysts, especially as the earnings season kicks off, potentially driving their stock prices higher and increasing market participation.
- Industry Performance: Companies like Century Communities (CCS), Crocs (CROX), and Cavco Industries (CVCO) also received A+ ratings, showcasing strong earnings momentum across the consumer discretionary sector, which may prompt investors to reassess the industry.
- ETF Focus: Consumer discretionary ETFs, such as XLY and VCR, may also gain attention due to the performance of these high-rated stocks, further driving capital inflows into the consumer sector and enhancing market activity.
- Strategic Acquisition: Alliance Entertainment completed the acquisition of Endstate on December 31, 2025, forming the wholly owned subsidiary Endstate Authentic, aimed at leveraging patented technology to drive next-generation NFC authentication and resale markets, enhancing the company's competitiveness in the collectibles industry.
- Technological Innovation: The Endstate Authentic platform enables frictionless authentication and real-time ownership verification, expected to drive high-margin secondary market revenue streams while providing brands with secure digital identity solutions to meet growing market demands.
- Leadership Team Addition: Endstate co-founders Bennett Collen and Stephanie Howard join Alliance, with Collen as President and Howard as Senior Vice President of Operations, leveraging their extensive experience to accelerate the platform's go-to-market efforts.
- Future Outlook: Alliance anticipates that Endstate Authentic will become a foundational infrastructure layer for physical collectibles authentication, driving long-term strategic differentiation and recurring software revenue growth, further solidifying its leadership position in the global market.

- Exclusive Partnership: Alliance Entertainment has entered into a new agreement with Amazon MGM Studios, becoming the exclusive physical media distributor in the U.S. and Canada, marking a significant milestone that is expected to enhance market share and brand influence.
- Product Range Expansion: The agreement covers over 340,000 unique SKUs, including iconic franchises like James Bond and Rocky, which not only enriches the product line but also boosts consumer demand for physical media, driving sales growth.
- Market Responsiveness: With its strengths in inventory management and rapid replenishment, Alliance can achieve higher customer responsiveness under the new agreement, thereby enhancing retail partner satisfaction and loyalty, further solidifying its market position.
- Strategic Development Focus: By collaborating with Amazon, Alliance Entertainment can leverage its tech-driven solutions to introduce more premium physical formats in future releases, meeting evolving consumer demands and driving long-term growth for the company.

- Leadership Change: Alliance Entertainment has appointed Brian Maggio as Vice President of Sales for Handmade by Robots, aiming to accelerate the brand's commercial growth following its strong performance over the past year.
- Market Expansion Potential: Handmade by Robots continues to gain traction among major retailers and fan communities due to its unique handmade aesthetic and licensed characters, with expectations for increased retail penetration and product innovation.
- Experienced Leadership: Maggio brings decades of experience in driving sales across North American retailers and key licensors, and his appointment is designed to deepen retail partnerships and support the brand's expansion roadmap.
- Brand Development Strategy: Maggio noted that the unique story and whimsical design of Handmade by Robots hold tremendous potential in a competitive market, with plans to expand through creative licensing and new product formats in the future.

Validea's Earnings Yield Investor Model: The model, based on Joel Greenblatt's strategy, identifies companies with high return on capital and earnings yields, with Alliance Entertainment Holding Corp (AENT) receiving a significant rating increase from 0% to 90%.
Company Overview: Alliance Entertainment is a distributor in the entertainment and collectibles industry, offering a vast selection of physical media and licensed merchandise, serving over 35,000 retail locations and operating various direct-to-consumer brands.
Greenblatt's Investment Philosophy: Joel Greenblatt's "Magic Formula," detailed in his book, emphasizes two fundamental variables for stock selection, achieving impressive historical returns that significantly outperformed the S&P 500.
Validea's Research Service: Validea provides investment research based on the strategies of renowned investors, offering stock analysis and model portfolios aimed at long-term market outperformance.





