Alliance Entertainment Reports Third Quarter Fiscal Year 2026 Results
Rhea-AI Summary
Alliance Entertainment (Nasdaq:AENT) reported Q3 FY 2026 net revenues of $258.2 million, up 21% year-over-year, with net income of $2.3 million or $0.05 per diluted share and Adjusted EBITDA of $5.1 million.
For the nine months, net revenues reached $880.9 million (+5%), net income $16.6 million (+78%), and Adjusted EBITDA $35.7 million (+47%). Growth was supported by strong physical media, collectibles, gaming, and electronics, the launch of Alliance Authentic and Endstate Authentic, and liquidity including about $60 million working capital and $56 million revolver availability.
AI-generated analysis. Not financial advice.
Positive
- Q3 net revenues $258.2M, up 21.1% year-over-year
- Q3 net income $2.3M, up 25% year-over-year; EPS $0.05
- Nine-month net income $16.6M, up 78% year-over-year
- Nine-month Adjusted EBITDA $35.7M, up 47% year-over-year
- Nine-month gross margin 13.3%, up 170 bps year-over-year
- CD sales $39M, up 90% year-over-year
- Collectibles revenue $8M, up 48% year-over-year
- Working capital about $60M; revolver availability about $56M
- Operating expenses improved to 11.5% of net revenue from 12.0%
Negative
- Q3 gross margin 12.8%, down from 13.6% year-over-year
News Market Reaction – AENT
On the day this news was published, AENT declined 11.84%, reflecting a significant negative market reaction. Argus tracked a peak move of +3.3% during that session. Argus tracked a trough of -14.5% from its starting point during tracking. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $53M from the company's valuation, bringing the market cap to $394.92M at that time. Trading volume was exceptionally heavy at 6.6x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
AENT was down 1.29% pre-release while momentum scanners only flagged HUYA moving down 0.33%. Other entertainment peers showed mixed, mostly modest moves, pointing to stock-specific dynamics rather than a broad sector swing.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | Q2 FY2026 earnings | Positive | -13.8% | Stronger profitability, higher Adjusted EBITDA, Endstate acquisition and platform initiatives. |
| Nov 12 | Q1 FY2026 earnings | Positive | +0.3% | Double-digit revenue growth, margin expansion, and sharply higher Adjusted EBITDA. |
| Sep 10 | FY2025 results | Positive | -15.1% | EPS and net income surged, aided by licensing deals and debt reduction. |
| May 15 | Q3 FY2025 earnings | Positive | +13.2% | Return to profitability with revenue growth in physical media and DTC channels. |
| Feb 13 | Q2 FY2025 earnings | Negative | -19.1% | Year-over-year revenue and net income declines despite strong category performance. |
Earnings releases have often been followed by sharp moves, with strong fundamental progress not always rewarded, and an average same-day move of about -6.91% across recent earnings events.
Over the past year, Alliance Entertainment has reported multiple earnings beats and margin expansion, highlighted by Q1 FY2026 revenue of $254.0M and Q2 FY2026 net income of $9.4M with gross margin at 12.8%. FY2025 results also showed EPS rising to $0.30 and strong Adjusted EBITDA growth. Despite these positives, several earnings days (Feb 13, 2025, Sep 10, 2025, Feb 12, 2026) saw notable share price declines, underscoring a history of volatile and sometimes skeptical market reactions to financial updates.
Historical Comparison
Across the last five earnings releases, AENT’s stock moved an average of -6.91%, with several selloffs following fundamentally strong reports. This Q3 FY2026 earnings update continues the narrative of revenue growth and scaling profitability against a backdrop of historically choppy earnings-day reactions.
Recent earnings trace a progression from mixed FY2025 results into FY2026, with Q1 and Q2 showing expanding margins, higher net income, and the integration of Endstate’s authentication platform. Today’s Q3 FY2026 release adds continued revenue growth and profitability, reinforcing a multi-quarter trend of operational scaling and platform development.
Market Pulse Summary
The stock dropped -11.8% in the session following this news. A negative reaction despite solid top-line growth and higher profitability would fit prior patterns, where earnings events averaged around -6.91% and sometimes saw sharp declines on fundamentally strong updates. With Q3 net income at $2.3M and nine-month Adjusted EBITDA at $35.7M, weakness would likely reflect valuation or expectations rather than a collapse in performance, and past volatility suggests downside moves can be pronounced around earnings.
Key Terms
adjusted ebitda financial
basis points financial
revolving credit facility financial
nfc-enabled technical
AI-generated analysis. Not financial advice.
Net revenues increased
Net income increased
Adjusted EBITDA increased to
PLANTATION, Fla., May 14, 2026 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation (Nasdaq: AENT), a premier distributor, logistics provider, and omnichannel fulfillment partner to the entertainment and pop culture collectibles industry, supplying more than 340,000 unique SKUs across music, video, video games, licensed merchandise, and exclusive collectibles to over 35,000 retail and e-commerce storefronts, reported its financial and operational results for its fiscal third quarter ended March 31, 2026.
Third Quarter FY 2026 Highlights
- Revenue Growth and Sustained Profitability: Net revenues increased
21.2% year-over-year to$258.2 million , driven by broad-based strength across core physical product categories. Net income increased to$2.3 million , or$0.05 per diluted share, compared to$1.9 million , or$0.04 per share, in the prior-year period, reflecting continued execution against the Company’s profitability framework. Adjusted EBITDA was approximately$5.1 million , compared to$4.9 million in Q3 FY25. For the nine months ended March 31, 2026, net revenues increased5% to$880.9 million , compared to$835.7 million in the prior-year period, while net income increased78% to$16.6 million , or$0.32 per diluted share, compared to$9.3 million , or$0.18 per share. Adjusted EBITDA was approximately$35.7 million , up47% from$24.4 million in the prior-year period. - Launch of Endstate Authentic and Alliance Authentic™: The Company continued to advance its technology strategy following the acquisition of Endstate on December 31, 2025, establishing Endstate Authentic, an NFC-enabled authentication and digital product identity platform that supports authenticated ownership, provenance, and verified resale across premium physical goods. During the quarter, Alliance also launched Alliance Authentic™, representing the Company’s first application of these capabilities within its own product ecosystem, initially focused on premium vinyl collectibles. The platform has since expanded to include additional categories, including Handmade by Robots™ and select third-party collectibles such as Funko figures. These initiatives extend Alliance’s role beyond distribution into ownership and participation across the product lifecycle, while creating a scalable foundation for new authentication, collectibles, and platform revenue opportunities.
- Strength in Physical Media: Vinyl record sales increased
15% year-over-year to$99 million , driven by higher unit volumes and sustained interest in limited-edition releases. Compact disc (CD) sales increased90% year-over-year to$39 million , reflecting both higher unit volumes and improved pricing, driven by strong demand for major releases and collectible formats, including continued strength in international and K-pop titles. Physical movie sales increased5% year-over-year to$61 million , supported by a steady cadence of new releases and continued consumer demand for premium formats such as 4K Ultra HD and collectible editions. Performance in the category continued to benefit from the Company’s exclusive studio partnerships, including Paramount and Amazon MGM Studios Distribution, which expanded title availability and supported growth across key retail channels. - Collectibles Growth Driven by Premium Mix: Collectibles revenue increased
48% year-over-year to$8 million , driven by increased average selling prices and a continued shift toward higher-value, premium products. Growth was supported by expanded sourcing efforts and the addition of new vendor relationships, which contributed incremental sales during the quarter. Performance also benefited from the transition of Handmade by Robots™ to an owned brand, as well as improved margins across certain legacy brands following prior inventory optimization initiatives, reflecting continued progress in enhancing product mix and profitability within the collectibles category. - Growth in Gaming and Electronics: Gaming revenue increased
12% year-over-year to$33 million , supported by continued demand for next-generation consoles, including the Nintendo Switch II, along with related software and accessories. Electronics revenue increased53% year-over-year to$4.0 million , driven by higher unit volumes and a favorable mix shift toward higher-priced audio playback devices and accessories, including turntables, CD players, headphones, and speakers. Growth in electronics continued to benefit from strong demand for vinyl and physical media, which drives attachment sales of complementary hardware. Performance in both categories reflects the Company’s ability to align product mix with evolving consumer preferences while capturing incremental demand across hardware and content ecosystems. - Operating Leverage and Expense Discipline: Total operating expenses improved to
11.5% of net revenue, compared to12.0% in the prior-year period. Selling, general and administrative expenses improved to6.5% of net revenue, compared to6.7% in the prior year, while distribution and fulfillment expenses declined to4.3% of net revenue, compared to4.7% in Q3 FY25. The improvement was driven by higher revenue scale, productivity gains, and the Company’s flexible labor model, which continues to support efficient fulfillment operations while enabling targeted investments in infrastructure, technology, and automation to support future growth. - Balance Sheet and Liquidity Strength: The Company ended the quarter with working capital of approximately
$60.0 million , reflecting disciplined management of inventory and payables to support ongoing growth. The Company had approximately$56 million of availability under its revolving credit facility at quarter end, providing ample liquidity and financial flexibility to support working capital needs and strategic initiatives.
“Our third quarter results reflect continued strength across our core categories and the operating leverage inherent in our model,” said Jeff Walker, Chief Executive Officer of Alliance Entertainment. “We delivered over
“We are also seeing continued validation of the broader shift toward physical media as a collectible category, where ownership, scarcity, and premium formats are driving collector purchasing behavior,” Walker added. “This trend is increasingly supported by collector-driven discovery and community engagement across social media platforms, particularly among younger consumers who are prioritizing intentional listening, tangible ownership, and long-term value. Our exclusive partnerships and curated assortment position us at the center of that trend, while our direct-to-consumer and platform initiatives are enabling us to capture more value across the lifecycle of each product.”
“During the quarter, we advanced the next phase of our strategy with the launch of Alliance Authentic™, extending our platform into authenticated collectibles,” Walker continued. “Importantly, this represents the first commercial application of Endstate Authentic, our NFC-enabled authentication platform, and extends our role beyond distribution into ownership, provenance, and the full lifecycle of collectible products. Subsequent to quarter end, we further expanded our platform strategy with the relaunch of Movies Unlimited as a curated, collector-focused destination designed to deepen engagement and increase customer lifetime value. Together, these initiatives build on our existing scale to enhance product value, strengthen customer relationships, and create additional long-term growth opportunities.”
Amanda Gnecco, Chief Financial Officer of Alliance Entertainment, said, “We delivered strong financial performance in the third quarter, with revenue up
“We are seeing clear operating leverage across the business, with operating expenses declining as a percentage of revenue even as we continue to invest in infrastructure, technology, and growth initiatives. At the same time, we maintained a strong liquidity position, ending the quarter with approximately
Third Quarter FY 2026 Financial Results
- Net revenues for the fiscal third quarter ended March 31, 2026, were
$258.2 million , up21.1% from$213 million in the same period of fiscal 2025. - Gross profit for the fiscal third quarter ended March 31, 2026, was
$33.0 million , up13.4% from$29.1 million in the same period of fiscal 2025. - Gross margin for the fiscal third quarter ended March 31, 2026, was
12.8% , compared to13.6% in the same period of fiscal 2025. - Net income for the fiscal third quarter ended March 31, 2026, was
$2.3 million , or$0.05 per diluted share, up25.0% from net income of$1.9 million , or$0.04 per diluted share for the same period of fiscal 2025. - Adjusted EBITDA for the fiscal third quarter ended March 31, 2026, was
$5.1 million , up4.1% from Adjusted EBITDA of$4.9 million for the same period of fiscal 2025.
Nine-Months FY 2026 Financial Results
- Net revenues for the nine months ended March 31, 2026, were
$880.9 million , up5.0% from$835.7 million in the same period of fiscal 2025. - Gross profit for the nine months ended March 31, 2026, was
$117.3 million , up21.0% from$96.9 million in the same period of fiscal 2025. - Gross margin for the nine months ended March 31, 2026, was
13.3% , up 170 basis points from11.6% in the same period of fiscal 2025. - Net income for the nine months ended March 31, 2026, was
$16.6 million , or$0.32 per diluted share, up78% from net income of$9.3 million , or$0.18 per diluted share for the same period of fiscal 2025. - Adjusted EBITDA for the nine months ended March 31, 2026, was
$35.7 million , up47% from Adjusted EBITDA of$24.4 million for the same period of fiscal 2025.
Conference Call
Alliance Entertainment Chief Executive Officer Jeff Walker, Chief Financial Officer Amanda Gnecco, and Executive Chairman Bruce Ogilvie will host the conference call, which will be followed by a question-and-answer session. A presentation will accompany the call and can be viewed during the webcast or accessed via the investor relations section of the Company’s website here.
To access the call, please use the following information:
| Date: | Thursday, May 12, 2026 |
| Time: | 4:30 p.m. Eastern Time, 1:30 p.m. Pacific Time |
| Toll-free dial-in number: | 1-877-407-0784 |
| International dial-in number: | 1-201-689-8560 |
| Conference ID: | 13760161 |
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact RedChip Companies at 1-407-644-4256.
The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1760227&tp_key=0154ad6f3e and via the investor relations section of the Company’s website here.
A telephone replay of the call will be available approximately three hours after the call concludes and can be accessed through June 14, 2026, using the following information:
| Toll-free replay number: | 1-844-512-2921 |
| International replay number: | 1-412-317-6671 |
| Replay ID: | 13760161 |
About Alliance Entertainment
Alliance Entertainment (NASDAQ: AENT) is a premier distributor and fulfillment partner for the entertainment and pop culture collectibles industry. With more than 340,000 unique in-stock SKUs — including over 57,300 exclusive titles across compact discs, vinyl LPs, DVDs, Blu-rays, and video games — Alliance offers the largest selection of physical media in the market. Our vast catalog also includes licensed merchandise, toys, retro gaming products, and collectibles, serving over 35,000 retail locations and powering e-commerce fulfillment for leading retailers. Alliance also owns and operates proprietary collectibles brands, including Handmade by Robots™, a stylized vinyl figure line featuring licensed characters from leading entertainment franchises, and Alliance Authentic™, a premium platform for authentic, certified, and individually numbered entertainment collectibles. In addition, Alliance operates Endstate Authentic, a dedicated NFC-enabled authentication and digital product identity platform supporting authenticated collectibles, resale, and brand protection. Leveraging decades of operational expertise, exclusive sourcing relationships, and a capital-light, scalable infrastructure, Alliance connects fans and collectors to the products, franchises, and experiences they value across formats and generations. For more information, visit www.aent.com.
Forward Looking Statements
Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These statements are based on various assumptions, whether identified in this Press Release, and on the current expectations of Alliance’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Alliance. These forward-looking statements are subject to a number of risks and uncertainties, including risks relating to the anticipated growth rates and market opportunities; changes in applicable laws or regulations; the ability of Alliance to execute its business model, including market acceptance of its systems and related services; Alliance’s reliance on a concentration of suppliers for its products and services; increases in Alliance’s costs, disruption of supply, or shortage of products and materials; Alliance’s dependence on a concentration of customers, and failure to add new customers or expand sales to Alliance’s existing customers; increased Alliance inventory and risk of obsolescence; Alliance’s significant amount of indebtedness; our ability to refinance our existing indebtedness; our ability to continue as a going concern absent access to sources of liquidity; risks that a breach of the revolving credit facility could result in the lender declaring a default and that the full outstanding amount under the revolving credit facility could be immediately due in full, which would have severe adverse consequences for the Company; known or future litigation and regulatory enforcement risks, including the diversion of time and attention and the additional costs and demands on Alliance’s resources; Alliance’s business being adversely affected by increased inflation, uncertainty regarding tariffs, higher interest rates and other adverse economic, business, and/or competitive factors; geopolitical risk and changes in applicable laws or regulations; as well as our financial condition and results of operations; substantial regulations, which are evolving, and unfavorable changes or failure by Alliance to comply with these regulations; product liability claims, which could harm Alliance’s financial condition and liquidity if Alliance is not able to successfully defend or insure against such claims; availability of additional capital to support business growth; and the inability of Alliance to develop and maintain effective internal controls.
For investor inquiries, please contact:
Dave Gentry
RedChip Companies, Inc.
1-800-REDCHIP (733-2447)
1-407-644-4256
AENT@redchip.com
| ALLIANCE ENTERTAINMENT HOLDING CORP. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||
| ($ in thousands except share and per share amounts) | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | ||||||||||||
| Net Revenues | $ | 258,201 | $ | 213,045 | $ | 880,886 | $ | 835,707 | ||||||||
| Cost of Revenues (excluding depreciation and amortization) | 225,180 | 183,984 | 763,590 | 738,821 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Distribution and Fulfillment Expense | 11,120 | 9,989 | 33,161 | 31,425 | ||||||||||||
| Selling, General and Administrative Expense | 16,878 | 14,187 | 48,545 | 41,092 | ||||||||||||
| Depreciation and Amortization | 1,392 | 1,352 | 3,966 | 3,865 | ||||||||||||
| Transaction Costs | 313 | - | 909 | - | ||||||||||||
| Insurance Claim Recovery | - | - | (408 | ) | - | |||||||||||
| Restructuring Cost | - | 4 | 2 | 73 | ||||||||||||
| Gain on Disposal of Fixed Assets | - | - | (24 | ) | (15 | ) | ||||||||||
| Total Operating Expenses | 29,703 | 25,532 | 86,151 | 76,440 | ||||||||||||
| Operating Income | 3,318 | 3,529 | 31,145 | 20,446 | ||||||||||||
| Other Expenses | ||||||||||||||||
| Interest Expense | 1,568 | 2,435 | 7,369 | 8,101 | ||||||||||||
| Change in Fair Value of Warrants | (884 | ) | (1,676 | ) | 1,428 | 910 | ||||||||||
| Total Other Expenses | 684 | 759 | 8,797 | 9,011 | ||||||||||||
| Income Before Income Tax Expense | 2,634 | 2,770 | 22,348 | 11,435 | ||||||||||||
| Income Tax Expense | 323 | 919 | 5,769 | 2,116 | ||||||||||||
| Net Income | 2,311 | 1,851 | 16,579 | 9,319 | ||||||||||||
| Net Income per Share – Basic | $ | 0.05 | $ | 0.04 | $ | 0.33 | $ | 0.18 | ||||||||
| Weighted Average Common Shares Outstanding - Basic | 50,963,322 | 50,957,370 | 50,959,324 | 50,957,370 | ||||||||||||
| Net Income per Share – Diluted | $ | 0.05 | $ | 0.04 | $ | 0.32 | $ | 0.18 | ||||||||
| Weighted Average Common Shares Outstanding - Diluted | 51,028,493 | 50,965,970 | 51,024,496 | 50,965,970 | ||||||||||||
| ALLIANCE ENTERTAINMENT HOLDING CORP. CONSOLIDATED BALANCE SHEETS | ||||||||
| ($ in thousands except per share amounts) | March 31, 2026 | June 30, 2025 | ||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash | $ | 1,237 | $ | 1,236 | ||||
| Trade Receivables, Net of Allowance for Credit Losses of | 92,849 | 95,027 | ||||||
| Inventory, Net | 126,690 | 102,848 | ||||||
| Other Current Assets | 19,200 | 19,021 | ||||||
| Total Current Assets | 239,976 | 218,132 | ||||||
| Property and Equipment, Net | 10,919 | 11,291 | ||||||
| Operating Lease Right-of-Use Assets, Net | 16,875 | 19,214 | ||||||
| Goodwill | 94,081 | 89,116 | ||||||
| Intangibles, Net | 19,397 | 18,475 | ||||||
| Other Long-Term Assets | 1,644 | 789 | ||||||
| Deferred Tax Asset, Net | 4,211 | 4,211 | ||||||
| Total Assets | $ | 387,103 | $ | 361,228 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts Payable | $ | 158,453 | $ | 155,300 | ||||
| Accrued Expenses | 12,660 | 9,548 | ||||||
| Current Portion of Operating Lease Obligations | 3,314 | 3,229 | ||||||
| Current Portion of Finance Lease Obligations | 2,720 | 3,075 | ||||||
| Deferred Consideration | 1,300 | - | ||||||
| Contingent Liability | 1,577 | 1,577 | ||||||
| Total Current Liabilities | 180,024 | 172,729 | ||||||
| Revolving Credit Facility, Net | 64,330 | 55,268 | ||||||
| Finance Lease Obligation, Non- Current | 7 | 1,931 | ||||||
| Operating Lease Obligations, Non-Current | 15,052 | 17,432 | ||||||
| Shareholder Loan (subordinated), Non-Current | - | 10,000 | ||||||
| Contingent Liability, Non-Current | 5,500 | |||||||
| Acquired Royalty Obligation (Endstate), Non-Current | 165 | - | ||||||
| Warrant Liability | 2,075 | 646 | ||||||
| Total Liabilities | 267,153 | 258,006 | ||||||
| Commitments and Contingencies (Note 13) | ||||||||
| Stockholders’ Equity | ||||||||
| Preferred Stock: Par Value | - | - | ||||||
| Common Stock: Par Value | 5 | 5 | ||||||
| Paid In Capital | 48,719 | 48,570 | ||||||
| Accumulated Other Comprehensive Loss | (76 | ) | (76 | ) | ||||
| Retained Earnings | 71,302 | 54,723 | ||||||
| Total Stockholders’ Equity | 119,950 | 103,222 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 387,103 | $ | 361,228 | ||||
| ALLIANCE ENTERTAINMENT HOLDING CORP. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| Nine Months Ended | Nine Months Ended | |||||||
| ($ in thousands) | March 31, 2026 | March 31, 2025 | ||||||
| Cash Flows from Operating Activities: | ||||||||
| Net Income | $ | 16,579 | $ | 9,319 | ||||
| Adjustments to Reconcile Net Income to | ||||||||
| Net Cash Provided by Operating Activities: | ||||||||
| Depreciation of Property and Equipment | 1,339 | 1,280 | ||||||
| Amortization of Intangible Assets | 2,627 | 2,585 | ||||||
| Amortization of Deferred Financing Costs (Included in Interest Expense) | 2,053 | 1,053 | ||||||
| Allowance for Credit Losses | 1,190 | 780 | ||||||
| Change in Fair Value of Warrants | 1,428 | 910 | ||||||
| Deferred Income Taxes | - | (967 | ) | |||||
| Non-cash lease expense | 2,339 | 2,157 | ||||||
| Stock-based Compensation Expense | 149 | - | ||||||
| Gain on Disposal of Fixed Assets | (24 | ) | (15 | ) | ||||
| Changes in Assets and Liabilities | ||||||||
| Trade Receivables | 988 | (3,283 | ) | |||||
| Inventory | (23,842 | ) | 4,994 | |||||
| Income Taxes Payable | 5,182 | 1,558 | ||||||
| Operating Lease Obligations | (2,294 | ) | (1,004 | ) | ||||
| Other Assets | (1,071 | ) | (6,027 | ) | ||||
| Accounts Payable | 3,153 | 6,368 | ||||||
| Accrued Expenses and Contingent Liability | (2,467 | ) | (3,627 | ) | ||||
| Net Cash Provided by Operating Activities | 7,329 | 16,081 | ||||||
| Cash Flows from Investing Activities: | ||||||||
| Capital Expenditures | (974 | ) | (52 | ) | ||||
| Cash Paid for Business Acquisition/Asset Purchase | (1,150 | ) | (7,551 | ) | ||||
| Cash Inflow from Asset Disposal | 30 | 15 | ||||||
| Investment in Captive Stock | 36 | - | ||||||
| Net Cash Used in Investing Activities | (2,058 | ) | (7,588 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Payments on Financing Leases | (2,279 | ) | (2,116 | ) | ||||
| Payments on Revolving Credit Facility | (882,067 | ) | (778,620 | ) | ||||
| Borrowings on Revolving Credit Facility | 889,722 | 773,144 | ||||||
| Repayments on Shareholder Note (Subordinated), Non-Current | (10,000 | ) | - | |||||
| Deferred Financing Cost | (646 | ) | - | |||||
| Net Cash Used in Financing Activities | (5,270 | ) | (7,592 | ) | ||||
| Net Increase in Cash | 1 | 901 | ||||||
| Cash, Beginning of the Period | 1,236 | 1,129 | ||||||
| Cash, End of the Period | $ | 1,237 | $ | 2,030 | ||||
| Supplemental disclosure for Cash Flow Information | ||||||||
| Cash Paid for Interest | $ | 7,300 | $ | 8,089 | ||||
| Cash Paid for Income Taxes | $ | 2,062 | $ | 1,675 | ||||
| Supplemental Disclosure for Non-Cash Investing and Financing Activities | ||||||||
| Conversion of Warrants from liability to Equity | - | 454 | ||||||
Non-GAAP Financial Measures: For the three months ended March 31, 2026, we had non-GAAP Adjusted EBITDA of approximately
| Three Months Ended | Three Months Ended | |||||||
| ($ in thousands) | March 31, 2026 | March 31, 2025 | ||||||
| Net Income | $ | 2,311 | $ | 1,851 | ||||
| Add back: | ||||||||
| Interest Expense | 1,568 | 2,435 | ||||||
| Income Tax Expense | 323 | 919 | ||||||
| Depreciation and Amortization Expense | 1,392 | 1,352 | ||||||
| EBITDA | $ | 5,594 | $ | 6,557 | ||||
| Adjustments | ||||||||
| Stock-based Compensation Expense | 55 | - | ||||||
| Transaction Costs | 313 | - | ||||||
| Change In Fair Value of Warrants | (884 | ) | (1,676 | ) | ||||
| Restructuring Cost | - | 4 | ||||||
| Adjusted EBITDA | $ | 5,078 | $ | 4,885 | ||||
| Nine Months Ended | Nine Months Ended | |||||||
| ($ in thousands) | March 31, 2026 | March 31, 2025 | ||||||
| Net Income | $ | 16,579 | $ | 9,319 | ||||
| Add back: | ||||||||
| Interest Expense | 7,369 | 8,101 | ||||||
| Income Tax Expense | 5,769 | 2,116 | ||||||
| Depreciation and Amortization Expense | 3,966 | 3,865 | ||||||
| EBITDA | $ | 33,683 | $ | 23,401 | ||||
| Adjustments | ||||||||
| Stock-based Compensation Expense | 149 | - | ||||||
| Transaction Costs | 909 | |||||||
| Change In Fair Value of Warrants | 1,428 | 910 | ||||||
| Restructuring Cost | 2 | 73 | ||||||
| Insurance Claim Recovery | (408 | ) | - | |||||
| Gain on Disposal of Property and Equipment | (24 | ) | (15 | ) | ||||
| Adjusted EBITDA | $ | 35,739 | $ | 24,369 | ||||
