As of September 30, 2024, Alliance Entertainment Holding Corporation reported total current assets of $251.6 million, a significant increase from $196.2 million as of June 30, 2024. Cash reserves rose to $4.3 million, up from $1.1 million, while trade receivables increased to $102.4 million from $92.4 million. Inventory also saw a substantial rise, reaching $138.5 million compared to $97.4 million in the previous quarter. Total assets grew to $395.7 million, up from $340.8 million, while total liabilities increased to $307.6 million from $253.2 million. Stockholders’ equity slightly improved to $88.0 million from $87.6 million.

For the three months ended September 30, 2024, net revenues were $229.0 million, a modest increase from $226.8 million in the same period of 2023. Total operating expenses decreased to $23.5 million from $27.8 million, leading to an operating income of $2.1 million, a turnaround from an operating loss of $1.6 million in the prior year. Net income for the quarter was $397,000, compared to a net loss of $3.5 million in the same period last year, resulting in a basic earnings per share of $0.01, up from a loss of $0.07.

The company experienced notable revenue growth in specific product lines, with vinyl record sales increasing from $67.3 million to $70.5 million, and physical movie sales rising from $46.8 million to $52.9 million. However, consumer products revenue declined significantly from $10.6 million to $7.3 million. Total cost of revenues increased slightly from $201 million to $203 million, while gross margin dollars decreased as product margins fell from 11.6% to 11.2%.

Strategically, Alliance secured a new three-year $120 million credit facility on December 21, 2023, replacing its previous revolving credit facility. This move is part of the company's initiatives to reduce expenses and focus on higher-margin products. The company reported sufficient cash to fund operations for at least twelve months, supported by cash on hand and working capital.

The company also faced legal challenges, including a class action complaint filed in March 2023, with a settlement agreement reached in August 2024. As of September 30, 2024, the company accrued $511,000 related to expected losses from litigation. Additionally, the company identified material weaknesses in its internal controls over financial reporting, prompting a remediation plan aimed for completion by the end of the fiscal year 2025.