Alliance Entertainment shares rose after the company reported higher revenue due to increases in vinyl, physical movie and collectibles sales.

The stock was 39% higher, at $7.65, in premarket trading.

Revenue for fiscal 2026, which ended June 30, was $1.15 billion, compared with $1.06 billion in fiscal 2025.

Net income for the year was $13.1 million, compared with last year's $15.1 million. Adjusted earnings were 46 cents a share.

The company said the market for physical entertainment continues to evolve toward premium formats, collectible products and more specialized distribution, and those changes played directly into its business plan.

Vinyl revenue increased 13% to $383 million, while CD revenue increased 25% to $156 million, the company said. Physical-movie revenue increased 22% to $339 million, supported by higher unit volumes and the company's expanding studio relationships, it said.

Collectibles revenue increased 45% to $32 million, supported by higher average selling prices, expanded licensed merchandise offerings and continued development of proprietary products, Alliance said.