Music distributor Alliance Entertainment says it sold over 16m vinyl records and 13m CDs in 2025

US-based physical entertainment distributor and wholesaler Alliance Entertainment has reported an uptick in its vinyl and CD sales as part of its financial results for calendar Q4 2025.

For calendar Q4 (the company’s fiscal Q2 2026) ended December 31, 2025, the Florida-headquartered firm posted a 3% year-over-year increase in vinyl record sales, which it attributed to “continued consumer demand for collectible and limited-edition releases” (although the rate of growth was slower than the 12% YoY increase posted this time last year).

CD sales were up approximately 5% YoY, supported, according to the company, “by higher unit volumes and the company’s first full quarter as the exclusive distributor for Virgin Music Group through its AMPED Distribution division”.

As of August 2025, Virgin moved a significant portion of its US physical distribution (CDs and vinyl) to Alliance subsidiary AMPED.

Alliance Entertainment’s total revenues for the quarter were $369 million, down 6.3% YoY from $394 million in the year-ago period, reflecting declines in gaming hardware and arcade sales that offset growth in music and collectibles.

Alliance’s quarterly update follows the recent publication of stats on the wider US market by research firm Luminate, whose Year-End Music Report showed that US vinyl sales increased for the 19th consecutive year in 2025.

Vinyl sales in the world’s largest recorded music market grew 8.6% YoY to 47.9 million, according to Luminate, with more than 4 in 10 vinyl records sold at indie record stores. Meanwhile, 1 in 3 CDs were purchased through e-commerce sites.

“Physical media continues to perform as a collectible category, supported by exclusive partnerships and strong consumer demand for premium formats,” said Jeff Walker, Chief Executive Officer of Alliance Entertainment.

“some people that say CDs are dead, who buys CDs anymore? We still sold 13 million CDs last year.”

JEFF WALKER, ALLIANCE ENTERTAINMENT

Alliance went public in 2023 via a SPAC merger that saw the company listed on the NASDAQ.

Speaking to investors on the company’s latest earnings call last Thursday (February 12), Walker described its vinyl and CD sales as “extremely strong right now”, with major new releases by Bruno Mars, Harry Styles, and BTS on the horizon.

He also confirmed that “for 2025, Alliance sold over 16 million vinyl records, and we sold over 13 million CDs.” He added: “Some people that say, CDs are dead, who buys CDs anymore? We still sold 13 million CDs last year.

“We are seeing some pretty strong sales on the CD side, and there is definitely a lot of communication [on] social media right now on physical music, vinyl, CD, as well DVD.

“All of this is still happening while everybody can listen to the music on a digital platform[s], but collectors want to have a collection of their favorite artists at their house. We are looking at how we are continuing to work with the labels to create more and better product[s] for the fans there.”

Elsewhere in Alliance’s earnings update, the firm noted that it has completed its acquisition of technology company Endstate and established a dedicated NFC-enabled authentication and digital product identity platform called Endstate Authentic.

According to the firm, the platform will enable “authenticated ownership, provenance, and verified resale across premium physical goods, supporting the full lifecycle of collectible products from initial sale through secondary markets”.

“The acquisition of Endstate and the launch of Endstate Authentic mark an important step in expanding Alliance beyond distribution.”

JEFF WALKER, ALLIANCE ENTERTAINMENT

Alongside this, the company has launched a premium vinyl collectibles platform, Alliance Authentic, which aims to preserve new vinyl releases as certified, uncirculated collectibles – individually numbered and sealed in their original manufactured state, with NFC chips linking each physical record to an authenticated digital record.

“With the launch of Alliance Authentic, we’re extending that strategy into premium vinyl collectibles by introducing The Ultimate Vinyl Collectible, enabling fans and collectors to Own a Piece of Vinyl History through authentic, certified, and individually numbered releases sourced directly from rights holders,” said Walker. “This initiative builds on our strengths in physical media and reinforces our focus on high-value, enthusiast-driven products.

“With a structurally stronger margin profile and a growing pipeline of exclusive content, we believe Alliance is well positioned to deliver durable profitability and long-term value for our shareholders.”

Alliance Entertainment’s CALENDAR Q4 2025 IN SUMMARY:

• Overall revenues: $369 million, down 6.3% YoY
• Gross profit: $47.1 million, up from $42.3 million YoY
• Gross profit margin: 12.8%, up from 10.7% YoY
• Net income: $9.4 million, up 33% YoY
• Adjusted EBITDA: $18.5 million, up from $16.1 million
• Vinyl record sales: up 3% YoY
• CD sales: up approximately 5% YoY

“Our second quarter results reflect continued execution against the profitability baseline we established last year,” added Walker.

“As we look ahead, we’re building on a much stronger foundation. The acquisition of Endstate and the launch of Endstate Authentic mark an important step in expanding Alliance beyond distribution into authenticated collectibles, digital product identity, and recurring platform-driven revenue.

“This technology allows us to extend the value of physical products across their entire lifecycle – from initial sale through authenticated resale – while strengthening trust, provenance, and margins across our ecosystem.

“With the launch of Alliance Authentic, we are also creating new opportunities in the collectible vinyl market by applying authentication, scarcity, and provenance to products we already source and distribute at scale.”Music Business Worldwide