Sep 10, 2026 earnings call — Focus on premium physical entertainment and collectibles
Revenue increased 8% to $1.15 billion for fiscal 26.
Revenue $0.3B (est $0.2B) · EPS $-0.07 (est $0.01)
Key quotes
"We saw a broad based growth across physical music, home entertainment, collectibles, and fulfillment while continuing to shift the business toward premium products, exclusive content, and higher valued services."
"Following our acquisition of Endstate Authentic, at the beginning of the calendar year, we continued developing NFC-enabled authentication and digital product identity capabilities through Endstate Authentic and Alliance Authentic."
"During fiscal 26, we ordered 5 thousand additional totes for our auto store system bringing total capacity to 57 thousand totes."
Analyst Q&A 3
Tariff refunds, CD comeback, gaming strategy
Q (Thomas Forte · Maxim Group): He asked whether the company received tariff refunds, why CD sales are growing and how the firm decides when to emphasize or de-emphasize gaming versus other physical media.
A: They secured tariff credits and have received the majority of the credits they were waiting for. Management said CD growth is driven by collector demand plus better availability from labels, wholesalers and retailers—similar to vinyl’s recovery—and they expect the trend to continue. They decide category emphasis based on trends; Grand Theft Auto VI is a historic release that will drive a very large fourth quarter.
"We definitely secured some credits back and we have received the majority of the credits that we are waiting for to come back." — Jeffrey Walker (CEO)
Studio deals, product mix, capacity and milestones
Q (Michael Kupinski · Noble): He asked how much incremental revenue remains from Paramount and MGM and whether other studio consolidation talks exist; how much growth comes from proprietary versus third-party products; how much fulfillment capacity remains before more CapEx; SG&A leverage into fiscal 27; and milestones for Alliance Authentic and Endstate.
A: For Paramount and MGM, sales are strong and the company is expanding catalog releases (including 4K and steelbook editions), with more Paramount catalog releases in the second half of 26; the company is in many conversations with other studios but would not comment on specifics. The majority of growth is coming from third-party products today, while the company is investing in Handmade by Robots, Alliance Authentic and Endstate which have strong margins. They said they still have current fulfillment capacity and no pressing need for major CapEx—future spend would target automation not building size—SG&A rose to support growth and AI projects to improve efficiency, and key commercial milestones for the collectibles effort include growing the number of collectors, launching SteelBook encapsulated and building a peer-to-peer marketplace using NFC chips.
"The majority of our growth is coming from our third party products right now." — Jeffrey Walker (CEO)
Endstate NFC chips and marketplace plans
Q (David Heiserman · ThinkEquity): He asked about development of a secondary peer-to-peer marketplace for collectibles and whether Endstate Authentic could be broadly adopted across sports teams and events worldwide.
A: Endstate uses an NFC digital chip and proprietary software to authenticate collectibles; the chip has unique digital codes that cannot be replicated. Management said the chips can be used in graded/encapsulated items, trading cards, original manufactured products and even high-end fashion to prove authenticity, and they are focused on collectibles while working on many integrations under NDA. The technology is operational today and they are building the collector ecosystem and marketplace around it.
"That chip has its own digital codes to it that cannot be replicated and so forth." — Jeffrey Walker (CEO)