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1. Company Snapshot

1.a. Company Description

Brilliant Earth Group, Inc.engages in the design, procurement, and retail sale of diamonds, gemstones, and jewelry in the United States and internationally.Its product assortment and merchandise include a collection of diamond engagement rings, wedding and anniversary rings, gemstone rings, and fine jewelry.


The company sells directly to consumers through its omnichannel sales platform, including e-commerce and showrooms.As of December 31, 2021, it had 15 showrooms.The company was founded in 2005 and is headquartered in San Francisco, California.

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1.b. Last Insights on BRLT

Here is a 90-word analysis of the negative drivers behind Brilliant Earth Group, Inc.'s recent stock performance: Brilliant Earth's upcoming Q4 and FY 2024 earnings report may be a source of uncertainty, potentially weighing on the stock. Despite maintaining profitability and avoiding discounts, the company's premium jewelry brand may be vulnerable to macroeconomic headwinds. Additionally, the lack of significant catalysts, such as share buybacks or new product launches, may be contributing to the stock's recent stagnation.

1.c. Company Highlights

2. Brilliant Earth Group's Q4 Earnings: A Strong Finish to 2025

Brilliant Earth Group, Inc. reported its fourth-quarter 2025 earnings, with net sales reaching $124.4 million, representing a 4.1% year-over-year growth. The company's gross margin stood at 55.9% in Q4, while the adjusted EBITDA margin was 3.3%. The earnings per share (EPS) came in at -$0.06, missing the estimated EPS of $0.02. The company's revenue growth was driven by a strong performance in fine jewelry, which grew 34% year-over-year in Q4.

Publication Date: 10:00

📋 Highlights
  • Q4 Net Sales Record: Achieved $124.4M, 4.1% YoY growth, driven by 34% YoY fine jewelry sales surge.
  • Gross Margin Stability: Maintained 55.9% Q4 margin and 57.5% full-year margin despite metal/tariff challenges.
  • Adjusted EBITDA Performance: Q4 margin 3.3% ($4.2M) and full-year 2.7% ($12M), reflecting operating efficiency.
  • Omnichannel Growth: Retail orders rose 61% YoY in Q4, supported by digital enhancements and 2 new showrooms (total 42).
  • 2026 Guidance: Mid-single-digit sales growth expected, with gross margin forecasted at mid-50s due to metal cost headwinds.

Revenue Growth Drivers

The company's fine jewelry segment was a key driver of revenue growth, with bookings reaching 23% of total bookings mix for the quarter. The overall orders grew 6.5% year-over-year in Q4, and repeat orders grew 15% year-over-year. The company's ability to drive growth in a challenging market environment is a testament to its strong brand and effective marketing strategies.

Valuation and Outlook

Looking ahead to 2026, Brilliant Earth Group expects net sales to grow in the mid-single-digit percent range. With a current price-to-earnings ratio not being a meaningful metric due to negative earnings, other valuation metrics come into play. The company's Price-to-Sales Ratio stands at 0.2, indicating a relatively low valuation compared to its sales. The company's guidance for 2026 is expected to be driven by continued growth in fine jewelry and diversification away from its bridal heritage.

Metal Costs and Margin Pressure

The company highlighted continued headwinds in gross margin due to metal costs, with Jeffrey Kuo stating that metal prices are expected to remain at current levels, leading to a gross margin in the mid-50s percent range for the year. The company's ability to manage metal costs through hedging, price optimization, and design and product engineering will be crucial in mitigating margin pressure.

Valuation Metrics

Considering the company's current valuation metrics, the P/E Ratio is not meaningful due to negative earnings, while the P/S Ratio is 0.2, indicating a relatively low valuation. The EV/EBITDA ratio stands at 0.61, suggesting that the company's enterprise value is relatively low compared to its EBITDA. The ROE and ROIC are both negative, at -15.32% and -4.57%, respectively, highlighting the challenges the company faces in generating returns on equity and invested capital.

3. NewsRoom

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Brilliant Earth Group Q4 Earnings Call Highlights

Mar -07

Source: defenseworld.net

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Brilliant Earth Group, Inc. (BRLT) Q4 2025 Earnings Call Transcript

Mar -05

Source: seekingalpha.com

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Brilliant Earth Group, Inc. (BRLT) Reports Q4 Loss, Lags Revenue Estimates

Mar -05

Source: zacks.com

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Brilliant Earth Releases Fifth Annual Mission Report, Celebrating Two Decades of Transforming the Jewelry Industry

Mar -05

Source: globenewswire.com

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Brilliant Earth Reports Record Quarterly Net Sales

Mar -05

Source: globenewswire.com

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Brilliant Earth Recognized For Its Leadership in Sustainable Fine Jewelry

Feb -18

Source: globenewswire.com

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Brilliant Earth to Report Fourth Quarter and Full Year 2025 Financial Results on March 5th

Feb -11

Source: globenewswire.com

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Brokerages Set Brilliant Earth Group, Inc. (NASDAQ:BRLT) Target Price at $2.50

Feb -08

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Diamonds, Gemstones and Jewelry

Expected Growth: 5%

Brilliant Earth Group, Inc.'s 5% growth in Diamonds, Gemstones, and Jewelry is driven by increasing consumer demand for sustainable and ethically sourced luxury goods, expansion into new markets, and strategic investments in e-commerce and digital marketing, as well as growing popularity of lab-created diamonds and bespoke jewelry designs.

7. Detailed Products

Diamond Jewelry

Brilliant Earth offers a wide range of diamond jewelry, including engagement rings, wedding bands, earrings, and pendants, featuring high-quality diamonds certified by organizations such as the Gemological Institute of America (GIA) and the International Gemological Institute (IGI).

Lab-Created Diamonds

Brilliant Earth offers lab-created diamonds, which are environmentally friendly and more affordable than traditional diamonds, with the same physical and chemical properties as natural diamonds.

Recycled Metals

Brilliant Earth offers jewelry made from recycled precious metals, reducing the environmental impact of mining and promoting sustainability.

Custom Jewelry

Brilliant Earth offers custom jewelry design services, allowing customers to create unique pieces tailored to their personal style and preferences.

Fine Jewelry

Brilliant Earth offers a range of fine jewelry pieces, including necklaces, bracelets, and earrings, featuring precious metals and gemstones.

8. Brilliant Earth Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Brilliant Earth Group, Inc. faces moderate threat from substitutes, as customers have limited alternatives for high-quality, ethically sourced diamonds and fine jewelry.

Bargaining Power Of Customers

Brilliant Earth Group, Inc. has a strong brand reputation and unique selling proposition, which reduces the bargaining power of customers.

Bargaining Power Of Suppliers

Brilliant Earth Group, Inc. has a diversified supplier base, but still faces some pressure from suppliers of high-quality diamonds and precious metals.

Threat Of New Entrants

Brilliant Earth Group, Inc. has a strong brand presence and established relationships with suppliers, making it difficult for new entrants to compete.

Intensity Of Rivalry

Brilliant Earth Group, Inc. operates in a highly competitive industry, with intense rivalry among established players and new entrants.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 83.76%
Debt Cost 4.65%
Equity Weight 16.24%
Equity Cost 12.15%
WACC 5.87%
Leverage 515.71%

11. Quality Control: Brilliant Earth Group, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Movado

A-Score: 5.8/10

Value: 6.9

Growth: 1.8

Quality: 6.0

Yield: 10.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Brilliant Earth

A-Score: 5.6/10

Value: 8.5

Growth: 5.4

Quality: 2.5

Yield: 10.0

Momentum: 6.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Envela

A-Score: 4.8/10

Value: 2.2

Growth: 7.2

Quality: 6.2

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
The RealReal

A-Score: 4.4/10

Value: 6.2

Growth: 5.9

Quality: 4.0

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Fossil

A-Score: 3.0/10

Value: 7.6

Growth: 2.0

Quality: 2.6

Yield: 0.0

Momentum: 4.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Charles & Colvard

A-Score: 2.7/10

Value: 10.0

Growth: 1.0

Quality: 3.9

Yield: 0.0

Momentum: 1.5

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.31$

Current Price

1.31$

Potential

-0.00%

Expected Cash-Flows