Brilliant Earth (BRLT) Posts Q4 Loss Despite Recording $124.4M in Revenue and 34% Increase in Bookings.
Gerstein highlights the brand’s momentum. CEO Beth Gerstein told analysts that the results “reflect the success of the investments we’ve been making across the product, product and experience,” noting that “2025 was the year of Brilliant Earth” as the company celebrates its 20th anniversary. He emphasized the great success of jewelry: “Our booking of fine jewelry for the whole year 2025 is three times bigger than it was four years ago at the time of our IPO”. CFO Jeffrey Kuo highlighted the margin success despite significant cost pressure: “We are incredibly proud of our ability to deliver strong margins in this area which speaks to the strength of our leading product positioning, our data-driven pricing engine, our diverse global supply chain and the expertise of our team and business model”.
Analysts investigate AOV and metal fences. Julia Shalansky from TD Securities asked about AOV’s expectations and the company’s gold and platinum hedging strategy, asking how much of the current inventory is effectively price-protected. Gerstein responded that ASPs are rising across all categories due to product strength and customer demand for higher income, while the volatility of jewelry integration is creating AOV momentum. Kuo explained that the company uses “a variety of different tools” beyond hedging, including dynamic pricing optimization, product engineering, and vendor negotiations to manage steel costs. Ashley Owens from KeyBanc Capital Markets asked about the path to the previously mentioned $100 million fine jewelry opportunity and whether the business will be less dependent on investment cycles. Gerstein confirmed the diversification strategy, noting that “part of our new customers are now finding us through fine jewelry” and that the company is following the path of successful independents with a high-end jewelry mix.
Management guidelines for mid-single digit growth. For the full year of 2026, the company expects net sales to grow in the mid-single digits year over year, with a total in the mid-50s assuming steel prices stay at current high levels. Management projects continued marketing as a percentage of sales for the third consecutive year, but expects 2026 adjusted EBITDA to be “slightly lower than last year’s adjusted EBITDA dollars given the challenging steel cost environment,” with most of the year’s earnings concentrated in Q4. In Q1 2026, the company expects net sales growth in the mid-single-digit range with adjusted EBITDA margin in the negative mid-single-digit range, driven by the speed and magnitude of recent gold and platinum price increases. Notably, management scaled back its medium-term targets, saying “the precious metal environment we operate in today is unlike anything our industry has experienced” and that the uncertainty of steel prices makes targets beyond 2026 inappropriate at this time.
What you can watch: The newly opened Beverly Hills showroom represents a revamped retail concept that Forbes called “the blueprint for the future of jewelry retail,” featuring innovations such as the Eternity Bar, a fine jewelry station, and special evening appointments. With two additional showroom openings scheduled for 2026 and fine jewelry set to reach $100 million annually, the key question is whether the company’s pricing power and changing product mix can offset the headwinds of persistent metal costs that drove gross down 370 points year over year in Q4. Management’s ability to deliver Q1 guidance amid near-record gold and platinum prices will show whether the diversification strategy can maintain profitability in the current commodity cycle.
This article was created using AlphaStreet’s financial analysis technology and reviewed by our editorial team.
