Brilliant Earth Group (BRLT) Q2 2026 Earnings Report

The call reflected strong execution and profitability discipline: management reported a top‑line beat, meaningful AOV/ASP gains, robust fine jewelry growth, sequential gross margin improvement, operating expense leverage and an improved adjusted EBITDA outlook. Headwinds are present but contained — total orders were slightly down, engagement rings were flat, there is softness at lower price points, and metal/tariff volatility remains a risk. Overall, the positive operational and financial beats materially outweigh the contained challenges.

Brilliant Earth raised its annual profitability outlook while providing specific near-term targets: full-year net sales are guided to $459–$462 million with full-year adjusted EBITDA now $13–$15 million (up from prior guidance), Q3 net sales are expected to be about flat year‑over‑year (implying ~10% growth on a 2‑year stacked basis) with Q3 adjusted EBITDA of $3–$5 million, and gross margin is expected to be similar to Q2’s 57.9% in Q3 and managed to the mid‑to‑high 50s for the back half of the year (assuming metal prices and tariff rates remain at current levels). Management noted Q2 results that underpin the outlook — Q2 net sales of $115.1 million, Q2 adjusted EBITDA of $5.8 million (a 5% adjusted EBITDA margin), marketing at 22.8% of sales (down from 24.1% a year ago), adjusted operating expense at 53% of sales (vs. 55.5% last year), about $75 million in cash and no debt, and inventory turns of ~4x — and reiterated they expect year‑over‑year marketing expense leverage for the full year.