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Brilliant Earth Group (BRLT)
NASDAQ:BRLT
US Market
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Brilliant Earth Group (BRLT) AI Stock Analysis

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BRLT

Brilliant Earth Group

(NASDAQ:BRLT)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
$1.00
▼(-12.28% Downside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by weak financial fundamentals (losses and negative operating/free cash flow). Offsetting this, the latest earnings call points to improving profitability and raised EBITDA guidance, while technicals are mixed (short-term stabilization but longer-term downtrend). Valuation gets some support from the very high dividend yield, though negative earnings reduce valuation clarity.
Positive Factors
High Gross Margin and Margin Management
Sustained high gross margins (mid‑50s) driven by price optimization, product/spec decisions and procurement efficiencies provide enduring earnings cushion. Strong gross margin supports margin recovery and affords room for marketing and showroom investments as operating leverage improves.
Negative Factors
Balance Sheet Leverage and Limited Equity Cushion
A historically high debt-to-equity ratio and very small equity base leave limited balance‑sheet cushion. If earnings recovery stalls, limited equity and prior leverage elevate refinancing and liquidity risk, constraining capital allocation and long‑term strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margin and Margin Management
Sustained high gross margins (mid‑50s) driven by price optimization, product/spec decisions and procurement efficiencies provide enduring earnings cushion. Strong gross margin supports margin recovery and affords room for marketing and showroom investments as operating leverage improves.
Read all positive factors

Brilliant Earth Group (BRLT) vs. SPDR S&P 500 ETF (SPY)

Brilliant Earth Group Business Overview & Revenue Model

Company Description
Brilliant Earth Group, Inc. is a company that specializes in the creation, sourcing, and retail distribution of diamonds, gemstones, and various types of jewelry. It operates both within the United States and across international markets. The comp...
How the Company Makes Money
Brilliant Earth primarily makes money by selling jewelry directly to consumers, with revenue recognized from product sales made through its e-commerce website and its network of company-operated showrooms. Its key revenue streams include: (1) brid...

Brilliant Earth Group Earnings Call Summary

Earnings Call Date:Aug 06, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
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.
Positive Updates
Net Sales Beat and Year‑over‑Year Growth
Net sales of $115.1 million in Q2, up approximately 5.7% year‑over‑year and above the high end of guidance.
Negative Updates
Total Orders Decline and Engagement Rings Flat
Total orders were down ~2% year‑over‑year; engagement ring bookings held steady (flat YoY) rather than growing.
Read all updates
Q2-2026 Updates
Negative
Net Sales Beat and Year‑over‑Year Growth
Net sales of $115.1 million in Q2, up approximately 5.7% year‑over‑year and above the high end of guidance.
Read all positive updates
Company Guidance
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.

Brilliant Earth Group Financial Statement Overview

Summary
Strong TTM revenue growth and healthy gross margin, but profitability remains weak with negative net income and very low EBITDA margin. Cash flow quality is also pressured with negative TTM operating and free cash flow, keeping financial risk elevated despite prior periods of better cash generation.
Income Statement
42
Neutral
Balance Sheet
28
Negative
Cash Flow
33
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue449.28M437.48M422.16M446.38M439.88M380.19M
Gross Profit253.67M251.50M254.40M257.00M234.29M187.42M
EBITDA5.17M11.63M14.50M13.63M28.67M34.39M
Net Income-4.49M-3.63M541.00K584.00K2.13M1.53M
Balance Sheet
Total Assets196.74M200.90M281.25M273.58M262.57M217.73M
Cash, Cash Equivalents and Short-Term Investments74.95M79.09M161.93M155.81M154.65M172.87M
Total Debt41.92M38.06M97.66M100.20M95.12M63.58M
Total Liabilities123.43M121.27M171.86M176.13M169.43M134.89M
Stockholders Equity12.15M12.30M15.33M12.53M10.93M8.40M
Cash Flow
Free Cash Flow2.88M5.75M12.69M14.27M5.38M40.47M
Operating Cash Flow6.42M9.72M17.59M26.21M14.51M46.08M
Investing Cash Flow-3.53M-3.97M-4.91M-11.94M-9.12M-5.61M
Financing Cash Flow-61.64M-88.45M-6.57M-13.10M-23.60M66.12M

Brilliant Earth Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.14
Price Trends
50DMA
1.15
Positive
100DMA
1.24
Positive
200DMA
1.52
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
64.33
Neutral
STOCH
54.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRLT, the sentiment is Positive. The current price of 1.14 is below the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.15, and below the 200-day MA of 1.52, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 64.33 is Neutral, neither overbought nor oversold. The STOCH value of 54.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRLT.

Brilliant Earth Group Risk Analysis

Brilliant Earth Group disclosed 61 risk factors in its most recent earnings report. Brilliant Earth Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Brilliant Earth Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$596.80M26.846.40%3.01%4.30%76.21%
67
Neutral
$32.80B49.50106.44%1.12%14.13%-15.62%
67
Neutral
$3.81B13.4216.01%1.47%1.35%661.25%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
57
Neutral
$1.50B-17.5721.10%17.73%-112.49%
52
Neutral
$130.37M-4.39-37.58%21.13%6.41%-893.45%
41
Neutral
$6.80M-2.7816.37%16.46%73.42%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BRLT
Brilliant Earth Group
1.28
-0.27
-17.42%
BGI
Birks & Mayors
0.35
-0.27
-43.63%
TPR
Tapestry
162.36
55.77
52.33%
MOV
Movado Group
37.84
23.30
160.21%
SIG
Signet Jewelers
96.91
21.67
28.80%
REAL
RealReal
12.30
5.74
87.50%

Brilliant Earth Group Corporate Events

Executive/Board ChangesShareholder Meetings
Brilliant Earth Shareholders Approve Directors and Auditor Slate
Positive
Jun 18, 2026
At its June 17, 2026 annual meeting, Brilliant Earth Group stockholders elected three Class II directors — Eric Grossberg, Attica A. Jaques and Gavin M. Turner — to serve until the 2029 annual meeting, with each receiving strong suppor...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2026