Brilliant Earth Reports Record Quarterly Net Sales
Rhea-AI Summary
Brilliant Earth (Nasdaq: BRLT) reported record quarterly Net Sales of $124.4 million and fiscal 2025 Net Sales of $437.5 million, with total orders up 13% for the year.
Key results include 34% year-over-year fine jewelry bookings growth, maintained gross margins of 55.9% (Q4) and 57.5% (FY), GAAP net loss of $6.4 million for FY 2025, and Adjusted EBITDA of $12.0 million for the year. Company provided positive mid-single-digit Net Sales growth guidance for Q1 and full year 2026.
Positive
- Record quarterly Net Sales of $124.4 million
- Fine jewelry bookings growth of 34% year-over-year
- Total orders +13% for fiscal 2025
- Maintained gross margin at 57.5% for fiscal 2025
- Marketing expense leverage of 150 basis points versus prior year
Negative
- Gross margin compressed 370 basis points in Q4 2025
- Adjusted EBITDA declined 43% year-over-year for FY 2025
- GAAP net loss of $6.4 million for fiscal 2025
News Market Reaction – BRLT
On the day this news was published, BRLT declined 11.52%, reflecting a significant negative market reaction. Argus tracked a trough of -28.5% from its starting point during tracking. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $22M from the company's valuation, bringing the market cap to $165.19M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
BRLT gained 8.55% while peers showed mixed moves: ELA +3.87%, REAL +2.8%, BGI +3.61%, MOV +0.08%, and LANV -0.62%. The move appears more company-specific than a uniform luxury sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 18 | Sustainability recognition | Positive | -0.7% | Named #1 most sustainable jewelry brand and #6 in global diamond rankings. |
| Feb 11 | Earnings date notice | Neutral | +1.3% | Announced timing of Q4 and full-year 2025 results and webcast details. |
| Jan 29 | Retail strategy update | Positive | +2.5% | Launched “Showroom of the Future” concept at reimagined Beverly Hills flagship. |
| Dec 08 | Product collaboration | Positive | -7.1% | Introduced Ring Pop capsule collection of gemstone cocktail rings at $1,790 each. |
| Nov 24 | Investor conferences | Neutral | +6.0% | Disclosed participation in December NobleCon21 and KeyBanc consumer conferences. |
Recent news reactions have been mixed: some positive brand and retail announcements aligned with price gains, while other upbeat product and sustainability headlines coincided with declines, suggesting inconsistent trading responses to promotional or branding news.
Over the past several months, Brilliant Earth has focused on brand positioning and investor engagement. It unveiled a reimagined Beverly Hills showroom on Jan 29, 2026, saw sustainability recognition on Feb 18, 2026, and announced investor conference participation on Nov 24, 2025. Product collaborations, such as the Ring Pop collection on Dec 8, 2025, have had varied price impacts. Today’s record Q4/FY 2025 net sales and detailed 2026 guidance fit into this pattern of frequent brand- and growth-focused updates.
Regulatory & Risk Context
The company has an effective Form S-3 shelf registration dated Sep 8, 2025, authorizing various securities tied to its multi-class capital structure. The filing outlines potential offerings but does not specify an overall dollar capacity in the provided summary.
Market Pulse Summary
The stock dropped -11.5% in the session following this news. A negative reaction despite record $124.4M Q4 and $437.5M FY net sales would fit prior instances where upbeat branding or product news did not consistently translate into gains. Pressure could stem from the reported FY net loss of $6.4M and lower Adjusted EBITDA versus 2024. Investors may reassess the balance between top-line expansion, margin compression, and the outlook for only mid-single-digit 2026 growth.
Key Terms
adjusted ebitda financial
gaap diluted eps financial
adjusted diluted eps financial
non-gaap financial measures financial
AI-generated analysis. Not financial advice.
Delivered
Drove
Provides Q1 and Full Year Guidance 2026
SAN FRANCISCO, March 05, 2026 (GLOBE NEWSWIRE) -- Brilliant Earth Group, Inc. (“Brilliant Earth” or the “Company”) (Nasdaq: BRLT), an innovative, global leader in ethically sourced fine jewelry, today announced financial results for the three and twelve months ended December 31, 2025.
Fourth Quarter and Fiscal Year 2025 Highlights (quarterly and annual periods ended December 31, 2025):
- Delivered Net Sales of
$124.4 million and$437.5 million in the fourth quarter and fiscal year, respectively.- Largest quarter ever of Net Sales
- Total orders grew year-over-year
7% in Q4 and13% in 2025 - Repeat orders grew year-over-year
15% in Q4 and13% in 2025 - Average Selling Price (ASP) grew year-over-year across the assortment in Q4
- Drove record quarterly fine jewelry bookings in Q4, with
34% year-over-year bookings growth, highlighting continued success in strategic assortment expansion beyond bridal heritage - Maintained strong Gross Margin of
55.9% and57.5% in the fourth quarter and fiscal year, respectively, while navigating headwinds in precious metal prices and tariffs, demonstrating the agility of the Company's business model - Drove 150 basis points of leverage in marketing expense as a percentage of Net Sales for both the fourth quarter and fiscal year as compared to the same prior year periods while continuing to make strategic investments in building brand awareness
- Q4 and full year profitability above the midpoint of the Company's Adjusted EBITDA guidance range:
- GAAP Net loss of
$1.3 million for the fourth quarter and net loss of$6.4 million for the fiscal year - Adjusted EBITDA was
$4.2 million for the fourth quarter and$12.0 million for the fiscal year
- GAAP Net loss of
"We closed our 20th anniversary year with our largest quarter of Net Sales in company history, delivering results that demonstrate our continued ability to gain market share and drive profitable growth. This quarter marks continued success in the strategic expansion of our assortment with fine jewelry bookings growing
Fourth Quarter 2025 Results
| Q4 2025 | Q4 2024 | % Change* | ||||
| Total Orders | 62,178 | 58,357 | ||||
| AOV | $ | 2,001 | $ | 2,048 | (2.3)% | |
| ($ in millions, except per share amounts) | ||||||
| Net Sales | $ | 124.4 | $ | 119.5 | ||
| Gross Profit | $ | 69.5 | $ | 71.2 | (2.4)% | |
| Gross Margin | (370)bps | |||||
| Net (loss) income allocable to Brilliant Earth Group, Inc.(1) | $ | (2.9) | $ | 0.4 | (825.0)% | |
| Net (loss) income, as reported | $ | (1.3) | $ | 2.6 | ||
| Net (loss) income margin | (1.1)% | (330)bps | ||||
| Adjusted net (loss) income(3) | $ | (5.7) | $ | 4.2 | (235.7)% | |
| GAAP Diluted EPS(2) | $ | (0.19) | $ | 0.02 | (1050.0)% | |
| Adjusted Diluted EPS(3) | $ | (0.06) | $ | 0.04 | (250.0)% | |
| Adjusted EBITDA(3) | $ | 4.2 | $ | 6.9 | (39.1)% | |
| Adjusted EBITDA margin(3) | (250)bps |
| *Percentage changes may not recalculate due to rounding | |
| (1) | Represents net (loss) income allocable to Brilliant Earth Group, Inc. during the fourth quarter of 2025 and 2024. |
| (2) | Represents GAAP Diluted EPS during the fourth quarter of 2025 and 2024. |
| (3) | Adjusted net (loss) income, Adjusted Diluted EPS, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See "Disclosure Regarding Non-GAAP Financial Measures and Key Metrics" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. |
Fiscal Year 2025 Results
| FY 2025 | FY 2024 | % Change* | ||||
| Total Orders | 210,158 | 186,030 | ||||
| AOV | $ | 2,082 | $ | 2,269 | (8.2)% | |
| ($ in millions, except per share amounts) | ||||||
| Net Sales | $ | 437.5 | $ | 422.2 | ||
| Gross Profit | $ | 251.5 | $ | 254.4 | (1.1)% | |
| Gross Margin | (280)bps | |||||
| Net (loss) income allocable to Brilliant Earth Group, Inc. (1) | $ | (3.6) | $ | 0.5 | (820.0)% | |
| Net (loss) income, as reported | $ | (6.4) | $ | 4.0 | (260.2)% | |
| Net (loss) income margin | (1.5)% | (240)bps | ||||
| Adjusted net (loss) income (3) | $ | (3.3) | $ | 11.8 | (128.0)% | |
| GAAP Diluted EPS (2) | $ | (0.25) | $ | 0.03 | (933.3)% | |
| Adjusted Diluted EPS (3) | $ | (0.03) | $ | 0.12 | (125.0)% | |
| Adjusted EBITDA (3) | $ | 12.0 | $ | 21.1 | (43.3)% | |
| Adjusted EBITDA margin (3) | (230)bps |
| *Percentage changes may not recalculate due to rounding | |
| (1) | Represents net (loss) income allocable to Brilliant Earth Group, Inc. during the years ended December 31, 2025 and 2024. |
| (2) | Represents GAAP Diluted EPS during the years ended December 31, 2025 and 2024. |
| (3) | Adjusted net (loss) income, Adjusted Diluted EPS, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See "Disclosure Regarding Non-GAAP Financial Measures and Key Metrics" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. |
2026 Outlook
First Quarter
| Net Sales Growth | Positive Mid-single-digit % Y/Y |
| Adjusted EBITDA Margin | Negative Mid-single-digit % |
Full Year
| Net Sales Growth | Positive Mid-single-digit % Y/Y |
| Adjusted EBITDA $ | Profitable, slightly lower than 2025 |
| Outlook assumes metal prices as of March 4, 2026. | |
Webcast and Conference Call Information
Brilliant Earth will host a conference call and webcast to discuss fourth quarter and full year 2025 results and business outlook today, March 5, 2026, at 8:30 a.m. ET/5:30 a.m. PT. The webcast and accompanying slide presentation can be accessed at https://investors.brilliantearth.com. The conference call can be accessed by using the following link: https://register-conf.media-server.com/register/BI86a1508a419c4fd78bc21e1d3e28c8f4. After registering, an email will be sent including dial-in details and a unique conference call pin required to join the live call. A replay of the webcast will remain available on the website after the live webcast concludes.
About Brilliant Earth
Brilliant Earth is an industry-disrupting global leader in ethically sourced fine jewelry. The Company's mission since its founding in 2005 has been to create a more transparent, sustainable, and compassionate jewelry industry. With a premium brand, curated proprietary product assortment, seamless omnichannel shopping experience, and asset-light, data driven business model, Brilliant Earth is transforming the jewelry industry. The Company reported Net Sales of
Disclosure Regarding Non-GAAP Financial Measures and Key Metrics
In addition to the financial measures presented in this release in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company has included certain non-GAAP financial measures in this release, including Adjusted EBITDA, Adjusted Net (loss) income, Adjusted Diluted EPS and Adjusted EBITDA margin. These non-GAAP financial measures provide users of our financial information with useful information in evaluating our operating performance and exclude certain items from net income that may vary substantially in frequency and magnitude from period to period.
We define EBITDA as net (loss) income before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as net (loss) income excluding interest expense, income taxes, depreciation expense, amortization of cloud-based software implementation costs, showroom pre-opening expense, equity-based compensation expense, certain non-operating expenses and income, and other unusual and/or infrequent costs, which that we do not consider in our evaluation of ongoing performance of our core operations. We define Adjusted EBITDA margin as Adjusted EBITDA calculated as a percentage of net sales. We believe that Adjusted EBITDA and Adjusted EBITDA margin, which eliminate the impact of certain expenses that we do not believe reflect our underlying business performance, provide useful information to investors to assess the performance of our business.
We define Adjusted Net (loss) income as net (loss) income adjusted for the impact of certain additional non-cash and other items that we do not consider in our evaluation of ongoing performance of our core operations. These items include showroom pre-opening expense, equity-based compensation expense, costs to fund the Brilliant Earth Foundation and transaction costs and other expenses. We define Adjusted Diluted Earnings Per Share as Adjusted Net (loss) income, divided by the diluted weighted average shares of common stock outstanding. The diluted weighted average shares of common stock outstanding is derived from the historical diluted weighted average shares of common stock assuming such shares were outstanding for the entirety of the period presented. We believe Adjusted Net (loss) income and Adjusted Diluted Earnings Per Share, which eliminate the impact of certain expenses that we do not believe reflect our underlying business performance, provide useful information to investors to assess the performance of our business.
Please refer to “GAAP to Non-GAAP Reconciliations” located in the financial supplement in this release for a reconciliation of GAAP to non-GAAP financial information.
This release includes forward-looking guidance for certain non-GAAP financial measures, including Adjusted EBITDA. These measures will differ from net (loss) income, determined in accordance with GAAP, in ways similar to those described in the reconciliations at the end of this release. We are not able to provide, without unreasonable effort, guidance for net income, determined in accordance with GAAP, or a reconciliation of guidance for Adjusted EBITDA to the most directly comparable GAAP measure because the Company is not able to predict with reasonable certainty the amount or nature of all items that will be included in net income.
This press release also contains certain key business metrics which are used to evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. We define net cash as cash and cash equivalents less the total principal balance of our outstanding debt. We define Bookings for each period as the dollar value of confirmed orders as of the date of order placement. We believe Bookings, which represent a measure of gross sales and potential future Net Sales, provide useful information to investors to assess the performance of our business. We define total orders as the total number of customer orders delivered less total orders returned in a given period (excluding those repair, resize, and other orders which have no revenue). We view total orders as a key indicator of the velocity of our business and an indication of the desirability of our products to our customers. Total orders, together with AOV, is an indicator of the net sales we expect to recognize in a given period. Total orders may fluctuate based on the number of visitors to our website and showrooms, and our ability to convert these visitors to customers. We believe that total orders is a measure that is useful to investors and management in understanding our ongoing operations and in an analysis of ongoing operating trends. We define average order value, or AOV, as net sales in a given period divided by total orders in that period. We define average selling price, or ASP, as the total retail sales price of products sold in a given period divided by the total number of product units sold during that same period. We believe that AOV and ASP are measures that are useful to investors and management in understanding our ongoing operations and in an analysis of ongoing operating trends. AOV varies depending on the product type and number of items per order. AOV and ASP may also fluctuate as we expand into and increase our presence in additional product types and price points, and open additional showrooms.
Forward-Looking Statements
This Press Release contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this press release may be forward-looking statements. Statements regarding our future results of operations, financial position and our expectations regarding Net Sales, Adjusted EBITDA, Adjusted EBITDA Margin and growth rates are forward-looking statements. In some cases, you can identify forward-looking statements by terms, such as "ahead," “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “evolve,” “expect,” "future," “intend,” “may,” "outlook'" “plan,” “potential,” “predict,” “seek,” “should,” “strategy,” “target,” “will,” or “would,” or the negative of these terms or other similar expressions. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. You should not rely upon forward-looking statements as predictions of future events. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, but not limited to: fluctuations in the pricing and supply of diamonds, other gemstones, and precious metals, particularly responsibly sourced natural and lab-grown diamonds and repurposed precious metals such as gold; an overall decline in the health of the economy and other factors impacting consumer spending, such as recessionary or inflationary conditions, governmental instability, the impact of any changes in trade policy, including the imposition of new or increased tariffs on goods imported into the United States and any resulting retaliatory trade actions by other governments, war and fears of war, and natural disasters; if we fail to cost-effectively turn existing customers into repeat customers or acquire new customers; our rapid growth in recent years and limited operating experience at our current scale of operations; our ability to manage growth effectively; increased lead times, supply shortages, and supply changes; our expansion plans in the United States; our ability to compete in the fine jewelry retail industry; our ability to maintain and enhance our brand and to engage or expand our base of customers; our ability to effectively develop and expand our sales and marketing capabilities and increase our customer base and achieve broader market acceptance of our e-commerce and omnichannel approach to shopping for fine jewelry; our profitability and cash flow being negatively affected if we are not successful in managing our inventory balances and inventory shrinkage; a decline in sales of Design Your Own rings; our heavy reliance on our information technology systems, as well as those of our third-party vendors and service providers, for our business to effectively operate and to safeguard confidential information and risks related to any significant failure, inadequacy or interruption of these systems, security breaches or loss of data; the impact of environmental, social, and governance matters on our business and reputation; our ability to manage risks related to our e-commerce and omnichannel business; our ability to effectively anticipate and respond to changes in consumer preferences and shopping patterns; and introduce new products and programs that appeal to new or existing customers; our dependence on distributions from Brilliant Earth, LLC, our principal asset, to pay our taxes and expenses, including payments under the Tax Receivable Agreement; risks related to our obligations to make substantial cash payments under the Tax Receivable Agreement and risks related to our organizational structure; and the other risks, uncertainties and the factors described in the section titled “Risk Factors” in our Annual Report on Form10-K for the year ended December 31, 2024, which was filed with the SEC on March 13, 2025 and is available at www.sec.gov. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this press release. Except as required by applicable law, we undertake no obligation to update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.
Contacts:
Investors:
Colin Bourland
investorrelations@brilliantearth.com
| BRILLIANT EARTH GROUP, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) | |||||||
| Years ended December 31, | |||||||
| 2025 | 2024 | ||||||
| Net sales | $ | 437,483 | $ | 422,161 | |||
| Cost of sales | 185,979 | 167,759 | |||||
| Gross profit | 251,504 | 254,402 | |||||
| Operating expenses: | |||||||
| Marketing and advertising | 105,965 | 108,339 | |||||
| General and administrative | 150,915 | 142,713 | |||||
| Total operating expenses | 256,880 | 251,052 | |||||
| (Loss) income from operations | (5,376 | ) | 3,350 | ||||
| Interest expense | (2,282 | ) | (5,031 | ) | |||
| Other income, net | 3,668 | 5,835 | |||||
| Gain on TRA liability adjustment | 7,804 | — | |||||
| Loss on extinguishment of debt | (573 | ) | — | ||||
| Income before income tax expense | 3,241 | 4,154 | |||||
| Income tax expense | (9,641 | ) | (160 | ) | |||
| Net (loss) income | (6,400 | ) | 3,994 | ||||
| Net (loss) income allocable to non-controlling interest | (2,765 | ) | 3,453 | ||||
| Net (loss) income allocable to Brilliant Earth Group, Inc. | $ | (3,635 | ) | $ | 541 | ||
| Earnings per share: | |||||||
| Basic | $ | (0.25 | ) | $ | 0.04 | ||
| Diluted | $ | (0.25 | ) | $ | 0.03 | ||
| Weighted average shares of common stock outstanding: | |||||||
| Basic | 14,752,634 | 13,304,227 | |||||
| Diluted | 14,752,634 | 98,352,924 | |||||
| BRILLIANT EARTH GROUP, INC. UNAUDITED CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share amounts) | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 79,089 | $ | 161,925 | |||
| Restricted cash | 349 | 216 | |||||
| Inventories, net | 53,238 | 38,292 | |||||
| Prepaid expenses and other current assets | 12,052 | 10,980 | |||||
| Total current assets | 144,728 | 211,413 | |||||
| Property and equipment, net | 19,622 | 21,626 | |||||
| Deferred tax assets | — | 9,636 | |||||
| Operating lease right of use assets | 31,879 | 35,222 | |||||
| Other assets | 4,674 | 3,348 | |||||
| Total assets | $ | 200,903 | $ | 281,245 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 24,804 | $ | 15,733 | |||
| Accrued expenses and other current liabilities | 35,732 | 31,714 | |||||
| Deferred revenue | 22,671 | 18,926 | |||||
| Current portion of operating lease liabilities | 6,896 | 6,108 | |||||
| Current portion of long-term debt | — | 5,688 | |||||
| Total current liabilities | 90,103 | 78,169 | |||||
| Long-term debt, net of debt issuance costs | — | 50,010 | |||||
| Operating lease liabilities | 31,163 | 35,856 | |||||
| Payable pursuant to the Tax Receivable Agreement | — | 7,828 | |||||
| Total liabilities | 121,266 | 171,863 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity | |||||||
| Preferred stock, | — | — | |||||
| Class A common stock, | 2 | 1 | |||||
| Class B common stock, | 4 | 4 | |||||
| Class C common stock, | 5 | 5 | |||||
| Class D common stock, | — | — | |||||
| Additional paid-in capital | 16,024 | 11,169 | |||||
| Treasury stock, at cost; 574,677 shares and 281,981 shares at December 31, 2025 and 2024, respectively | (1,094 | ) | (638 | ) | |||
| Retained earnings | (2,640 | ) | 4,788 | ||||
| Stockholders' equity attributable to Brilliant Earth Group, Inc. | 12,301 | 15,329 | |||||
| Non-controlling interests attributable to Brilliant Earth, LLC | 67,336 | 94,053 | |||||
| Total stockholders' equity | 79,637 | 109,382 | |||||
| Total liabilities and stockholders' equity | $ | 200,903 | $ | 281,245 | |||
| GAAP to Non-GAAP Reconciliations (Unaudited and dollars in thousands, except per share amounts) ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN | |||||||||||||||
| Three months ended December 31, | Years ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net (loss) income | $ | (1,348 | ) | $ | 2,627 | $ | (6,400 | ) | $ | 3,994 | |||||
| Interest expense | — | 1,204 | 2,282 | 5,031 | |||||||||||
| Income tax expense (benefit) | 9,585 | (62 | ) | 9,641 | 160 | ||||||||||
| Depreciation expense | 1,528 | 1,466 | 6,109 | 5,312 | |||||||||||
| Amortization of cloud-based software implementation costs | 201 | 158 | 770 | 817 | |||||||||||
| Showroom pre-opening expense | 174 | 484 | 1,248 | 1,705 | |||||||||||
| Equity-based compensation expense | 1,967 | 2,398 | 8,920 | 9,934 | |||||||||||
| Other income, net(1) | (453 | ) | (1,359 | ) | (3,668 | ) | (5,835 | ) | |||||||
| Gain on TRA liability adjustment | (7,804 | ) | — | (7,804 | ) | — | |||||||||
| Loss on extinguishment of debt | — | — | 573 | — | |||||||||||
| Other expenses(2) | 300 | — | 300 | — | |||||||||||
| Adjusted EBITDA | $ | 4,150 | $ | 6,916 | $ | 11,971 | $ | 21,118 | |||||||
| Net (loss) income margin | (1.1)% | 2.2 | % | (1.5)% | 0.9 | % | |||||||||
| Adjusted EBITDA margin | 3.3 | % | 5.8 | % | 2.7 | % | 5.0 | % | |||||||
| (1) | Other income, net consists primarily of interest and other miscellaneous income, partially offset by expenses such as losses on exchange rates on consumer payments. |
| (2) | These expenses are those that we did not incur in the normal course of business. |
| ADJUSTED NET (LOSS) INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE | |||||||||||||||
| Three months ended December 31, | Years ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net (loss) income attributable to Brilliant Earth Group, Inc., as reported(1) | $ | (2,896 | ) | $ | 358 | $ | (3,635 | ) | $ | 541 | |||||
| Net income (loss) impact from assumed redemption of all LLC Units to common stock(2) | 1,548 | 2,269 | (2,765 | ) | 3,453 | ||||||||||
| Net (loss) income, as reported | (1,348 | ) | 2,627 | (6,400 | ) | 3,994 | |||||||||
| Income tax (expense) benefit associated with conversion(3) | (401 | ) | (576 | ) | 696 | (878 | ) | ||||||||
| Tax effected net (loss) income after assumed conversion | (1,749 | ) | 2,051 | (5,704 | ) | 3,116 | |||||||||
| Equity-based compensation expense | 1,967 | 2,398 | 8,920 | 9,934 | |||||||||||
| Showroom pre-opening expense | 174 | 484 | 1,248 | 1,705 | |||||||||||
| Gain on TRA liability adjustment | (7,804 | ) | — | (7,804 | ) | — | |||||||||
| Loss on extinguishment of debt | — | — | 573 | — | |||||||||||
| Other expenses(4) | 300 | — | 300 | — | |||||||||||
| Tax impact of adjustments | 1,372 | (725 | ) | (815 | ) | (2,960 | ) | ||||||||
| Adjusted Net (Loss) Income | $ | (5,740 | ) | $ | 4,208 | $ | (3,282 | ) | $ | 11,795 | |||||
| Diluted weighted average of common stock assumed outstanding | 15,336,557 | 98,745,356 | 14,752,634 | 98,352,924 | |||||||||||
| Adjustments: | |||||||||||||||
| Vested LLC Units that are exchangeable for common stock(5) | 84,942,318 | — | 84,949,017 | — | |||||||||||
| Unvested LLC Units that are exchangeable for common stock(5) | — | — | 1,153 | — | |||||||||||
| RSUs | 770,670 | — | 344,517 | — | |||||||||||
| Adjusted diluted weighted average of common stock assumed outstanding | 101,049,545 | 98,745,356 | 100,047,321 | 98,352,924 | |||||||||||
| Diluted earnings per share: | |||||||||||||||
| As reported | $ | (0.19 | ) | $ | 0.02 | $ | (0.25 | ) | $ | 0.03 | |||||
| As adjusted | $ | (0.06 | ) | $ | 0.04 | $ | (0.03 | ) | $ | 0.12 | |||||
| (1) | Represents net (loss) income allocable to Brilliant Earth Group, Inc. for the three and twelve months ended December 31, 2025 and 2024. |
| (2) | It is assumed that we will elect to issue common stock upon redemption of LLC Units rather than cash settle. |
| (3) | Brilliant Earth Group, Inc. is subject to U.S. Federal income taxes, in addition to state and local taxes with respect to its allocable share of any net taxable income of Brilliant Earth, LLC. Acquisition of LLC units by Brilliant Earth Group, Inc. causes all of the taxable income currently recognized by the members of Brilliant Earth, LLC to become taxable to the Company. |
| (4) | These expenses are those we did not incur in the normal course of business. |
| (5) | Assumes the exchange of all outstanding LLC units for shares of common stock, resulting in the elimination of the non-controlling interest and recognition of the net income (loss) attributable to non-controlling interest. |
