Brilliant Earth Group (BRLT) AI Stock Analysis

• Market Cap: $164.86M
• Dividend Yield: N/A
• Average Volume (3M): 49.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -6.12%
• EPS Growth: -105.56%
• Country: US
• Employees: 756
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Luxury Goods
• EPS (TTM): 0.00
• Shares Outstanding: 14,352,321
• 10 Day Avg. Volume: 63,437
• 30 Day Avg. Volume: 49,227
• PEG Ratio: 0.28
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.05
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: -0.02
• 1Y Price Target: $2.00
• Price Target Upside: 20.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 50 Neutral
• Price Target: $1.50 ▼(-9.64%Downside)

Brilliant Earth's overall stock score is driven by its financial challenges and high leverage, which are major concerns. While there is short-term positive momentum and promising growth in specific segments, the negative valuation and financial instability weigh heavily on the score. Strategic initiatives in marketing and product diversification offer potential for improvement.

Positive Factors

Earnings

Positive stock reaction to a solid 4Q as BRLT enjoyed strong holiday sales trends inclusive of steady sequential revenue booking improvements throughout the quarter and record Black Friday bookings.

Financial Performance

Balance sheet strengths include a $93 million net cash position and plans to pre-pay $20 million of BRLT's term loan, which should yield annualized interest savings.

Market Trends

Engagement ring unit momentum is an encouraging sign. BRLT's unit comp for engagement rings was strongest in 4Q, and, specifically within the showroom channel, engagement ring unit comped positively.

Negative Factors

Cost Management

Employee costs expanded by +200bps Y/Y in 4Q or +290bps Y/Y over FY24 alongside deleverage in other G&A costs of +80bps Y/Y in 4Q or +180bps Y/Y given showroom growth and strategic tech investments.

Pricing Pressure

Higher gold costs and tariffs remain a risk to gross margin, although BRLT has limited direct exposure to China.

Risk Factors

The largest risk to shares is the ongoing faith necessary to buy into the longer-term setup, which is likely to weigh on sentiment further if it drags on.

Brilliant Earth Group Business Overview & Revenue Model

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.

How the Company Makes Money

Brilliant Earth Group primarily generates revenue through the sale of fine jewelry products. The company operates an omni-channel business model, combining e-commerce with physical showrooms located in key markets to enhance customer experience and engagement. Revenue streams are driven by both direct-to-consumer sales via their online platform and in-store purchases. Additionally, Brilliant Earth leverages its brand reputation for ethical sourcing to attract a socially conscious customer base. Partnerships with suppliers that align with their ethical sourcing criteria and technological investments in traceability systems further bolster their market position, driving customer loyalty and repeat purchases.

Brilliant Earth Group Financial Statement Overview

Summary

Brilliant Earth Group is facing financial challenges with declining revenue and profitability, high leverage, and fluctuating cash flows. Despite high gross margins due to luxury products, the company needs to stabilize its financial position and improve efficiency.

Income Statement

Brilliant Earth Group shows fluctuating revenue and profit margins. The TTM shows a concerning drop in revenue compared to the previous year and a negative net income, indicating significant financial challenges. Gross profit margin is relatively high due to the luxury nature of products, but the net profit margin is negative. The company needs to control costs and improve efficiency to return to profitability.

Balance Sheet

The company's balance sheet shows high leverage with a debt-to-equity ratio that can be seen as a risk factor. The equity ratio is very low, indicating weak shareholder equity relative to total assets. These aspects suggest financial instability, although the company has managed to maintain a positive cash position.

Cash Flow

Brilliant Earth Group has experienced fluctuating cash flows, with recent operational cash flow turning positive. However, the free cash flow is low, reflecting challenges in generating sufficient cash to cover expenditures. The operating cash flow to net income ratio is positive, indicating some ability to convert earnings into cash, but the overall cash flow position remains strained.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	422.16M	446.38M	439.88M	380.19M	251.82M
Gross Profit	254.40M	257.00M	234.29M	187.42M	112.30M
EBITDA	14.50M	13.63M	28.67M	40.99M	27.16M
Net Income	541.00K	584.00K	19.02M	1.53M	21.58M
Balance Sheet
Total Assets	281.25M	273.58M	262.57M	217.73M	85.22M
Cash, Cash Equivalents and Short-Term Investments	161.93M	155.81M	154.65M	172.87M	66.27M
Total Debt	97.66M	100.20M	95.12M	63.58M	62.21M
Total Liabilities	171.86M	176.13M	169.43M	134.89M	170.61M
Stockholders Equity	15.33M	12.53M	10.93M	8.40M	-19.07M
Cash Flow
Free Cash Flow	12.69M	14.27M	5.38M	40.47M	26.14M
Operating Cash Flow	17.59M	26.21M	14.51M	46.08M	26.72M
Investing Cash Flow	-4.91M	-11.94M	-9.12M	-5.61M	-584.00K
Financing Cash Flow	-6.57M	-13.10M	-23.60M	66.12M	-263.00K

Brilliant Earth Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 1.66 is above the 20-day moving average (MA) of 1.47, above the 50-day MA of 1.43, and above the 200-day MA of 1.63, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 71.44 is Negative, neither overbought nor oversold. The STOCH value of 72.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRLT.

Brilliant Earth Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELA	68 Neutral	$159.87M	21.84	14.06%	―	15.71%	15.03%
Sector *	67 Neutral	¥267.20B	13.40	6.45%	2.59%	5.22%	-11.90%
MOV	63 Neutral	$269.34M	21.11	3.67%	8.49%	-1.36%	-54.97%
FOSL	52 Neutral	$97.61M	―	-51.93%	―	-16.31%	32.30%
BRLT	50 Neutral	$164.86M	―	-0.45%	―	-6.12%	-105.56%
LANV	45 Neutral	$306.11M	―	-195.94%	―	-22.86%	-38.76%
BGI	40 Underperform	$17.39M	―	89.94%	―	3.11%	11.94%

Brilliant Earth Group Corporate Events

Brilliant Earth Group Elects Directors at Annual Meeting

On June 18, 2025, Brilliant Earth Group, Inc. held its Annual Meeting of Stockholders where two Class I directors were elected to hold office until 2028, and BDO USA PC was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The voting results confirmed the election of the directors and the approval of the accounting firm appointment, impacting the company’s governance and financial oversight.

The most recent analyst rating on (BRLT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Brilliant Earth Group stock, see the BRLT Stock Forecast page.