Brilliant Earth Group (BRLT) AI Stock Analysis

• Market Cap: $178.37M
• Dividend Yield: 17.42%
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -4.32%
• EPS Growth: -144.96%
• Country: US
• Employees: 756
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Luxury Goods
• EPS (TTM): 0.01
• Shares Outstanding: 14,810,781
• 10 Day Avg. Volume: 407,703
• 30 Day Avg. Volume: 2,285,359
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.28
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.20
• Enterprise Value/Ebitda: 6.22
• 1Y Price Target: $2.10
• Price Target Upside: -28.08% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: $2.50 ▼(-14.38% Downside)

Brilliant Earth's overall stock score reflects strong earnings performance and strategic financial moves, such as debt elimination and shareholder dividends. However, challenges with valuation metrics and operational efficiency weigh on the score. The positive technical indicators and robust earnings call sentiment further support the stock's potential, but caution is advised due to valuation concerns.

Positive Factors

Earnings

Brilliant Earth delivered second-quarter sales and earnings results that exceeded expectations on better-than-expected operating leverage, particularly on marketing.

Financial Stability

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.

Revenue Growth

Management raised its revenue guide by 1.2%, also ahead of the Street, while reaffirming its prior adjusted EBITDA margin guide.

Negative Factors

Gross Margin

Gross margin was a weak spot, declining 250 basis points from last year, though consistent with the company’s medium-term target.

Market Sentiment

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.

Tariffs and Costs

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

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 demonstrates strong revenue growth and effective equity utilization, but faces challenges with high leverage and low operational margins. Cash flow generation is improving, yet there are concerns about cash conversion from income. The company should focus on enhancing operational efficiency and managing debt levels to sustain growth.

Income Statement

Brilliant Earth Group shows a strong revenue growth rate of 83.8% in the TTM, indicating robust sales performance. However, the net profit margin is relatively low at 3.24%, and EBIT margin is minimal at 0.44%, suggesting challenges in operational efficiency. The gross profit margin remains healthy at 59.34%, reflecting good cost management.

Balance Sheet

The company has a high debt-to-equity ratio of 5.02, indicating significant leverage, which could pose financial risk. However, the return on equity is exceptionally high at 91.08%, suggesting effective use of equity to generate profits. The equity ratio is low, indicating a reliance on debt financing.

Cash Flow

Free cash flow growth is positive at 13.08%, showing improvement in cash generation. The operating cash flow to net income ratio is low at 0.16, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is strong at 0.70, reflecting good cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	422.22M	422.16M	446.38M	439.88M	380.19M	251.82M
Gross Profit	250.56M	254.40M	257.00M	234.29M	187.42M	112.30M
EBITDA	8.07M	14.50M	13.63M	28.67M	40.99M	27.16M
Net Income	1.37B	541.00K	584.00K	2.13M	1.53M	21.58M
Balance Sheet
Total Assets	260.88M	281.25M	273.58M	262.57M	217.73M	85.22M
Cash, Cash Equivalents and Short-Term Investments	133.62M	161.93M	155.81M	154.65M	172.87M	66.27M
Total Debt	76.66M	97.66M	100.20M	95.12M	63.58M	62.21M
Total Liabilities	158.19M	171.86M	176.13M	169.43M	134.89M	170.61M
Stockholders Equity	15.28M	15.33M	12.53M	10.93M	8.40M	-19.07M
Cash Flow
Free Cash Flow	12.65M	12.69M	14.27M	5.38M	40.47M	26.14M
Operating Cash Flow	18.02M	17.59M	26.21M	14.51M	46.08M	26.72M
Investing Cash Flow	-5.37M	-4.91M	-11.94M	-9.12M	-5.61M	-584.00K
Financing Cash Flow	-31.24M	-6.57M	-13.10M	-23.60M	66.12M	-263.00K

Brilliant Earth Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2.92 is above the 20-day moving average (MA) of 2.21, above the 50-day MA of 1.68, and above the 200-day MA of 1.50, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 73.61 is Negative, neither overbought nor oversold. The STOCH value of 81.71 is Negative, 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	73 Outperform	$195.52M	22.32	15.81%	―	25.43%	33.93%
MOV	71 Outperform	$295.61M	24.27	3.52%	7.25%	-0.65%	-51.59%
BRLT	66 Neutral	$178.37M	―	-2.83%	17.42%	-4.32%	-144.96%
Sector *	61 Neutral	$17.96B	13.14	-5.36%	3.00%	1.25%	-13.95%
FOSL	55 Neutral	$175.34M	―	-35.01%	―	-15.35%	61.40%
LANV	41 Neutral	$265.80M	―	-2353.49%	―	-23.54%	-49.41%
BGI	40 Underperform	$16.26M	―	89.94%	―	-7.08%	-162.35%

Brilliant Earth Group Corporate Events

Brilliant Earth Group Eliminates Debt, Strengthens Finances

On August 4, 2025, Brilliant Earth, LLC prepaid all amounts outstanding under its term loan facility, totaling approximately $35.1 million, and terminated all commitments under the Credit Agreement. This move leaves the company with zero debt, enhancing its financial position. Additionally, the company announced a one-time cash dividend of $0.25 per share, totaling approximately $25.3 million, to be paid on September 8, 2025. This reflects the company’s commitment to shareholder returns and its strong financial health, as evidenced by its Q2 2025 performance, which saw a 3% year-over-year net sales growth and an 18% increase in total orders.

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.