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

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BRLT

Brilliant Earth Group

(NASDAQ:BRLT)

Rating:50Neutral
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 (BRLT) vs. SPDR S&P 500 ETF (SPY)

Brilliant Earth Group Business Overview & Revenue Model

Company DescriptionBrilliant 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 MoneyBrilliant 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 Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 7.10%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. While Brilliant Earth continues to maintain profitability and shows growth in orders and fine jewelry, it faces challenges with a decline in net sales, average order value, and gross margin. The strategic initiatives in fine jewelry and strong marketing campaigns are positive, but the financial downsides suggest a need for cautious optimism.
Q1-2025 Updates
Positive Updates
Consistent Profitability
Brilliant Earth marked its 15th consecutive quarter of profitability as a public company, showcasing a disciplined approach to managing expenses.
Increase in Total and Repeat Orders
Total orders grew 12% year-over-year and repeat orders grew 13% year-over-year, indicating strong customer retention and brand resonance.
Fine Jewelry Expansion
Fine jewelry bookings represented 14% of total bookings, a 350 basis point expansion over Q1 last year, with strong double-digit growth.
Successful Valentine's Day Campaign
The Valentine's Day campaign resulted in the strongest period ever with total bookings up mid-to-high single digits year-over-year and fine jewelry bookings growing over 40% year-over-year.
Social Media Impact
Partnerships with influencers led to 6.2 million social media impressions, strengthening brand presence.
Negative Updates
Decline in Net Sales
Net sales for Q1 were $93.9 million, a 3.5% decline year-over-year, indicating challenges in achieving revenue growth.
Decrease in Average Order Value
Average order value (AOV) was $2,062 in Q1, a decline of 14.2% year-over-year, primarily due to strong performance in lower-priced bridal ranges.
Gross Margin Decline
Q1 gross margin was 58.6%, a 130 basis point decline year-over-year, affected by higher gold costs and labor and occupancy expenses.
Increased Operating Expenses
Q1 operating expense was 62.4% of net sales, up from 59.0% in Q1 2024, reflecting higher marketing and employee costs.
Company Guidance
In the first quarter of 2025, Brilliant Earth reported net sales of $93.9 million, representing a 3.5% decline year-over-year, while achieving a 1% adjusted EBITDA margin with $1.1 million in adjusted EBITDA. Despite a 14.2% decrease in average order value (AOV) to $2,062, total orders grew 12%, and repeat orders increased by 13% year-over-year. The company's fine jewelry segment saw significant growth, representing 14% of total bookings, with a 350 basis point expansion over the previous year. Gross margin stood at 58.6%, a slight decline from the prior year, influenced by higher gold costs. However, the company's data-driven inventory model and strategic pricing mitigated these impacts. Looking ahead, Brilliant Earth expects a sequential improvement in sales growth, with net sales projected to be between a 3% decline and flat year-over-year for the second quarter. The company maintains a positive outlook for the remainder of 2025, anticipating 1% to 3% annual revenue growth and an adjusted EBITDA margin of 3% to 4%.

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
45
Neutral
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
40
Negative
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue422.16M446.38M439.88M380.19M251.82M
Gross Profit254.40M257.00M234.29M187.42M112.30M
EBITDA14.50M13.63M28.67M40.99M27.16M
Net Income541.00K584.00K19.02M1.53M21.58M
Balance Sheet
Total Assets281.25M273.58M262.57M217.73M85.22M
Cash, Cash Equivalents and Short-Term Investments161.93M155.81M154.65M172.87M66.27M
Total Debt97.66M100.20M95.12M63.58M62.21M
Total Liabilities171.86M176.13M169.43M134.89M170.61M
Stockholders Equity15.33M12.53M10.93M8.40M-19.07M
Cash Flow
Free Cash Flow12.69M14.27M5.38M40.47M26.14M
Operating Cash Flow17.59M26.21M14.51M46.08M26.72M
Investing Cash Flow-4.91M-11.94M-9.12M-5.61M-584.00K
Financing Cash Flow-6.57M-13.10M-23.60M66.12M-263.00K

Brilliant Earth Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.66
Price Trends
50DMA
1.43
Positive
100DMA
1.46
Positive
200DMA
1.63
Positive
Market Momentum
MACD
0.04
Negative
RSI
71.44
Negative
STOCH
72.02
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 Risk Analysis

Brilliant Earth Group disclosed 64 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$159.87M21.8414.06%15.71%15.03%
67
Neutral
¥267.20B13.406.45%2.59%5.22%-11.90%
63
Neutral
$269.34M21.113.67%8.49%-1.36%-54.97%
52
Neutral
$97.61M-51.93%-16.31%32.30%
50
Neutral
$164.86M-0.45%-6.12%-105.56%
45
Neutral
$306.11M-195.94%-22.86%-38.76%
40
Underperform
$17.39M89.94%3.11%11.94%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BRLT
Brilliant Earth Group
1.58
-0.96
-37.80%
BGI
Birks & Mayors
0.90
-1.63
-64.43%
FOSL
Fossil Group
1.77
0.49
38.28%
MOV
Movado Group
17.07
-6.39
-27.24%
ELA
Envela
6.15
1.24
25.25%
LANV
Lanvin Group Holdings
2.35
0.80
51.61%

Brilliant Earth Group Corporate Events

Executive/Board ChangesShareholder Meetings
Brilliant Earth Group Elects Directors at Annual Meeting
Neutral
Jun 23, 2025

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.

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: Jul 23, 2025