Brilliant Earth Group (BRLT) AI Stock Analysis

• Market Cap: $119.58M
• Dividend Yield: 13.44%
• Average Volume (3M): 108.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: 1.32%
• EPS Growth: -175.81%
• Country: US
• Employees: 756
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.02
• Shares Outstanding: 15,170,213
• 10 Day Avg. Volume: 98,256
• 30 Day Avg. Volume: 108,892
• PEG Ratio: -3.05
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 2.20
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 0.26
• Enterprise Value/Ebitda: 8.43
• 1Y Price Target: $2.53
• Price Target Upside: 36.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.08
• Revenue Forecast (FY): $438.40M

• Rating: 51 Neutral
• Price Target: $2.00 ▲(7.53% Upside)

Brilliant Earth's overall stock score reflects a challenging financial performance with high leverage and negative profitability, offset by strong revenue growth and marketing efficiency highlighted in the earnings call. Technical indicators suggest bearish momentum, and while the dividend yield is attractive, the negative P/E ratio is concerning.

Positive Factors

Revenue Growth

The 10% YoY growth in net sales indicates strong demand and effective sales strategies, supporting long-term revenue expansion and market position.

Marketing Efficiency

Improved marketing efficiency enhances profitability by reducing customer acquisition costs, supporting sustainable growth and competitive advantage.

Cash Position

A strong cash position with no debt provides financial flexibility, enabling strategic investments and resilience against market fluctuations.

Negative Factors

Gross Margin Pressure

Declining gross margins from rising input costs and tariffs could pressure profitability, challenging cost management and pricing strategies.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and withstand economic downturns.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and cost management issues, potentially impacting long-term profitability and shareholder value.

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 generates revenue primarily through the sale of its jewelry products, which include engagement rings, wedding bands, and other fine jewelry items. The company employs an e-commerce business model, allowing customers to browse and purchase products directly through its website. Key revenue streams include direct-to-consumer sales, where customers can customize their purchases, and partnerships with various designers and artisans to expand their product offerings. Additionally, Brilliant Earth may benefit from strategic partnerships with eco-friendly and ethical organizations, enhancing its brand reputation and attracting a loyal customer base. The growing trend of consumers prioritizing ethical sourcing and sustainability in their purchasing decisions further supports the company's revenue generation efforts.

Brilliant Earth Group Financial Statement Overview

Summary

Brilliant Earth Group's financial performance is mixed. Strong gross profit margins are overshadowed by negative net profit margins and high leverage, indicating financial risk. Cash flow management is stable but not robust, with declining free cash flow growth.

Income Statement

Brilliant Earth Group's income statement shows mixed results. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 58.54%, indicating efficient production and pricing strategies. However, the net profit margin is negative at -1.09%, reflecting challenges in controlling costs or generating sufficient revenue to cover expenses. Revenue growth is modest at 2.46% TTM, but the company has experienced fluctuations in previous years, including a decline in 2024. The EBIT and EBITDA margins have also decreased, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 5.02 TTM, indicating significant leverage and potential financial risk. Return on equity is exceptionally high at 91.08% TTM, but this is likely skewed by the low equity base. The equity ratio is low, suggesting reliance on debt financing. These factors highlight potential vulnerabilities in financial stability, despite the high ROE.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -5.35% TTM, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is 0.16, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.70, reflecting some ability to convert earnings into cash. Overall, cash flow management appears stable but not robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	432.60M	422.16M	446.38M	439.88M	380.19M	251.82M
Gross Profit	253.25M	254.40M	257.00M	234.29M	187.42M	112.30M
EBITDA	7.67M	14.50M	13.63M	28.67M	34.39M	27.16M
Net Income	-381.00K	541.00K	584.00K	2.13M	1.53M	21.58M
Balance Sheet
Total Assets	202.97M	281.25M	273.58M	262.57M	217.73M	85.22M
Cash, Cash Equivalents and Short-Term Investments	73.43M	161.93M	155.81M	154.65M	172.87M	66.27M
Total Debt	40.35M	97.66M	100.20M	95.12M	63.58M	62.21M
Total Liabilities	123.91M	171.86M	176.13M	169.43M	134.89M	170.61M
Stockholders Equity	11.98M	15.33M	12.53M	10.93M	8.40M	-85.39M
Cash Flow
Free Cash Flow	11.97M	12.69M	14.27M	5.38M	40.47M	26.14M
Operating Cash Flow	16.64M	17.59M	26.21M	14.51M	46.08M	26.72M
Investing Cash Flow	-4.67M	-4.91M	-11.94M	-9.12M	-5.61M	-584.00K
Financing Cash Flow	-91.06M	-6.57M	-13.10M	-23.60M	66.12M	-263.00K

Brilliant Earth Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRLT, the sentiment is Neutral. The current price of 1.86 is below the 20-day moving average (MA) of 2.15, below the 50-day MA of 2.29, and above the 200-day MA of 1.69, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 39.85 is Neutral, neither overbought nor oversold. The STOCH value of 20.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BRLT.

Brilliant Earth Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOV	73 Outperform	$334.04M	21.86	4.40%	7.20%	0.63%	-7.37%
ELA	65 Neutral	$302.21M	29.65	18.19%	―	23.75%	59.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOSL	55 Neutral	$166.65M	―	-48.62%	―	-12.89%	45.32%
BRLT	51 Neutral	$119.58M	―	-2.88%	13.44%	1.32%	-175.81%
LANV	41 Neutral	$236.23M	―	-2353.49%	―	-23.54%	-49.41%
BGI	40 Underperform	$22.34M	-2.42	―	―	-7.08%	-162.35%

Brilliant Earth Group Corporate Events

Brilliant Earth Shines with Strong Q3 Performance

Brilliant Earth Group, Inc., a leader in ethically sourced fine jewelry, continues to disrupt the industry with its innovative approach and commitment to sustainability. The company, known for its premium brand and seamless shopping experience, reported strong financial results for the third quarter of 2025, showcasing its resilience and market leadership.

Brilliant Earth Shines in Q3 Earnings Call

Brilliant Earth Group, Inc. recently held its earnings call, revealing a generally positive sentiment despite facing some challenges. The company showcased strong revenue growth and marketing efficiency, with notable achievements such as a return to growth in engagement ring bookings and significant expansion in fine jewelry. However, the call also highlighted challenges like gross margin pressure due to rising metal prices and tariffs. Despite these hurdles, Brilliant Earth maintained profitability and a robust financial position.

Brilliant Earth Shines in Earnings Call with Strong Growth

The recent earnings call for Brilliant Earth Group, Inc. Class A conveyed a generally positive sentiment, underscored by robust sales growth, strategic initiatives, and effective cost management. Despite challenges such as a decline in average order value and the impact of tariffs, the company expressed confidence in overcoming these hurdles, supported by a strong balance sheet and strategic investments.