Brilliant Earth Posts Q3 Profit, Gross Margin Expands

Brilliant Earth Group Inc. (NASDAQ: BRLT) reported a third-quarter profit as higher order volume and a wider gross margin supported results, while the fine-jewelry retailer projected full-year 2026 net sales growth of 2.75% to 4%. The company said quarterly net sales and adjusted EBITDA exceeded its guidance.

Net sales for the three months ended September 30 rose 2.3% year over year to $112.8 million from $110.3 million. Total orders increased 5.6% to 52,720, offsetting a 3.1% decline in average order value to $2,140.

Gross margin expanded 210 basis points to 59.7%, with gross profit increasing to $67.4 million from $63.5 million. Marketing expense as a percentage of net sales improved by about 40 basis points from a year earlier.

Brilliant Earth recorded GAAP net income of $2.4 million, or 2.1% of net sales, compared with a net loss of $672,000, or 0.6%, in the prior-year quarter. Adjusted EBITDA increased to $5.1 million from $3.6 million, while adjusted EBITDA margin rose to 4.5% from 3.2%.

Fine Jewelry and Walk-In Demand Support Bookings

Fine-jewelry bookings accounted for about 16% of total quarterly bookings, and Brilliant Earth reported its largest-ever quarter for wedding and anniversary band bookings. Showroom bookings from customers without appointments grew about 50% year over year, while fine-jewelry bookings from walk-in customers increased approximately 37%.

The company said its newly opened San Antonio showroom generated the highest walk-in bookings of any Brilliant Earth showroom during its first 13 weeks. Brilliant Earth operated 43 U.S. showrooms as of the quarter, alongside its digital platform.

For the first nine months of fiscal 2026, net sales rose 4.6% to $327.4 million. Total orders increased 1.9% to 150,854, while average order value advanced 2.6% to $2,170. Gross margin declined 70 basis points to 57.4%.

Nine-month adjusted EBITDA was $6.2 million, representing a 1.9% margin, compared with $7.8 million and a 2.5% margin in the same period of 2025. The GAAP net loss widened slightly to $5.2 million from $5.1 million. The 2026 adjusted result excluded, among other items, a $1.8 million write-off of information-technology projects and a $600,000 charitable contribution.

Brilliant Earth ended the third quarter with $76.2 million in cash and no debt. Its asset-light model, which includes make-to-order products and a large virtual inventory of natural and lab-grown diamonds, generated inventory turns of about four times as of the quarter.

2026 Outlook

Management expects fiscal 2026 net sales to grow between 2.75% and 4% year over year, with adjusted EBITDA of $13 million to $15 million. The outlook assumes tariff levels and metal prices as of November 3, 2026.

The company’s operating priorities include developing proprietary collections, expanding personalized omnichannel experiences and investing in data, technology, employees and processes to support efficiency and long-term growth.

Brilliant Earth identified commodity costs, tariffs and broader consumer-spending conditions among the uncertainties affecting its outlook. Other disclosed risks include fluctuations in diamond, gemstone and precious-metal supply and pricing, customer acquisition and retention, showroom expansion, inventory management, supply-chain disruption and competition in fine-jewelry retail.