Brilliant Earth Group (NASDAQ:BRLT) Announces Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Key Points

• Missed estimates: Brilliant Earth reported a Q4 loss of $0.06 EPS, missing consensus by $0.08, and revenue of $124.4M versus $125.3M expected, yet the quarter represented the company's largest ever with full‑year sales of $437.5M (+3.6% YoY).
• Material margin headwinds: Gross margin fell to 55.9% (‑370 bps YoY) amid sharply higher gold and platinum prices, and management now guides 2026 gross margin to the mid‑50s% with Q1 adjusted EBITDA expected to be negative mid‑single digits.
• Growth drivers and clean balance sheet: Fine jewelry bookings accelerated (Q4 bookings +34% YoY; lab‑grown +61% YoY) with showroom expansion and retail walk‑ins up 61% in Q4, while the company ended the quarter with $79.1M cash, no debt, and roughly $5.8M free cash flow for the year.

Brilliant Earth Group (NASDAQ:BRLT - Get Free Report) issued its quarterly earnings data on Thursday. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.02 by ($0.08), FiscalAI reports. The company had revenue of $124.41 million for the quarter, compared to the consensus estimate of $125.33 million. Brilliant Earth Group had a negative return on equity of 1.23% and a net margin of 0.44%.

Here are the key takeaways from Brilliant Earth Group's conference call:

• Record quarter: Brilliant Earth posted its largest quarter ever with Q4 net sales of $124.4M (+4.1% YoY) and full-year sales of $437.5M (+3.6%).
• Fine jewelry acceleration: Fine jewelry bookings grew 34% YoY in Q4 (23% of Q4 bookings, 17% FY), lab-grown fine jewelry bookings rose 61% YoY, and management says the category is on a path toward a $100M annual business.
• Omnichannel expansion and showroom traction: The company ended the year with 42 showrooms (including a new Beverly Hills flagship), retail walk-in orders grew 61% YoY in Q4, and two more showrooms are planned for 2026.
• Balance sheet and profitability discipline: Q4 adjusted EBITDA was $4.2M (3.3%) and FY adjusted EBITDA $12M (2.7%), the company generated ~$5.8M free cash flow, finished Q4 with $79.1M cash and no debt after paying off its term loan.
• Material margin headwinds: Q4 gross margin declined to 55.9% (‑370 bps YoY) amid ~67% higher gold and ~144% higher platinum prices; 2026 gross margin is guided to the mid‑50s% and Q1 adjusted EBITDA is expected to be negative mid‑single digits.

Brilliant Earth Group Stock Performance

BRLT traded down $0.09 during midday trading on Thursday, reaching $1.56. 255,348 shares of the company were exchanged, compared to its average volume of 73,844. The company has a market cap of $155.61 million, a price-to-earnings ratio of -52.00 and a beta of 1.40. Brilliant Earth Group has a one year low of $1.26 and a one year high of $3.10. The company's fifty day moving average price is $1.62 and its 200 day moving average price is $2.03.

Insider Activity

In related news, insider Sharon Dziesietnik sold 19,687 shares of the company's stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $1.37, for a total transaction of $26,971.19. Following the completion of the sale, the insider owned 446,736 shares in the company, valued at approximately $612,028.32. This represents a 4.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 83.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Brilliant Earth Group

Large investors have recently made changes to their positions in the business. Virtu Financial LLC purchased a new position in shares of Brilliant Earth Group in the 3rd quarter worth about $32,000. Algert Global LLC bought a new stake in Brilliant Earth Group in the third quarter worth about $40,000. Renaissance Technologies LLC raised its position in Brilliant Earth Group by 11.2% in the fourth quarter. Renaissance Technologies LLC now owns 218,100 shares of the company's stock worth $382,000 after acquiring an additional 22,000 shares during the period. Squarepoint Ops LLC boosted its stake in Brilliant Earth Group by 58.0% in the fourth quarter. Squarepoint Ops LLC now owns 62,103 shares of the company's stock valued at $109,000 after acquiring an additional 22,793 shares during the last quarter. Finally, Susquehanna International Group LLP grew its position in shares of Brilliant Earth Group by 257.0% during the 3rd quarter. Susquehanna International Group LLP now owns 52,474 shares of the company's stock valued at $109,000 after acquiring an additional 37,774 shares during the period. 70.41% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Zacks Research upgraded shares of Brilliant Earth Group from a "strong sell" rating to a "hold" rating in a report on Friday, November 28th. Weiss Ratings reiterated a "sell (d)" rating on shares of Brilliant Earth Group in a report on Wednesday, January 21st. Wall Street Zen downgraded Brilliant Earth Group from a "strong-buy" rating to a "buy" rating in a research note on Saturday, November 8th. Finally, Telsey Advisory Group reaffirmed a "market perform" rating and set a $2.00 price target on shares of Brilliant Earth Group in a research note on Monday. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $2.50.

Brilliant Earth Group Company Profile

Brilliant Earth Group, Inc NASDAQ: BRLT is a specialty retailer of ethically sourced fine jewelry, with a focus on conflict-free diamonds and lab-grown gemstones. The company offers a broad range of products that include engagement rings, wedding bands, necklaces, earrings and bracelets, all crafted with a commitment to environmental sustainability and social responsibility. Customers can choose from a variety of materials such as recycled precious metals, responsibly sourced gemstones and innovative lab-grown diamonds.

Operating primarily through its e-commerce platform and a network of branded showrooms across major U.S.

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