Q1 2025 Financial Performance - Net sales reached $93.9 million[20], a decrease of 3.5% year-over-year[26] - Average Order Value (AOV) was $2,062[20], a decrease from $2,402 in Q1 2024[29] - Total orders increased by 12% year-over-year, reaching 45,500[20, 29] - Gross margin was 58.6%[20], a decrease of 130 basis points year-over-year[26] - Adjusted EBITDA was $1.1 million, representing 1.1% of net sales[20, 26] Growth and Expansion - Repeat orders grew by 13% year-over-year[20] - Fine jewelry bookings contributed 14% of total bookings, a year-over-year expansion of approximately 350 basis points[24] - The company opened one new showroom in Southlake, Texas, bringing the total to 41 showrooms[24] 2025 Outlook - The company expects second-quarter net sales growth to be between -3% and 0% year-over-year and adjusted EBITDA to be between -$1.5 million and $2 million[50] - For the full fiscal year 2025, the company anticipates net sales growth of 1% to 3% year-over-year and an adjusted EBITDA margin of 3% to 4%[50] Medium-Term Targets - The company aims to accelerate net sales growth to a low teens percentage by 2027[53] - The company expects a gross margin in the high 50s percentage through 2027[53] - The company plans to decrease marketing expenses as a percentage of net sales from 2025 to 2027[53] - The company targets an adjusted EBITDA margin in the double digits by 2027[53]

Financial Performance - Delivered Net Sales of $93.9 million in Q1 2025, a decrease of 3.5% compared to Q1 2024[5] - Reported a GAAP Net loss of $3.3 million for Q1 2025, with an Adjusted EBITDA of $1.1 million, down 78.8% from the previous year[5] - Net sales for the three months ended March 31, 2025, were $93,884 thousand, a decrease of 3.7% from $97,337 thousand in the same period of 2024[22] - Gross profit decreased to $55,042 thousand, down 5.0% from $58,306 thousand year-over-year[22] - The company reported a net loss of $3,267 thousand for Q1 2025, compared to a net income of $1,067 thousand in Q1 2024[22] - Adjusted EBITDA for the three months ended March 31, 2025, was $1,078 thousand, a decline of 78.8% from $5,085 thousand in the same period of 2024[26] - The adjusted EBITDA margin was 1.1% for Q1 2025, down from 5.2% in Q1 2024[26] - The diluted earnings per share for Q1 2025 was $(0.03), compared to $0.01 in Q1 2024[27] Sales and Orders - Total orders grew by 12% year-over-year to 45,535, while repeat orders increased by 13%[6] - The average order value (AOV) decreased by 14.2% to $2,062 compared to Q1 2024[6] - The company reported positive engagement ring unit growth and strong double-digit growth in fine jewelry bookings during Q1[5] Operational Metrics - Achieved a Gross Margin of 58.6%, consistent with the company's medium-term target[5] - Total operating expenses increased to $58,565 thousand, up 2.0% from $57,429 thousand in the prior year[22] Cash and Equity - Ended the quarter with $92.5 million in net cash, representing a 5% year-over-year growth[5] - Total current assets decreased to $197,956 thousand as of March 31, 2025, from $211,413 thousand at December 31, 2024[24] - Total liabilities decreased to $166,678 thousand as of March 31, 2025, down from $171,863 thousand at December 31, 2024[24] - Stockholders' equity attributable to Brilliant Earth Group, Inc. decreased to $14,928 thousand as of March 31, 2025, from $15,329 thousand at December 31, 2024[24] Strategic Outlook - Expanded retail showroom portfolio to 41 locations, including a new showroom in Southlake, Dallas-Fort Worth metro area[5] - The company plans to continue investing in its growth strategy while maintaining profitability in a fragmented industry[3] - Reiterated annual guidance with expected Net Sales growth of 1% to 3% year-over-year for 2025[9]

Core Insights - Brilliant Earth Group, Inc. reported financial results for Q1 2025, achieving net sales of $93.9 million, a 3.5% decrease from Q1 2024, but demonstrating a 12% year-over-year growth in total orders and a 13% growth in repeat orders [1][5][4] - The company maintained profitability for the 15th consecutive quarter, with a GAAP diluted EPS of $(0.03) and an adjusted diluted EPS of $0.00 [1][4][3] - The company reiterated its annual guidance and provided an outlook for Q2 2025, expecting net sales to decline by 3% to 0% year-over-year [1][8] Financial Performance - Total orders for Q1 2025 reached 45,535, up from 40,525 in Q1 2024, marking a 12.4% increase [4] - Average Order Value (AOV) decreased by 14.2% to $2,062 compared to $2,402 in Q1 2024 [4] - Gross profit for Q1 2025 was $55.0 million, down 5.7% from $58.3 million in Q1 2024, resulting in a gross margin of 58.6% [4][5] - The net loss attributable to Brilliant Earth Group, Inc. was $(0.5) million, a significant decline from a profit of $0.1 million in Q1 2024 [4][5] - Adjusted EBITDA for Q1 2025 was $1.1 million, down 78.8% from $5.1 million in Q1 2024, with an adjusted EBITDA margin of 1.1% [4][5] Business Highlights - The company experienced strong engagement ring unit trends and record-breaking bookings leading up to Valentine's Day, indicating robust demand for its premium products [3][5] - Brilliant Earth expanded its retail showroom portfolio to 41 locations, including a new showroom in the Dallas-Fort Worth area [5] - The company ended Q1 2025 with $92.5 million in net cash, reflecting a 5% year-over-year growth [5] Outlook - For Q2 2025, the company anticipates net sales to be flat or decline by up to 3% year-over-year, with adjusted EBITDA expected to range from a loss of $1.5 million to a profit of $2 million [8] - For the full year 2025, the company projects net sales growth of 1% to 3% year-over-year and an adjusted EBITDA margin of 3% to 4% [8]

SAN FRANCISCO, April 15, 2025 (GLOBE NEWSWIRE) -- Brilliant Earth Group, Inc. (“Brilliant Earth” or the “Company”) (NASDAQ: BRLT), an innovative, global leader in ethically sourced fine jewelry, today announced that it will report first quarter 2025 earnings results before the market opens on Tuesday, May 6, 2025. The Company will host an investor conference call and webcast to review these financial results and business outlook at 8:30am ET/5:30am PT on the same day. The webcast can be accessed at https:// ...

SAN FRANCISCO, April 15, 2025 (GLOBE NEWSWIRE) -- Brilliant Earth Group, Inc. ("Brilliant Earth" or the "Company") (NASDAQ:BRLT), an innovative, global leader in ethically sourced fine jewelry, today announced that it will report first quarter 2025 earnings results before the market opens on Tuesday, May 6, 2025. The Company will host an investor conference call and webcast to review these financial results and business outlook at 8:30am ET/5:30am PT on the same day. The webcast can be accessed at https://i ...

SAN FRANCISCO, March 25, 2025 (GLOBE NEWSWIRE) -- Brilliant Earth Group, Inc. (“Brilliant Earth” or the “Company”) (NASDAQ: BRLT), an innovative, global leader in ethically sourced fine jewelry, today announced that the Company will participate in the JP Morgan Retail Round Up Conference in New York, New York. Management will meet with investors throughout the day on April 2, 2025. About Brilliant Earth Brilliant Earth is an industry-disrupting global leader in ethically sourced fine jewelry. The Company's ...

Company Overview - Brilliant Earth Group, Inc. is a global leader in ethically sourced fine jewelry, founded in 2005 with a mission to create a more transparent, sustainable, and compassionate jewelry industry [3] - The company reported full-year net sales of $422 million for 2024 and has achieved positive Adjusted EBITDA for 14 consecutive quarters since going public in 2021 [3] - Brilliant Earth operates 40 showrooms across the United States and serves customers in over 50 countries worldwide [3] Upcoming Events - The company will participate in the Sidoti Small Cap Conference virtually from March 19 to 20, 2025, with a presentation scheduled for 1:00 PM ET on March 20 [1] - A live webcast of the presentation will be available on the company's investor website, with an archived replay accessible for one year following the event [2]

Expansion and Growth Strategy - The company has grown to 40 showrooms across the U.S. as of December 31, 2024, indicating significant expansion in its retail presence[136] - The company’s growth strategy includes potential increases in advertising and marketing spending, as well as expanding product offerings and showroom presence, which requires significant upfront investment[138] - The company plans to expand its showroom presence in the U.S., but faces risks related to market competition and brand recognition in new geographical areas[147] - The company plans to continue investing in sales and marketing programs to expand its customer base, which may require significant financial resources[159] - The company may require additional capital for growth, marketing, and product development, which may not be available on acceptable terms[209] Supply Chain and Sourcing Risks - Approximately 30% of the world's rough diamonds are of Russian origin, and sanctions on Russian diamonds could negatively affect the worldwide supply, impacting the company's supply chain practices[126] - The company relies on responsibly sourced natural diamonds and lab-grown diamonds, making it susceptible to fluctuations in their pricing and supply, which could adversely affect sales and profitability[124] - The company has ceased selling Russian-sourced diamonds since February 2022 due to sanctions, which may impact its ability to source diamonds at commercially reasonable prices[126] - Supply chain disruptions, including increased lead times and supply shortages, could adversely affect the company's operations and financial condition[143] - The company relies on a limited number of suppliers for materials, which may impact the availability and cost of repurposed precious metals and ethically sourced diamonds[143] Competition and Market Dynamics - The company faces intense competition in the fine jewelry retail industry, which may affect its pricing strategies and market acceptance[135] - The fine jewelry retail industry is highly competitive, with larger competitors potentially engaging in price promotions that could adversely affect the company's market share[150] - Economic factors such as inflation, consumer confidence, and discretionary spending significantly influence consumer demand for the company's products, impacting overall sales[129] - The company recognizes the need to anticipate changes in consumer preferences for jewelry and luxury goods, as failure to do so could adversely affect sales and profitability[188] Financial Performance and Risks - The company has experienced rapid growth but faces challenges in managing this growth effectively, which could strain resources and impact financial performance[136] - The company’s ability to attract and retain customers is critical, and failure to do so could harm its financial condition and results of operations[131] - Increased operating costs are expected in the near term as the company aims to enhance customer engagement, drive product adoption, and expand its showroom presence[166] - The company may encounter higher compliance costs associated with its growth and public company status, which could affect its ability to sustain or increase profitability[167] - The company derives a significant portion of its revenue from the sales of its Design Your Own rings, and any decline in these sales could materially impact its financial condition and operating results[164] Compliance and Regulatory Challenges - The company is subject to various laws and regulations, and non-compliance could result in fines and increased capital expenditures[222] - The company may incur additional compliance costs due to evolving ESG regulations, which could adversely affect its business and financial condition[182] - The California Consumer Privacy Act (CCPA) imposes obligations on businesses processing personal information of California residents, potentially increasing compliance costs[238] - The General Data Protection Regulation (GDPR) imposes strict requirements on the processing of personal data, affecting the company's operations in the European Union[241] - The company is subject to rapidly changing and increasingly stringent laws regarding privacy and data security, which could increase compliance costs and potential liabilities[235] Technology and Cybersecurity - The company is focusing on enhancing its technological capabilities, including machine learning models for inventory prediction and customer traffic management, which may involve significant expenses[133] - The company relies heavily on its IT systems and those of third-party vendors, and any significant failure or security breach could adversely affect its business and financial condition[168] - Cybersecurity risks are increasing, and successful cyberattacks could disrupt operations and lead to significant costs, including legal claims and regulatory investigations[173] - The company must keep up with competitive technology trends, including virtual and augmented reality, which may increase costs without guaranteeing sales growth[186] Human Resources and Talent Management - The company faces challenges in hiring and retaining effective sales personnel, which could impact anticipated net sales growth[159] - The company relies on highly skilled personnel for growth and operations, with significant competition for talent in key areas such as engineering and marketing[204] - The company may face challenges in recruiting and retaining employees if the perceived value of equity awards declines[206] Financial Structure and Taxation - As of December 31, 2024, the company had $56.1 million in outstanding borrowings under its SVB Term Loan, which may impact cash flow and capital resources[214] - The company maintains a significant portion of its cash in accounts exceeding insured limits, which poses risks if financial institutions fail[213] - The company is treated as a partnership for U.S. federal income tax purposes, meaning the company incurs income taxes on its allocable share of net taxable income[281] - The Tax Receivable Agreement requires the company to make cash payments equal to 85% of the tax benefits realized, which are expected to be substantial[284] Market and Stock Performance - The stock price of the Class A common stock has experienced significant fluctuations due to various factors, including technological developments and changes in consumer behavior[298] - The trading market for the Class A common stock relies on analysts' reports, and any downgrade or lack of coverage could negatively affect stock price and trading volume[317] - Fluctuations in the company's credit rating may impact its access to debt markets and increase future debt costs, adversely affecting operations and financial condition[318] Environmental, Social, and Governance (ESG) Considerations - Environmental, social, and governance (ESG) matters are increasingly impacting the company's reputation and performance, with stakeholders emphasizing the importance of ESG assessments[179] - The company emphasizes ESG issues, which may conflict with short-term financial results but aims to improve long-term financial performance[184] - The company’s suppliers may also be subject to similar regulatory requirements, creating additional risks that could impact its operations[183]

Financial Data and Key Metrics Changes - Q4 net sales were $119.5 million, representing a 4% decline year-over-year, while full-year net sales reached $422.2 million, a 5% decline year-over-year [7][30] - Total orders grew by 10% year-over-year in Q4 and 7% year-over-year for the full year, with repeat orders increasing by 18% in Q4 and 17% for the full year [8][30] - Gross margin expanded by 90 basis points year-over-year in Q4 to 59.6%, and by 270 basis points for the full year to 60.3% [9][32] - Adjusted EBITDA for Q4 was $6.9 million, with a margin of 5.8%, significantly exceeding guidance, while full-year adjusted EBITDA was $21.1 million, or a 5% margin [11][33] Business Line Data and Key Metrics Changes - Engagement rings showed improved year-over-year unit comps in Q4, with strong performance in price ranges under $5,000 [13][14] - The fine jewelry segment recorded strong double-digit bookings growth in Q4, contributing 27% of total bookings, a 600 basis point increase year-over-year [17][21] - The company launched the Flawless Collection, which has performed strongly, indicating customer trust in the brand [15] Market Data and Key Metrics Changes - The company opened new showroom locations in New York City and Boston, contributing to increased customer engagement and bookings [20][21] - The fine jewelry assortment saw significant growth, particularly during the holiday season, indicating a shift in consumer preferences towards gifting and self-purchase [18][19] Company Strategy and Development Direction - The company aims to drive sustainable long-term growth by enhancing the omnichannel experience, offering premium products, and investing in brand amplification [23][24] - Plans for 2025 include expanding showroom locations and continuing to innovate product offerings, particularly in fine jewelry [24][25] - The company is focused on maintaining a premium brand positioning while navigating a dynamic macroeconomic environment [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the bridal business and the overall engagement ring market, anticipating continued improvement in unit trends [26][63] - The company expects Q1 net sales to be slightly down year-over-year but anticipates a slight sequential improvement from Q4 [26][27] - For the full year, net sales are expected to grow slightly, with profitability anticipated to be lower due to strategic investments [27][43] Other Important Information - The company ended Q4 with approximately $162 million in cash, reflecting a year-over-year increase, and a net cash position of approximately $106 million [39][40] - The company has a disciplined approach to managing expenses, with operating expenses as a percentage of net sales slightly increasing year-over-year [34][38] Q&A Session Summary Question: What is the gross margin guidance for 2025? - Management expects a high-50s gross margin for 2025, driven by brand strength and procurement efficiencies [48][49] Question: What strategies are in place to drive repeat orders? - The company focuses on brand resonance and customer experience, along with introducing new collections to drive repeat orders [51][54] Question: What are the engagement trends and how do they affect guidance? - Management noted improvements in engagement ring unit trends and expects continued growth driven by showroom investments and fine jewelry success [63][66] Question: How does the company view the balance between physical and digital sales? - The company sees opportunities in both channels and is strategic about showroom locations to enhance customer experience [71][72] Question: What are the key features of the investment story that may be underappreciated? - The company's consistent profitability, strong cash position, and unique brand resonance are highlighted as key strengths [73][75]

Financial Data and Key Metrics Changes - Q4 net sales were $119.5 million, representing a 4% decline year-over-year, while full-year net sales reached $422.2 million, a 5% decline year-over-year [7][30] - Total orders grew by 10% year-over-year in Q4 and 7% year-over-year for the full year, with repeat orders increasing by 18% in Q4 and 17% for the full year [8][30] - Gross margin expanded by 90 basis points year-over-year in Q4 to 59.6%, and for the full year, it was 60.3%, a 270 basis point increase [9][32] - Adjusted EBITDA for Q4 was $6.9 million, with a 5.8% margin, significantly exceeding guidance, while full-year adjusted EBITDA was $21.1 million, or a 5% margin [11][33] Business Line Data and Key Metrics Changes - Engagement rings showed improved year-over-year unit comps in Q4, with strong performance in price ranges under $5,000 [13][14] - The fine jewelry segment recorded strong double-digit bookings growth in Q4, contributing 27% of total bookings, a 600 basis point increase year-over-year [17][21] - The company launched the Flawless Collection, which has performed strongly, indicating customer trust in the brand [15] Market Data and Key Metrics Changes - The company opened new showroom locations in New York City and Boston, enhancing its physical presence and customer engagement [20] - The fine jewelry assortment saw significant growth, particularly during the holiday season, indicating strong consumer demand [18][21] Company Strategy and Development Direction - The company aims to drive sustainable long-term growth by enhancing the omnichannel experience, offering premium products, and investing in brand amplification [23][24] - Plans for 2025 include expanding showroom locations and continuing to innovate in product design and marketing strategies [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong repeat order growth and effective marketing strategies [22][23] - The company anticipates a slight decline in Q1 net sales year-over-year but expects overall growth for the full year [26][27] Other Important Information - The company ended Q4 with approximately $162 million in cash, reflecting a year-over-year increase, and a net cash position of approximately $106 million [39][40] - The company plans to continue stock repurchases strategically while balancing overall investment decisions [41][42] Q&A Session Summary Question: Gross margin guidance for 2025 - Management expects a high-50s gross margin for 2025, driven by brand strength and procurement efficiencies [48][49] Question: Strategies for driving repeat orders and attracting new customers - The company focuses on strong customer experience and compelling product assortments to drive repeat orders, while also optimizing marketing spend to attract new customers [51][56] Question: Engagement trends and average order value - Management noted improvements in engagement ring trends and expects average order value to moderate due to growth in fine jewelry, which typically has a lower average order value [63][67] Question: Margin profile of physical showroom rollouts - The company is strategically investing in physical locations while maintaining a strong digital presence, focusing on exceptional customer experiences [71][72] Question: Demographic shifts and attachment rates between fine jewelry and engagement - Management indicated that they have not seen significant demographic shifts but are pleased with the repeat purchases in fine jewelry, which contribute to overall growth [92][94] Question: Cadence of sales growth and operating profile - The company expects back-half weighted growth for the year, driven by showroom growth and favorable comparisons to previous quarters [98][99]