Brilliant Earth (US:BRLT)2025-11-05 11:46Financial Performance - Delivered Q3 2025 Net Sales of $110.3 million, representing a 10.4% year-over-year growth, exceeding the company's guidance range [4] - Achieved a Gross Margin of 57.6% in Q3 2025, consistent with the company's medium-term target [4] - Reported a GAAP Net loss of $0.7 million for Q3 2025, an improvement of 37.5% compared to a loss of $1.1 million in Q3 2024 [5] - Adjusted EBITDA for Q3 2025 was $3.6 million, maintaining profitability for the 17th consecutive quarter [4] - Year-to-date September 2025 Net Sales totaled $313.1 million, a 3.4% increase from $302.6 million in the same period of 2024 [7] - Net sales for Q3 2025 reached $110,252,000, a 10.4% increase from $99,873,000 in Q3 2024 [20] - Gross profit for Q3 2025 was $63,451,000, compared to $60,770,000 in Q3 2024, reflecting a gross margin of 57.5% [20] - Adjusted EBITDA for Q3 2025 was $3,561,000, with an adjusted EBITDA margin of 3.2% [25] - The company reported a net loss of $672,000 for Q3 2025, compared to a net loss of $1,075,000 in Q3 2024 [20] - Adjusted Net Income for Q3 2025 was $1.711 billion, compared to $1.490 billion in Q3 2024, representing a year-over-year increase of 14.8% [27] - The company reported a net loss attributable to Brilliant Earth Group, Inc. of $672 million for Q3 2025, an improvement from a net loss of $1.075 billion in Q3 2024 [27] - Adjusted diluted earnings per share for Q3 2025 was $0.02, consistent with Q3 2024, while the reported diluted earnings per share remained at $(0.01) for both periods [27] Sales and Orders - Drove 45% year-over-year bookings growth in fine jewelry, alongside a return to year-over-year bookings growth in engagement rings [2] - Total Orders in Q3 2025 reached 49,910, a 16.8% increase from 42,744 in Q3 2024 [5] - Average Order Value (AOV) decreased by 5.5% year-over-year to $2,209 in Q3 2025 [5] Assets and Liabilities - Total current assets decreased to $135,651,000 as of September 30, 2025, down from $211,413,000 at December 31, 2024 [22] - Cash and cash equivalents dropped to $73,429,000 from $161,925,000 over the same period [22] - Total liabilities decreased to $123,912,000 as of September 30, 2025, compared to $171,863,000 at December 31, 2024 [22] Marketing and Strategy - Marketing and advertising expenses for Q3 2025 were $26,132,000, slightly down from $26,678,000 in Q3 2024 [20] - The company continues to focus on expanding its e-commerce and omnichannel approach to enhance customer engagement and market acceptance [20] Special Events and Initiatives - Celebrated "Twenty Years of Yes" with the launch of the 20th Anniversary and exclusive Pacific Green Diamond collections [4] - For the full year 2025, the company projects Net Sales growth of 3% to 4.5% year-over-year [9] Equity and Taxation - The diluted weighted average of common stock assumed outstanding increased to 100,508,744 in Q3 2025 from 98,497,546 in Q3 2024 [27] - Equity-based compensation expense for the nine months ended September 30, 2025, was $6.953 billion, slightly down from $7.536 billion in the same period of 2024 [27] - The company incurred a loss on extinguishment of debt amounting to $573 million in Q3 2025, with no such loss reported in Q3 2024 [27] - The tax impact of adjustments for the nine months ended September 30, 2025, was $(2.187) billion, compared to $(2.235) billion for the same period in 2024 [27] - The total number of vested LLC Units exchangeable for common stock was 84,944,802 as of Q3 2025, showing stability compared to 84,905,562 in Q3 2024 [27] - The company expects to issue common stock upon redemption of LLC Units rather than cash settlement, impacting future financial reporting [28] - The acquisition of LLC units by Brilliant Earth Group, Inc. will result in the taxable income currently recognized by members of Brilliant Earth, LLC becoming taxable to the company [28]