Brilliant Earth (US:BRLT)2026-03-05 11:47Financial Performance - Delivered record quarterly Net Sales of $124.4 million in Q4 2025, representing a 4.1% year-over-year increase[3] - For the full year 2025, Net Sales totaled $437.5 million, a 3.6% increase from $422.2 million in 2024[6] - Net sales for 2025 reached $437.5 million, a 3.1% increase from $422.2 million in 2024[21] - Gross profit for 2025 was $251.5 million, slightly down from $254.4 million in 2024[21] - Reported Adjusted EBITDA of $4.2 million for Q4 2025, down 39.1% from $6.9 million in Q4 2024[4] - Full year Adjusted EBITDA was $12.0 million, a decrease of 43.3% compared to $21.1 million in 2024[6] - Adjusted EBITDA for 2025 was $12.0 million, down from $21.1 million in 2024, with an adjusted EBITDA margin of 2.7%[25] - The company reported a net loss of $6.4 million in 2025, compared to a net income of $4.0 million in 2024, resulting in a diluted earnings per share of $(0.25)[21] - GAAP Net loss for Q4 2025 was $1.3 million, compared to a profit of $2.6 million in Q4 2024[4] - For the three months ended December 31, 2025, the net loss attributable to Brilliant Earth Group, Inc. was $2.896 million, compared to a net income of $0.358 million for the same period in 2024[27] - Adjusted net loss income for the three months ended December 31, 2025 was $5.740 million, while for the same period in 2024 it was $4.208 million[27] - The diluted earnings per share as reported for the three months ended December 31, 2025 was $(0.19), compared to $0.02 for the same period in 2024[27] - The adjusted diluted earnings per share for the three months ended December 31, 2025 was $(0.06), while for the same period in 2024 it was $0.04[27] Sales and Orders - Achieved total orders of 62,178 in Q4 2025, a 6.5% increase from 58,357 in Q4 2024[4] - Fine jewelry bookings grew 34% year-over-year, reaching 23% of total bookings in Q4 2025[2] - Average Order Value (AOV) decreased by 2.3% to $2,001 in Q4 2025 from $2,048 in Q4 2024[4] - The company experienced a decline in sales of "Design Your Own" rings, impacting overall revenue[21] Assets and Liabilities - Total current assets decreased to $144.7 million in 2025 from $211.4 million in 2024, primarily due to a reduction in cash and cash equivalents[23] - Total liabilities decreased to $121.3 million in 2025 from $171.9 million in 2024, reflecting a reduction in long-term debt[23] Marketing and Future Plans - Marketing and advertising expenses were $106.0 million in 2025, a decrease from $108.3 million in 2024[21] - The company plans to expand its e-commerce and omnichannel capabilities to enhance customer engagement and market acceptance[21] - The company expects positive mid-single-digit percentage Net Sales growth for both Q1 and full year 2026[8] Risks and Adjustments - Future performance is subject to various risks, including fluctuations in diamond pricing and changes in consumer spending patterns[21] - The tax impact of adjustments for the three months ended December 31, 2025 was $1.372 million, while it was $(0.725) million for the same period in 2024[27] - The gain on TRA liability adjustment for the year ended December 31, 2025 was $(7.804) million, with no such gain reported for 2024[27] - The equity-based compensation expense for the year ended December 31, 2025 was $8.920 million, compared to $9.934 million for 2024[27] - The showroom pre-opening expense for the year ended December 31, 2025 was $1.248 million, compared to $1.705 million for 2024[27] - The net income (loss) impact from assumed redemption of all LLC Units to common stock for the year ended December 31, 2025 was $(2.765) million, compared to $3.453 million for 2024[27]