Brilliant Earth Group (NASDAQ:BRLT) reported fourth-quarter and full-year 2025 results that management said reflected strong holiday demand, continued growth in fine jewelry, and the company’s ability to remain profitable despite elevated precious metal costs and tariff uncertainty.
Fourth-quarter results and full-year performance
Chief Executive Officer Beth Gerstein said the company delivered its “largest quarter ever of net sales” in the fourth quarter, with net sales of $124.4 million, up 4.1% year-over-year. For the full year, net sales were $437.5 million, up 3.6% year-over-year.
Chief Financial Officer Jeff Kuo said total orders increased 6.5% year-over-year in Q4 and 13% for the full year. Repeat orders rose 15% in Q4 and 13% for the full year, which management attributed to customer acquisition and retention efforts and brand resonance.
Average order value (AOV) was $2,001 in Q4 and $2,082 for the full year, representing declines of 2.3% and 8.2%, respectively. Management explained that AOV trends were influenced by strong fine jewelry performance—which carries a lower price point—alongside year-over-year increases in average selling prices (ASPs) across the assortment driven by mix shifts toward higher-priced items.
Margins, profitability, and cost environment
Gross margin was 55.9% in Q4 and 57.5% for the full year. Kuo said gross margin declined 370 basis points year-over-year in Q4 and 280 basis points for the full year, citing record metal prices and a challenging tariff environment. To contextualize the pressure, Kuo noted that gold prices at the end of Q4 were up approximately 67% year-over-year and platinum was up approximately 144% year-over-year.
Adjusted EBITDA was $4.2 million in Q4, representing a 3.3% margin, and $12.0 million for the full year, representing a 2.7% margin. Gerstein said adjusted EBITDA exceeded the midpoint of guidance, while Kuo emphasized the company delivered profitability and positive free cash flow in a volatile cost environment.
Operating expenses improved as a percentage of net sales. Kuo said Q4 operating expense was 55.9% of net sales, down from 57.6% in Q4 2024, representing about 170 basis points of leverage. For the full year, operating expense was 58.7% of net sales versus 59.5% in 2024. Marketing expense was 24.6% of net sales in Q4, down from 26.1% a year earlier, and 24.2% for the full year versus 25.7% in 2024—about 150 basis points of leverage in both periods. Kuo said the company is using AI and machine learning to improve marketing efficiency while continuing to invest in brand growth.
Fine jewelry growth and category trends
Management repeatedly pointed to fine jewelry as a key growth driver and part of a broader strategy to diversify beyond the company’s bridal heritage. Gerstein said 2025 was a “breakthrough year” for fine jewelry, with fine jewelry reaching 17% of bookings for the full year.
In Q4, fine jewelry bookings grew 34% year-over-year, reaching 23% of total bookings mix for the quarter. Gerstein added that, for the first time, the company had multiple days exceeding $1 million in fine jewelry bookings. She also said almost half of new customers discovered the brand through fine jewelry in Q4.
The company also highlighted growth in lab-grown diamond fine jewelry. Gerstein said Q4 bookings from fine jewelry made with lab diamonds grew 61% year-over-year, and described Brilliant Earth as an early leader in lab diamonds with opportunities as consumer adoption increases.
In other categories, Gerstein said wedding and anniversary bands delivered the company’s largest fourth quarter of bookings ever with double-digit year-over-year growth, with outperformance in giftable and higher price point diamond rings. In engagement rings, she said the company delivered approximately 1% year-over-year bookings growth in the second half of the year, while signature collections grew double digits in Q4.
Omnichannel, showrooms, inventory, and balance sheet
Gerstein said the company continued to invest in both digital and showroom experiences. The company opened two new showrooms in 2025—in Southlake, Texas, and Alpharetta, Georgia—ending the year with 42 showrooms. She noted growing success with walk-in traffic as the company shifts its format strategy toward more ground-floor and mall locations; orders from retail customers without prior appointments grew 61% year-over-year in Q4.
Gerstein also discussed the opening of the company’s first flagship showroom in Beverly Hills in January, calling it an evolution of its experiential retail strategy. She described features including an “eternity bar,” a “design your own” experience, a fine jewelry personalization station, a dedicated VIP showroom, and a “date night appointment” offering. She said Forbes described the concept as a “blueprint for the future of luxury jewelry retail.” Management said it expects to open two additional showrooms in 2026.
Kuo said year-over-year inventory increased approximately 39%, primarily due to strategic procurement opportunities to purchase diamond and jewelry inventory at advantageous prices in light of tariffs. Even with the increase, he said the company ended the year with 4x inventory turns, above an industry average he characterized as 1x to 2x.
Brilliant Earth ended Q4 with approximately $79.1 million in cash and no debt after paying off its term loan in Q3. Kuo also noted the company completed a one-time dividend and distribution of approximately $25 million. For the full year, the company generated approximately $5.8 million in free cash flow.
2026 outlook and approach to pricing and metal costs
Looking ahead, Kuo said the company expects 2026 net sales to grow in the mid-single-digit percent range year-over-year. The company expects gross margin to be in the mid-50% range, assuming metal prices remain near current levels, and guided to positive adjusted EBITDA for the year, but “slightly lower” than 2025 in dollars due to the metal cost environment. He added that the company expects most of its adjusted EBITDA to come from Q4.
For Q1, the company expects net sales to grow in the mid-single digits year-over-year, but projected adjusted EBITDA margin in the negative mid-single digit range, citing the “speed and magnitude” of recent gold and platinum price increases.
Management said it is using multiple tools to manage metal costs, including hedging, dynamic pricing, design and product engineering, and vendor optimization. In response to analyst questions, Gerstein said Q1 can provide a better opportunity than Q4 to take selective price increases, and emphasized the company’s data-driven pricing approach and premium brand positioning. Kuo also said the company does not currently plan to reiterate medium-term targets beyond the current year because metal price uncertainty has had a meaningful impact on gross margin and was not anticipated when targets were set.
About Brilliant Earth Group (NASDAQ:BRLT)
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.
