Brilliant Earth Group (BRLT) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were $93.9 million, a 3.5% decrease year-over-year, but total orders grew 12% and repeat orders rose 13%, reflecting strong brand resonance and customer retention.

• Achieved 15th consecutive quarter of adjusted EBITDA profitability, with adjusted EBITDA at $1.1 million (1.1% margin), within guidance.

• Fine jewelry bookings grew over 40% during the two weeks leading up to Valentine's Day, contributing to record bookings and the strongest Valentine's Day period ever.

• Opened a new showroom in Texas, expanding to 41 locations, with inventory turns significantly above industry average.

• Ended Q1 with $92.5 million in net cash, up $4 million or 5% year-over-year.

Financial highlights

• Q1 net sales: $93.9 million (down 3.5% year-over-year); gross profit: $55.0 million (down 5.6%); gross margin: 58.6% (down 130 bps year-over-year).

• Adjusted EBITDA: $1.1 million (1.1% margin), down from $5.1 million (5.2% margin) in Q1 2024.

• Average order value (AOV): $2,062, down 14.2% year-over-year, with total orders at 45,535, up 12.4%.

• Operating expenses increased 2% to $58.6 million, mainly from higher IT, software, rent, and pre-opening showroom costs.

• Ended Q1 with $147 million in cash and a net cash position of $92.5 million.

Outlook and guidance

• Q2 2025 net sales expected to be -3% to flat year-over-year; adjusted EBITDA guidance between -$1.5 million and +$2 million.

• Full-year 2025 net sales guidance reiterated at 1%-3% growth year-over-year, with adjusted EBITDA margin expected at 3%-4%.

• Majority of adjusted EBITDA expected in H2, with two-thirds in Q4; gross margin expected to be impacted by gold prices and tariffs but mitigated through pricing and procurement.

• Medium-term targets include accelerating net sales growth to low teens by 2027 and double-digit EBITDA margin.

• Management expects continued investment in brand awareness, omnichannel expansion, and technology to drive growth.