What is embedded for order growth in the second half, and will sub-$500 orders continue to be outpaced?

The company remains strategically focused on the $500+ segment, expecting similar trends in H2 with 5% growth in that segment. Sub-$500 orders represent only a small percentage of net sales, reflecting the premium nature of the brand. “So I wouldn't expect anything dramatically different in the second half, but as always, the environment's going to be dynamic to respond as a company as we see changes to the overall environment.”

How should marketing spend be modeled given the current leverage, and what are the trends in customer acquisition costs, especially during holiday?

The company takes a balanced approach to brand investment and marketing efficiency, leveraging internal data and technology capabilities for optimization. While holiday is a different environment, the team's ability to be dynamic is key. “We do continue to take a balanced approach to how we invest in brand, and that's obviously very strategic for us to drive both the resonance and the awareness. But we want to balance that across how do we increase our marketing efficiencies.”

Can you dimensionalize the drivers for the implied year-over-year gross margin expansion in the back half, particularly Q4, and if further price increases are embedded?

Success is driven by operational levers including price optimization, product design, and vendor procurement efficiencies. Q4 will benefit from lapping prior-year metal price increases. The company is able to expand gross margin while driving top-line growth. “And I think you really saw the success of those efforts in our Q2 results. And we're glad that even in an environment that remains dynamic and volatile, we're able to deliver those.”

BRLT

Brilliant Earth (BRLT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 6, 2026

Source: earnings call transcript

Executive summary

Brilliant Earth Q2 FY26 — Strong Sales and Profitability Outperformance

Brilliant Earth delivered a strong second quarter, exceeding top-line and profitability expectations driven by a strategic focus on higher price points and agile operational efficiencies. The company is effectively navigating a bifurcated consumer environment by leveraging its premium brand and omnichannel model, leading to a raised full-year profitability guidance. This performance underscores the strength of its asset-light business model and disciplined execution.

Highlights

Net sales grew approximately 6% year-over-year to $150 million, well exceeding guidance.
Gross margin increased approximately 360 basis points sequentially compared to Q1.
Adjusted EBITDA of $5.8 million significantly outperformed expectations.
Fine Jewelry bookings grew approximately 32% year-over-year, representing 18% of total bookings.
Cash balance increased by approximately $16 million sequentially to $75 million with no debt.

Concerns

Total orders were slightly down 2% year-over-year.
Some signs of softness observed at lower price points in the consumer environment.
Q3 net sales are expected to be about flat year-over-year due to strong prior-year comparable performance.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year net sales	$459 million to $462 million high materiality	FY26	High
Full-year adjusted EBITDA	$13 million to $15 million high materiality	FY26	High
Q3 net sales	about flat year over year medium materiality	Q3 · FY26	Medium
Q3 adjusted EBITDA	$3 million to $5 million medium materiality	Q3 · FY26	Medium
Gross margin (Q3)	similar range in Q3 as in Q2 medium materiality	Q3 · FY26	High
Gross margin (H2)	mid to high 50s medium materiality	H2 FY26	High
Marketing expense as percentage of net sales	year-over-year leverage medium materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Fine Jewelry Fine Jewelry was a clear standout, driven by a strong Mother's Day holiday and continued diversification beyond bridal. Strong growth in bookings at higher price points. Percentage of total bookings: 18%Bookings at $500+ price point growth YoY: over 40%	—	approximately 32%	—	—
Wedding and Anniversary Bands Pleased with performance, achieving double-digit year-over-year growth in bookings.	—	double-digit	—	—
Engagement Rings Bookings held steady and remained about the same year-over-year, with stable ASPs.	—	steady	—	—

Product announcements

Product	Type	Timeline
Butterfly collection	launch	—
Keepsakes collection	launch	—
Pacific Green offering	expansion	—
Seaside Charms collection	launch	—

Deals & partnerships

Alison Cooch and Isaac Rochelle Creator partnership for cultural engagement

Partnership with creator Alison Cooch and her husband, Isaac Rochelle, to celebrate Mother's Day, delivering strong performance across channels.

Camille Kostak Partnership for brand visibility and product feature

Partnership with Sports Illustrated model and entertainment reporter Camille Kostak to serve as the 'face of summer,' featuring the Seaside Charms collection.

Risks & headwinds

Consumer environment bifurcation Current

Some signs of softness at lower price points, while demand at higher price points is holding up well.

Mitigation:Focus on higher-income consumer, premium brand positioning, and ASP strength.

Strong prior-year Q3 comparable performance Q3 FY26

Q3 net sales expected to be about flat year over year, comping a very strong Q3 last year when many consumers accelerated purchases in anticipation of potential tariffs.

Mitigation:Focus on driving profitability while making medium and longer-term investments; implied 10% growth on a two-year stacked basis.

What to watch in Q3 FY26

Gross margin trajectory

Q3 FY26 / H2 FY26

Current 57.9% in Q2 FY26

Target similar range in Q3 FY26, mid to high 50s for H2 FY26

Why it matters

Gross margin is a key profitability driver, and management highlighted operational levers for its improvement. Monitoring its stability and continued strength will indicate the durability of these efficiencies.

For gross margin, we expect gross margin to be in a similar range in Q3 as in Q2 and to manage to a mid to high 50s gross margin for the second half of the year, assuming metal prices and tariff rates remain similar to where they've been this week.

Find out whether BRLT delivers this. Inve re-checks your case every morning.

Q&A highlights

Why does the full-year guidance raise only capture a portion of the Q2 EBITDA beat, suggesting conservatism?

The full-year guidance raise fully captures the Q2 outperformance and includes an increased outlook for H2 profitability, driven by strong top-line, gross margin improvements, and operating expense leverage.

“So we actually have the that we had in Q2 and an increased outlook in H2 profitability that is embedded in our guidance.”

asked by Oliver Chen · answered by Unknown Speaker

2 min read 5 chapters

Detailed narrative

Strategic Focus on Higher Price Points

Brilliant Earth's strategic focus on higher price points yielded positive results, with orders excluding those under $500 AOV increasing 5% year-over-year. This reflects the company's strength with higher-income consumers and their enduring desire for premium, design-forward jewelry. Average selling prices (ASPs) were up across wedding and anniversary bands and fine jewelry, remaining stable for engagement rings, demonstrating the success of this targeted approach.

Omnichannel and Showroom Success

The company's omnichannel strategy, particularly its experiential showroom model, continues to drive strong engagement. Showroom bookings from customers without appointments grew 47% year-over-year in Q2, indicating increasing discovery through physical locations. The Beverly Hills flagship, a blueprint for modern luxury retail, saw bookings up over 40% year-over-year and average order values for appointments approximately 10% higher than typical, showcasing its strong performance.

Operational Efficiency and Margin Management

Brilliant Earth demonstrated strong operational agility, achieving a 360 basis point sequential increase in gross margin from Q1, exceeding expectations. This was driven by leveraging price optimization, product design, and vendor procurement efficiencies, effectively offsetting dynamic metal prices and tariffs. The company also achieved year-over-year operating expense leverage across marketing, adjusted employee costs, and adjusted G&A, contributing to significantly outperforming adjusted EBITDA expectations.

Brand Resonance and Product Innovation

The brand continues to build cultural resonance and drive customer interest through product innovation and strategic partnerships. Mother's Day saw the company's biggest ever performance, with bookings up 15% year-over-year in the gifting window. New collections like the butterfly and keepsakes, alongside collaborations with creators and tastemakers, are amplifying brand awareness and attracting a new generation of consumers, particularly Gen Z and millennials interested in experiential retail.

Strong Cash Generation and Balance Sheet

Brilliant Earth's asset-light, data-driven business model enabled a sequential cash increase of approximately $16 million, ending Q2 with $75 million in cash and no debt. This strong balance sheet provides significant flexibility to invest in strategic growth priorities and navigate dynamic market conditions. The company's ability to generate cash further differentiates it within the industry.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.