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    BRLT
    Earnings call· Jun 2026(Q2 FY26)

    Brilliant Earth Group Q2 FY26 earnings call BRLT

    Aug 6, 2026 Source

    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

    5

    • 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

    3

    • 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

    7
    CategoryTargetConfidence
    Full-year net sales
    $459 million to $462 million
    high materiality
    High
    Full-year adjusted EBITDA
    $13 million to $15 million
    high materiality
    High
    Q3 net sales
    about flat year over year
    medium materiality
    Medium
    Q3 adjusted EBITDA
    $3 million to $5 million
    medium materiality
    Medium
    Gross margin (Q3)
    similar range in Q3 as in Q2
    medium materiality
    High
    Gross margin (H2)
    mid to high 50s
    medium materiality
    High
    Marketing expense as percentage of net sales
    year-over-year leverage
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    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——

    Operational metrics

    22
    Net sales
    $115.1 millionup approximately 5.7% year-over-year
    Q2 FY26

    Exceeded the high end of guidance range.

    Total orders
    down 2%year-over-year
    Q2 FY26

    Total orders were slightly down, but company focused on higher price points.

    Orders (excluding sub-$500 AOV)
    up 5%year-over-year
    Q2 FY26

    Reflects focus on higher price points; sub-$500 AOV orders represent a few percent of net sales.

    Repeat orders
    outperformed total order growth
    Q2 FY26

    Demonstrates effectiveness of customer acquisition and retention efforts.

    Average Order Value (AOV)
    $2,238up approximately 8% year-over-year
    Q2 FY26

    Driven by customers mixing into higher-priced items and selective price increases due to metal costs.

    Gross margin
    57.9%down approximately 40 basis points year over year, up approximately 360 basis points sequentially versus the first quarter
    Q2 FY26

    Outperformed expectations by leveraging price optimization, product design, vendor procurement efficiencies, and other efforts to offset metal costs and tariffs.

    Adjusted EBITDA margin
    5%
    Q2 FY26

    Adjusted EBITDA of $5.8 million, far above the high end of guidance range.

    Operating expense as % of net sales
    57.5%compared to 59.4% in Q2 2025, representing approximately 190 basis points of leverage year over year
    Q2 FY26

    Reflects disciplined management.

    Adjusted operating expense as % of net sales
    53%compared to 55.5% in Q2 2025, representing approximately 250 basis points of leverage year over year
    Q2 FY26

    Excludes items such as depreciation, equity-based compensation, showroom pre-opening, and other non-recurring expenses.

    Marketing expense as % of net sales
    22.8%compared to 24.1% in Q2 2025, representing approximately 130 basis points of year-over-year leverage
    Q2 FY26

    Driving increasing efficiency while delivering strong top-line results.

    Adjusted employee costs as % of net sales
    loweryear over year by approximately 40 basis points
    Q2 FY26

    Achieved leverage even with expanded sales team, reflecting showroom benefits.

    Adjusted other G&A as % of net sales
    loweryear over year by approximately 80 basis points
    Q2 FY26

    Reflects balanced approach to disciplined cost management.

    Inventory
    approximately $1 milliondeclined from Q1
    Q2 FY26

    Inventory terms of approximately four times remain significantly above the industry average.

    Cash balance
    $75 millionsequential increase of approximately $16 million from the first quarter
    Q2 FY26

    Ended the quarter with no debt on the balance sheet.

    Showroom bookings (without appointment)
    grew 47%year over year
    Q2 FY26

    Powerful proof point of the success of experiential and personalized showroom strategy.

    Beverly Hills flagship bookings
    up over 40%year over year through the end of Q2 versus our prior locations
    Q2 FY26

    Off to a strong start, serving as a blueprint for future retail.

    Beverly Hills flagship fine jewelry bookings
    nearly doublethat of our prior location last Q2
    Q2 FY26

    Demonstrates strong performance in fine jewelry at the flagship location.

    Beverly Hills flagship AOV (appointments)
    about 10% higherthan typical appointments
    Q2 FY26

    Reflects the premium customer experience and product mix.

    Mother's Day bookings
    up 15%year-over-year
    Q2 FY26

    Company's biggest Mother's Day ever, demonstrating ability to capitalize on key gifting moments.

    Fine jewelry bookings ($500+ price point)
    grew over 40%year-over-year
    Q2 FY26

    Demonstrates continued resonance with higher income consumers.

    Total orders (two-year stacked basis)
    grew 16%
    Q2 FY26

    Provides a longer-term view of order growth.

    Q3 net sales (two-year stacked basis)
    implied 10% growth
    Q3 FY26

    Despite Q3 net sales being flat YoY, this indicates healthy underlying growth.

    Industry KPIs

    5
    MetricValueDetails
    Sg a OPEX ratio57.5%%
    Store count growth43units
    Gross margin drivers57.9%%
    Net debt to adjusted EBITDAno debtUSD
    Inventory position markdown riskapproximately $1 millionUSD

    Product announcements

    4
    ProductTypeDetails
    Butterfly collectionlaunch
    Keepsakes collectionlaunch
    Pacific Green offeringexpansion
    Seaside Charms collectionlaunch

    Deals & partnerships

    2
    Alison Cooch and Isaac RochelleCreator 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 KostakPartnership 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

    2
    Consumer environment bifurcationCurrent

    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 performanceQ3 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

    5

    Gross margin trajectory

    Q3 FY26 / H2 FY26
    Current57.9% in Q2 FY26
    Targetsimilar 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.

    Q&A highlights

    5

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.