Brilliant Earth (BRLT) Q4 Loss Widens on Metal Price Pressure Despite Record Revenue

Brand momentum drives diversification. CEO Beth Gerstein highlighted the company’s strategic progress: “Fine jewelry was a clear standout. In Q4 for the first time we had multiple days where we hit $1 million in fine jewelry bookings. We’re seeing strong demand for both self purchase and gifting with almost half of new customers discovering Brilliant Earth through fine jewelry in Q4.” CFO Jeffrey Kuo emphasized the company’s resilience in navigating cost pressures: “We are extraordinarily proud of our ability to deliver strong gross margins in this environment which speaks to the strength of our premium brand positioning, our data-driven price optimization engine, our globally diversified supply chain and the agility of our team and business model.” Gross margin came in at 55.9% for Q4, down 370 basis points year over year, as gold prices climbed approximately 67% and platinum surged 144%.

Mid-single-digit growth expected. Management guided 2026 net sales to grow in the mid-single-digit percent range year over year, with Q1 2026 net sales also expected to grow in the mid-single-digit percent range. The company expects gross margin in the mid-50s percent range for the full year, assuming metal prices remain at current elevated levels, and projects positive adjusted EBITDA for 2026, though slightly lower than 2025’s $12 million due to the challenging metal cost environment. Management expects most of 2026’s adjusted EBITDA to come from Q4, with Q1 adjusted EBITDA margin projected in the negative mid-single-digit range as a percentage of sales. The company withdrew its previously stated medium-term targets, citing unprecedented uncertainty in precious metal prices.

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