Brilliant Earth Group reported third‑quarter 2025 revenue of $110.3 million, a 10.4 % year‑over‑year increase that surpassed the consensus estimate of $109.27 million. The growth was driven by a 45 % rise in fine‑jewelry bookings, which offset a 320‑basis‑point decline in gross margin to 57.6 % from 60.8 % in the same quarter last year. The margin compression reflects higher metal costs and tariff pressures that have eroded profitability in the core engagement‑ring segment.
Net sales growth was supported by a 45 % jump in fine‑jewelry bookings, while the company maintained its 17th consecutive quarter of positive adjusted EBITDA. Adjusted EBITDA margin for the quarter was 2.3 %, comfortably within the 2‑3 % range management had previously targeted for the year. The company’s earnings per share of $0.02 matched the $0.02 consensus estimate, indicating that cost‑control measures and pricing power in high‑margin categories offset the margin squeeze.
Brilliant Earth raised its full‑year 2025 net‑sales guidance to a 3 %–4.5 % growth range, up from the 2 %–3 % range previously issued. The company also reiterated its adjusted EBITDA margin target of 2 %–3 %, signaling confidence that the current mix of high‑margin fine‑jewelry sales and disciplined cost management will sustain profitability through the remainder of the year.
Comparing to the prior year, Q3 2024 net sales were $99.9 million and gross margin was 60.8 %. GAAP diluted EPS in Q3 2024 was $(0.01), underscoring the improvement in earnings quality that the company achieved in 2025. The 10.4 % revenue growth and 57.6 % margin represent a significant acceleration from the 3.5 % revenue growth and 60.8 % margin seen in the same quarter of 2024.
CEO Beth Gerstein highlighted the company’s ability to capture market share in the premium segment, citing strong demand from higher‑income consumers and the effectiveness of its data‑driven pricing strategy. CFO Jeff Kuo emphasized the role of agile price optimization and operational efficiencies in maintaining profitability amid volatile raw‑material costs.
The earnings release was met with a muted market reaction. Investors expressed concerns over the margin compression and the company’s valuation, leading to a decline in pre‑market trading. The reaction reflects a “sell‑the‑news” dynamic, as the stock had already appreciated significantly in the month leading up to the announcement.
Overall, Brilliant Earth’s Q3 results demonstrate resilient revenue growth and a return to positive adjusted EBITDA, but the margin compression signals ongoing pricing pressure. The raised guidance indicates management’s confidence in sustaining growth, while the market’s cautious response underscores the importance of continued margin improvement to support long‑term shareholder value.
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