Brilliant Earth Reaches Record Q4 Net Sales of $124.4 Million
Brilliant Earth posted a record quarter, reporting $124.4 million in Q4 net sales and $437.5 million for fiscal 2025, even as margins and profitability came under pressure.
Brilliant Earth Group, Inc. reported its largest quarterly net sales in company history, posting $124.4 million for the fourth quarter ended December 31, 2025, a rise of about 4.1% year-over-year, and $437.5 million in full-year net sales, the company said in its March 5, 2026 release. The milestone came as management pointed to assortment expansion and fine jewelry momentum as drivers of growth.
The record top line masked a tougher profitability picture. The company recorded a Q4 net loss of $1.3 million, reversing a prior-year Q4 net income of $2.6 million, and a fiscal 2025 net loss of $6.4 million versus net income of $4.0 million in 2024. Gross margins contracted: Q4 gross margin came in at 55.9%, down from 59.6% a year earlier, and full-year gross margin declined to 57.5% from 60.3% in 2024. Investing reported an adjusted EBITDA of $4.2 million for the quarter, while the company said its Adjusted EBITDA landed above the midpoint of guidance. Beth Gerstein, Co-Founder and CEO, said, "We closed our 20th anniversary year with our largest quarter of net sales in company history, delivering results that demonstrate our continued ability to gain market share and drive profitable growth. Our agility in achieving a strong gross margin despite metal headwinds and a challenging tariff environment, combined with continued marketing leverage, resulted in our Adjusted EBITDA landing above the midpoint of our guidance."
Operational metrics showed positive traction in customer behaviour and category mix. The company reported total orders up 7% year-over-year in Q4; Investing and Reuters reported a slightly different figure of 6.5% growth. Repeat orders rose 15% in Q4, average order value eased to $2,001 from $2,048 a year earlier, and TradingView noted that average selling price increased across the assortment. Fine jewelry bookings were a standout, up 34% year-over-year in Q4 and representing 23% of total bookings for the quarter and 17% for the full year. The Globe and Mail reported lab-grown fine jewelry bookings up 61%, and noted wedding and anniversary bands delivered double-digit bookings growth and the largest fourth quarter ever for that category.
Strategic moves underpinned the results. Brilliant Earth opened two new showrooms during the year to reach 42 locations and launched its first flagship showroom in Beverly Hills earlier in 2025. The company continues to emphasize an asset-light business model, omnichannel innovation, and use of AI and machine learning to control marketing spend. Annual consolidated statements show net sales of $437,483 thousand, cost of sales $185,979 thousand, gross profit $251,504 thousand, marketing and advertising expense $105,965 thousand, general and administrative expense $150,915 thousand, total operating expenses $256,880 thousand, and loss from operations of $(5,376) thousand.
Markets reacted to the mixed results: analysts had modeled revenue of $125.64 million versus the $124.4 million reported, and consensus adjusted EPS was a $0.02 gain versus an actual adjusted loss of $0.06, prompting a premarket share decline of about 14.55% to $1.41. Management has flagged metal price volatility and a challenging tariff environment as ongoing margin risks and signaled a cautious stance on medium-term guidance, even as it highlights robust free cash flow generation. The challenge for Brilliant Earth now is converting category momentum and showroom expansion into consistent margin recovery while navigating precious metal headwinds.
Know something we missed? Have a correction or additional information?
Submit a Tip
