Diamond Jewelry Reports FY2025 Revenue Slump to $29.6M, $3.9M Loss

Sarine Technologies reported FY2025 revenue of US$29.6 million and a net loss of US$3.9 million, a roughly 24–25% decline from the prior year that the company says reflects weak natural-diamond demand and a US market saturated by lab-grown alternatives. The FY results include a just-over US$2.0 million inventory write-down and a US$1.4 million non-cash tax expense for prior years, while a one-time US$0.6 million benefit from early lease cancellation partly offset those charges.

For the six months to June 30, 2025 Sarine recorded US$15.3 million in revenue, down 30% year-on-year, and a net loss of US$166,000, with EBITDA of US$1.6 million, reflecting cost cuts and operational shifts. Through nine months to September 30, 2025 group revenue stood at US$22.3 million, down 27% year-on-year, with a nine-month net loss of US$500,000 that included a US$100,000 Q3 loss tied to Sarine’s investment in Kitov.ai.

Operational moves underpinned the company’s ability to preserve positive cashflow and EBITDA despite the top-line contraction. Sarine relocated manufacturing and support operations to a wholly owned subsidiary in India to reduce costs, and the company said capital equipment sales were depressed by contracting polishing activity in India while new facilities opening in African producing countries partially offset that decline. Company disclosures also note Galaxy-related scanning revenues were affected by fewer carats polished, though not in a linear fashion.

Recurring services now drive the majority of the group’s income as the product mix shifts away from one-time capital equipment sales. Revenue channels cited include Galaxy scanning, Gal3D, Advisor services, grading and traceability reports, GCAL grading labs and the Most Valuable Plan, which Sarine expanded during H1 to cover larger stone sizes. That recurring-revenue profile underlies Sarine’s claim of maintaining positive operational cashflow even in a down year.

The company’s strategic portfolio also includes an investment in Kitov.ai, an AI visual-inspection platform. Sources differ on timing and terms: one trade account said Sarine was in talks to acquire a 33% stake, while the company’s disclosures and subsequent trade reports state Sarine completed a 33% acquisition in August and extended a convertible loan that could raise its holding to as much as 51%. JewelBuzz specifically reported the convertible loan and the US$100,000 Q3 charge linked to the Kitov.ai stake.

Market pressures cited in Sarine’s disclosures are concrete: the company reported that 61% of engagement rings were lab-grown diamonds in 2025, noted persistent price erosion in the lab-grown segment, and warned that US tariffs currently set at 50% on Indian exports could exert further negative effects on the midstream. Management struck a cautiously optimistic tone about 2026, stating, “The group is cautiously optimistic for 2026 as demand for natural diamonds is seemingly showing an initial rebound and new services' revenue streams are accelerating through their wider adoption by midstream and downstream customers.” The company added, “We are also looking into potential synergies with financial entities for supporting their extension of credit to the diamond, gemstone and jewelry industries, based on actual collateral verification and valuation.”

Sarine begins FY2026 leaning on recurring services, lower-cost Indian operations, and a strategic bet on AI-enabled inspection beyond gemstones; whether those pivots restore full profitability will depend on a sustained rebound in natural-diamond demand, stabilization of lab-grown pricing, and crystallization of the Kitov.ai ownership and revenue pathway.