BrilliA Inc. Shares Surge 86.73% After Hours Following Cash Dividend Announcement

BrilliA Inc. shares surged 86.73% in after-hours trading following the company's announcement of a cash dividend of $0.133 per Class A share, totaling $2,992,500 across 22.5 million outstanding shares. The dividend reflects the company's strong fundamentals and disciplined approach to growth, according to CEO Kendrew Hartanto.

BrilliA Inc. (NYSE: BRIA) saw its shares surge by 86.73% in after-hours trading following the company's announcement of a cash dividend of $0.133 per Class A share, totaling $2,992,500 across 22.5 million outstanding shares. The dividend, payable on September 30, 2025, to shareholders of record as of September 15, 2025, reflects the company's strong fundamentals and disciplined approach to growth, as stated by CEO Kendrew Hartanto [1].

The dividend announcement comes amidst a mixed financial picture for BrilliA. While the company reported a 15.06% year-over-year revenue growth and a current ratio of 2.84, its operating cash flow for the most recent quarter was negative at $4.52 million [2]. This negative operating cash flow raises concerns about the sustainability of the dividend, as the payout ratio—calculated as the $2.99 million distribution divided by $2.82 million in net income—exceeds 100% [3].

The company's expansion plans in fine jewelry and retail, aimed at capturing the "double-digit bookings growth" in the segment, may also strain resources. BrilliA's reliance on cash reserves rather than consistent operating cash flow to fund dividends mirrors the risks observed in Brilliant Earth's (BRLT) one-time payout strategy [4]. The market's muted response to similar one-time dividends, such as BRLT's August 2025 payout, suggests skepticism about their long-term viability [5].

BrilliA's dividend declaration signals a shift in capital allocation philosophy, with the company distributing nearly $3 million to shareholders despite negative operating cash flow. This approach contrasts with Brilliant Earth's debt-free strategy, which critics argue limits liquidity flexibility [4]. For BrilliA, the absence of a long-established dividend history further complicates assessments of its commitment to consistent payouts [7].

Investors should monitor BrilliA's ability to convert its 15.06% revenue growth into positive operating cash flow and assess whether its capital allocation strategy prioritizes long-term reinvestment alongside shareholder returns. For now, the dividend appears more as a confidence-building gesture than a sustainable policy, akin to BRLT's one-time payout, until BrilliA demonstrates consistent cash flow generation.

References:
[1] BrilliA Inc Declares Cash Dividend of $0.13 per Class A Share, [https://finance.yahoo.com/news/brillia-inc-declares-cash-dividend-201500523.html]
[2] BrilliA declares $0.133 per share cash dividend payable ..., [https://www.investing.com/news/company-news/brillia-declares-0133-per-share-cash-dividend-payable-september-30-93CH-4222780]
[3] BrilliA (BRIA) Statistics & Valuation, [https://stockanalysis.com/stocks/bria/statistics/]
[4] Brilliant Earth's Special Dividend and Debt-Free Strategy, [https://www.ainvest.com/news/brilliant-earth-special-dividend-debt-free-strategy-test-capital-allocation-discipline-ethical-jewelry-2508/]
[5] Capital Allocation Primer: What Great CEOs Do Differently, [https://www.linkedin.com/pulse/ultimate-primer-capital-allocation-shareholders-guide-atuan-cfa-bymyc]
[6] How to Navigate Turbulence in Cyclical Sectors, [https://www.bcg.com/publications/2025/how-high-performers-in-cyclical-sectors-navigate-turbulence]
[7] Brilliant Earth - Dividend History | BRLT, [https://www.macrotrends.net/stocks/charts/BRLT/brilliant-earth/dividend-yield-history]