Brilliant Earth 2025 Q3 Earnings 10.4% Revenue Growth and 37.5% Reduced Net Loss

Brilliant Earth (BRLT) reported Q3 2025 earnings that exceeded revenue expectations, . . Despite margin compression and a post-earnings stock decline, management emphasized resilience in key categories like fine jewelry and engagement rings.

Revenue

, .

Earnings/Net Income

. Meanwhile, , reducing losses by 37.5% compared to the $-1.07 million net loss reported in 2024 Q3. While the EPS remains negative, the significant reduction in net loss signals improved cost management and operational efficiency.

Post-Earnings Price Action Review

Brilliant Earth’s Q3 2025 earnings revealed robust order growth and revenue performance that exceeded expectations, underscoring the company’s operational efficiency and customer engagement. However, , closing at $2.42, highlighting a disconnect between investor sentiment and the company’s actual performance. This volatility presents a potential buying opportunity for long-term believers, especially as the company raised its full-year 2025 net sales growth outlook to 3%-4.5%. Historical data shows the stock can rebound sharply after earnings, as seen in Q2 when it surged 37.68% post-beat. Nevertheless, risks such as margin compression, metal price fluctuations, and tariff impacts must be monitored closely.

CEO Commentary

CEO emphasized the company’s 17th consecutive quarter of positive adjusted EBITDA and highlighted resilience in gross margins despite rising metal prices and tariffs. She expressed confidence in the brand’s ability to drive demand through its omnichannel strategy and product innovation, particularly in fine jewelry and engagement rings. , while cautioning about ongoing metal and tariff headwinds into Q1 2026. The tone was cautiously optimistic, balancing recent successes with macroeconomic challenges.

Guidance

Brilliant Earth raised its full-year 2025 net sales growth outlook to 3%-4.5% year-over-year and expects adjusted EBITDA margin to range between 2%-3%. The company anticipates continued strength in engagement and fine jewelry bookings, supported by its omnichannel strategy and seasonal demand. However, management acknowledged potential headwinds from gold and platinum prices, which are near all-time highs, and the impact of a 25% tariff increase on Indian imports announced in August 2025.

Additional News

In the three weeks following the earnings report, Brilliant Earth announced the launch of exclusive collections to commemorate its 20th anniversary, aiming to strengthen its market position in ethically sourced jewelry. The company also reiterated its commitment to expanding showrooms and enhancing its digital platform to improve customer experience. Additionally, Brilliant Earth filed a $200 million shelf offering, signaling flexibility to fund growth initiatives or strategic opportunities. These moves align with its long-term strategy to capitalize on the growing demand for sustainable and transparent jewelry.