BRLT

Brilliant Earth Group, Inc. (BRLT) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Brilliant Earth Group, Inc., there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.03 per share for the current quarter, which represents a year-over-year change of +50.0%. Over the last 30 days, one estimate has moved higher for Brilliant Earth Group compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 200%. For the full year, the company is expected to earn $0.04 per share, representing a year-over-year change of +233.3%. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Brilliant Earth Group. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 23.53%. Thanks to promising estimate revisions, Brilliant Earth Group currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. While strong estimate revisions for Brilliant Earth Group have attracted decent investments and pushed the stock 10.8% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brilliant Earth Group, Inc. (BRLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Brilliant Earth Group, Inc.? Here are five stocks we like better. Brilliant Earth exceeded Q2 expectations: Net sales rose 5.7% year over year to $115.1 million, while adjusted EBITDA reached $5.8 million, supported by higher average selling prices and operating expense discipline. Premium categories drove growth: Average order value increased 8% to about $2,238, and fine jewelry bookings climbed 32%, despite a 2% decline in total orders as the company focused on higher-value purchases. Full-year outlook was raised: The company increased adjusted EBITDA guidance to $13 million-$15 million on projected sales of $459 million-$462 million, while expecting approximately flat third-quarter sales amid a difficult comparison. Brilliant Earth Group (NASDAQ:BRLT) reported second-quarter results that exceeded its guidance, supported by higher average selling prices, growth in fine jewelry and improved operating discipline. The company also raised its full-year adjusted EBITDA outlook, citing confidence in its second-half initiatives. Chief Financial Officer Jeff Kuo said second-quarter net sales totaled $115.1 million, up approximately 5.7% from a year earlier and above the high end of the company’s guidance range. Adjusted EBITDA was $5.8 million, representing a 5% margin and exceeding management’s expectations. → 3 Drone Stocks That Should Soar After the Summer Slump “This reflects the combination of our strong top-line performance, solid gross margin, and focused discipline to drive year-over-year operating expense leverage,” Kuo said. Total orders declined about 2% year over year during the quarter, although orders rose 16% on a two-year stacked basis. Management said the decline reflected its focus on higher-value purchases and the exclusion of orders below $500, which account for only a few percentage points of net sales. Excluding those lower-value orders, orders increased 5% from a year earlier. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Average order value rose about 8% to approximately $2,238. The company said engagement-ring average selling prices were stable year over year, while average selling prices increased across wedding and anniversary bands as well as fine jewelry. CEO Beth Gerstein said the company continues to see demand holding up better at higher price points, even as it observes softness among lower-priced consumer purchases. She said this trend reflects Brilliant Earth’s appeal to higher-income customers and consumer interest in premium, design-forward jewelry. → Jersey Mike's Serves Fresh Gains After IPO Stumble Fine jewelry remained a major source of growth. Fine jewelry bookings increased approximately 32% year over year and accounted for about 18% of total bookings in the second quarter. Bookings for fine jewelry priced at $500 or above grew more than 40% year over year. Wedding and anniversary band bookings also rose at a double-digit rate, while engagement-ring bookings were approximately flat. Mother’s Day was the company’s largest such event to date, according to Gerstein. Overall bookings increased 15% year over year during the two-week gifting period preceding the holiday, aided by product launches including the Butterfly Collection and Keepsakes Collection. Gross margin was 57.9%, down about 40 basis points from the prior-year quarter but up approximately 360 basis points sequentially from the first quarter. Kuo said lower metal costs late in the quarter contributed only modestly to the improvement, while operational initiatives were the larger factor. Those initiatives included the company’s price-optimization engine, product design and specification decisions, vendor procurement efficiencies, and other actions intended to offset elevated precious-metal costs and tariffs. Operating expenses were 57.5% of net sales, compared with 59.4% a year earlier. Adjusted operating expenses were 53% of net sales, down from 55.5% in the comparable period. Marketing expense declined to 22.8% of sales from 24.1%, while adjusted employee costs and adjusted other general and administrative expenses also declined as percentages of sales. Kuo said the company’s inventory fell about $1 million from the first quarter, while inventory turns remained at approximately four times. Brilliant Earth ended the quarter with about $75 million in cash, no debt, and cash that increased roughly $16 million sequentially. Brilliant Earth opened its 43rd showroom during the quarter in San Antonio, Texas. Showroom bookings from customers without appointments increased 47% year over year. At the company’s Beverly Hills flagship, bookings since opening were more than 40% above those at its prior location through the end of the second quarter, while fine jewelry bookings nearly doubled from the prior location’s second quarter. For the full year, Brilliant Earth expects net sales of $459 million to $462 million and raised its adjusted EBITDA guidance to $13 million to $15 million. For the third quarter, management expects sales to be approximately flat year over year, noting it faces a strong comparison from the prior year when some consumers accelerated purchases in anticipation of potential tariffs. The company expects third-quarter adjusted EBITDA of $3 million to $5 million. Kuo said Brilliant Earth expects third-quarter gross margin to be similar to the second quarter and anticipates a mid- to high-50% gross margin for the second half, assuming metal prices and tariff rates remain near recent levels. Brilliant Earth Group, Inc (NASDAQ: BRLT) is a specialty retailer of ethically sourced fine jewelry, with a focus on conflict-free diamonds and lab-grown gemstones. The company offers a broad range of products that include engagement rings, wedding bands, necklaces, earrings and bracelets, all crafted with a commitment to environmental sustainability and social responsibility. Customers can choose from a variety of materials such as recycled precious metals, responsibly sourced gemstones and innovative lab-grown diamonds. Operating primarily through its e-commerce platform and a network of branded showrooms across major U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Brilliant Earth Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Q2 net sales grew approximately 6% year-over-year to $150 million, exceeding guidance. Gross margin improved by 360 basis points sequentially, driven by operational levers and agile execution. Fine jewelry bookings grew 32% year-over-year, with bookings at $500+ price points up over 40%. Adjusted EBITDA of $5.8 million significantly outperformed expectations, with strong OpEx leverage. Showroom bookings from walk-in customers grew 47% year-over-year, and the Beverly Hills flagship is performing well. Company raised full-year adjusted EBITDA guidance to $13-$15 million, reflecting confidence in H2. Total orders declined 2% year-over-year, with softness at lower price points. Gross margin was down 40 basis points year-over-year, impacted by high metal costs and tariffs. Q3 net sales expected to be flat year-over-year due to a strong prior-year comparison from tariff-driven purchases. Consumer environment shows bifurcation, with weakness at lower price points. Metal costs remain high by historical standards, posing ongoing margin pressure. Inventory turnover of approximately 4 times is significantly above industry average, indicating potential overstock. Warning! GuruFocus has detected 3 Warning Sign with BRLT. Is BRLT fairly valued? Test your thesis with our free DCF calculator. Q: Regarding the Q2 EBITDA beat of $3 million to $4 million relative to the full-year guidance raise, it looks like it only captures a portion of the beat. Could you speak to what's happening there in terms of that dynamic and/or conservatism? Also, how should we think about what's embedded for order growth in the second half, and will you continue to see the sub-$500 orders outpace?A: Beth Gerstein (CEO) and Jeff Quo (CFO) explained that the company is strategically focused on the $500+ segment, which drove 5% order growth in Q2, and they expect this trend to continue. Regarding the guidance, Jeff noted that the raise actually includes both the full benefit of the Q2 beat and an increased outlook for H2 profitability, reflecting confidence in the initiatives that are "firing well." They are not being overly conservative but are embedding a dynamic environment response. Q: The implied gross margin in the back half seems to inflect to year-over-year expansion, particularly in Q4. Can you help dimensionalize the drivers there? Are you embedding any further price increases?A: Jeff Quo (CFO) highlighted the success of operational levers, including the price optimization engine, dynamic pricing, thoughtful product design and specifications, and vendor procurement efficiencies. He noted that as they enter Q4, they will start comping last year's metal price increases, allowing for an optimistic outlook on gross margin expansion while still driving top-line growth, which he cited as a key example of using data to maximize gross profit dollars. Q: You shared that showroom bookings from customers without an appointment grew over 40%. Does this speak to growing consumer awareness of the fine jewelry offering, or is it just more showrooms and foot traffic? How are you driving that, and what can we expect going forward?A: Beth Gerstein (CEO) attributed the strong showroom receptivity to a mix of factors: great digital merchandising, optimized inventory, increased brand awareness from successful marketing campaigns (e.g., the butterfly collection), and a focus on experiential retail that resonates with Gen Z and millennial audiences. She expressed confidence that this trend will continue, especially heading into Q4 and the holiday season, as fine jewelry interest in showrooms remains high. Q: Marketing spend as a percentage of sales is down a bit. There are probably great opportunities to invest in marketing, and it may be more competitive during holiday. How should we model that, and what are you seeing with customer acquisition costs?A: Beth Gerstein (CEO) stated that the company takes a balanced approach to brand investment, focusing on increasing marketing efficiencies through internal data and technology capabilities. They use a full-funnel marketing approach and constantly optimize. While holiday will be a different environment, the team's strength lies in being dynamic and responsive to the environment, ensuring they invest appropriately while driving efficiency. Q: Can you provide more color on the strong Q2 performance, specifically the gross margin improvement and operating expense leverage?A: Jeff Quo (CFO) detailed that Q2 gross margin was 57.9%, up 360 basis points sequentially, driven by agile execution on operational levers like dynamic pricing and vendor procurement, not just easing metal prices. He also highlighted 250 basis points of year-over-year leverage in adjusted operating expense, with marketing down 130 bps, employee costs down 40 bps, and other G&A down 80 bps, all while expanding the sales team, showcasing the strength of the asset-light, data-driven model. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Brilliant Earth Group, Inc. (BRLT) came out with quarterly earnings of $0.03 per share, beating the Zacks Consensus Estimate of a loss of $0.01 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +400.00%. A quarter ago, it was expected that this company would post a loss of $0.05 per share when it actually produced a loss of $0.05, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Brilliant Earth Group, which belongs to the Zacks Retail - Jewelry industry, posted revenues of $115.11 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.15%. This compares to year-ago revenues of $108.94 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Brilliant Earth Group shares have lost about 40.6% since the beginning of the year versus the S&P 500's gain of 12.8%. While Brilliant Earth Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Brilliant Earth Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.02 on $115.5 million in revenues for the coming quarter and $0.03 on $458.33 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Jewelry is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Movado (MOV), has yet to report results for the quarter ended July 2026. This watchmaker is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +56.5%. The consensus EPS estimate for the quarter has been revised 2.4% higher over the last 30 days to the current level. Movado's revenues are expected to be $164.18 million, up 1.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brilliant Earth Group, Inc. (BRLT) : Free Stock Analysis Report Movado Group Inc. (MOV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Delivered 6% Y/Y Net Sales Growth and $5.8M Adjusted EBITDA, Exceeding High End of Guidance RangeExpanded Gross Margin by 360 bps SequentiallyDrove 32% Y/Y Bookings Growth in Fine JewelryRaises Annual Profitability Guidance SAN FRANCISCO, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Brilliant Earth Group, Inc. (“Brilliant Earth” or the “Company”) (Nasdaq: BRLT), an innovative, global leader in ethically sourced fine jewelry, today announced financial results for the three and six months ended June 30, 2026. Second Quarter 2026 Highlights (quarterly period ended June 30, 2026): Delivered Net Sales of $115.1 million in the second quarter, exceeding the high end of the Company's guidance range Drove another strong quarter of fine jewelry bookings, with 32% year-over-year bookings growth, highlighting continued success in diversification beyond bridal heritage Opened 43rd showroom in San Antonio, the Company's second iteration of its new flagship concept Showroom of the Future Achieved Gross Margin of 57.9% in the second quarter, a 360 bps sequential improvement, demonstrating the agility of the Company's business model Drove 250 basis points of year-over-year leverage in adjusted operating expense as a percentage of Net Sales, demonstrating the Company's ability to increase profitability while continuing to drive growth Delivered profitability exceeding the Company's Adjusted EBITDA guidance range: Raises annual Adjusted EBITDA guidance "We're thrilled with our second quarter results, with both Net Sales and Adjusted EBITDA well exceeding our guidance range. Our team's ability to drive top line growth, expand gross margin and improve operating expense leverage is the level of execution that continues to be a key differentiator for Brilliant Earth," said Beth Gerstein, Co-Founder and Chief Executive Officer of Brilliant Earth. "Fine jewelry continues to outperform and drive our intentional diversification beyond bridal. And the evolution, and elevation, of our retail strategy continues, with the opening of our new San Antonio showroom, the second iteration of our new showroom concept. Our second quarter results highlight the strengths of our premium brand, seamless omnichannel customer experience, and asset-light, data driven business model.” Jeff Kuo, Chief Financial Officer added, "Given our strong second quarter performance and confidence in the second half of the year, we are raising our annual profitability guidance." Second Quarter Results Six Month Results *nm - Not meaningful*Percentage changes may not recalculate due to rounding(1)  Represents net income (loss) allocable to Brilliant Earth Group, Inc. during the three and six months ended June 30, 2026 and 2025.(2)  Represents GAAP Diluted EPS during the three and six months ended June 30, 2026 and 2025.(3) Adjusted net income (loss), Adjusted Diluted EPS, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See "Disclosure Regarding Non-GAAP Financial Measures and Key Metrics" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. 2026 Outlook Third Quarter Full Year Webcast and Conference Call InformationBrilliant Earth will host a conference call and webcast to discuss second quarter 2026 results and business outlook today, August 6, 2026, at 8:30 a.m. ET/5:30 a.m. PT. The webcast and accompanying slide presentation can be accessed at https://investors.brilliantearth.com. Investors and analysts interested in participating on the call are invited to dial +1-800-715-9871 from the US or +1-646-307-1963 internationally and reference Conference ID: 8419663. A replay of the event will be available approximately two hours following the conclusion of the call and remain available on the Brilliant Earth investor website after the live webcast concludes. The replay will be available for one year following the webcast. About Brilliant Earth Brilliant Earth is an industry-disrupting global leader in ethically sourced fine jewelry. The Company's mission since its founding in 2005 has been to create a more transparent, sustainable, and compassionate jewelry industry. With a premium brand, curated proprietary product assortment, seamless omnichannel shopping experience, and asset-light, data driven business model, Brilliant Earth is transforming the jewelry industry. The Company reported Net Sales of $437 million for the full year 2025. Headquartered in San Francisco, CA, Brilliant Earth has 43 showrooms and counting across the United States and has served customers in over 50 countries worldwide. Disclosure Regarding Non-GAAP Financial Measures and Key Metrics In addition to the financial measures presented in this release in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company has included certain non-GAAP financial measures in this release, including Adjusted EBITDA, Adjusted Net income (loss), Adjusted Diluted EPS and Adjusted EBITDA margin. These non-GAAP financial measures provide users of our financial information with useful information in evaluating our operating performance and exclude certain items from net income that may vary substantially in frequency and magnitude from period to period. We define EBITDA as net income (loss) before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as net income (loss) excluding interest expense, income taxes, depreciation expense, amortization of cloud-based software implementation costs, showroom pre-opening expense, equity-based compensation expense, certain non-operating expenses and income, and other unusual and/or infrequent costs, which that we do not consider in our evaluation of ongoing performance of our core operations. We define Adjusted EBITDA margin as Adjusted EBITDA calculated as a percentage of net sales. We believe that Adjusted EBITDA and Adjusted EBITDA margin, which eliminate the impact of certain expenses that we do not believe reflect our underlying business performance, provide useful information to investors to assess the performance of our business. We define Adjusted Net income (loss) as net income (loss) adjusted for the impact of certain additional non-cash and other items that we do not consider in our evaluation of ongoing performance of our core operations. These items include showroom pre-opening expense, equity-based compensation expense, costs to fund the Brilliant Earth Foundation and transaction costs and other expenses. We define Adjusted Diluted Earnings Per Share as Adjusted Net income (loss), divided by the diluted weighted average shares of common stock outstanding. The diluted weighted average shares of common stock outstanding is derived from the historical diluted weighted average shares of common stock assuming such shares were outstanding for the entirety of the period presented. We believe Adjusted Net income (loss) and Adjusted Diluted Earnings Per Share, which eliminate the impact of certain expenses that we do not believe reflect our underlying business performance, provide useful information to investors to assess the performance of our business. Please refer to “GAAP to Non-GAAP Reconciliations” located in the financial supplement in this release for a reconciliation of GAAP to non-GAAP financial information. This release includes forward-looking guidance for certain non-GAAP financial measures, including Adjusted EBITDA. These measures will differ from net income (loss), determined in accordance with GAAP, in ways similar to those described in the reconciliations at the end of this release. We are not able to provide, without unreasonable effort, guidance for net income (loss), determined in accordance with GAAP, or a reconciliation of guidance for Adjusted EBITDA to the most directly comparable GAAP measure because the Company is not able to predict with reasonable certainty the amount or nature of all items that will be included in net income (loss). This press release also contains certain key business metrics which are used to evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. We define net cash as cash and cash equivalents less the total principal balance of our outstanding debt. We define Bookings for each period as the dollar value of confirmed orders as of the date of order placement. We believe Bookings, which represent a measure of gross sales and potential future Net Sales, provide useful information to investors to assess the performance of our business. We define total orders as the total number of customer orders delivered less total orders returned in a given period (excluding those repair, resize, and other orders which have no revenue). We view total orders as a key indicator of the velocity of our business and an indication of the desirability of our products to our customers. Total orders, together with AOV, is an indicator of the net sales we expect to recognize in a given period. Total orders may fluctuate based on the number of visitors to our website and showrooms, and our ability to convert these visitors to customers. We believe that total orders is a measure that is useful to investors and management in understanding our ongoing operations and in an analysis of ongoing operating trends. We define average order value, or AOV, as net sales in a given period divided by total orders in that period. We define average selling price, or ASP, as the total retail sales price of products sold in a given period divided by the total number of product units sold during that same period. We believe that AOV and ASP are measures that are useful to investors and management in understanding our ongoing operations and in an analysis of ongoing operating trends. AOV varies depending on the product type and number of items per order. AOV and ASP may also fluctuate as we expand into and increase our presence in additional product types and price points, and open additional showrooms. Forward-Looking Statements This press release contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this press release may be forward-looking statements. Statements regarding our future results of operations and financial position, business strategy, and management's plans and objectives for future operations, including among others, statements regarding expected growth, introduction of new products, showroom and international expansion, market opportunity, capital expenditures, marketing and technology investments, liquidity and capital needs, tariff and macroeconomic impacts and any potential future declarations of cash dividends are forward-looking statements. In some cases, you can identify forward-looking statements by terms, such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “evolve,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “strategy,” “target,” “will,” or “would,” or the negative of these terms or other similar expressions. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, but not limited to: fluctuations in the pricing and supply of diamonds, other gemstones, and precious metals, particularly responsibly sourced natural and lab-grown diamonds and repurposed precious metals such as gold; increases in labor costs for manufacturing such as wage rate increase, as well as inflation, and energy prices; an overall decline in the health of the economy and other factors impacting consumer spending, such as recessionary or inflationary conditions, governmental instability, the impact of any changes in trade policy, including the imposition of new or increased tariffs on goods imported into the United States and any resulting retaliatory trade actions by other governments, war and fears of war, and natural disasters; our ability to cost-effectively turn existing customers into repeat customers or acquire new customers; our rapid growth in recent years and limited operating experience at our current scale of operations and our ability to manage growth effectively; increased lead times, supply shortages and supply changes; our plans to expand showrooms in the United States; our ability to compete in the fine jewelry retail industry; our ability to maintain and enhance our brand and to engage or expand our customers base; our ability to expand our sales and marketing capabilities and achieve broader market acceptance of our e-commerce and omnichannel approach; our ability to manage our inventory balances and shrinkage; a decline in sales of Design Your Own rings; our ability to predict operating results; our heavy reliance on our information technology systems and those of our third-party vendors and service providers to safeguard confidential information and any significant failure, inadequacy or interruption of these systems, security breaches or loss of data; the impact of environmental, social, and governance matters on our business and reputation; risks related to our e-commerce and omnichannel business; our ability anticipate and respond to changes in consumer preferences and shopping patterns and introduce new products and programs; our dependence on distributions from Brilliant Earth, LLC to pay our taxes and expenses, including payments under the Tax Receivable Agreement; our obligations under the Tax Receivable Agreement, which confers certain benefits upon the Continuing Equity Owners that will not benefit holders of our Class A common stock to the same extent; risks related to our organizational structure; and the other risks, uncertainties and the factors described in the section titled “Risk Factors” in our Annual Report on Form10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission on March 17, 2026, and is available at www.sec.gov. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this press release. Except as required by applicable law, we undertake no obligation to update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise. Contacts: Investors:[email protected] (1)  Other income, net consists primarily of interest and other miscellaneous income, partially offset by expenses such as losses on exchange rates on consumer payments. (2)  These expenses are those that we did not incur in the normal course of business. For the three months ended June 30, 2026, these expenses include a $1.8 million charge for write-off of information technology projects. For the six months ended June 30, 2026, these expenses also include a $0.6 million charitable contribution. (1)  Represents net income (loss) allocable to Brilliant Earth Group, Inc. for the three and six months ended June 30, 2026 and 2025. (2)  It is assumed that we will elect to issue common stock upon redemption of LLC Units rather than cash settle. (3)  Brilliant Earth Group, Inc. is subject to U.S. Federal income taxes, in addition to state and local taxes with respect to its allocable share of any net taxable income of Brilliant Earth, LLC. Acquisition of LLC units by Brilliant Earth Group, Inc. causes all of the taxable income currently recognized by the members of Brilliant Earth, LLC to become taxable to the Company. (4)  These expenses are those that we did not incur in the normal course of business. For the three months ended June 30, 2026, these expenses include a $1.8 million charge for write-off of information technology projects. For the six months ended June 30, 2026, these expenses also include a $0.6 million charitable contribution. (5)  Assumes the exchange of all outstanding LLC units for shares of common stock, resulting in the elimination of the non-controlling interest and recognition of the net loss attributable to non-controlling interest.

Image source: The Motley Fool. Wednesday, May 6, 2026 at 5 p.m. ET Chief Executive Officer — Beth Tanara Gerstein Chief Financial Officer — Jeffrey Kuo Vice President of Strategy, Business Development, and Investor Relations — Colin Bourland Need a quote from a Motley Fool analyst? Email [email protected] Colin Bourland: Thank you, and good afternoon, everyone. Welcome to the Brilliant Earth Group, Inc. First Quarter 2026 Earnings Conference Call. My name is Colin Bourland, Vice President of Strategy, Business Development, and Investor Relations. Joining me today are Beth Tanara Gerstein, our Chief Executive Officer, and Jeffrey Kuo, Chief Financial Officer. During the call today, management will make certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our SEC filings for a description of the risks that could cause our actual performance and results to differ materially from those expressed or implied in these forward-looking statements. These forward-looking statements reflect our opinion only as of the date of this call, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events unless required by law. Also, during this call, management will refer to certain non-GAAP financial measures. A reconciliation of Brilliant Earth Group, Inc.'s non-GAAP measures to the comparable GAAP measures is available in today's earnings release, which can be found on the Brilliant Earth Group, Inc. Investor Relations website. I will now turn the call over to Beth. Beth Tanara Gerstein: Good afternoon, everyone, and thank you for joining us. We are pleased to report a strong start to 2026 with first quarter results that reflect the disciplined execution of our growth strategy. Net sales grew approximately 6% year over year to $99.5 million, at the high end of our guidance range. The quarter's strong performance was driven by total orders growing 3% year over year, with outperformance in repeat orders and year-over-year growth in average selling prices across the assortment. Fine jewelry was a clear standout, with bookings growing 33% year over year and making up 17% of total bookings. In addition, we are particularly pleased with the impressive year-over-year bookings growth in wedding and anniversary bands in Q1. We delivered gross margin within our mid-50s target, year-over-year marketing leverage, and prudent OpEx management resulting in our adjusted EBITDA landing in the upper half of our guidance range. These results underscore our ability to execute with discipline while investing in the growth drivers that are building Brilliant Earth Group, Inc. into a leading jewelry brand in the $350 billion jewelry industry. Let me take you through some of the highlights of the quarter. What I am most proud of this quarter is the ongoing strength and resonance of our brand. Valentine’s Day was a record, with bookings up 9% year over year during the two-week peak shopping period. Our Perfect Timing campaign celebrated how chance encounters become the unexpected beginnings of lasting love. This campaign drove triple-digit year-over-year growth in organic social engagement, reflecting the power of compelling storytelling to drive both engagement and sales throughout this traditional gifting period. Valentine’s Day is yet another demonstration of our team’s ability to execute with excellence around key gifting moments, and we head into Mother’s Day and other gifting occasions with that same momentum. In January, we also introduced a new concept we call Bridal Collective: creator-hosted events in our New York and Beverly Hills locations showcasing our position as bridal leaders and the experiential aspects of our showrooms. The Bridal Collective series turned our showrooms into a social media destination for fine jewelry discovery and live styling, reaching a style-savvy bridal audience and generating over 150 pieces of organic content across 41 creators. We believe this proves that as desire for more physical retail experiences grows among consumers, Brilliant Earth Group, Inc. is uniquely positioned to lead the next chapter of luxury jewelry retail. Our omnichannel experience also continues to set us apart. We ended the quarter with 42 showrooms and are planning for two more, in San Antonio, Texas, and San Jose, California, by the end of the year, as we continue to thoughtfully expand our footprint. Growing our physical presence and creating joyful, personalized shopping experiences has been a key strategic priority since we began. One of the opportunities that excites me most, though, is how well this strategy amplifies our fine jewelry growth. As our retail execution has evolved, we have been intentional about building our showrooms into a true destination for fine jewelry, and that strategy is working. This quarter, fine jewelry bookings in showrooms grew 48% year over year, outpacing the total assortment growth. While that is impressive on its own, I am even more encouraged by the long-term performance. In Q3 2024, we introduced our first fine jewelry try-on bar, and soon after, we began adding them in new and existing showrooms. In the 18 months following, fine jewelry bookings from showrooms have nearly doubled compared to the preceding 18-month period. These are the kinds of results and learnings that guided our most recent opening, our Beverly Hills flagship location, which we opened in January. So far, the flagship is delivering very strong retail orders and foot traffic with exceptional customer sentiment. We have introduced a number of new elements to our customer experience in Beverly Hills, including our Date Night experience, a fun, hospitality-infused adaptation of our personalized bridal shopping appointment. Date Night has proven to be incredibly popular and is typically booked multiple weeks in advance. We continue to see our Beverly Hills flagship concept as a blueprint for the future of modern, luxury jewelry retail. We are also encouraged by what we see in our product assortment. Average selling prices are up meaningfully across the assortment, reflecting a growing customer appetite for quality, thoughtfully designed jewelry at elevated price points. This is a consistent trend we are seeing in the industry, and we are well positioned with a premium brand, a design-forward assortment, and long-term customer relationships we have cultivated for over two decades. As I mentioned, fine jewelry is driving increased diversification, outperforming the business, and is well on a path toward becoming a $100 million business. Further, we have been intentional about elevating our product assortment and strategically focusing on attracting new customers at higher price points. As a matter of fact, in Q1, we acquired nearly 40% more new fine jewelry customers whose first purchase was $500 or more compared to Q1 last year, and we are pleased with the broad demand we are seeing for both our Diamond Essentials and our signature and iconic collections, which continue to outpace total fine jewelry bookings growth. For example, bookings from our proprietary Sol collection, which first launched in Q4 2023, grew an impressive 90% year over year. We are very pleased that our strategy to expand our reach with fine jewelry is paying off. While bridal remains important to our business, this diversification allows us to mitigate the varying dynamics of bridal and stay focused on quality growth. We have a lot to look forward to for the remainder of the year. We kicked off spring in Q2 with the launch of our Butterfly Collection, a new collection that includes a pendant necklace featuring a single brilliant lab diamond, custom cut to form the wings of a butterfly. Heading into Mother’s Day, we have introduced our Keepsake Collection, a modern, celestial-inspired take on the classic locket. And we have a number of new and innovative design collections in the pipeline for the year ahead that I believe will further demonstrate the artistry, craftsmanship, and resonance of our brand. I look forward to sharing more as the year goes on. We are watching the consumer environment carefully and are observing a similar bifurcation that has been widely reported across our industry and the consumer sector. Specifically, while we are seeing some signs of softness at lower price points, demand at higher price points is holding up well in Q2 to date. Our ASP strength and fine jewelry growth reflect this dynamic, and more than that, they demonstrate the growing power of our brand with the higher-income consumer. The deliberate work we have done to build Brilliant Earth Group, Inc. into a brand that stands for quality, craftsmanship, and meaning is exactly what positions us well as the industry landscape shifts. Quarter to date, we have seen year-over-year bookings growth driven by strong performance at higher price points and fine jewelry outperformance, and we are encouraged by sequential gross margin improvement. As we said last quarter, with more time, we have more levers to pull to increase gross margin in this volatile metal environment, including selected price optimization, design and production engineering, and supply chain efficiencies, to name a few. We are executing diligently on what we can control in gross margin and believe Q1 marks the low point for our gross margin this year, and we are well positioned as we move through the balance of 2026. Jeffrey will share more detail on our guidance and outlook. I want to close by thanking our incredible team for their continued dedication and execution. Their passion and commitment are the reason momentum keeps building quarter after quarter, and the best is still ahead for Brilliant Earth Group, Inc. Now I will hand it over to Jeffrey, who will walk through the financials in detail and discuss our outlook. Jeffrey Kuo: Thanks, Beth, and good afternoon, everyone. As Beth mentioned, we are pleased to report a solid first quarter where we continue to successfully drive our strategic initiatives, delivering year-over-year net sales growth at the high end of our guidance range, gross margin within our expectations, year-over-year marketing leverage, and profitability in the upper half of our stated guidance. Let me take you through the details for Q1. Net sales were $99.5 million, up approximately 6% year over year and at the high end of our guidance for mid-single-digit year-over-year growth. Total orders grew approximately 3% year over year. Repeat orders outperformed overall order growth, demonstrating the effectiveness of our customer acquisition and retention efforts and the resonance of our brand and products with consumers. Average order value, or AOV, was approximately $2,131, up approximately 3% year over year, with ASP growth across the assortment, including engagement rings, wedding and anniversary bands, and fine jewelry. This was driven largely by two things: customers are mixing into higher-priced items, reflecting our strength with the higher-income consumer, and we have made selective price increases as a result of rising precious metal cost. Gross margin was 54.3%, within our expectations of mid-50s gross margins. This reflects the impact of historically high metal prices on our cost of goods, partially offset by our ability to nimbly adapt to market conditions, including our price optimization engine, thoughtful product design and specifications, vendor procurement efficiencies, and hedging. We expect gross margin in the remainder of 2026 to be higher than Q1 as we continue to execute on these initiatives. We delivered adjusted EBITDA of negative $4.7 million, or a negative 4.7% adjusted EBITDA margin, landing in the upper half of our guidance range. Q1 is typically our seasonally lowest quarter for net sales, and we expect higher profitability in upcoming quarters this year. Q1 operating expense was 63.3% of net sales compared to 62.4% of net sales in Q1 2025, representing approximately 90 basis points of deleverage year over year. Q1 adjusted operating expense was 59.2% of net sales compared to 57.6% in Q1 2025, representing approximately 160 basis points of deleverage year over year. Adjusted operating expense does not include items such as depreciation and amortization, equity-based compensation, showroom preopening expenses, and other nonrecurring expenses. Q1 marketing expense was 23.6% of net sales compared to 24.5% in Q1 2025. This represents approximately 90 basis points of year-over-year leverage. We are pleased to drive year-over-year leverage in marketing expense as a percentage of net sales in Q1, extending the success that we have had in the past two years, driving increasing efficiency while delivering strong top-line results. Employee costs as a percentage of net sales were higher year over year by approximately 190 basis points as adjusted. This includes growth in showroom employees, including from newly opened showrooms, as we strategically invest in our showroom expansion. We continue to manage these expenses in a disciplined and responsible manner. Other G&A as a percentage of net sales was higher year over year by approximately 60 basis points as adjusted in Q1, reflecting our balanced approach to disciplined cost management as we invest thoughtfully in the business for the medium and long term. As I have noted in the past, we do not have significant seasonal fluctuations in costs such as employee costs and most of our other G&A costs. Since Q1 is historically our seasonally lowest net sales quarter, we expect that adjusted employee and other G&A costs will be lower than Q1 as a percentage of sales in each of the remaining quarters this year. Year-over-year inventory grew principally as a result of strategic procurement opportunities to purchase diamond and jewelry inventory at advantageous prices last year, as well as growth in our fine jewelry assortment. Even with this increase, our inventory turns at over four times remain significantly above the industry average. We maintain conviction that the agility of our data-driven, capital-efficient, and inventory-light operating model is a compelling competitive advantage. We ended the first quarter with approximately $59 million in cash, with no debt on the balance sheet. As a reminder, the year-over-year decline in cash balance reflects the payoff of our term loan in Q3 of last year and the completion of our one-time dividend and distribution of approximately $25 million last year. Consistent with recent historical seasonality, Q1 represents our lowest cash quarter of the year. We expect our quarter-end cash balance to be higher than Q1 in every quarter for the remainder of the year, reflecting the strength of our asset-light, data-driven business model that differentiates us from others in the industry. Turning to our outlook, for Q2, we expect net sales to be up in the low-single-digit percent range year over year. On a two-year stacked basis, this represents an acceleration compared to our Q1 net sales growth. We expect a profitable Q2 with adjusted EBITDA in the range of $0.5 million to $2 million. For the full year, we continue to expect net sales to grow year over year in the mid-single-digit percent range and continue to expect a mid-50s gross margin for the year. We also expect year-over-year leverage in marketing expense as a percentage of net sales for the full year. We will make selective medium- and longer-term investments including employee costs and other G&A, such as investments in technology and in our showrooms. We continue to expect adjusted EBITDA dollars for the year to be positive but slightly lower than 2025. We also continue to expect that most of this year’s adjusted EBITDA will come from Q4, given the seasonal shape of quarterly net sales, with Q4 being the highest net sales quarter of the year, improvements in gross margin as we progress through the year, and that we do not expect significant seasonal incremental employee and other G&A costs. In closing, our data-driven approach, including our agile price optimization, disciplined expense management, and our asset-light business model, positions us well to outperform the industry while delivering profitable growth. This quarter’s solid execution reinforces our capability to identify and capture opportunities to drive sustainable, profitable growth and create value for our shareholders. With that, I will turn the call over to the operator for questions. Operator: Thank you. We will now open the call for questions. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. We do ask that you please limit to one question and one follow-up. Our first question comes from the line of Oliver Chen of TD Cowen. Your line is now open. Oliver Chen: Hi, Beth and Jeff. Nice job on all the progress in fine jewelry, by the way. As we think about your guidance next quarter, how are things trending lately relative to what you are seeing, and also related, pricing sensitivity given the increase this quarter, and what you are thinking about prices relative to unit and elasticity? I imagine you are being pretty surgical and analytical about how you think about pricing. And then a follow-up question on fine jewelry: What are your thoughts on the LTV and the CAC on the fine jewelry customer relative to your heritage in bridal as well? Thank you. Beth Tanara Gerstein: Hi, Oliver. Thanks for the questions. Maybe we can start with just what we are seeing lately. I would say Q2 to date, nothing really significant to call out as a big difference in macro. We continue to see top-line growth; the high-value customer is continuing to perform and show resiliency there. I think your discussion on pricing sensitivity is absolutely something that we think very carefully about, and the ASPs generally are increasing based on a few different factors. One of those factors is we are continuing to see that strength at the higher end, those higher-value customers, and then we are taking selective ASP increases to mitigate some of the increased metal cost. But as you mentioned, we are being very surgical, having a really keen eye for that pricing sensitivity is something that we have developed capability for over many years. We are being careful to protect value, quality, profitability while still making sure that we are attracting that new customer. As it relates to fine jewelry, we are really pleased that we are able to acquire new customers at very strong marketing efficiencies. I mentioned how we are investing heavily in the $500-plus assortment. We are very strategically focused on that higher-value customer, and we are seeing very strong results there, growing that customer base. We are acquiring new customers up over 40% this year relative to last year just in that $500-plus assortment. So driving marketing efficiencies across the assortment is always something that we pay very special attention to, but the brand resonance and the assortment are performing really well and driving nice efficiencies, and as a result, across the assortment, we are seeing marketing leverage, which is something that we are also heavily focused on. Oliver Chen: Okay. Thanks. And, Jeff, you have always been very active at managing gross margins with agility. We are facing these unprecedented times with costs. What are you seeing now with gross margins, and amongst the volatility, what are the latest strategies in terms of sourcing, and what is implied in your guidance? Thank you. Jeffrey Kuo: Thanks, Oliver. I think we did a great job managing our gross margin in Q1. In line with our expectations, we were able to take historically high, all-time high metal prices in Q1 and navigate through that really nimbly with a variety of strategies, including price optimization, vendor procurement efficiencies, being thoughtful about product designs and specifications, and hedging. We were able to package all that together really quickly in a dynamic market and deliver a strong gross margin within our expectations. We are glad to see that, sequentially, quarter to date we have had improving gross margins, and we think that as the year progresses, with time to manage with these tools that we have, we will be able to deliver increasing gross margins, assuming that metal prices stay where they are. So I think this is a real case study in how Brilliant Earth Group, Inc. has been able to be very nimble and effective even in the face of significant changes like what we have seen. This is all included in our guidance, including our agility and our strategies as well as expectations for metal prices being where they are and some continued volatility. So I think we are feeling good overall about what we were able to deliver. Oliver Chen: Thanks so much. Best regards. Jeffrey Kuo: Thank you. Operator: Our next question comes from the line of Ashley Owens of KeyBanc Capital Markets. Your line is now open. Ashley Owens: Hi. Great, and good afternoon. Thanks for taking our questions. Maybe just to start, you have noted that nearly half of the new customers are now discovering Brilliant Earth Group, Inc. through fine jewelry, so could you discuss the key drivers behind that trend and the sustainability going forward? Before you buy stock in Brilliant Earth Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Brilliant Earth Group wasn’t one of them. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Brilliant Earth (BRLT) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Delivered 6% Y/Y Net Sales Growth at High End of Guidance Range and Exceeding Analyst Consensus Drove 33% Y/Y Bookings Growth in Fine Jewelry Opened First Flagship Location in Beverly Hills Reiterates Annual Guidance SAN FRANCISCO, May 06, 2026 (GLOBE NEWSWIRE) -- Brilliant Earth Group, Inc. (“Brilliant Earth” or the “Company”) (Nasdaq: BRLT), an innovative, global leader in ethically sourced fine jewelry, today announced financial results for the three months ended March 31, 2026. First Quarter 2026 Highlights (quarterly period ended March 31, 2026): Delivered Net Sales of $99.5 million in the first quarter, at the high end of guidance range and exceeding analyst consensus Total orders and AOV each grew year-over-year 3% Average Selling Price (ASP) grew year-over-year across the assortment in Q1 Drove another strong quarter of fine jewelry bookings, with 33% year-over-year bookings growth, highlighting continued success in diversification beyond bridal heritage Opened first flagship showroom in Beverly Hills, with impressive initial performance including strong retail orders and foot traffic Achieved Gross Margin of 54.3% in the first quarter, within mid-50s target, while navigating headwinds in precious metal prices and tariffs, demonstrating the agility of the Company's business model Drove 90 basis points of year-over-year leverage in marketing expense as a percentage of Net Sales while continuing to make strategic investments in building brand awareness Delivered profitability in the upper half of the Company's Adjusted EBITDA guidance range: GAAP Net loss was $8.5 million for the first quarter 2026; and Adjusted EBITDA was negative $4.7 million for the first quarter 2026 "We're pleased with our first quarter results, with Net Sales at the high end and Adjusted EBITDA in the upper half of our guidance. Our team's agility in managing both gross margin and operating expenses in a dynamic environment continues to be a key differentiator for Brilliant Earth," said Beth Gerstein, Co-Founder and Chief Executive Officer of Brilliant Earth. "Our ASP growth across the assortment demonstrates the resonance of our premium brand and innovative, new design collections. Fine jewelry continues to outperform the business and drive our intentional diversification beyond bridal. And our evolving retail strategy is continuing to demonstrate success and amplify our fine jewelry opportunity. As we move into the rest of the year, we're confident in our path forward and excited to continue executing on our strategic vision." First Quarter Results 2026 Outlook Webcast and Conference Call Information Brilliant Earth will host a conference call and webcast to discuss first quarter 2026 results and business outlook today, May 6, 2026, at 5:00 p.m. ET/2:00 p.m. PT. The webcast and accompanying slide presentation can be accessed at https://investors.brilliantearth.com. The conference call can be accessed by using the following link: https://register-conf.media-server.com/register/BIfd5aa87054af4d8cae324a519f6c6551. After registering, an email will be sent including dial-in details and a unique conference call pin required to join the live call. A replay of the webcast will remain available on the website after the live webcast concludes. About Brilliant Earth Brilliant Earth is an industry-disrupting global leader in ethically sourced fine jewelry. The Company's mission since its founding in 2005 has been to create a more transparent, sustainable, and compassionate jewelry industry. With a premium brand, curated proprietary product assortment, seamless omnichannel shopping experience, and asset-light, data driven business model, Brilliant Earth is transforming the jewelry industry. The Company reported Net Sales of $437 million for the full year 2025. Headquartered in San Francisco, CA, Brilliant Earth has 42 showrooms and counting across the United States and has served customers in over 50 countries worldwide. Disclosure Regarding Non-GAAP Financial Measures and Key Metrics In addition to the financial measures presented in this release in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company has included certain non-GAAP financial measures in this release, including Adjusted EBITDA, Adjusted Net loss, Adjusted Diluted EPS and Adjusted EBITDA margin. These non-GAAP financial measures provide users of our financial information with useful information in evaluating our operating performance and exclude certain items from net income that may vary substantially in frequency and magnitude from period to period. We define EBITDA as net loss before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as net loss excluding interest expense, income taxes, depreciation expense, amortization of cloud-based software implementation costs, showroom pre-opening expense, equity-based compensation expense, certain non-operating expenses and income, and other unusual and/or infrequent costs, which that we do not consider in our evaluation of ongoing performance of our core operations. We define Adjusted EBITDA margin as Adjusted EBITDA calculated as a percentage of net sales. We believe that Adjusted EBITDA and Adjusted EBITDA margin, which eliminate the impact of certain expenses that we do not believe reflect our underlying business performance, provide useful information to investors to assess the performance of our business. We define Adjusted Net loss as net loss adjusted for the impact of certain additional non-cash and other items that we do not consider in our evaluation of ongoing performance of our core operations. These items include showroom pre-opening expense, equity-based compensation expense, costs to fund the Brilliant Earth Foundation and transaction costs and other expenses. We define Adjusted Diluted Earnings Per Share as Adjusted Net loss, divided by the diluted weighted average shares of common stock outstanding. The diluted weighted average shares of common stock outstanding is derived from the historical diluted weighted average shares of common stock assuming such shares were outstanding for the entirety of the period presented. We believe Adjusted Net loss and Adjusted Diluted Earnings Per Share, which eliminate the impact of certain expenses that we do not believe reflect our underlying business performance, provide useful information to investors to assess the performance of our business. Please refer to “GAAP to Non-GAAP Reconciliations” located in the financial supplement in this release for a reconciliation of GAAP to non-GAAP financial information. This release includes forward-looking guidance for certain non-GAAP financial measures, including Adjusted EBITDA. These measures will differ from net loss, determined in accordance with GAAP, in ways similar to those described in the reconciliations at the end of this release. We are not able to provide, without unreasonable effort, guidance for net loss, determined in accordance with GAAP, or a reconciliation of guidance for Adjusted EBITDA to the most directly comparable GAAP measure because the Company is not able to predict with reasonable certainty the amount or nature of all items that will be included in net income. This press release also contains certain key business metrics which are used to evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. We define net cash as cash and cash equivalents less the total principal balance of our outstanding debt. We define Bookings for each period as the dollar value of confirmed orders as of the date of order placement. We believe Bookings, which represent a measure of gross sales and potential future Net Sales, provide useful information to investors to assess the performance of our business. We define total orders as the total number of customer orders delivered less total orders returned in a given period (excluding those repair, resize, and other orders which have no revenue). We view total orders as a key indicator of the velocity of our business and an indication of the desirability of our products to our customers. Total orders, together with AOV, is an indicator of the net sales we expect to recognize in a given period. Total orders may fluctuate based on the number of visitors to our website and showrooms, and our ability to convert these visitors to customers. We believe that total orders is a measure that is useful to investors and management in understanding our ongoing operations and in an analysis of ongoing operating trends. We define average order value, or AOV, as net sales in a given period divided by total orders in that period. We define average selling price, or ASP, as the total retail sales price of products sold in a given period divided by the total number of product units sold during that same period. We believe that AOV and ASP are measures that are useful to investors and management in understanding our ongoing operations and in an analysis of ongoing operating trends. AOV varies depending on the product type and number of items per order. AOV and ASP may also fluctuate as we expand into and increase our presence in additional product types and price points, and open additional showrooms. Forward-Looking Statements This press release contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this press release may be forward-looking statements. Statements regarding our future results of operations and financial position, business strategy, and management's plans and objectives for future operations, including among others, statements regarding expected growth, introduction of new products, showroom and international expansion, market opportunity, capital expenditures, marketing and technology investments, liquidity and capital needs, tariff and macroeconomic impacts and any potential future declarations of cash dividends are forward-looking statements. In some cases, you can identify forward-looking statements by terms, such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “evolve,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “strategy,” “target,” “will,” or “would,” or the negative of these terms or other similar expressions. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, but not limited to: fluctuations in the pricing and supply of diamonds, other gemstones, and precious metals, particularly responsibly sourced natural and lab-grown diamonds and repurposed precious metals such as gold; increases in labor costs for manufacturing such as wage rate increase, as well as inflation, and energy prices; an overall decline in the health of the economy and other factors impacting consumer spending, such as recessionary or inflationary conditions, governmental instability, the impact of any changes in trade policy, including the imposition of new or increased tariffs on goods imported into the United States and any resulting retaliatory trade actions by other governments, war and fears of war, and natural disasters; our ability to cost-effectively turn existing customers into repeat customers or acquire new customers; our rapid growth in recent years and limited operating experience at our current scale of operations and our ability to manage growth effectively; increased lead times, supply shortages and supply changes; our plans to expand showrooms in the United States; our ability to compete in the fine jewelry retail industry; our ability to maintain and enhance our brand and to engage or expand our customers base; our ability to expand our sales and marketing capabilities and achieve broader market acceptance of our e-commerce and omnichannel approach; our ability to manage our inventory balances and shrinkage; a decline in sales of Design Your Own rings; our ability to predict operating results; our heavy reliance on our information technology systems and those of our third-party vendors and service providers to safeguard confidential information and any significant failure, inadequacy or interruption of these systems, security breaches or loss of data; the impact of environmental, social, and governance matters on our business and reputation; risks related to our e-commerce and omnichannel business; our ability anticipate and respond to changes in consumer preferences and shopping patterns and introduce new products and programs; our dependence on distributions from Brilliant Earth, LLC to pay our taxes and expenses, including payments under the Tax Receivable Agreement; our obligations under the Tax Receivable Agreement, which confers certain benefits upon the Continuing Equity Owners that will not benefit holders of our Class A common stock to the same extent; and risks related to our organizational structure; and the other risks, uncertainties and the factors described in the section titled “Risk Factors” in our Annual Report on Form10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission on March 17, 2026, and available at www.sec.gov. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this press release. Except as required by applicable law, we undertake no obligation to update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise. Contacts: Investors: Colin Bourland [email protected]

Brilliant Earth reported Q1 net sales up about 6% to $99.5M, driven by higher-priced purchases and fine jewelry momentum—fine jewelry bookings rose 33% YoY (17% of bookings) and the Sol Collection bookings jumped 90% YoY, while showroom fine-jewelry bookings grew 48% YoY. Margins and profitability were pressured by high metal costs with gross margin at 54.3% and adjusted EBITDA of −$4.7M in Q1, but management expects sequential margin improvement and guided Q2 adjusted EBITDA of $0.5M–$2M and full-year mid-single-digit sales growth with a mid‑fifties gross margin. The balance sheet shows about $59M cash and no debt, inventory turns >4x, and management is investing in showroom expansion and staffing while noting a consumer bifurcation—softness at lower price points alongside continued strength at higher price points. Interested in Brilliant Earth Group, Inc.? Here are five stocks we like better. Brilliant Earth Group (NASDAQ:BRLT) reported first-quarter 2026 results that management said reflected “disciplined execution” of its growth strategy, led by continued strength in higher-priced purchases and rapid expansion in fine jewelry. Net sales rose about 6% year-over-year to $99.5 million, landing at the high end of the company’s guidance range, while total orders increased roughly 3%. Chief Executive Officer Beth Gerstein said the quarter’s performance was supported by repeat order strength and year-over-year average selling price gains “across the assortment.” Fine jewelry was a key contributor: Gerstein said fine jewelry bookings increased 33% year-over-year and represented 17% of total bookings. She also highlighted “impressive” year-over-year bookings growth in wedding and anniversary bands. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Gerstein pointed to ongoing evidence of brand momentum during key gifting periods. She said Valentine’s Day was “a record,” with bookings up 9% year-over-year during the two-week peak shopping window, and attributed campaign results to storytelling and engagement, citing “triple-digit year-over-year growth in organic social engagement” from the company’s Perfect Timing campaign. The company also emphasized product momentum in signature collections. Gerstein said bookings from Brilliant Earth’s proprietary Sol Collection, first launched in the fourth quarter of 2023, grew 90% year-over-year. → Tyson Foods' Total Returns: Tasty Treats for Income Investors? Brilliant Earth ended the quarter with 42 showrooms and is planning two more locations—San Antonio, Texas, and San Jose, California—by year-end, Gerstein said. Management discussed the role of physical retail in supporting fine jewelry growth. Gerstein said fine jewelry bookings in showrooms grew 48% year-over-year in the quarter, outpacing overall assortment growth. She also described longer-term progress tied to in-showroom fine jewelry merchandising. After introducing its first “fine jewelry try-on bar” in the third quarter of 2024 and expanding the concept across showrooms, Gerstein said fine jewelry bookings from showrooms “have nearly doubled” in the 18 months following compared with the prior 18-month period. → Berkshire Hathaway’s Record Cash Hoard: Why and What's Next? Gerstein highlighted the company’s Beverly Hills flagship location, which opened in January, saying it has delivered “very strong retail orders and foot traffic with exceptional customer sentiment.” She added that the flagship’s “Date Night” appointment format has been “incredibly popular” and is “typically booked multiple weeks in advance.” In addition, Gerstein said the company launched “Bridal Collective” creator-hosted events in New York and Beverly Hills, generating “over 150 pieces of organic content across 41 creators.” Chief Financial Officer Jeffrey Kuo reported gross margin of 54.3%, which he said was within expectations for “mid-50s” margins. Kuo attributed margin pressure to “historically high metal prices” impacting cost of goods, partially offset by pricing and operational levers including “price optimization,” product design and specification changes, “vendor procurement efficiencies,” and hedging. Both Gerstein and Kuo said they expect gross margin improvement as 2026 progresses. Gerstein said the company believes first quarter “marks the low point” for gross margin this year, while Kuo said the company expects gross margin in the remainder of 2026 “to be higher than Q1” as initiatives continue. In response to an analyst question, Kuo added that quarter-to-date the company has seen “improving gross margins” sequentially. On pricing, management said selective increases were taken to offset metal costs, while monitoring elasticity. Responding to TD Cowen analyst Oliver Chen, Gerstein said the company is being “very surgical” and is focused on “protect[ing] value, quality, profitability while still making sure that we are attracting that new customer.” Adjusted EBITDA was negative $4.7 million in the quarter, representing a negative 4.7% margin, which Kuo said was in the upper half of the company’s guidance range. He noted that the first quarter is typically the company’s seasonally lowest quarter for net sales and that higher profitability is expected in subsequent quarters. Operating expense was 63.3% of net sales versus 62.4% in the prior-year quarter, reflecting about 90 basis points of deleverage. Adjusted operating expense was 59.2% of net sales compared with 57.6% in the prior-year period. Kuo said higher employee costs—up about 190 basis points as a percentage of sales on an adjusted basis—reflected increased showroom staffing, including newly opened showrooms. Other G&A rose by about 60 basis points as a percentage of sales on an adjusted basis, which Kuo said reflected a “balanced approach” to cost discipline while investing for the medium and long term. Marketing expense improved as a percentage of revenue. Kuo reported marketing expense of 23.6% of net sales, down from 24.5% a year earlier, representing about 90 basis points of year-over-year leverage. Brilliant Earth ended the quarter with approximately $59 million in cash and no debt, Kuo said. He noted the year-over-year decline in cash reflected the payoff of the company’s term loan in the third quarter of the prior year and the completion of a “one-time dividend and distribution of approximately $25 million” last year. Inventory increased year-over-year, which Kuo attributed primarily to “strategic procurement opportunities” to buy diamond and jewelry inventory at advantageous prices last year and to growth in the fine jewelry assortment. Even so, he said inventory turns remained “over 4 times,” which management said is significantly above the industry average. Looking ahead, Kuo guided to second-quarter net sales growth in the low single-digit percentage range year-over-year and adjusted EBITDA of $0.5 million to $2 million. For the full year, the company reiterated expectations for mid-single-digit net sales growth and a mid-fifties gross margin, along with marketing leverage as a percentage of net sales. Kuo said full-year adjusted EBITDA dollars are expected to be positive but “slightly lower than 2025,” with most of the year’s adjusted EBITDA anticipated in the fourth quarter due to seasonal revenue patterns and expected gross margin improvements. Management also discussed consumer behavior trends, citing a bifurcation between higher and lower price points. Gerstein said the company is seeing “some signs of softness at lower price points,” while demand at higher price points is “holding up well” in the second quarter to date. She added that quarter-to-date bookings growth has been driven by higher price points and fine jewelry outperformance. On the product pipeline, Gerstein highlighted new launches including the Butterfly Collection and the Keepsake Collection ahead of Mother’s Day, and said additional collections are planned for later in the year. She also noted the company “reintroduced” its Ring Pop collaboration, which she said “sold out.” During the Q&A, Gerstein addressed how fine jewelry is influencing customer acquisition and repeat behavior, saying the company continues to invest in both bridal and fine jewelry and is “laser focused” on driving repeat and loyalty. Kuo added that as fine jewelry grows over time, the company expects “some moderation in price points overall” because fine jewelry generally carries lower price points than bridal. Gerstein said the company has not made changes to its full-year outlook based on macro factors discussed on the call, including energy prices, reiterating that the company is maintaining its prior guidance. Brilliant Earth Group, Inc (NASDAQ: BRLT) is a specialty retailer of ethically sourced fine jewelry, with a focus on conflict-free diamonds and lab-grown gemstones. The company offers a broad range of products that include engagement rings, wedding bands, necklaces, earrings and bracelets, all crafted with a commitment to environmental sustainability and social responsibility. Customers can choose from a variety of materials such as recycled precious metals, responsibly sourced gemstones and innovative lab-grown diamonds. Operating primarily through its e-commerce platform and a network of branded showrooms across major U.S. The article "Brilliant Earth Group Q1 Earnings Call Highlights" was originally published by MarketBeat.