Third Quarter 2026
Filed Nov 5, 2026Brilliant Earth Reports Third Quarter Results Delivered 2% Y/Y Net Sales Growth and $5.1M Adjusted EBITDA, Exceeding High End of Guidance Expanded Gross Margin Year-Over-Year by 210 bps
Third-quarter net sales grew 2.3%, gross margin expanded 210 bps, and Adjusted EBITDA increased 43.7% to $5.1 million. The nine-month results remained weaker year over year, including a net loss of $5.2 million and a 20.9% decline in Adjusted EBITDA.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Orders, three months ended September 30, 2026other | 52,720 | – | 5.6% |
| AOV, three months ended September 30, 2026other | $ 2,140 | – | (3.1)% |
| Net Sales, three months ended September 30, 2026GAAP | $112.8M | – | 2.3% |
| Gross Profit, three months ended September 30, 2026GAAP | $67.4M | – | 6.2% |
| Gross Margin, three months ended September 30, 2026GAAP | 59.7% | – | 210 bps |
| Marketing and advertising expense, three months ended September 30, 2026GAAP | $26.32M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $39.13M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $65.45M | – | – |
| Income (loss) from operations, three months ended September 30, 2026GAAP | $1.92M | – | – |
| Net income (loss), as reported, three months ended September 30, 2026GAAP | $2.4M | – | 457.3% |
| Net income (loss) allocable to Brilliant Earth Group, Inc., three months ended September 30, 2026GAAP | $200K | – | 264.5% |
| Net income (loss) margin, three months ended September 30, 2026GAAP | 2.1% | – | 270 bps |
| GAAP Basic EPS, three months ended September 30, 2026GAAP | $ 0.01 | – | – |
| GAAP Diluted EPS, three months ended September 30, 2026GAAP | $0.02 | – | 300.0% |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $2.8M | – | 62.6% |
| Adjusted Diluted EPS, three months ended September 30, 2026non-GAAP | $0.03 | – | 50.0% |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $5.1M | – | 43.7% |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 4.5% | – | 130 bps |
| Total Orders, nine months ended September 30, 2026other | 150,854 | – | 1.9% |
| AOV, nine months ended September 30, 2026other | $ 2,170 | – | 2.6% |
| Net Sales, nine months ended September 30, 2026GAAP | $327.4M | – | 4.6% |
| Gross Profit, nine months ended September 30, 2026GAAP | $188.1M | – | 3.3% |
| Gross Margin, nine months ended September 30, 2026GAAP | 57.4% | – | (70) bps |
| Marketing and advertising expense, nine months ended September 30, 2026GAAP | $76.08M | – | – |
| General and administrative expense, nine months ended September 30, 2026GAAP | $118.5M | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $194.6M | – | – |
| Income (loss) from operations, nine months ended September 30, 2026GAAP | −$6.51M | – | – |
| Net loss, as reported, nine months ended September 30, 2026GAAP | −$5.2M | – | (3.1)% |
| Net loss allocable to Brilliant Earth Group, Inc., nine months ended September 30, 2026GAAP | −$1.3M | – | (77.9)% |
| Net loss margin, nine months ended September 30, 2026GAAP | (1.6)% | – | — bps |
| GAAP Basic EPS, nine months ended September 30, 2026GAAP | $ (0.08) | – | – |
| GAAP Diluted EPS, nine months ended September 30, 2026GAAP | $(0.08) | – | (60.0)% |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $1M | – | (57.6)% |
| Adjusted Diluted EPS, nine months ended September 30, 2026non-GAAP | $0.01 | – | (50.0)% |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $6.2M | – | (20.9)% |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 1.9% | – | (60) bps |
Full Year 2026 outlook
- RevenueNet Sales Growth 2.75% - 4% y/y
- NoteAdjusted EBITDA $13 - $15M
- NoteOutlook assumes tariffs and metal prices as of November 3rd, 2026.
What drove it
- Total Orders increased 5.6% in the third quarter while AOV decreased (3.1)%.
- Fine jewelry bookings grew to 16% of total bookings in Q3.
- The Company delivered its highest ever quarter of wedding and anniversary band bookings.
- The Company cited new launches including its Charms collection, new colors in its California Collection, the third chapter of its Jane Goodall collaboration, and its newest collection with the Elizabeth Taylor estate.
- The Company cited its premium brand, seamless omnichannel customer experience, and asset-light, data-driven business model as drivers of third-quarter results.
Concerns
- AOV decreased (3.1)% in the third quarter.
- Nine-month gross margin declined (70) bps to 57.4%.
- Nine-month Adjusted EBITDA declined (20.9)% to $6.2 million and Adjusted EBITDA margin declined (60) bps to 1.9%.
- The nine-month period reported a net loss of $(5.2) million.
- Full-year outlook assumes tariffs and metal prices as of November 3rd, 2026.
What to watch
- Full Year Net Sales Growth guidance of 2.75% - 4% y/y.
- Full Year Adjusted EBITDA guidance of $13 - $15M.
- Fine jewelry bookings as a share of total bookings following the Q3 level of 16%.
- Total orders and AOV trends during the holiday season.
- Gross-margin performance amid the tariff and metal-price assumptions in the outlook.
Balance sheet and cash flow
- Cash and cash equivalents: $ 76,176 (Dollars in thousands) as of September 30, 2026; $ 79,089 (Dollars in thousands) as of December 31, 2025.
- Restricted cash: $ 127 (Dollars in thousands) as of September 30, 2026; $ 349 (Dollars in thousands) as of December 31, 2025.
- Inventories, net: $ 50,332 (Dollars in thousands) as of September 30, 2026; $ 53,238 (Dollars in thousands) as of December 31, 2025.
- Total current assets: $ 139,476 (Dollars in thousands) as of September 30, 2026; $ 144,728 (Dollars in thousands) as of December 31, 2025.
- Total assets: $ 196,924 (Dollars in thousands) as of September 30, 2026; $ 200,903 (Dollars in thousands) as of December 31, 2025.
- Total current liabilities: $ 87,602 (Dollars in thousands) as of September 30, 2026; $ 90,103 (Dollars in thousands) as of December 31, 2025.
- Total liabilities: $ 122,760 (Dollars in thousands) as of September 30, 2026; $ 121,266 (Dollars in thousands) as of December 31, 2025.
- Total stockholders' equity: $ 74,164 (Dollars in thousands) as of September 30, 2026; $ 79,637 (Dollars in thousands) as of December 31, 2025.
Analysis
Brilliant Earth delivered a stronger third quarter than its year-to-date profitability profile. Third-quarter net sales increased 2.3% to $112.8 million, as total orders rose 5.6% to 52,720 while AOV decreased (3.1)% to $ 2,140. The company described fine jewelry as a standout, reporting that fine jewelry bookings reached 16% of total bookings and that wedding and anniversary band bookings reached their highest-ever quarterly level.
Gross profit increased 6.2% to $67.4 million, outpacing sales, and gross margin increased 210 bps to 59.7%. Marketing and advertising expense was $ 26,319 (Dollars in thousands), compared with $ 26,132 (Dollars in thousands), while general and administrative expense was $ 39,129 (Dollars in thousands), compared with $ 37,939 (Dollars in thousands). This resulted in income from operations of $ 1,923 (Dollars in thousands), compared with a loss from operations of $ (620) (Dollars in thousands), and net income of $2.4 million compared with a net loss of $(0.7) million.
Non-GAAP profitability also improved in the quarter. Adjusted EBITDA increased 43.7% to $5.1 million and Adjusted EBITDA margin increased 130 bps to 4.5%. Adjusted net income was $2.8 million and Adjusted Diluted EPS was $0.03. The release states that both net sales and Adjusted EBITDA exceeded the Company's guidance, but the prior outlook ranges were not provided with this filing.
The nine-month results show the earlier-period drag that remains relevant for the full-year setup. Net sales increased 4.6% to $327.4 million, but gross margin declined (70) bps to 57.4%. The company reported a net loss of $(5.2) million, Adjusted EBITDA of $6.2 million, down (20.9)%, and an Adjusted EBITDA margin of 1.9%, down (60) bps. The reconciliation identifies $1.8 million for write-off of information technology projects and a $0.6 million charitable contribution within nine-month other expenses.
For Full Year 2026, the company guided to Net Sales Growth of 2.75% - 4% y/y and Adjusted EBITDA of $13 - $15M. The outlook assumes tariffs and metal prices as of November 3rd, 2026. Investors will be focused on holiday demand, the balance between order growth and AOV, continuation of the third-quarter gross-margin performance, and progress from the nine-month Adjusted EBITDA level toward the full-year range.
Management, verbatim
We're pleased with our third quarter results, with both Net Sales and Adjusted EBITDA exceeding our guidance. Our team's ability to drive top line growth, expand gross margin and manage expenses with discipline reflects the consistent execution that sets Brilliant Earth apart.
Beth Gerstein, Co-Founder and Chief Executive Officer of Brilliant Earth
Fine jewelry was a standout once again, with new launches deepening our connection with customers beyond bridal, including our Charms collection, exclusive new colors introduced in our California Collection, the third chapter of our Jane Goodall collaboration, and our newest collection with the Elizabeth Taylor estate. Our premium brand, seamless omnichannel customer experience, and asset-light, data-driven business model drove our strong third quarter results and positions us well for the holiday season.”
Beth Gerstein, Co-Founder and Chief Executive Officer of Brilliant Earth
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported metrics were not provided.
- Revenue by operating segment was not provided.
- Operating cash flow was not provided.
- Free cash flow was not provided.
- Capital expenditures were not provided.
- Debt balance was not provided.
- Share repurchases or dividends during the reported period were not provided.
- Prior guidance figures were not provided, so reported results cannot be compared with prior guidance ranges.
- Full-year guidance for gross margin, operating expenses, and tax rate was not provided.
- GAAP net income guidance and a reconciliation of Adjusted EBITDA guidance to GAAP net income were not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.