Brilliant Earth Group reported second-quarter net sales of $115 million, a 6% increase from the prior year and above the top end of its guidance. Adjusted EBITDA reached $5.8 million, exceeding projections, while the company maintained a debt-free balance sheet with $75 million in cash.
Gross margin improved to 57.8%, up more than 300 basis points from the first quarter, supported by expense leverage across marketing, personnel and administrative categories. Operating expenses as a proportion of sales declined by 250 basis points year-over-year, with marketing expense leverage contributing 130 basis points of the reduction.
Fine jewelry drove the strongest performance, with reserves expanding 32% year-over-year to represent 18% of total reserves. Products priced at $500 and above grew over 40% year-over-year, while wedding and anniversary bands posted double-digit reserve growth. A two-week Mother’s Day campaign contributed a 15% year-over-year increase in reserves. The segment is on track to become a $100 million business, according to management.
Total orders fell 2% year-over-year, but excluding transactions under $500—which account for about 5% of sales—order volume rose 5%. Average order value exceeded $2,200, while inventory turnover reached four times, compared with an industry average of one to two times.
The company operates 43 showrooms, including a newly opened location in San Antonio featuring its second-generation "showroom of the future" model. Walk-in customer reserves in showrooms surged 47% year-over-year, while the Beverly Hills showroom recorded a 40% year-over-year increase in reserves since opening. Appointments at the Beverly Hills location generated average order values 10% higher than typical bookings.
Brilliant Earth estimates the global jewelry market at $350 billion, with independent retailers comprising about two-thirds of the fragmented sector. The company represents less than 1% of the total addressable market. Management projects the broader market to grow at a 5% compound annual rate between 2025 and 2030, supported by approximately 2 million weddings annually in the U.S. The core target demographic spans affluent millennials and Gen Z consumers aged 25 to 44 with household incomes between $100,000 and $200,000.
For full-year 2025, Brilliant Earth expects net sales of $459 million to $462 million and adjusted EBITDA of $13 million to $15 million. Third-quarter guidance calls for roughly flat sales year-over-year, though up about 10% on a two-year stack basis due to tariff-related pull-forwards in the prior year, with adjusted EBITDA projected between $3 million and $5 million.
