Brilliant Earth Group reported second-quarter net sales of $115 million, a 6% increase from the prior year and above the high end of guidance, while adjusted EBITDA reached $5.8 million, significantly above expectations.
Gross margin expanded to just under 58%, up more than 300 basis points sequentially from the first quarter, as the company maintained zero debt and $75 million in cash. Average order value topped $2,200, with operating expense leverage improving by 250 basis points year-over-year, driven by reductions in marketing and employee expenses.
Overall orders declined 2% year-over-year, but excluding transactions below $500—which represent about 5% of sales—orders rose 5%. Fine jewelry bookings surged 32% year-over-year, accounting for 18% of total bookings, with products priced at $500 and above up over 40%. Wedding and anniversary bands also posted double-digit growth, while a two-week Mother’s Day gifting period delivered a 15% year-over-year increase in bookings.
The company operates 43 showrooms nationally, with walk-in customer bookings rising 47% year-over-year in Q2. The Beverly Hills flagship delivered 40% year-over-year bookings growth, supported by a 10% higher average order value for appointments, while the newly opened San Antonio showroom marks the 43rd location under the company’s smaller-format "showroom-of-the-future" model.
Brilliant Earth targets affluent millennials and Gen Z consumers aged 25 to 44 with household incomes between $100,000 and $200,000, operating in a $350 billion global jewelry market that remains highly fragmented. Inventory turnover stands at four times, compared with an industry average of one to two times, with typical product delivery times ranging from two to three weeks.
Full-year 2025 guidance calls for net sales of $459 million to $462 million and adjusted EBITDA of $13 million to $15 million, reflecting higher profitability than 2024. Third-quarter net sales are expected to be roughly flat year-over-year, up about 10% on a two-year basis due to prior-year tariff-related pull-forward effects, with adjusted EBITDA projected between $3 million and $5 million.
