Brilliant Earth Q2 2025 slides: Sales growth returns as orders surge 18%

Introduction & Market Context

Brilliant Earth Group Inc (NASDAQ:BRLT) reported a return to growth in its Q2 2025 financial results presentation on August 7, 2025, with net sales increasing 3.3% year-over-year to $108.9 million. The results mark a significant turnaround from Q1’s 3.5% revenue decline, driven by an 18% surge in total orders despite lower average order values.

The company’s stock has responded positively to the results, with shares jumping 60.69% to $2.22 during the trading session, well above its 52-week low of $1.25. The stock had previously traded near those lows following Q1 results.

Quarterly Performance Highlights

Brilliant Earth delivered solid financial results in the second quarter, achieving its 16th consecutive quarter of positive adjusted EBITDA. The company reported adjusted EBITDA of $3.2 million, representing a 2.9% margin.

As shown in the following financial highlights from the presentation:

While net sales grew 3.3% year-over-year, gross margin contracted to 58.3%, down 250 basis points from 60.8% in the same period last year. This margin pressure was offset by strong volume growth, with total orders increasing 18% and repeat orders growing 11% compared to Q2 2024.

The company’s average order value (AOV) decreased to $2,074 from $2,374 in the prior year period, continuing a trend seen in Q1 where AOV was $2,062. This shift reflects changing consumer preferences and the company’s strategic expansion into fine jewelry at various price points.

Strategic Initiatives

Brilliant Earth highlighted several key achievements during the quarter, including strong growth in its fine jewelry segment, which saw bookings increase 38% year-over-year. The company also continued its showroom expansion strategy, opening a new location in Alpharetta, Georgia, bringing its total showroom count to 42.

The quarterly highlights demonstrate the company’s progress across multiple fronts:

The company’s omnichannel strategy continues to deliver results, with orders from retail customers without scheduled appointments growing 81% year-over-year in Q2. This suggests the company is successfully attracting walk-in traffic to its physical locations.

Brilliant Earth’s "Design Your Own" model remains central to its business strategy, allowing for higher inventory turns and efficient working capital management:

The company has also leveraged celebrity partnerships to drive brand awareness, including crafting a custom diamond bolo tie for Beyoncé’s Cowboy Carter Tour and announcing tennis player Madison Keys as a brand ambassador. These product-centric campaigns have contributed to unit growth across the company’s product assortment:

Financial Position

Brilliant Earth ended the quarter with a strong balance sheet, reporting $98.8 million in net cash, a 5% increase year-over-year. The company made significant financial moves during the quarter, including paying off its outstanding term loan balance of $34.8 million and announcing a one-time dividend and distribution with total aggregate payments of approximately $25.3 million.

The company’s financial summary shows the quarterly and six-month performance compared to the prior year:

A closer look at order metrics reveals the shift in consumer behavior, with total orders increasing significantly while average order value declined:

Forward-Looking Statements

Brilliant Earth provided an optimistic outlook for the remainder of 2025, projecting accelerated growth in the third quarter with net sales expected to increase 8-10% year-over-year and adjusted EBITDA between $3 million and $4.5 million.

For the full fiscal year 2025, the company forecasts:

Looking further ahead, Brilliant Earth outlined medium-term targets that include accelerating to low-teens year-over-year growth by 2027 and achieving double-digit adjusted EBITDA margins:

Competitive Industry Position

Brilliant Earth continues to position itself as a "next-generation fine jeweler" with a focus on transforming and modernizing the jewelry industry. The company emphasizes its asset-light, technology-enabled business model that allows for quick adaptation to market trends and consumer preferences.

The company’s omnichannel approach combines its digitally native roots with an expanding physical presence, delivering what it describes as "seamless consumer experiences":

Analyst Perspectives

While specific analyst commentary on the Q2 results was not included in the presentation, the strong market reaction suggests investors are responding positively to the return to growth and improved outlook. The company’s ability to drive significant order volume increases despite lower average order values demonstrates resilience in a challenging luxury goods market.

The results appear to validate Brilliant Earth’s strategic shift toward fine jewelry and its omnichannel expansion. With 16 consecutive quarters of positive adjusted EBITDA and a strong cash position, the company seems well-positioned to execute on its growth plans while maintaining financial discipline.

The 60.69% stock price surge following the results represents a significant vote of confidence from investors who had previously been concerned about the company’s growth trajectory after Q1’s disappointing performance.

Full presentation:

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