Brilliant Earth — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported third-quarter net sales of $112.8 million, a 2.3% year-over-year increase from $110.3 million.
• Achieved gross margin of 59.7% in Q3 2026, representing a 210 basis point improvement from 57.6% in Q3 2025.
• Reported GAAP net income of $2.4 million for Q3 2026, compared to a net loss of $0.7 million in Q3 2025.
• Adjusted EBITDA for Q3 2026 was $5.1 million, a 43.7% increase from $3.6 million in Q3 2025, with an adjusted EBITDA margin of 4.5% (up from 3.2%).
• Adjusted net income for Q3 2026 was $2.8 million, up 62.6% from $1.7 million in Q3 2025.
• GAAP diluted EPS was $0.02 for Q3 2026 versus $(0.01) in Q3 2025; adjusted diluted EPS was $0.03 versus $0.02.
• Nine-month net sales totaled $327.4 million, a 4.6% increase from $313.1 million in the prior year period.
• Nine-month gross margin was 57.4%, a 70 basis point decrease from 58.1% in the same period last year.
• Nine-month adjusted EBITDA was $6.2 million, a 20.9% decrease from $7.8 million, with a margin of 1.9% versus 2.5%.
• Nine-month GAAP net loss was $5.2 million compared to $5.1 million in the prior year period.
• Nine-month adjusted net income was $1.0 million, a 57.6% decrease from $2.5 million.
• Total orders for Q3 2026 were 52,720, up 5.6% from 49,910 in Q3 2025.
• Average order value (AOV) for Q3 2026 was $2,140, down 3.1% from $2,209 in Q3 2025.
• Nine-month total orders were 150,854, up 1.9% from 147,980, with an AOV of $2,170, up 2.6%.
• Cash and cash equivalents were $76.2 million as of September 30, 2026, down from $79.1 million as of December 31, 2025.
• Deferred revenue was $24.1 million as of September 30, 2026, up from $22.7 million as of December 31, 2025.
• Total liabilities were $122.8 million as of September 30, 2026, compared to $121.3 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 net sales growth guidance is 2.75% to 4% year-over-year.
• Full-year 2026 adjusted EBITDA guidance is $13 million to $15 million.
• Outlook assumes tariffs and metal prices as of November 3, 2026.

Business Segments and Product Lines:

• Fine jewelry bookings grew to 16% of total bookings in Q3 2026, highlighting diversification beyond bridal heritage.
• Q3 2026 delivered the highest ever quarter of wedding and anniversary band bookings.
• New product launches included the Charms collection, exclusive new colors in the California Collection, the third chapter of the Jane Goodall collaboration, and a new collection with the Elizabeth Taylor estate.

Market and Competitive Landscape:

• The company describes itself as an industry-disrupting global leader in ethically sourced fine jewelry.
• The business model is characterized as premium, seamless omnichannel, asset-light, and data-driven.
• The company serves customers in over 50 countries and operates 43 showrooms in the United States.

Risks and Challenges:

• Risks include fluctuations in pricing and supply of diamonds, gemstones, and precious metals.
• Potential impacts from inflation, energy prices, and increased labor costs for manufacturing.
• Exposure to macroeconomic factors such as recessionary conditions, governmental instability, and trade policy changes including tariffs.
• Risks related to supply chain disruptions, including increased lead times and supply shortages.
• Dependence on information technology systems and third-party vendors for data security and operations.
• Obligations under the Tax Receivable Agreement which confer benefits on Continuing Equity Owners that may not benefit Class A common stockholders to the same extent.

Management Commentary and Tone:

• Beth Gerstein, Co-Founder and CEO, expressed pleasure with results, noting both net sales and adjusted EBITDA exceeded guidance.
• Management attributed success to the team's ability to drive top-line growth, expand gross margin, and manage expenses with discipline.
• Management highlighted the "standout" performance of fine jewelry and the strength of the premium brand and omnichannel experience.
• The tone indicates confidence in positioning the company well for the holiday season.

Other Key Points:

• The company reported net sales of $437 million for the full year 2025.
• The press release includes non-GAAP financial measures including Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS.
• Nine-month "Other expenses" included a $1.8 million charge for the write-off of information technology projects and a $0.6 million charitable contribution.
• The company hosts a conference call and webcast on November 5, 2026, to discuss results and outlook.