Brilliant Earth Group, Inc.

Q2 net sales were $115.1 million, up approximately 5.7% year over year and above the high end of guidance. Gross margin was 57.9%, down approximately 40 basis points year over year but up approximately 360 basis points sequentially from Q1. Adjusted EBITDA was $5.8 million, or a 5% adjusted EBITDA margin, well above expectations. Q2 average order value was approximately $2,238, up about 8% year over year, while total orders were down approximately 2% year over year. For the full year, Brilliant Earth expects net sales of $459 million to $462 million and raised adjusted EBITDA guidance to $13 million to $15 million. For Q3, the company expects net sales to be about flat year over year and adjusted EBITDA of $3 million to $5 million. Management expects gross margin to be in a similar range in Q3 as in Q2 and to manage to a mid- to high-50s gross margin in the second half, assuming metal prices and tariff rates stay similar to this week.

Beth Gerstein framed the quarter as proof that the brand is resonating with higher-income consumers and that the company’s premium, design-forward positioning is working. She emphasized strong Mother’s Day performance, fine jewelry momentum, and the role of new collections and showroom experiences in driving growth beyond bridal. Her tone was confident and upbeat, while still noting the consumer environment remains bifurcated with softness at lower price points.

Jeff Kuo highlighted that Q2 outperformance came from strong top-line growth, sequential gross margin improvement, and year-over-year leverage in marketing, adjusted employee costs, and adjusted other G&A. He cited gross margin of 57.9%, marketing expense at 22.8% of sales versus 24.1% last year, adjusted employee costs down about 40 bps as a share of sales, and adjusted other G&A down about 80 bps. He also noted inventory fell by about $1 million from Q1, turns remained around 4x, and the company ended Q2 with about $75 million in cash and no debt, up about $16 million sequentially.

Analysts focused on why the EBITDA beat was only partly reflected in the higher full-year outlook, and management said the guidance already embeds both the Q2 beat and a better H2 profitability outlook. Questions also centered on order growth in the back half and marketing spending, with management saying the $500+ strategy should continue and that marketing remains a balanced, efficiency-driven investment area. Gross margin assumptions were another focus; management pointed to pricing, product design, procurement efficiencies, and easier year-over-year comparisons on metal costs in Q4 as support for continued margin strength.