Brilliant Earth Q4 Net Sales Rise 4.1% to $124.4M Despite 370bps Margin Pressure
Brilliant Earth's Q4 net sales reached $124.4M, up 4.1% year-over-year, driving record full-year net sales of $437.5M (+3.6%), while Q4 gross margin fell 370bps to 55.9% due to 67% higher gold and 144% higher platinum costs. Adjusted EBITDA was $4.2M, free cash flow $5.8M, and fine jewelry bookings rose 34%.
1. Q4 and Full-Year Sales Performance
Brilliant Earth delivered Q4 net sales of $124.4 million, a 4.1% increase year-over-year, marking its largest quarterly net sales to date. Full-year net sales reached $437.5 million, up 3.6% driven by strong holiday season demand and higher average selling prices.
2. Margin Pressure and Profitability
Q4 gross margin declined 370 basis points to 55.9% as gold prices rose 67% and platinum prices surged 144% year-over-year. The company posted Q4 adjusted EBITDA of $4.2 million (3.3% margin), exceeding guidance midpoint despite the metal cost headwinds.
3. Fine Jewelry Growth
Fine jewelry bookings grew 34% in Q4, increasing the category’s mix to 23% of total bookings. Lab-grown fine jewelry bookings led the surge with a 61% year-over-year rise, reflecting strong adoption among new customers.
4. Balance Sheet and Cash Flow
Brilliant Earth generated $5.8 million in free cash flow for the year and closed Q4 with $79.1 million in cash and no debt. Inventory increased 39% but maintained strong turns of approximately 4x, supporting omnichannel growth.