Brilliant Earth Group Inc. (NASDAQ:BRLT) reported fourth-quarter results that fell short of Wall Street expectations, sending its shares sharply lower in premarket trading.
The company posted an adjusted loss of $0.06 per share for the quarter, missing analyst estimates that had called for earnings of $0.02 per share.
Revenue totaled $124.4 million, also slightly below the consensus forecast of $125.64 million, although it marked a 4.1% increase from $119.5 million in the same period a year earlier.
Following the results, Brilliant Earth shares dropped 18.79% in premarket trading.
For the quarter ended December 31, 2025, the company reported a GAAP net loss of $1.3 million, or $0.19 per diluted share.
Adjusted EBITDA reached $4.2 million, coming in above the midpoint of the company’s guidance range despite the earnings shortfall.
Gross margin declined by 370 basis points year over year to 55.9%, as the company faced higher precious metal costs and tariff-related pressures.
“We closed our 20th anniversary year with our largest quarter of Net Sales in company history, delivering results that demonstrate our continued ability to gain market share and drive profitable growth,” said Beth Gerstein, Co-Founder and Chief Executive Officer.
Operational indicators remained solid, with total orders rising 7% year over year and fine jewelry bookings climbing 34%, accounting for 23% of overall bookings.
For the full year 2025, revenue increased 3.6% to $437.5 million, while adjusted EBITDA declined 43.3% to $12.0 million.
Looking ahead, Brilliant Earth expects net sales in the first quarter of 2026 to grow at a positive mid-single-digit percentage year over year, while adjusted EBITDA margin is projected to be in the negative mid-single digits.
For the full year 2026, the company forecasts net sales growth in the positive mid-single-digit percentage range, with adjusted EBITDA expected to remain profitable but slightly below the $12.0 million recorded in 2025.