BR

Brilliant Earth Group Inc

BRLT

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Brilliant Earth Group Inc AI Insights

Informational only. Not investment advice.
As of 2026-01-23

Snapshot

  • Debt/equity of 3.4x with only 12M equity vs 40M debt - balance sheet severely strained despite 73M cash[Debt to Equity]
  • Gross margin 58.5% TTM vs industry median 35% - 1.7x advantage suggests brand pricing power in jewelry[Gross Margin TTM]
  • FCF of 12M TTM on negative 3M operating income - working capital and low capex masking weak operations[Free Cash Flow TTM]

Watch Triggers

  • Operating Margin TTM: Turns positive (>0%)Would signal opex discipline finally translating gross margin advantage to bottom line
  • Inventory: Exceeds 60M or inventory days spike49M inventory on thin equity - writedowns could trigger covenant issues
  • Cash and Equivalents: Falls below 50MCurrent 73M provides runway; below 50M signals liquidity stress given debt load

Bull Case

Premium gross margins (58.5% vs 35% median) indicate differentiated brand in commoditized jewelry market - if opex rationalized, operating leverage could be significant

Gross Margin TTMAsset Turnover TTM

Cash position of 73M covers 1.8x total debt (40M) and funds operations while turnaround executes; FCF positive despite losses

Cash and EquivalentsFree Cash Flow TTM

Bear Case

Equity nearly wiped out (12M) with 3.4x debt/equity - minimal cushion for any revenue decline or inventory writedown on 49M inventory

Debt to EquityCommon Stockholders EquityInventory

EPS declining 54% over 5Y and 26% over 3Y with no profitability inflection - structural cost problem, not cyclical

EPS Growth 5yrEPS Growth 3yrOperating Margin TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
35%

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Forward Thesis

Path to profitability requires 5-7% opex reduction without revenue decline

1-3ylow
  • Operating expense 256M vs 253M gross profit TTM
  • G&A of 38M (8.8% of revenue) vs industry median ~4.5%
  • Interest expense 3.5M consuming thin margins
Operating margin -0.7% TTM vs industry median 3.1%EBITDA only 7.1M on 433M revenue (1.6% margin)EPS -$0.01 with 5Y EPS CAGR of -54%

Valuation Context

Caveats

Public Strategies Rankings

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Fundamental company data provided by Morningstar, updated daily.

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