Brilliant Earth Group Inc. Class A Common Stock (BRLT)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look for durable competitive advantages and a margin of safety. Brilliant Earth sells diamonds and jewelry online and through showrooms, but I see little evidence of a durable moat in a highly competitive discretionary category. In fiscal 2025, the year ended 2025-12-31, revenue was $437.5 million, but net income was a loss of $3.6 million, or diluted EPS of -$0.25. In fiscal 2024, revenue was $422.2 million and net income was only $541,000; in fiscal 2023, revenue was $446.4 million and net income was $584,000. Profits were already razor-thin and have slipped into losses. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $115.1 million and net income of just $20,000, or diluted EPS of $0.01—essentially breakeven. At the 2026-10-13 close of $1.46, FairStock’s calculations show a negative P/E, price-to-book of 2.02, negative ROE and ROCE, and an Altman Z-Score of 0.98, which points to financial stress. Free cash flow is positive at $2.9 million trailing twelve months, a 13.0% FCF yield, but that is a tiny absolute number. The stated dividend yield of 18.8% also looks hard to sustain alongside reported losses. FairStock classifies this as a Turnaround—loss in the latest year after earlier profits—with a score of 38/100. The stock may look cheap on sales and cash flow, but without consistent earnings or a strong balance sheet, I would call it speculative rather than a classic Graham bargain.

In plain English: Brilliant Earth sells diamond rings and jewelry online and in showrooms. Sales are much bigger than the company's value on the stock market, but profits are extremely thin and it lost money in its latest full year. The stock price looks cheap against sales and cash flow, but the weak profits and debt make it a risky, not obviously safe, bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer