BRLT Stock Forecast & Price Target

Brilliant Earth Group Inc. is targeting adjusted EBITDA margins to reach double digits by 2027, indicating a strong focus on profitability. The company has seen a 10.2% year-over-year increase in total orders, reflecting growing consumer demand, particularly for fine jewelry, which has contributed to a slight improvement in average selling price. Additionally, gross margin has expanded by 90 basis points to 59.6%, driven by the company's premium brand positioning and operational efficiencies, further enhancing the outlook for robust financial performance.

Brilliant Earth Group Inc. is facing a negative financial outlook, primarily due to revised projections indicating only a 2.1% year-over-year revenue growth for FY25, a decline from the previously anticipated 2.4%. The company has also signaled a projected 6.0% year-over-year decline in sales for the fourth quarter and a potential decrease in adjusted EBITDA to $15.0 million, down from $17.9 million. Additionally, there is an expectation of significant operating margin contraction, moving from 3.1% in the prior year to an estimated (0.4%) for FY25, reflecting operational challenges and reduced profitability.