Brilliant Earth Group, Inc. (BRLT) Stock Analysis
Brilliant Earth Group, Inc.
▾ What's in the 44/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). It excludes the Altman Z score, whose retained-earnings input this filer does not report separately. See the Financial Health section for the full balance-sheet read.
How to read BRLT (speculative micro-cap)
No model can pin a precise fair value on a company this small — but that does not mean there is nothing to learn. The useful questions are what the price is betting on, and whether the company can survive long enough to deliver it.
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1
Reverse-DCF — what growth the price assumes ↓
The single most useful number here: it backs out the growth the market is paying for. If that figure is "historically unprecedented," the price is running on hype, not fundamentals.
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2
Cash runway ↓
A pre-profit micro-cap lives or dies on whether it can fund itself to profitability before running out of money and diluting you.
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3
The raw financial statements + the 10-K ↓
At this scale, the actual numbers, insider ownership, and share-count trend tell you more than any ratio.
BRLT looks like a foreign company (ADR) whose SEC filings are denominated in its home currency, while the share price is in U.S. dollars. Mixing the two would produce a meaningless dollar fair-value, so we suppress the single intrinsic-value number rather than show a wrong one.
What to use instead: the growth trends, margins and ratios below (which are currency-independent), the peer comparison, and the company's own filings. A currency-converted valuation is on our roadmap.
How to read a company this small
BRLT is too small and/or too volatile for the valuation lenses we use on larger, more stable companies. The numbers shown below should be taken as rough orientation only.
- Market cap $20.8M — nano-cap territory (below $50M)
Growth percentages on tiny revenue bases (1000% going from $200K to $2M is not predictive). P/E and ROE swing wildly with small earnings changes. Peer comparisons fail because there often aren't comparable companies at this scale.
Start with the Reverse-DCF above — it backs out the growth the price is betting on; if that figure is "historically unprecedented," the price is running on hype, not fundamentals. Then the cash runway (can it fund itself to profitability before diluting you?). Then the raw Financials table and the 10-K on SEC EDGAR — at this scale, insider ownership and the share-count trend often matter more than any ratio.
Classified as Speculative Nano / Micro-cap (confidence 80%). Disagree? An admin can override via the post edit screen.
⚠ Genuine comparables are scarce at this size, so peer multiples are unreliable here. Treat as rough context only — see 📍 What to focus on above.
How does BRLT stack up against its closest peers?
Ideally we compare BRLT only to same-industry peers, but too few exist in our universe right now, so the basket below mixes in broader-sector names. Treat the multiples as rough context, not a valuation. For a leveraged business, EV/EBIT and FCF yield (both in the table) are usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
| EV / SalesEV / Sales — For every $1 of yearly revenue, this is how many dollars investors pay to own the whole business (including debt). Why it matters: Works for pre-profit growth companies where P/E and FCF don't apply. The most apples-to-apples cross-company multiple because it ignores accounting choices. Reference: 1–3x for mature companies · 4–10x for software/SaaS · 10–20x for hypergrowth · >20x is rare and demanding Full explanation → |
0.4x / 1.0x / 2.1x |
| EV / Gross ProfitEV / Gross Profit — Enterprise value divided by gross profit — the multiple paid for what each dollar of sales contributes after direct costs. Why it matters: More refined than EV/Sales for high-margin businesses (software, marketplaces) where gross margin is the real economic engine. Reference: 8–15x for SaaS · 15–25x for hypergrowth software · >30x demanding Full explanation → |
1.4x / 3.8x / 5.1x |
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 8 peers (broad — see caveat); implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (8)
| Ticker | Company | Industry | Mcap | EV/Sales | EV/GP | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|---|---|
| TLF | TANDY LEATHER FACTORY INC | Leather & Leather Products ·fallback | $19M | 0.3x | 0.4x | — | 35.7% |
| UZX | Linkage Global Inc | E-Commerce ·fallback | $18M | 3.7x | 5.1x | — | 3.2% |
| XOS | Xos, Inc. | Motor Vehicles ·fallback | $28M | 0.6x | 10.1x | — | 0.4% |
| YMAT | J-Star Holding Co., Ltd. | Sporting Goods & Toys ·fallback | $28M | — | — | — | — |
| VTSI | VirTra, Inc | Miscellaneous Manufacturin ·fallback | $39M | 2.1x | 3.0x | 105.9x | 6.1% |
| PAXH | PREAXIA HEALTH CARE PAYMENT SYSTEM | Home Furniture ·fallback | $11M | — | — | — | — |
| XWEL | XWELL, Inc. | Personal Services ·fallback | $11M | 0.4x | 1.4x | — | — |
| WFF | WF Holding Ltd | Miscellaneous Manufacturin ·fallback | $10M | 1.4x | 4.5x | — | 1.9% |
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
We can't produce a trustworthy Altman Z here: retained earnings weren't separately reported in our data, so a core input would have to be fabricated. Rather than show a categorical "distress" verdict from an invented number, we mark it unavailable. Judge financial health from the leverage, cash position, and the measurable Piotroski checks instead.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
▾ The checks — what passed, what didn't (and what we couldn't measure)
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✗ Positive net incomeNet income -$3.6M in FY2025.Why this matters: Does the company actually earn a profit? Sustained losses eventually force it to raise money — diluting you — or take on debt.
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✓ Positive operating cash flowOperating cash flow $9.7M (was $17.6M the prior year).
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✓ Cash flow backs up reported profitOperating cash flow $9.7M vs net income -$3.6M.
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✗ Return on assets improvingReturn on assets -1.8% vs 0.2% a year ago.Why this matters: Is the company squeezing more profit out of each dollar of assets than last year? Rising = getting more efficient; falling = the opposite.
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✓ Debt load (vs assets)Total debt is 0.0% of assets vs 19.8% a year ago ($0.0M of $200.9M assets).
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✗ Short-term liquidity (current ratio)Current ratio 1.61x vs 2.70x a year ago.Why this matters: The current ratio compares assets it can turn to cash within a year against bills due within a year. Below 1.0 means it may struggle to cover near-term obligations.
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✓ Share count (dilution)Share count declined 85.0% (98.4M → 14.8M year-over-year), so the no-dilution check passed. (One-year change; the multi-year buyback pace can differ.)
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✗ Pricing power (gross margin)Gross margin 57.5% vs 60.3% a year ago.Why this matters: Rising gross margin means stronger pricing power or lower input costs — a sign of competitive strength. Falling margin signals pressure.
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✓ Sales per asset (asset turnover)Asset turnover 2.18x vs 1.50x a year ago.
Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.
What if you assume different inputs?
Here's where we land — and what happens if you change the assumptions. Drag the sliders to set your own Discount RateDiscount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation → (the annual return you demand for single-stock risk) and terminal growth; the value updates live so you can see whether the stock looks cheaper or richer. The discount rate starts at 10.0%, the figure our model used for BRLT. Open Advanced to also change beta, growth and the rate path.
Note: no headline intrinsic value is published for this stock (the valuation is held for a data-quality reason — see the notes above). The calculator below is a what-if tool: the values it produces are your assumptions played out, not our estimate.
A full intrinsic value isn't shown for BRLT because the valuation is currently held for a data-quality reason (see the guardrail notes above). The reverse-DCF reading still works — it needs only the price and cash flow — but we won't publish a forward value until the underlying data passes our checks.
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⚙ Advanced — tinker with every input (beta, growth, rate path, margin → full intrinsic value)
Brilliant Earth Group, Inc. The market likely discounts BRLT due to its negative net income in the latest period, despite a history of profitability. The primary quantifiable risk is the implied decline rate of 20.0% priced into the stock, significantly below the model's 4.9% growth assumption.
As of 3 months ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Return to positive net income in upcoming quarters
- Continued expansion of gross margin above 57.5%
- Stabilization or increase in revenue growth rate
The trend, in plain numbers (FY2024 → FY2025, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Revenue grew +4% to $437.5M.
- Free cash flow is negative at -$3.2M — the cash burn widened vs last year.
- Gross margin shrank to 57% (-3 pts).
- Swung to a loss of -$3.6M (from a profit the prior year).
Management & Leadership
Beth Gerstein serves as the CEO and Co-Founder of Brilliant Earth Group, Inc., having co-founded the company in 2005. She has led the company through its growth as a prominent online jeweler.
What They Make
Brilliant Earth Group, Inc. is a digital-first jeweler specializing in ethically sourced diamonds, gemstones, and fine jewelry. Their products are primarily purchased by consumers for engagements, weddings, and special occasions.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
What we use instead: earnings (P/E, EV/EBIT), book value (P/B) — computed from the figures this company does report, shown in the sections below. Those numbers are unaffected by the missing cash-flow data.
While revenue has grown at 3.6%/yr over four years, the market's implied decline rate of 20.0% suggests skepticism about future profitability and sustained growth.
Business Model & Valuation
How They Make Money
The company funds itself through its positive operating cash flow, which has been positive for 5 out of 5 years, and has reduced its long-term debt from $64M to $0M.
Normalized FCF
Cyclical/commodity sector (Jewelry, Silverware & Plated Ware) with negative current FCF: normalized FCF uses multi-year median to smooth through the cycle.
Show advanced inputs
| Revenue Growth | 3.6% |
| Historical Fcf Growth | -73.0% |
| Sector Default | 8.0% |
| Best Estimate | 4.9% |
| Method | blend(70% revenue_cagr, 30% sector) |
| Growth Basis | total |
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project its revenue segments independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Revenue has shown a growth trend of 3.6%/yr over the last four years, increasing from $380M to $437M.
Geography & Markets
Brilliant Earth Group, Inc. is headquartered in the US and primarily serves the North American market through its online platform and showrooms. Specific geographic revenue mix is not available from current data sources.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)46.5NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (4 notes — click to expand/collapse)
Guardrail Notes (3)
- Cyclical sector: using normalized cash flow (median OCF minus estimated maintenance capex).
- Median OCF: $17.59M, est. maintenance capex: $5.61M, normalized FCF: $11.99M.
- Illiquidity discount 25% applied (small/micro-cap — harder to exit, demand a margin).
FINANCIALS
Financial Statements (5-year tables — click to expand)
From Brilliant Earth Group, Inc.'s SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | 437.5M | -3.6M | $-0.25 |
| 2024 | 422.2M | 541,000 | $0.03 |
| 2023 | 446.4M | 584,000 | $0.04 |
| 2022 | 439.9M | 2.1M | $0.15 |
| 2021 | 380.2M | 1.5M | — |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC & adj. | Free Cash Flow |
|---|---|---|---|---|
| 2025 | 9.7M | 4.0M | 8.9M | -3.2M |
| 2024 | 17.6M | 4.9M | 9.9M | 2.8M |
| 2023 | 26.2M | 11.9M | 10.0M | 4.3M |
| 2022 | 14.5M | 9.1M | 8.8M | -3.5M |
| 2021 | 46.1M | 5.6M | 2.8M | 37.7M |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: 9.7M − 4.0M − 8.9M (SBC & adj.) = -3.2M. This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a mid-cycle estimate (median operating cash flow less estimated maintenance capex and stock compensation — by design NOT the table's FCF, which deducts every year's full capex), not this single year.
Balance Sheet
| Total Assets | 200.9M |
| Total Liabilities | 121.3M |
| Equity | 12.3M |