Liquidity is under pressure as cash reserves dropped from $161.9 million in 2024Q4 to $58.6 million in 2026Q1, reflecting a business model that struggles to maintain consistent cash conversion.
| Cash from Operations | 16.84M | 9.72M | 17.59M | 26.21M | 14.51M | 46.08M | 26.72M | 567K |
| Operating CF Margin % | - | 2.22% | 4.17% | 5.87% | 3.3% | 12.12% | 10.61% | 0.28% |
| Operating CF Growth % | 5.59% | -44.77% | -32.88% | 80.71% | -68.52% | 72.43% | 4613.05% | - |
| Net Income | -11.62M | -6.4M | 3.99M | 584K | 19.02M | 26.26M | 21.58M | -7.78M |
| Depreciation & Amortization | 6.66M | 6.11M | 5.31M | 8.89M | 1.92M | 860K | 646K | 622K |
| Stock-Based Compensation | 4.29M | 8.92M | 9.93M | 9.95M | 8.84M | 2.79M | 46K | 43K |
| Deferred Taxes | 9.78M | 9.65M | 128K | -488K | -168K | -316K | 0 | 0 |
| Other Non-Cash Items | -899K | -315K | 6.06M | 4.48M | 4.62M | 8.09M | 1.24M | 316K |
| Working Capital Changes | 1.09M | -8.24M | -7.83M | 2.79M | -19.73M | 8.4M | 3.22M | 7.36M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 3.51M | -1.08M |
| Change in Inventory | -13.52M | -15.19M | -686K | 1.5M | -14.75M | -11.2M | -2.83M | -2.43M |
| Change in Payables | 23.56M | 12.91M | -725K | 2.02M | 2.49M | 15.28M | 134K | 8.5M |
| Cash from Investing | -3.24M | -3.97M | -4.91M | -11.94M | -9.12M | -5.61M | -584K | -678K |
| Capital Expenditures | -3.24M | -3.97M | -4.91M | -11.94M | -9.12M | -5.61M | -584K | -678K |
| CapEx % of Revenue | 0.73% | 0.91% | 1.16% | 2.68% | 2.07% | 1.47% | 0.23% | 0.34% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -81.72M | -88.45M | -6.57M | -13.1M | -23.6M | 66.12M | -263K | 22.6M |
| Debt Issued (Net) | -54.84M | -56.06M | -4.06M | -3.25M | -4.03M | 0 | 30M | 24M |
| Equity Issued (Net) | -293K | -456K | -638K | 0 | 0 | 87.56M | 0 | 0 |
| Dividends Paid | -31.8M | -3.79M | 0 | 0 | 0 | 0 | -30M | 0 |
| Share Repurchases | -293K | -456K | -638K | 0 | 0 | -14.03M | 0 | 0 |
| Other Financing | 5.22M | -28.14M | -1.87M | -9.85M | -19.57M | -21.44M | -263K | -1.4M |
| Net Change in Cash | -88.86M | -82.7M | 6.12M | 1.17M | -18.22M | 106.6M | 25.88M | 22.49M |
| Free Cash Flow | 13.61M | 5.75M | 12.69M | 14.27M | 5.38M | 40.47M | 26.14M | -111K |
| FCF Margin % | 3.07% | 1.31% | 3.01% | 3.2% | 1.22% | 10.65% | 10.38% | -0.06% |
| FCF Growth % | 21.63% | -54.67% | -11.09% | 165.14% | -86.7% | 54.83% | 23648.65% | - |
| FCF per Share | 0.09 | 0.04 | 0.13 | 0.15 | 0.06 | 0.42 | 0.27 | -0.00 |
| FCF Conversion (FCF/Net Income) | -1.17x | -2.67x | 32.52x | 44.89x | 6.79x | 30.16x | 1.24x | -0.07x |
| Interest Paid | 0 | 0 | 4.88M | 5.15M | 3.83M | 5.89M | 0 | 0 |
| Taxes Paid | 0 | 0 | 2K | 68K | 175K | 0 | 0 | 0 |
Operating cash flow volatility
According to the provided cash flow data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -5.68 in 2025Q3 to 39.36 in 2024Q4, indicating that reported earnings provide little visibility into the company's actual cash generation capabilities.
The extreme variance in the OCF/NI ratio suggests that accrual-based accounting adjustments are significantly distorting the underlying cash reality of the business. Investors should monitor whether this disconnect stems from aggressive revenue recognition timing or lumpy working capital movements that mask the true cost of operations.
As reported in financial statements, Brilliant Earth's free cash flow trajectory is characterized by sharp quarterly swings, ranging from a $11.9 million inflow in 2024Q4 to a $7.9 million outflow in 2025Q1, reflecting a business model that struggles to maintain consistent cash generation across seasonal cycles.
The inability to sustain positive free cash flow suggests that the company's current scale is insufficient to absorb its operational overhead and capital requirements. This inconsistency warrants further investigation into whether the business can achieve self-funding status without continued reliance on external financing or cash reserves.
Based on BRLT's reported figures, working capital changes have been a primary driver of cash flow volatility, with a $9.3 million outflow in 2025Q1 followed by a $4.4 million inflow in 2025Q2, highlighting the sensitivity of the company's liquidity to inventory and accounts payable management.
These fluctuations suggest that the company's cash position is highly dependent on the timing of inventory procurement and supplier payment terms. Such reliance on working capital management to bridge cash gaps may indicate underlying pressure on the company's core operating efficiency.
Analysis of the cash flow statement reveals that stock-based compensation and capitalized costs frequently mask the true cash burn, as evidenced by consistent SBC figures averaging over $2 million per quarter, which effectively subsidizes the company's operating expenses and inflates reported cash flow metrics.
The persistent use of stock-based compensation appears to be a critical mechanism for preserving cash, yet it simultaneously dilutes shareholder value without addressing the core issue of negative operating margins. Investors should consider the impact of these non-cash adjustments when evaluating the company's long-term sustainability.
Quick answers to the most common questions about buying BRLT stock.
Brilliant Earth Group, Inc. (BRLT) generated $9.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Brilliant Earth Group, Inc. (BRLT) generated $5.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Brilliant Earth Group, Inc. (BRLT) spent $4.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Brilliant Earth Group, Inc. (BRLT) returned $3.8M to shareholders via cash dividends and spent $0.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.