Brilliant Earth Group, Inc.BRLT

Brilliant Earth Group, Inc. Leases Disclosure

10-KFiled Mar 17, 20262 min read
LEASES
Total operating lease ROU assets and lease liabilities were as follows (in thousands):

December 31,
Assets
Classification
2025
2024
Operating ROU assets at cost
Operating lease right of use assets
$
51,541 
$
48,394 
Accumulated amortization
Operating lease right of use assets
(19,662)
(13,172)
Net book value
$
31,879 
$
35,222 
Liabilities
Current:
Operating leases
Current portion of operating lease liabilities
$
6,896 
$
6,108 
Noncurrent:
Operating leases
Operating lease liabilities
31,163 
35,856 
Total lease liabilities
$
38,059 
$
41,964 

In May 2024, the Company entered into a sublet of a portion of leased office space to a third party for the remaining lease term. Sublease income is recognized on a straight-line basis over the sublease agreement.
Total operating lease costs were as follows (in thousands):
December 31,
Classification
2025
2024
Operating lease costs
General and administrative expense
$
8,784 
$
7,768 
Operating lease costs
Cost of sales
273 
273 
Variable lease costs
General and administrative expense
1,999 
1,717 
Variable lease costs
Cost of sales
186 
143 
Sublease income
General and administrative expense
(211)
(141)
Total lease costs
$
11,031 
$
9,760 

The maturity analysis of the operating lease liabilities as of December 31, 2025 was as follows (in thousands):
Amount
Years ending December 31,
2026
$
9,001 
2027
8,526 
2028
7,481 
2029
6,687 
2030
5,343 
Thereafter
8,159 
Total minimum lease payments(1)
45,197 
Less: imputed interest
(7,138)
Net present value of operating lease liabilities
38,059 
Less: current portion
(6,896)
Long-term portion
$
31,163 

(1) Future minimum lease payments exclude $1.8 million of future payments required under a signed lease agreement that has not yet commenced. This operating lease will commence after December 31, 2025 with a lease term of five years.

As of December 31, 2025, future minimum tenant operating receipts remaining under the third-party sublease were $0.2 million with a remaining sublease term of approximately 1.0 year.

The following table summarizes the weighted-average remaining lease term and weighted-average discount rate on long-term leases as of December 31, 2025 and 2024 (dollars in thousands):
December 31,
2025
2024
Weighted-average remaining lease term - operating leases
5.4 years
6.3 years
Weighted-average discount rate - operating leases
6.1 
%
5.9 
%
Supplemental cash flow information related to operating leases is as follows:
Operating cash flows from operating leases
$
9,779
$
8,208

Historical Timeline

Fiscal YearFiled
2025Mar 17, 2026Showing above
2024Mar 13, 2025
2023Mar 28, 2024
2022Mar 21, 2023
2021Mar 22, 2022

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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