Gem Diamonds reports 36% revenue drop amid weak market conditions

Gem Diamonds reported a 36% year-over-year revenue decline for 2025, with full-year revenue reaching $98.4 million as the UK-based diamond producer faced prolonged weakness in rough diamond prices and weak demand. The company posted a net loss of $63.40 million for the full year, with a loss per share of $0.68. Pretax profit stood at a loss of $81 million, while adjusted EBITDA reached $3.90 million.

Revenue fell due to prolonged weakness in rough diamond prices, elevated inventory levels, and weak demand, compounded by macroeconomic and geopolitical factors, according to the company.The decline was driven by fewer and lower quality diamonds, resulting from a higher proportion of lower-grade Main Pipe ore and fewer large stones sold.

The company recorded a $77.5 million impairment at its Letšeng operation, which contributed to the full-year net loss. In the second half of 2025, Gem Diamonds launched its Business Resilience Programme to reduce costs and conserve cash. Cost efficiencies from the programme and royalty relief partially offset the revenue decline.Looking ahead, the company expects continued weakness in the diamond market in 2026. Gem Diamonds aims to renew its group credit facilities before they expire in December 2026. The company stated that actions taken in 2025 have positioned it for recovery when market conditions improve.