David’s Bridal announced plans to separate its artificial intelligence platform Pearl into an independent publicly traded entity, according to a nonbinding letter of intent filed on Thursday. The transaction targets a valuation of approximately $350 million, with closure anticipated in the first half of 2027.
Pearl operates an AI-driven wedding-planning platform, appointment scheduling tools, and a digital content network featuring original programming. The company personalizes recommendations through machine learning based on client data collection. Following the spinoff, Pearl will retain David’s Bridal’s intellectual property and license it back to the retail chain under a continuing business relationship. David’s Bridal CEO Kelly Cook will lead Pearl as chief executive after the transaction concludes. The two companies intend to maintain operational coordination to serve customers throughout the wedding-planning journey while each focuses on distinct market segments.
Pearl currently generates EBITDA margins exceeding 30 percent and projects revenue growth surpassing 100 percent later this year, with revenues expected to exceed $85 million. The platform is anticipated to operate debt-free following the deal and maintain positive free cash flow over the subsequent two years. Cook emphasized that Pearl has emerged as a high-margin, cash-generating business warranting independent public status to recruit specialized talent and pursue expanded growth opportunities.
The spinoff timing coincides with broader market headwinds affecting AI-focused companies and initial public offerings for consumer enterprises. Industry analysts estimate the U.S. wedding services market will reach $96 billion this year. Cook characterized Pearl’s competitive advantage as solving real customer problems rather than pursuing artificial intelligence technology for its own sake, noting the platform already has an established customer base with existing data relationships.
David’s Bridal has experienced significant financial challenges, including bankruptcy filings in 2018 and again in 2023 before being acquired by asset manager Cion Investment Corp. The current CEO arrived last year to modernize operations and strengthen the company’s omnichannel retail presence. Cion has committed to investing $25 million as an anchor investor in Pearl’s public offering.
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