David’s Bridal announced plans to spin off Pearl, its artificial intelligence platform, into a standalone publicly traded entity. The company filed a nonbinding letter of intent on Thursday to pursue the separation, targeting a valuation of roughly $350 million, with the transaction anticipated to close in the first half of 2027.
Pearl operates as a high-margin, positive cash-flow business that provides agentic AI-powered wedding-planning services, appointment management tools, and a digital content network featuring original programming. The platform uses artificial intelligence to personalize recommendations based on customer data collected throughout the planning process. David’s Bridal CEO Kelly Cook, who will transition to lead Pearl following the deal’s completion, stated that the separation positions both entities for strategic growth and will help attract talent to support expansion.
According to David’s Bridal, Pearl is projected to generate an EBITDA margin exceeding 30% this year and anticipates revenue growth surpassing 100% in 2027, with revenues expected to exceed $85 million. The company is forecast to be debt-free after the transaction closes and maintain positive free cash flow over the subsequent two years. Following the spinoff, Pearl will own David’s Bridal’s intellectual property and license it back to the retail chain under a continued business relationship.
The market context for Pearl’s public debut presents challenges, as artificial intelligence stocks have faced headwinds and the initial public offering market for consumer companies remains constrained. Cook emphasized that Pearl differentiates itself by focusing on practical applications rather than technology for its own sake, noting the company already maintains a substantial customer base and access to their information. Cion Investment Corp., the asset manager that acquired David’s Bridal in 2023, has committed to investing $25 million as an anchor investor in the separated company. The U.S. wedding services market is estimated to exceed $96 billion this year, presenting a substantial addressable market for both resulting entities.
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