David's Bridal plans to spin off its AI platform Pearl into a stand-alone public company valued at roughly $350 million, with the deal expected to close in the first half of 2027. Pearl will own the company's intellectual property and license it back to the chain, while CEO Kelly Cook will lead Pearl after closing. Pearl expects an EBITDA margin above 30% this year and revenue growth of more than 100% in 2027, exceeding $85 million, and is expected to be debt-free with positive free cash flow over the next two years. Cion Investment Corp., which bought the business after David's Bridal's second bankruptcy filing in 2023, has proposed investing $25 million as an anchor investor in the separate company, amid struggling AI stocks and a lackluster consumer IPO market.
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Original headline: David's Bridal plans to spin off AI platform Pearl into publicly traded company
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