David’s Bridal is set to spin off its AI platform, Pearl, into an independent publicly traded company aiming for a valuation near $350 million. The separation, expected to close in the first half of 2027, will allow Pearl to focus on its AI-driven wedding-planning services while David’s Bridal concentrates on enhancing its physical retail operations. The company filed a nonbinding letter of intent recently to formalize this plan. After the transaction, Pearl will hold David’s Bridal’s intellectual property and license it back to the bridal chain.

Pearl offers an AI-powered wedding-planning platform, appointment management tools, and a digital content network that personalizes recommendations using client data. David’s Bridal forecasts Pearl’s EBITDA margin to surpass 30% this year and projects revenue growth exceeding 100% in 2027, with revenues topping $85 million. The business expects to be debt-free post-spinoff and generate positive free cash flow over the coming two years. CEO Kelly Cook, who will lead Pearl after the split, highlighted the unit’s rapid growth and strong cash generation as reasons for pursuing a public offering.

The two companies plan to maintain a collaborative relationship, sharing data and guiding customers through the wedding process, but the split will enable each to sharpen its strategic focus. Though the spinoff comes amid a challenging environment for AI stocks and consumer IPOs, Cook emphasized Pearl’s customer-centric approach and existing demand as key differentiators. Pearl aims to modernize and enhance the wedding planning ecosystem, leveraging the value of its data and technology to benefit the entire market.

David’s Bridal has faced financial difficulties in recent years, filing for bankruptcy twice, in 2018 and again in 2023 due to pandemic impacts and inflation. After restructuring and selling the business to asset manager Cion Investment Corp., which will now invest $25 million in the Pearl spinoff, the company is positioning itself for growth. Cook described the upcoming separation as a move from strength, creating a leaner and more focused parent company while enabling Pearl to scale independently and innovate in the AI wedding planning space.