David's Bridal to spin off AI platform Pearl as standalone public company

The wedding retailer's AI business targets $350 million valuation in IPO expected to close by mid-2027

By LineZotpaper

Published22 October 2026

Read Time2 min

Sources2 outlets

David's Bridal plans to spin off its artificial intelligence platform Pearl into a separate publicly traded company, targeting a valuation of roughly $350 million, the company announced. The deal is expected to close in the first half of 2027.

David's Bridal has filed a nonbinding letter of intent to separate Pearl, an AI-powered wedding-planning platform, into an independent public company. The move would allow Pearl to own and build on the retailer's intellectual property while David's Bridal focuses on strengthening its physical retail business.

Pearl's services include an agentic AI wedding-planning platform, a proprietary tool to streamline appointments and communications, and a digital content network with original programming. The company uses AI to personalise suggestions based on data collected for each client.

Kelly Cook, CEO of David's Bridal, who will take over as CEO of Pearl after the deal closes, said the split is "positioning both companies for strategic growth." She noted that Pearl is a "fast-growing, high-margin business generating positive cash flow right now," and that going public will help attract talent and fuel growth.

David's Bridal expects Pearl to generate an EBITDA margin of more than 30% this year and projects revenue growth of more than 100% in 2027, exceeding $85 million. The company said Pearl will be debt-free after the deal closes and have positive free cash flow over the next two years.

Following the transaction, Pearl will own David's Bridal's intellectual property and license it back to the chain. Cook described the arrangement as a "very healthy business model" based on reciprocity, with both companies sharing proprietary data and directing customers to each other.

David's Bridal filed for bankruptcy protection in 2018 and again in 2023, citing the pandemic and high inflation. It sold to asset manager Cion Investment Corp. to avoid a shutdown. As part of the spin-off, Cion has proposed to invest $25 million as an anchor investor in Pearl.

Cook acknowledged the company's past struggles, saying "that's no secret," but argued that the process led to a "leaner David's, a more focused David's," calling the spin-off "a move from strength."

The plan comes as AI stocks face a downturn and the IPO market for consumer companies has been sluggish. Cook said Pearl's advantage is that it already has a customer base and data, making it "not AI for AI's sake."

Analysis

Why This Matters

The spin-off could provide a path to value for David's Bridal's AI assets, offering investors a pure-play wedding technology company.
It reflects a broader trend of legacy retailers separating digital and AI businesses to unlock growth.
The IPO will test investor appetite for AI-focused consumer companies amid a challenging market.

Background

David's Bridal, a leading U.S. wedding retailer, has filed for bankruptcy twice in recent years: first in 2018 and again in 2023. The company was acquired by Cion Investment Corp. to avoid closure. Under CEO Kelly Cook, who took over in 2025, the company has sought to transition from a traditional retailer to an integrated online and in-store experience. The development of Pearl as an AI platform emerged from that transformation. The U.S. wedding services market is estimated to top $96 billion in 2026, according to Grand View Research.

Key Perspectives

David's Bridal / Pearl leadership: The spin-off positions both companies for strategic growth, allowing Pearl to attract talent and capital while David's Bridal focuses on its retail operations. Cook argues that Pearl's existing customer base and proprietary data give it a competitive edge over other AI startups. Investors and market observers: The IPO market for consumer companies has been weak, and AI stocks have struggled recently. The success of Pearl's offering will depend on whether it can demonstrate sustained profitability and growth beyond the wedding niche.

What to Watch

Pearl's revenue and EBITDA performance over the next two quarters ahead of the planned IPO.
The final valuation and pricing of the public offering when it launches.
Whether David's Bridal's retail operations stabilise and grow after the separation.

Sources

David's Bridal plans to spin off AI platform Pearl into publicly traded company · US Top News and Analysis
David's Bridal plans to spin off AI platform Pearl into publicly traded company · Business News

Checked

12 claims in this story checked against 1 source: 9 supported.

Show each claim

SupportedDavid’s Bridal plans to spin off Pearl as a standalone publicly traded company.US Top News and Analysis: “David's Bridal is planning to spin off its artificial intelligence platform, Pearl, into a stand-alone publicly traded company”
SupportedThe proposed spin-off targets a valuation of roughly $350 million.US Top News and Analysis: “targeting a valuation of roughly $350 million”
Partly supportedThe deal is expected to close by mid-2027 as an IPO.US Top News and Analysis: “The company expects the deal to close in the first half of 2027.”
Not in the sourcesDavid’s Bridal announced the spin-off.US Top News and Analysis: “CNBC learned exclusively. The company expects the deal to close in the first half of 2027. David's Bridal filed a nonbinding letter of intent on Thursday to separate out Pearl.”
SupportedCook said Pearl is a “fast-growing, high-margin business generating positive cash flow right now.”US Top News and Analysis: “"We have a fast-growing, high-margin business generating positive cash flow right now in Pearl, and going public now will help us attract the talent and give us more optionality to fuel the growth that we believe that we have," David's Bridal CEO Kelly Cook”
SupportedCook called the arrangement a “very healthy business model.”US Top News and Analysis: “"It's a very healthy business model," Cook said.”
SupportedDavid’s Bridal expects Pearl’s EBITDA margin to exceed 30% this year.US Top News and Analysis: “David's Bridal expects Pearl to generate an EBITDA margin of more than 30% this year”
SupportedDavid’s Bridal projects Pearl’s revenue to grow more than 100% in 2027, exceeding $85 million.US Top News and Analysis: “is projecting revenue growth of more than 100% in 2027, exceeding $85 million.”
SupportedPearl is expected to be debt-free after the deal closes.US Top News and Analysis: “It's expected to be debt-free after the deal closes”
SupportedPearl is expected to have positive free cash flow over the next two years.US Top News and Analysis: “and have positive free cash flow over the next two years, according to the company.”
Partly supportedDavid’s Bridal filed for bankruptcy protection in 2018 and again in 2023, citing the pandemic and high inflation.US Top News and Analysis: “The company filed for bankruptcy protection in 2018 and emerged a few months later. It then filed a second time in 2023, citing a significant business slowdown from the pandemic and high inflation.”
SupportedCion proposed to invest $25 million as an anchor investor in Pearl.US Top News and Analysis: “Cion has proposed to invest $25 million as an anchor investor in the separate company.”