David’s Bridal considers spinoff of Pearl AI platform as public company
David’s Bridal Inc. may separate its artificial intelligence-based digital business known as Pearl to become a publicly traded standalone, pure-play online operation.
The privately-owned bridal and special occasion dress retailer has entered into a non-binding letter of intent with special purpose acquisition company K&F Growth Acquisition Corp. II that would result in its Pearl division becoming a separate public company that would own the David's Bridal brand and intellectual property.
Initially introduced in 2023, Pearl serves as a comprehensive planning platform and national vendor marketplace designed to virtually combine all wedding elements in one place. Pearl provides resources, discounts, and planning tools; as well as digital content such as tips, blogs and videos. The platform also provides access to thousands of local vendors across the U.S. and is connected to the retailer’s Diamond loyalty program.
[READ MORE: David’s Bridal launches wedding planning platform/marketplace]
According to the retailer, the contemplated separation is intended to create a focused, fast-growing operating model for Pearl while strengthening its David’s Bridal retail store business, creating strategic benefits across physical and digital customer experiences.
Pearl and the David’s Bridal retail store business expect to execute long-term, commercial agreements and relationships that are meant to drive additional growth across both businesses, with David’s Bridal remaining a material ongoing shareholder in Pearl.
David’s Bridal’s 190-plus stores across the U.S. and Mexico would remain unaffected and operate as usual, with no expected disruption in day-to-day operations, appointments, products, services or customer experience.
Current David’s Bridal CEO Kelly Cook, who has been with the company since 2019, is expected to be CEO of Pearl following the proposed business combination. Elina Vilk, currently president and chief business officer of David’s Bridal (having joined in 2024), is expected to be president of Pearl.
Pearl solution highlights
Pearl’s technology capabilities are designed to support four distinct revenue streams: advertising and media, vendor listings and subscriptions, commerce and marketplaces, and licensing and brand partnerships. Following are highlights of some of the platform’s key solutions:
- Pearl Planner - In June 2025, David’s introduced Pearl Planner, available for free to all customers and designed to serve as a 24/7 agentic AI wedding planning assistant that can walk a couple through the entire process, including budgeting, registry, and vendor research.
- Pearl Connect - This proprietary SaaS platform provides qualified brides and couples agentic communications, lead management, and appointment scheduling on one unified platform.
- Pearl Digital Content Network - Launched in 2024 with the acquisition of Love Stories TV, a video-focused digital wedding planning platform, the Pearl digital content offering now includes original programming, YouTube channels, blogs and multiple social media profiles.
Pearl agentic AI draws on first-party insights across more than 200 data attributes to personalize recommendations, target communications and connect vendors with qualified leads.
“This is an exciting milestone in David’s Bridal’s 75-year history and a defining moment for our future,” said Kelly Cook, CEO, David’s Bridal. “Pearl is shaping the next generation of wedding planning, and this next step will give both businesses room to grow independently while continuing to strengthen each other. With Pearl’s agentic technology and proven business model, combined with David’s Bridal’s strong brand and retail presence, we see tremendous opportunities to help more couples plan their weddings and connect with vendors who can bring their visions to life.”
Financials
David’s expects that Pearl’s business will generate greater than 30% EBITDA margins in 2026 and projects revenue growth of more than 100% in 2027 to more than $85 million, as well as positive free cash flow in both years. Following the proposed business combination, Pearl is expected to be debt-free and to pursue growth opportunities across the bridal market and new adjacent verticals over the long term.
The non-binding letter of values Pearl at approximately $350 million, or approximately 9.3 times Pearl’s projected 2027 EBITDA, assuming no redemptions by K&F shareholders. The parties currently anticipate closing the transaction in the first half of 2027.
“We were drawn to Pearl’s compelling trifecta of established profitability, highly attractive growth potential and unlevered pristine balance sheet, which, in combination, we believe will create substantial public shareholder value,” said Dan Fetters, co-CEO of K&F.
Cion Investment Corp., David’s largest shareholder, has proposed to invest $25 million as an anchor investor, subject to the negotiation of definitive documentation. Cion purchased substantially all of David’s assets following it 2023 bankruptcy filing.
K&F is holding an extraordinary general meeting on Nov. 3 to vote to extend the date by which it has to consummate an initial business combination with Pearl from Nov. 6, 2026 to Feb. 7, 2028. White & Case LLP is serving as legal advisor to David’s Bridal, Cion Investment Corp. and Pearl. Ellenoff, Grossman & Schole LLP is serving as legal advisor to K&F.
