– Delivered 38% Net Sales Growth –

– Raises Fiscal 2026 Outlook –

OAKLAND, California; February 4, 2026 — e.l.f. Beauty (NYSE: ELF) today announced results for the three and nine months ended December 31, 2025.

“Our Q3 results, which included 130 basis points of market share gains for our namesake e.l.f. Cosmetics brand and a record-breaking launch of rhode in Sephora in the U.K., are a continuation of the consistent, category-leading growth we’ve delivered over the past 28 quarters,” said Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer. “Our value proposition, powerhouse innovation and disruptive marketing engine continue to fuel our brands. We remain confident in our ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook.”

For the three months ended December 31, 2025, compared to the three months ended December 31, 2024:

•Net sales increased 38% to $489.5 million, primarily driven by growth in both our retailer and e-commerce channels, in the US and internationally.

•Gross margin decreased approximately 30 basis points to 71%, primarily driven by higher tariff costs, partially offset by benefits from pricing and mix.

•Selling, general and administrative (“SG&A”) expenses increased $61.7 million to $280.0 million. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) increased $56.3 million to $249.2 million. The increase in SG&A is primarily related to an increase in marketing, merchandising and distribution costs, compensation and benefits, depreciation and amortization and professional fees.

•Other (expense) income, net decreased from $5.3 million of other expense to $1.3 million of other expense, primarily driven by an increase in foreign currency losses in the period attributable to currency rate fluctuation.

•Net income was $39.4 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $74.5 million.

•Diluted earnings per share were $0.65 on a GAAP basis. Adjusted diluted earnings per share (diluted earnings per share calculated with adjusted net income excluding the items identified in the reconciliation table below) were $1.24.

•Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $123.0 million, or 25% of net sales, up 79% year over year.

For the nine months ended December 31, 2025, compared to the nine months ended December 31, 2024:

•Net sales increased 21% to $1,187.2 million, primarily driven by growth in both our retailer and e-commerce channels, in the US and internationally.

•Gross margin decreased approximately 124 basis points to 70%, primarily driven by higher tariff costs, partially offset by benefits from pricing and mix.

•Selling, general and administrative (“SG&A”) expenses increased $122.0 million to $706.9 million. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) increased $102.2 million to $619.8 million. The increase in SG&A is primarily related to an increase in marketing, merchandising and distribution costs, compensation and benefits, depreciation and amortization, professional fees.

•Other (expense) income, net changed from $1.3 million of other expense to $1.8 million other income, primarily driven by an increase in foreign currency gains in the period attributable to currency rate fluctuation.

•Net income was $75.7 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $166.5 million.

•Diluted earnings per share were $1.28 on a GAAP basis. Adjusted diluted earnings per share (diluted earnings per share calculated with adjusted net income excluding the items identified in the reconciliation table below) were $2.81.

•Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $276.3 million, or 23% of net sales, up 28% year over year.

As of December 31, 2025, the Company had $196.8 million in cash and cash equivalents, and $816.7 million of long-term debt, as compared to $73.8 million in cash and cash equivalents and $154.1 million of long-term debt outstanding as of December 31, 2024.

The Company is providing the following updated outlook for fiscal 2026. The updated outlook for fiscal 2026 reflects an expected 22-23% year-over-year increase in net sales, as compared to an expected 18-20% increase previously.

Fiscal 2025 Actuals

Previous Fiscal 2026 Outlook

Current Fiscal 2026 Outlook

Net sales

$1,314 million

$1,550-1,570 million

$1,600-1,612 million

Adjusted EBITDA

$297 million

$302-306 million

$323-326 million

Adjusted effective tax rate

21%

23%

23%

Adjusted net income

$198 million

$165-168 million

$180-183 million

Adjusted diluted earnings per share

$3.39

$2.80-2.85

$3.05-3.10

Diluted shares outstanding

58 million

59 million

59 million

The Company will hold a webcast to discuss the results from its third quarter fiscal 2026 today, February 4, 2026, at 4:30 p.m. Eastern Time. The webcast will be broadcast live at https://investor.elfbeauty.com/stock-and-financial/events-and-presentations. For those unable to listen to the live broadcast, an archived version will be available at the same location.

e.l.f. Beauty (NYSE: ELF) is fueled by a belief that anything is e.l.f.ing possible. e.l.f. is a different kind of company that disrupts norms, shapes culture and connects communities, through positivity, inclusivity and accessibility. The mission is clear: to make the best of beauty accessible to every eye, lip and face. e.l.f. Beauty and its brands, e.l.f. Cosmetics, e.l.f. SKIN, Keys Soulcare, Well People, Naturium and rhode, are led by purpose, driven by results and elevated by superpowers. e.l.f. Beauty offers e.l.f. clean and vegan products, all double-certified by PETA and Leaping Bunny as cruelty free, and proudly stands as the first beauty company with Fair Trade Certified™ facilities. With a kind heart at the center of e.l.f.’s ethos, the company donates 2% of net profits to organizations that make positive impacts.

Learn more at https://www.elfbeauty.com/

This press release includes references to non-GAAP measures, including adjusted EBITDA, adjusted SG&A, adjusted net income and adjusted diluted earnings per share. The Company presents these non-GAAP measures because its management uses them as supplemental measures in assessing its operating performance, and believes they are helpful to investors, securities analysts and other interested parties in evaluating the Company’s performance. The non-GAAP measures included in this press release are not measurements of financial performance under GAAP and they should not be considered as alternatives to or substitutes for measures of performance derived in accordance with GAAP. In addition, these non-GAAP measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. These non-GAAP measures have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing the Company’s results as reported under GAAP. The Company’s definitions and calculations of these non-GAAP measures are not necessarily comparable to other similarly titled measures used by other companies due to different methods of calculation.

Adjusted EBITDA excludes expense or income related to stock-based compensation, loss on extinguishment of debt and other non-cash and non-recurring items. Such other non-cash or non-recurring items include amortization of internal-use software costs related to cloud applications, acquisition related costs, and ERP implementation costs.

Adjusted SG&A excludes expense related to stock-based compensation and other non-recurring items. Such other non-recurring items include other non-recurring ERP implementation costs and acquisition related costs.

Adjusted effective tax rate is the tax rate when excluding the pre-tax impact of expense or income related to stock-based compensation, other non-cash and non-recurring items, amortization of acquired intangible assets, as well as the related tax impact for these items, calculated utilizing the statutory rate for where the impact was incurred.

Adjusted net income excludes expense related to stock-based compensation, loss on extinguishment of debt, other non-recurring items, amortization of acquired intangible assets and the tax impact of the foregoing adjustments. Such other non-recurring items include other non-recurring ERP implementation costs and acquisition related costs.

This press release contains forward-looking statements within the meaning of the federal securities laws, including those statements relating to the Company’s outlook for Fiscal 2026 under “Fiscal 2026 Outlook” above and those statements that we remain confident in our ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, actual results and the timing of selected events may differ materially from those expectations. Factors that could cause actual results to differ materially from those in the forward looking statements include, among other things, the risks and uncertainties that are described in the Company's most recent Annual Report on Form 10-K, as updated from time to time in the Company's SEC filings, as well as the Company’s ability to effectively compete with other beauty companies; the Company’s ability to successfully introduce new products; the Company’s ability to attract new retail customers and/or expand business with its existing retail customers; the Company’s ability to optimize shelf space at its key retail customers; the loss of any of the Company’s key retail customers or if the general business performance of its key retail customers declines; disruptions to our business resulting from acquisitions or investments, such as our acquisition of rhode; and the Company’s ability to effectively manage its SG&A and other expenses. Potential investors are urged to consider these factors carefully in evaluating the forward-looking statements. These forward-looking statements speak only as of the date hereof. Except as required by law, the Company assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

 

 

(a) Loss on extinguishment of debt includes the write-off of existing debt issuance costs and certain fees paid related to the amended credit agreement.

(b) Represents other non-cash or non-recurring items, which include amortization of internal-use software costs related to cloud applications, acquisition related costs, and ERP implementation costs.

 

 

(b) Loss on extinguishment of debt includes the write-off of existing debt issuance costs and certain fees paid related to the amended credit agreement.

(c) Represents amortization expense of acquired intangible assets consisting of customer relationships and trademarks.

(d) Represents the tax impact of the above adjustments.