e.l.f. Beauty, Inc.

What they do

The company's portfolio consists of e.l.f. Cosmetics, e.l.f. SKIN, rhode (acquired August 2025 for $897.5 million), Naturium and Well People; e.l.f. Hair is also cited in the latest 10-Q, and the Keys Soulcare brand was transferred to Alicia Keys in May 2026. Products are sold online and through retailers including Target, Walmart, Amazon and Sephora. The company markets its brands on accessible pricing, clean/vegan formulations and PETA and Leaping Bunny cruelty-free certification.

Revenue drivers

• e.l.f. Cosmetics (flagship) — Global flagship color cosmetics brand sold through mass, specialty and e-commerce channels; still the largest part of the portfolio, though segment-level revenue is not broken out in the excerpts.
• rhode — Acquired August 5, 2025 for $897.5 million in cash, stock and a potential earnout; a skincare line founded by Hailey Bieber. First-quarter fiscal 2027 revenue outperformance versus earnout thresholds triggered a $16.1 million contingent consideration charge.
• Naturium and Well People — Naturium is a science-based skincare brand spanning face and body; Well People is a plant-powered clean color cosmetics brand claiming the most EWG Verified color products of any beauty brand.
• International and e-commerce — Q1 fiscal 2027 net sales growth of 36% was attributed to strong performance in both retailer and e-commerce channels, in the US and internationally; no geographic split is given in the excerpts.

Recent performance

For the quarter ended June 30, 2026, net sales rose 36% to $479.4 million, which management described as a 30th consecutive quarter of net sales growth. Gross margin rose about 1,400 basis points to 83%, including roughly 1,050 basis points from IEEPA tariff refunds. SG&A rose $84.5 million to $280.3 million, and net income was $66.6 million GAAP, or $1.12 diluted EPS; adjusted diluted EPS was $1.75 and adjusted EBITDA was $168.2 million, 35% of net sales. Full fiscal 2026 net income was $26.3 million on revenue of $1.64 billion, down from $112.1 million on $1.31 billion in fiscal 2025.

Strategy

Management frames the strategy around five stated advantages: a 'passionate team of owners' with equity granted annually to all employees, an accessible value proposition, innovation, a disruptive marketing engine and a productivity model. Growth has been supplemented by acquisition, notably rhode in August 2025, funded partly by a new $600.0 million term loan facility established under the Fifth Amendment to the credit agreement. The company continues to expand distribution with existing retail partners domestically and internationally. It is also pursuing refunds of IEEPA tariffs paid, receiving about $51.1 million of the roughly $60.3 million paid as of June 30, 2026.

Risks

• Tariff exposure — Many products are sourced and manufactured in China, subject to a 25% US tariff since May 2019 and rates ranging from 25% to as high as 170% during 2025, with uncertain refund and future-tariff outcomes after the February 2026 Supreme Court IEEPA ruling and the Section 122 global tariff effective February 24, 2026.
• Retailer concentration — The company depends on a limited number of retailers for a large portion of net sales, with Target, Walmart, Amazon and Sephora named as key customers.
• Supply chain and third-party dependence — The business relies on third-party suppliers, manufacturers and distributors, and a disruption could harm brand standards and require finding alternative sources.
• Competition and shelf space — The beauty industry is highly competitive with larger multinationals that hold greater shelf space and resources, and growth depends on retailers reallocating shelf space to e.l.f. brands.

Outlook

Management raised its fiscal 2027 outlook to 18-20% net sales growth, from 12-14% previously, implying net sales of $1,938-1,968 million versus the prior $1,835-1,865 million range. Updated guidance also calls for adjusted EBITDA of $401-407 million, adjusted net income of $212-215 million and adjusted diluted EPS of $3.50-3.55 on 60.5 million weighted average diluted shares. The adjusted effective tax rate is expected at 25-26%.