e. Beauty (NYSE: ELF) lifts 2027 outlook after 36% Q1 sales surge
Rhea-AI Filing Summary
e. Beauty, Inc. reported another quarter of rapid growth for the three months ended June 30, 2026. Net sales increased 36% to $479.4 million, marking the company’s 30th consecutive quarter of net sales growth. Gross margin expanded about 1,400 basis points to 83%, including roughly 1,050 basis points of benefit from IEEPA tariff refunds, with additional uplift from pricing and lower tariff rates.
Selling, general and administrative expenses rose to $280.3 million, reflecting higher marketing, merchandising, distribution, compensation, and depreciation. GAAP net income was $66.6 million and diluted EPS was $1.12, while adjusted net income reached $104.6 million and adjusted diluted EPS $1.75. Adjusted EBITDA was $168.2 million, or 35% of net sales, up 93% year over year. Cash and cash equivalents were $344.2 million and total debt $834.2 million at June 30, 2026. Reflecting current momentum, the company raised its fiscal 2027 outlook to net sales of $1,938–1,968 million (net sales growth of 18–20%), adjusted EBITDA of $401–407 million, adjusted net income of $212–215 million, and adjusted diluted EPS of $3.50–3.55.
Positive
- Net sales grew 36% to $479.4 million, with adjusted EBITDA up 93% year over year to $168.2 million, representing a 35% margin.
- Management raised fiscal 2027 guidance to net sales of $1,938–1,968 million (growth of 18–20%) and increased adjusted diluted EPS guidance to $3.50–3.55.
Negative
- None.
Filing Explained
A quarter-end share-count reduction is disclosed alongside contingent consideration recorded in both current and long-term liabilities.
The August 5 Form 8-K reports that, during the quarter, the company used
The reported period-end counts show fewer shares outstanding at quarter end than at March 31, making the lower share count the immediate structural consequence disclosed here.
The filing separately reports
Adjusted EBITDA, adjusted SG&A, adjusted net income and adjusted diluted EPS are presented as supplemental non-GAAP measures, with exclusions including stock-based compensation and certain acquisition, ERP and other non-recurring items; the release says they are not substitutes for GAAP measures.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales: $479.4 million
Gross margin: 83%
Net income: $66.6 million
+5 more
8 metrics
Net sales
$479.4 million
Three months ended June 30, 2026; increased 36% from $353.7 million in 2025
Gross margin
83%
Three months ended June 30, 2026; up about 1,400 basis points year over year
Net income
$66.6 million
GAAP net income for the three months ended June 30, 2026
Diluted EPS
$1.12
GAAP diluted earnings per share for the quarter ended June 30, 2026
Adjusted EBITDA
$168.2 million
Three months ended June 30, 2026; 35% of net sales and up 93% year over year
Cash and cash equivalents
$344.2 million
Balance as of June 30, 2026
Total debt
$834.2 million
Total debt outstanding as of June 30, 2026
Fiscal 2027 net sales outlook
$1,938–1,968 million
Updated guidance implying 18–20% year-over-year net sales growth
Key Terms
Adjusted EBITDA, contingent consideration, IEEPA tariff refunds, non-GAAP financial measures, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below)"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
contingent consideration financial
"Change in fair value of contingent consideration related to the acquisition of rhode"
Contingent consideration is an additional payment agreed when one company buys another that will be paid later only if specific future targets are met, such as revenue, profit, or regulatory milestones. It matters to investors because it shifts risk between buyer and seller and affects the acquiring company's future cash flow and reported value — like promising a bonus after results are proven.
IEEPA tariff refunds regulatory
"including approximately 1,050 basis points benefit from IEEPA tariff refunds"
Refunds under the International Emergency Economic Powers Act (IEEPA) are repayments of import duties, fees, or penalties that were charged because of trade restrictions or sanctions put in place under emergency authority and later reversed, modified, or found inapplicable. For investors, these refunds can change a company’s past cash outflows and future cost structure—similar to getting a billed charge returned after a rule change—affecting reported earnings or cash available for other uses.
non-GAAP financial measures financial
"This press release includes references to non-GAAP measures, including adjusted EBITDA"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
earnout thresholds financial
"outperformance of rhode's revenue results relative to the earnout thresholds set forth"
Fair Trade Certified technical
"stands as the first beauty company with Fair Trade Certified™ facilities"
Fair Trade Certified is a label awarded by independent organizations that verifies products were produced under standards intended to protect small farmers and workers, ensure fair pay, and promote safer working conditions and environmental practices. Think of it as a quality seal for ethical sourcing: for investors it signals potential benefits like stronger brand loyalty, access to ethical markets, and lower reputational and supply-chain risk, though it can also imply higher input costs.
Earnings Snapshot
Net sales: $479.4 million · Guidance included
Three months ended June 30, 2026
Net sales
$479.4 million
Increased 36% from $353.7 million in the three months ended June 30, 2025
Net income
$66.6 million
Rose from $33.3 million in the three months ended June 30, 2025
Diluted EPS
$1.12
Increased from $0.58 in the prior-year quarter
Adjusted EBITDA
$168.2 million
Up 93% year over year from $87.1 million
Operating cash flow
$111.7 million
Improved from $27.2 million in the three months ended June 30, 2025
Guidance
For fiscal 2027, the company now expects net sales of $1,938–1,968 million (18–20% growth), adjusted EBITDA of $401–407 million, adjusted net income of $212–215 million, and adjusted diluted EPS of $3.50–3.55.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did e. Beauty (ELF) perform in Q1 fiscal 2027?
e. Beauty delivered 36% net sales growth to $479.4 million in Q1 fiscal 2027, with GAAP net income of $66.6 million. Adjusted net income was $104.6 million, adjusted EBITDA reached $168.2 million (35% of net sales), and adjusted diluted EPS was $1.75.
What drove e. Beauty’s 83% gross margin in Q1 fiscal 2027?
Gross margin increased about 1,400 basis points to 83%, including roughly 1,050 basis points of benefit from IEEPA tariff refunds. The remaining expansion was primarily attributed to benefits from pricing actions and lower year-over-year tariff rates across the business.
What is e. Beauty’s updated fiscal 2027 outlook (ELF)?
For fiscal 2027, e. Beauty now expects net sales of $1,938–1,968 million, implying 18–20% year-over-year growth. The company guides to adjusted EBITDA of $401–407 million, adjusted net income of $212–215 million, and adjusted diluted EPS of $3.50–3.55.
How has e. Beauty’s cash and debt position changed for ELF?
As of June 30, 2026, e. Beauty held $344.2 million in cash and cash equivalents and had $834.2 million of total debt. At June 30, 2025, cash was $170.0 million and total debt $256.7 million, indicating higher liquidity alongside increased leverage.
How did the rhode acquisition impact e. Beauty’s Q1 results?
e. Beauty recorded a $16.1 million increase in the fair value of contingent consideration related to the rhode acquisition. This adjustment was driven by rhode’s revenue outperforming the earnout thresholds specified in the merger agreement’s contingent consideration terms.
Which non-GAAP metrics does e. Beauty (ELF) highlight?
Key non-GAAP metrics include adjusted EBITDA of $168.2 million, adjusted net income of $104.6 million, and adjusted diluted EPS of $1.75. Management uses these measures, excluding stock-based compensation and other items, to supplement GAAP performance analysis for investors and analysts.
When is e. Beauty’s Q1 fiscal 2027 earnings webcast for ELF?
The company scheduled a webcast on August 5, 2026, at 4:30 p.m. Eastern Time to discuss Q1 fiscal 2027 results. The live and archived webcast is accessible via the investor relations events and presentations section at investor.elfbeauty.com.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 5, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) | ||||||||||||
(Address of principal executive offices, including Zip Code)
Registrant’s telephone number, including area code: (510 ) 778-7787
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934: | |||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. | ||||
On August 5, 2026 , the Company issued a press release announcing its financial results for the three months ended June 30, 2026, a copy of which is attached hereto as Exhibit 99.1.
The information in this Item 2.02 of Current Report on Form 8-K and Exhibit 99.1 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Securities and Exchange Commission’s rules and regulations, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such a filing.
| Item 9.01 | Exhibits. | ||||
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press release dated August 5, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
e.l.f. Beauty, Inc. | ||||||||||||||||||||
| Date: | By: | /s/ Mandy Fields | ||||||||||||||||||
| Mandy Fields | ||||||||||||||||||||
| Chief Financial Officer | ||||||||||||||||||||
Exhibit 99.1
e.l.f. Beauty Announces First Quarter Fiscal 2027 Results
– Delivered 36% Net Sales Growth –
– Raises Fiscal 2027 Outlook –
OAKLAND, California; August 5, 2026 — e.l.f. Beauty (NYSE: ELF) today announced results for the three months ended June 30, 2026.
“I’m proud of the e.l.f. Beauty team for achieving another quarter of industry-leading results,” said Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer. “In Q1, we delivered 36% net sales growth, marking our 30th consecutive quarter – over seven continuous years – of net sales growth. This consistent, category-leading growth is a testament to the strength of our team, strategy, and portfolio of brands. With the momentum we’re seeing, we’re raising our fiscal 2027 outlook to 18 to 20 percent net sales growth from 12 to 14 percent previously.”
Three Months Ended June 30, 2026 Results
For the three months ended June 30, 2026, compared to the three months ended June 30, 2025:
•Net sales increased 36% to $479.4 million, driven by strong performance in both our retailer and e-commerce channels, in the US and internationally.
•Gross margin increased approximately 1,400 basis points to 83%, including approximately 1,050 basis points benefit from IEEPA tariff refunds, with the remaining increase primarily driven by benefits from pricing and lower year-over-year tariff rates.
•Selling, general and administrative (“SG&A”) expenses increased $84.5 million to $280.3 million. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) increased $83.4 million to $260.7 million. The increase in SG&A is primarily related to increases in marketing, merchandising and distribution costs, compensation and benefits, and depreciation and amortization.
•Change in fair value of contingent consideration related to the acquisition of rhode (the “rhode Acquisition”). The Company recorded a fair value adjustment of $16.1 million for the three months ended June 30, 2026, driven by the outperformance of rhode's revenue results relative to the earnout thresholds set forth in the merger agreement entered into in connection with the rhode Acquisition.
•Other (expense) income, net changed by $5.4 million year over year from $5.0 million in income to $0.3 million of expense, primarily driven by a decrease in foreign currency gains for the period attributable to currency rate fluctuation.
•Net income was $66.6 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $104.6 million.
•Diluted earnings per share was $1.12 per share 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 $1.75.
•Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $168.2 million, or 35% of net sales, up 93% year over year.
Liquidity
As of June 30, 2026, the Company had $344.2 million in cash and cash equivalents, and $834.2 million of total debt, as compared to $170.0 million in cash and cash equivalents and $256.7 million of total debt outstanding as of June 30, 2025.
Updated Fiscal 2027 Outlook
The Company is providing the following updated outlook for fiscal 2027. The updated outlook for fiscal 2027 reflects an expected 18-20% year-over-year increase in net sales, as compared to an expected 12-14% increase previously.
| Previous Fiscal 2027 Outlook | Updated Fiscal 2027 Outlook | |||||||||||||
| Net sales | $1,835-1,865 million | $1,938-1,968 million | ||||||||||||
| Adjusted EBITDA | $379-385 million | $401-407 million | ||||||||||||
| Adjusted effective tax rate | 25-26% | 25-26% | ||||||||||||
| Adjusted net income | $198-201 million | $212-215 million | ||||||||||||
| Adjusted diluted earnings per share | $3.27-3.32 | $3.50-3.55 | ||||||||||||
| Weighted average diluted shares outstanding | 60.5 million | 60.5 million | ||||||||||||
Webcast Details
The Company will hold a webcast to discuss the results from its first quarter fiscal 2027 today, August 5, 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.
About e.l.f. Beauty
e.l.f. Beauty (NYSE: ELF) 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, e.l.f. Hair, rhode, Naturium and Well People, are led by purpose and driven by results. 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/
Note Regarding non-GAAP Financial Measures
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, change in fair value of contingent consideration 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, change in fair value of contingent consideration, 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.
Forward-looking Statements
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 2027 under “Updated Fiscal 2027 Outlook” above and those statements that with the momentum we’re seeing, we’re raising our fiscal 2027 outlook to 18 to 20 percent net sales growth from 12 to 14 percent previously. 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 the Company’s business resulting from acquisitions or investments, such as the Company’s 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.
| Investors: | Media: | |||||||||||||
KC Katten | Sam Critchell | |||||||||||||
VP, Corporate Development & Investor Relations kkatten@elfbeauty.com | VP, Corporate Communications scritchell@elfbeauty.com | |||||||||||||
e.l.f. Beauty, Inc. and subsidiaries
Condensed consolidated statements of operations
(unaudited)
(in thousands, except share and per share data)
| Three months ended June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net sales | $ | 479,373 | $ | 353,739 | ||||||||||
| Cost of sales | 80,533 | 109,198 | ||||||||||||
| Gross profit | 398,840 | 244,541 | ||||||||||||
| Selling, general and administrative expenses | 280,319 | 195,832 | ||||||||||||
| Change in fair value of contingent consideration | 16,080 | — | ||||||||||||
| Operating income | 102,441 | 48,709 | ||||||||||||
| Other (expense) income, net | (331) | 5,037 | ||||||||||||
| Interest expense, net | (7,808) | (2,632) | ||||||||||||
| Income before provision for income taxes | 94,302 | 51,114 | ||||||||||||
| Income tax provision | (27,703) | (17,803) | ||||||||||||
| Net income | $ | 66,599 | $ | 33,311 | ||||||||||
| Net income per share: | ||||||||||||||
| Basic | $ | 1.13 | $ | 0.59 | ||||||||||
| Diluted | $ | 1.12 | $ | 0.58 | ||||||||||
| Weighted average shares outstanding: | ||||||||||||||
| Basic | 59,144,587 | 56,328,483 | ||||||||||||
| Diluted | 59,727,575 | 57,675,035 | ||||||||||||
e.l.f. Beauty, Inc. and subsidiaries
Condensed consolidated balance sheets
(unaudited)
(in thousands, except share and per share data)
| June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||||||||||||
| Assets | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 344,241 | $ | 289,685 | $ | 170,029 | ||||||||||||||
| Accounts receivable, net | 174,529 | 174,644 | 173,352 | |||||||||||||||||
| Inventory, net | 246,814 | 220,246 | 170,379 | |||||||||||||||||
| Prepaid expenses and other current assets | 94,257 | 104,792 | 88,766 | |||||||||||||||||
| Total current assets | 859,841 | 789,367 | 602,526 | |||||||||||||||||
| Property and equipment, net | 39,692 | 41,496 | 39,182 | |||||||||||||||||
| Intangible assets, net | 541,976 | 553,110 | 203,348 | |||||||||||||||||
| Goodwill | 853,475 | 853,475 | 340,582 | |||||||||||||||||
| Other assets | 165,665 | 156,710 | 129,258 | |||||||||||||||||
| Total assets | $ | 2,460,649 | $ | 2,394,158 | $ | 1,314,896 | ||||||||||||||
| Liabilities and stockholders' equity | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Current portion of long-term debt | $ | 30,000 | $ | 30,000 | $ | — | ||||||||||||||
| Current portion of contingent consideration | 28,240 | 26,227 | — | |||||||||||||||||
| Accounts payable | 95,918 | 97,467 | 74,603 | |||||||||||||||||
| Accrued expenses and other current liabilities | 183,498 | 182,470 | 110,136 | |||||||||||||||||
| Total current liabilities | 337,656 | 336,164 | 184,739 | |||||||||||||||||
| Long-term debt | 801,996 | 809,348 | 256,676 | |||||||||||||||||
| Long-term contingent consideration | 52,589 | 38,522 | — | |||||||||||||||||
| Deferred tax liabilities | 6,208 | 6,197 | 17,009 | |||||||||||||||||
| Long-term operating lease obligations | 89,659 | 69,928 | 50,351 | |||||||||||||||||
| Other long-term liabilities | 3,651 | 3,469 | 1,269 | |||||||||||||||||
| Total liabilities | 1,291,759 | 1,263,628 | 510,044 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of June 30, 2026, March 31, 2026 and June 30, 2025; 58,936,996, 59,089,708 and 56,734,903 shares issued and outstanding as of June 30, 2026, March 31, 2026 and June 30, 2025, respectively | 589 | 590 | 566 | |||||||||||||||||
| Additional paid-in capital | 1,256,706 | 1,284,987 | 952,015 | |||||||||||||||||
| Accumulated other comprehensive income | 925 | 882 | 1,207 | |||||||||||||||||
| Accumulated deficit | (89,330) | (155,929) | (148,936) | |||||||||||||||||
| Total stockholders' equity | 1,168,890 | 1,130,530 | 804,852 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,460,649 | $ | 2,394,158 | $ | 1,314,896 | ||||||||||||||
e.l.f. Beauty, Inc. and subsidiaries
Condensed consolidated statements of cash flows
(unaudited)
(in thousands)
| Three months ended June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income | $ | 66,599 | $ | 33,311 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 26,101 | 13,192 | ||||||||||||
| Non-cash lease expense | 3,196 | 2,843 | ||||||||||||
| Stock-based compensation expense | 19,677 | 9,868 | ||||||||||||
| Amortization of debt issuance costs and discount on debt | 473 | 134 | ||||||||||||
| Deferred income taxes | 1,782 | 14,216 | ||||||||||||
| Change in fair value of contingent consideration | 16,080 | — | ||||||||||||
| Other, net | 2 | 911 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Accounts receivable | 198 | (46,170) | ||||||||||||
| Inventory | (26,524) | 18,684 | ||||||||||||
| Prepaid expenses and other assets | 8,202 | (16,332) | ||||||||||||
| Accounts payable and accrued expenses | (2,429) | (1,542) | ||||||||||||
| Other liabilities | (1,692) | (1,882) | ||||||||||||
| Net cash provided by operating activities | 111,665 | 27,233 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Purchase of property and equipment | (1,431) | (7,095) | ||||||||||||
| Other, net | (240) | (464) | ||||||||||||
| Net cash used in investing activities | (1,671) | (7,559) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Repayment of long-term debt | (7,500) | — | ||||||||||||
| Repurchase of common stock | (49,982) | — | ||||||||||||
| Cash received from issuance of common stock | 2,022 | 121 | ||||||||||||
| Net cash (used in) provided by financing activities | (55,460) | 121 | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 22 | 1,542 | ||||||||||||
| Net increase in cash and cash equivalents | 54,556 | 21,337 | ||||||||||||
| Cash and cash equivalents - beginning of period | 289,685 | 148,692 | ||||||||||||
| Cash and cash equivalents - end of period | $ | 344,241 | $ | 170,029 | ||||||||||
e.l.f. Beauty, Inc. and subsidiaries
Reconciliation of GAAP net income to non-GAAP adjusted EBITDA
(unaudited)
(in thousands)
| Three months ended June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net income | $ | 66,599 | $ | 33,311 | ||||||||||
| Interest expense, net | 7,808 | 2,632 | ||||||||||||
| Income tax provision | 27,703 | 17,803 | ||||||||||||
| Depreciation and amortization | 26,101 | 13,192 | ||||||||||||
| EBITDA | $ | 128,211 | $ | 66,938 | ||||||||||
| Stock-based compensation | 19,677 | 9,868 | ||||||||||||
| Change in fair value of contingent consideration (a) | 16,080 | — | ||||||||||||
| Other non-cash and non-recurring items (b) | 4,232 | 10,257 | ||||||||||||
| Adjusted EBITDA | $ | 168,200 | $ | 87,063 | ||||||||||
(a) Represents increase in fair value of contingent consideration related to rhode Acquisition.
(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.
e.l.f. Beauty, Inc. and subsidiaries
Reconciliation of GAAP SG&A to non-GAAP adjusted SG&A
(unaudited)
(in thousands)
| Three months ended June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Selling, general and administrative expenses | $ | 280,319 | $ | 195,832 | ||||||||||
| Stock-based compensation | (19,678) | (9,879) | ||||||||||||
| Other non-recurring items (a) | 23 | (8,643) | ||||||||||||
| Adjusted selling, general and administrative expenses | $ | 260,664 | $ | 177,310 | ||||||||||
(a) Represents other non-recurring ERP implementation costs and acquisition related costs.
e.l.f. Beauty, Inc. and subsidiaries
Reconciliation of GAAP net income to non-GAAP adjusted net income
(unaudited)
(in thousands, except share and per share data)
| Three months ended June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net income | $ | 66,599 | $ | 33,311 | ||||||||||
| Stock-based compensation | 19,677 | 9,868 | ||||||||||||
| Change in fair value of contingent consideration (a) | 16,080 | — | ||||||||||||
| Other non-recurring items (b) | (142) | 8,643 | ||||||||||||
| Amortization of acquired intangible assets (c) | 11,133 | 4,349 | ||||||||||||
| Tax Impact (d) | (8,792) | (4,846) | ||||||||||||
| Adjusted net income | $ | 104,555 | $ | 51,325 | ||||||||||
| Weighted average number of shares outstanding – diluted | 59,727,575 | 57,675,035 | ||||||||||||
| Adjusted diluted earnings per share | $ | 1.75 | $ | 0.89 | ||||||||||
(a) Represents increase in fair value of contingent consideration related to rhode Acquisition.
(b) Represents other non-recurring ERP implementation costs and acquisition related costs.
(c) Represents amortization expense of acquired intangible assets consisting of customer relationships and trademarks.
(d) Represents the tax impact of the above adjustments.