e.l.f. Beauty raises FY2027 sales growth view to 22%–24%
Fiscal 2027 net sales growth outlook rises to 22%–24%, compared with the previously expected 18%–20% range.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
e.l.f. Beauty, Inc. reported second-quarter fiscal 2027 net sales of $520.8 million, up 51% year over year, and gross margin of 71%, up approximately 160 basis points. GAAP net income was $30.030 million, adjusted net income was $72.7 million, and adjusted EBITDA was $123.4 million, up 86%.
For the six months ended September 30, 2026, net sales increased 43% to $1,000.2 million, GAAP net income was $96.6 million, and adjusted EBITDA was $291.6 million, up 90%. Cash and cash equivalents were $350.8 million and total debt was $826.7 million as of September 30, 2026. The company recorded a $17.7 million fair-value adjustment to contingent consideration, reflecting rhode revenue outperformance relative to earnout thresholds.
The company raised its fiscal 2027 net sales outlook to expected growth of 22%–24%, from 18%–20%. Updated ranges are $2,003–$2,029 million in net sales, $421–$427 million in adjusted EBITDA, $231–$233 million in adjusted net income and $3.82–$3.86 in adjusted diluted earnings per share. Quarterly gross-margin improvement included approximately 30 basis points from incremental IEEPA tariff refunds flowing through cost of sales; lower year-over-year tariffs and favorable mix were the primary remaining drivers, partly offset by price investments. Adjusted measures are non-GAAP.
4 points · 1 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 net sales growth outlook rose to 22%–24% from 18%–20%.
- Moderate pointQuarterly net sales rose 51% to $520.8 million.
- Moderate pointAdjusted EBITDA increased 86% to $123.4 million.
- Moderate pointQuarterly GAAP net income reached $30.030 million from $2.996 million.
Negative
- None.
Filing Explained
The cash-flow statement reports
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, or exhibit attachments filed with this report.
Key Figures
Net sales: $520.8 million
GAAP net income: $30.030 million
Adjusted EBITDA: $123.4 million
+5 more
8 metrics
Net sales
$520.8 million
Three months ended September 30, 2026; up 51% year over year
GAAP net income
$30.030 million
Three months ended September 30, 2026; compared with $2.996 million a year earlier
Adjusted EBITDA
$123.4 million
Three months ended September 30, 2026; up 86% year over year
Fiscal 2027 net sales outlook
$2,003–$2,029 million
Updated outlook
Fiscal 2027 adjusted EBITDA outlook
$421–$427 million
Updated outlook
Fiscal 2027 adjusted net income outlook
$231–$233 million
Updated outlook
Cash and cash equivalents
$350.8 million
As of September 30, 2026
Total debt
$826.7 million
As of September 30, 2026
Key Terms
Adjusted EBITDA, contingent consideration, earnout thresholds, IEEPA tariff refunds, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA (EBITDA excluding the items identified"
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.
earnout thresholds financial
"relative to the earnout thresholds set forth in the merger agreement"
IEEPA tariff refunds regulatory
"benefit from incremental IEEPA tariff refunds flowing through cost of sales"
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.
Adjusted effective tax rate financial
"Adjusted effective tax rate is the tax rate when excluding the pre-tax impact"
The adjusted effective tax rate is the percentage of a company’s pre-tax income that it would normally pay in taxes after removing one-time or unusual items, giving a clearer view of its ongoing tax burden. Like clearing away exceptional expenses to see your regular monthly bill, this adjusted rate helps investors compare companies, forecast future profits and cash flow, and value a business without one-off swings distorting the picture.
Earnings Snapshot
Net sales: $520.8 million · Guidance included
Three months ended September 30, 2026
Net sales
$520.8 million
Up 51% year over year
Gross margin
71%
Up approximately 160 basis points year over year
GAAP net income
$30.030 million
Compared with $2.996 million in the prior-year quarter
Adjusted EBITDA
$123.4 million
Up 86% year over year
Guidance
Fiscal 2027 expected net sales growth of 22%–24%; updated ranges include net sales of $2,003–$2,029 million, adjusted EBITDA of $421–$427 million, adjusted net income of $231–$233 million and adjusted diluted earnings per share of $3.82–$3.86.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did ELF report in second-quarter fiscal 2027 sales?
e.l.f. Beauty reported net sales of $520.8 million for the three months ended September 30, 2026, up 51% from the prior-year quarter. The company attributed growth to performance in retailer and e-commerce channels in the U.S. and internationally.
What is ELF's updated fiscal 2027 outlook?
The company expects fiscal 2027 net sales to increase 22% to 24%, compared with its prior outlook of 18% to 20%. Updated ranges are $2,003–$2,029 million in net sales, $421–$427 million in adjusted EBITDA, $231–$233 million in adjusted net income and $3.82–$3.86 in adjusted diluted earnings per share.
Why did ELF's second-quarter gross margin increase?
e.l.f. Beauty's second-quarter gross margin increased approximately 160 basis points to 71%. Approximately 30 basis points came from incremental IEEPA tariff refunds flowing through cost of sales; the remaining increase was primarily attributed to lower year-over-year tariffs and favorable mix, partly offset by price investments.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): November 4, 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 November 4, 2026 , the Company issued a press release announcing its financial results for the three and six months ended September 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 November 4, 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 Second Quarter Fiscal 2027 Results
– Delivered 51% Net Sales Growth –
– Raises Fiscal 2027 Outlook –
OAKLAND, California; November 4, 2026 — e.l.f. Beauty (NYSE: ELF) today announced results for the three and six months ended September 30, 2026.
“I am proud of the e.l.f. Beauty team for delivering our 31st consecutive quarter of net sales growth, with net sales up 51% driven by strength across our portfolio. With this momentum, we are raising our full-year net sales guidance to 22 to 24 percent,” said e.l.f. Beauty Chairman and CEO Tarang Amin. “The consistency of our results is powered by our passionate team of owners, deep engagement with our community, and democratizing access to the best of beauty.”
Three Months Ended September 30, 2026 Results
For the three months ended September 30, 2026, compared to the three months ended September 30, 2025:
•Net sales increased 51% to $520.8 million, driven by strong performance in both our retailer and e-commerce channels, in the US and internationally.
•Gross margin increased approximately 160 basis points to 71%, including approximately 30 basis points benefit from incremental IEEPA tariff refunds flowing through cost of sales during the three months ended September 30, 2026, with the remaining increase primarily driven by lower year-over-year tariffs and benefits from a favorable mix, partially offset by price investments.
•Selling, general and administrative (“SG&A”) expenses increased $69.0 million to $300.1 million. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) increased $81.9 million to $275.1 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 $17.7 million for the three months ended September 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 income (expense), net changed by $2.4 million year over year from $1.9 million of expense to $0.6 million in income, primarily driven by an increase in foreign currency gains for the period attributable to currency rate fluctuation.
•Net income was $30.0 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $72.7 million.
•Diluted earnings per share was $0.50 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 $1.21.
•Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $123.4 million, or 24% of net sales, up 86% year over year.
Six Months Ended September 30, 2026 Results
For the six months ended September 30, 2026, compared to the six months ended September 30, 2025:
•Net sales increased 43% to $1,000.2 million, driven by strong performance in both our retailer and e-commerce channels, in the US and internationally.
•Gross margin increased approximately 760 basis points to 77%, including approximately 520 basis points benefit from IEEPA tariff refunds flowing through cost of sales, with the remaining increase primarily driven by lower year-over-year tariffs, prior year pricing and benefits from a favorable mix, partially offset by price investments.
•SG&A expenses increased $153.5 million to $580.4 million. Adjusted SG&A increased $165.2 million to $535.8 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 rhode Acquisition. The Company recorded a fair value adjustment of $33.8 million for the six months ended September 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 income, net decreased by $2.9 million year over year from $3.2 million to $0.2 million, primarily driven by a decrease in foreign currency gains for the period attributable to currency rate fluctuation.
•Net income was $96.6 million on a GAAP basis. Adjusted net income was $177.2 million.
•Diluted earnings per share was $1.61 per share on a GAAP basis. Adjusted diluted earnings per share was $2.96.
•Adjusted EBITDA was $291.6 million, or 29% of net sales, up 90% year over year.
Liquidity
As of September 30, 2026, the Company had $350.8 million in cash and cash equivalents, and $826.7 million of total debt, as compared to $194.4 million in cash and cash equivalents and $856.7 million of total debt outstanding as of September 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 22-24% year-over-year increase in net sales, as compared to an expected 18-20% increase previously.
| Previous Fiscal 2027 Outlook | Updated Fiscal 2027 Outlook | |||||||||||||
| Net sales | $1,938-1,968 million | $2,003-2,029 million | ||||||||||||
| Adjusted EBITDA | $401-407 million | $421-427 million | ||||||||||||
| Adjusted effective tax rate | 25-26% | 25-26% | ||||||||||||
| Adjusted net income | $212-215 million | $231-233 million | ||||||||||||
| Adjusted diluted earnings per share | $3.50-3.55 | $3.82-3.86 | ||||||||||||
| 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 second quarter fiscal 2027 today, November 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.
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, 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, 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, change in fair value of contingent consideration, other non-cash and non-recurring items, loss on extinguishment of debt, 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, loss on extinguishment of debt, 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 this momentum, we are raising our full-year net sales guidance to 22 to 24 percent. 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: | |||||||||||||
| Ashley Helgans | Sam Critchell | |||||||||||||
VP, Investor Relations ahelgans@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 September 30, | Six months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net sales | $ | 520,816 | $ | 343,936 | $ | 1,000,189 | $ | 697,675 | ||||||||||||||||||
| Cost of sales | 150,592 | 105,078 | 231,125 | 214,276 | ||||||||||||||||||||||
| Gross profit | 370,224 | 238,858 | 769,064 | 483,399 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 300,120 | 231,142 | 580,439 | 426,974 | ||||||||||||||||||||||
| Change in fair value of contingent consideration | 17,678 | — | 33,758 | — | ||||||||||||||||||||||
| Operating income | 52,426 | 7,716 | 154,867 | 56,425 | ||||||||||||||||||||||
| Other income (expense), net | 563 | (1,878) | 232 | 3,159 | ||||||||||||||||||||||
| Interest expense, net | (9,978) | (9,153) | (17,786) | (11,785) | ||||||||||||||||||||||
| Loss on extinguishment of debt | — | (674) | — | (674) | ||||||||||||||||||||||
| Income (loss) before (provision for) benefit from income taxes | 43,011 | (3,989) | 137,313 | 47,125 | ||||||||||||||||||||||
| Income tax (provision) benefit | (12,981) | 6,985 | (40,684) | (10,818) | ||||||||||||||||||||||
| Net income | $ | 30,030 | $ | 2,996 | $ | 96,629 | $ | 36,307 | ||||||||||||||||||
| Net income per share: | ||||||||||||||||||||||||||
| Basic | $ | 0.51 | $ | 0.05 | $ | 1.64 | $ | 0.63 | ||||||||||||||||||
| Diluted | $ | 0.50 | $ | 0.05 | $ | 1.61 | $ | 0.62 | ||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||
| Basic | 59,030,317 | 58,361,701 | 59,087,140 | 57,350,647 | ||||||||||||||||||||||
| Diluted | 60,089,314 | 59,593,910 | 59,898,471 | 58,640,028 | ||||||||||||||||||||||
e.l.f. Beauty, Inc. and subsidiaries
Condensed consolidated balance sheets
(unaudited)
(in thousands, except share and per share data)
| September 30, 2026 | March 31, 2026 | September 30, 2025 | ||||||||||||||||||
| Assets | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 350,799 | $ | 289,685 | $ | 194,403 | ||||||||||||||
| Accounts receivable, net | 246,229 | 174,644 | 154,688 | |||||||||||||||||
| Inventory, net | 260,612 | 220,246 | 247,390 | |||||||||||||||||
| Prepaid expenses and other current assets | 119,985 | 104,792 | 110,756 | |||||||||||||||||
| Total current assets | 977,625 | 789,367 | 707,237 | |||||||||||||||||
| Property and equipment, net | 37,742 | 41,496 | 44,419 | |||||||||||||||||
| Intangible assets, net | 530,843 | 553,110 | 575,376 | |||||||||||||||||
| Goodwill | 853,475 | 853,475 | 851,830 | |||||||||||||||||
| Other assets | 167,563 | 156,710 | 139,920 | |||||||||||||||||
| Total assets | $ | 2,567,248 | $ | 2,394,158 | $ | 2,318,782 | ||||||||||||||
| Liabilities and stockholders' equity | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Current portion of long-term debt | $ | 30,000 | $ | 30,000 | $ | 22,500 | ||||||||||||||
| Current portion of contingent consideration | 30,000 | 26,227 | — | |||||||||||||||||
| Accounts payable | 124,046 | 97,467 | 109,296 | |||||||||||||||||
| Accrued expenses and other current liabilities | 196,202 | 182,470 | 130,074 | |||||||||||||||||
| Total current liabilities | 380,248 | 336,164 | 261,870 | |||||||||||||||||
| Long-term debt | 794,646 | 809,348 | 831,551 | |||||||||||||||||
| Long-term contingent consideration | 68,507 | 38,522 | — | |||||||||||||||||
| Deferred tax liabilities | 6,228 | 6,197 | 20,897 | |||||||||||||||||
| Long-term operating lease obligations | 88,135 | 69,928 | 55,629 | |||||||||||||||||
| Other long-term liabilities | 3,974 | 3,469 | 9,826 | |||||||||||||||||
| Total liabilities | 1,341,738 | 1,263,628 | 1,179,773 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of September 30, 2026, March 31, 2026 and September 30, 2025; 59,075,366, 59,089,708 and 59,430,231 shares issued and outstanding as of September 30, 2026, March 31, 2026 and September 30, 2025, respectively | 590 | 590 | 593 | |||||||||||||||||
| Additional paid-in capital | 1,283,235 | 1,284,987 | 1,283,385 | |||||||||||||||||
| Accumulated other comprehensive income | 985 | 882 | 971 | |||||||||||||||||
| Accumulated deficit | (59,300) | (155,929) | (145,940) | |||||||||||||||||
| Total stockholders' equity | 1,225,510 | 1,130,530 | 1,139,009 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,567,248 | $ | 2,394,158 | $ | 2,318,782 | ||||||||||||||
e.l.f. Beauty, Inc. and subsidiaries
Condensed consolidated statements of cash flows
(unaudited)
(in thousands)
| Six months ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income | $ | 96,629 | $ | 36,307 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 50,162 | 31,478 | ||||||||||||
| Non-cash lease expense | 7,174 | 5,541 | ||||||||||||
| Stock-based compensation expense | 44,304 | 39,345 | ||||||||||||
| Amortization of debt issuance costs and discount on debt | 948 | 487 | ||||||||||||
| Deferred income taxes | (6,754) | 18,716 | ||||||||||||
| Acquisition-related seller expenses | — | (47,100) | ||||||||||||
| Loss on extinguishment of debt | — | 674 | ||||||||||||
| Change in fair value of contingent consideration | 33,758 | — | ||||||||||||
| Other, net | 583 | 2,390 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Accounts receivable | (71,423) | 2,958 | ||||||||||||
| Inventory | (40,218) | (19,211) | ||||||||||||
| Prepaid expenses and other assets | (23,923) | (48,755) | ||||||||||||
| Accounts payable and accrued expenses | 39,698 | 24,358 | ||||||||||||
| Other liabilities | (4,628) | 3,460 | ||||||||||||
| Net cash provided by operating activities | 126,310 | 50,648 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Acquisition, net of cash acquired | — | (580,603) | ||||||||||||
| Purchase of property and equipment | (3,981) | (13,944) | ||||||||||||
| Other, net | (240) | (464) | ||||||||||||
| Net cash used in investing activities | (4,221) | (595,011) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Proceeds from revolving line of credit | — | 50,000 | ||||||||||||
| Repayment of revolving line of credit | — | (50,000) | ||||||||||||
| Proceeds from long-term debt | — | 600,000 | ||||||||||||
| Repayment of long-term debt | (15,000) | — | ||||||||||||
| Debt issuance costs paid | — | (6,891) | ||||||||||||
| Repurchase of common stock | (49,982) | — | ||||||||||||
| Cash received from issuance of common stock | 3,924 | 1,771 | ||||||||||||
| Net cash (used in) provided by financing activities | (61,058) | 594,880 | ||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 83 | 194 | ||||||||||||
| Net increase in cash, cash equivalents and restricted cash | 61,114 | 50,711 | ||||||||||||
| Cash, cash equivalents and restricted cash - beginning of period | 289,685 | 148,692 | ||||||||||||
| Cash, cash equivalents and restricted cash - end of period | $ | 350,799 | $ | 199,403 | ||||||||||
e.l.f. Beauty, Inc. and subsidiaries
Reconciliation of GAAP net income to non-GAAP adjusted EBITDA
(unaudited)
(in thousands)
| Three months ended September 30, | Six months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net income | $ | 30,030 | $ | 2,996 | $ | 96,629 | $ | 36,307 | ||||||||||||||||||
| Interest expense, net | 9,978 | 9,153 | 17,786 | 11,785 | ||||||||||||||||||||||
| Income tax provision (benefit) | 12,981 | (6,985) | 40,684 | 10,818 | ||||||||||||||||||||||
| Depreciation and amortization | 24,061 | 18,328 | 50,162 | 31,520 | ||||||||||||||||||||||
| EBITDA | $ | 77,050 | $ | 23,492 | $ | 205,261 | $ | 90,430 | ||||||||||||||||||
| Stock-based compensation | 24,627 | 29,477 | 44,304 | 39,345 | ||||||||||||||||||||||
| Change in fair value of contingent consideration (a) | 17,678 | — | 33,758 | — | ||||||||||||||||||||||
| Loss on extinguishment of debt (b) | — | 674 | — | 674 | ||||||||||||||||||||||
| Other non-cash and non-recurring items (c) | 4,006 | 12,594 | 8,238 | 22,851 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 123,361 | $ | 66,237 | $ | 291,561 | $ | 153,300 | ||||||||||||||||||
(a) Represents increase in fair value of contingent consideration related to rhode Acquisition.
(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 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 September 30, | Six months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Selling, general and administrative expenses | $ | 300,120 | $ | 231,142 | $ | 580,439 | $ | 426,974 | ||||||||||||||||||
| Stock-based compensation | (24,628) | (29,469) | (44,306) | (39,348) | ||||||||||||||||||||||
| Other non-recurring items (a) | (390) | (8,445) | (367) | (17,088) | ||||||||||||||||||||||
| Adjusted selling, general and administrative expenses | $ | 275,102 | $ | 193,228 | $ | 535,766 | $ | 370,538 | ||||||||||||||||||
(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 September 30, | Six months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net income | $ | 30,030 | $ | 2,996 | $ | 96,629 | $ | 36,307 | ||||||||||||||||||
| Stock-based compensation | 24,627 | 29,477 | 44,304 | 39,345 | ||||||||||||||||||||||
| Change in fair value of contingent consideration (a) | 17,678 | — | 33,758 | — | ||||||||||||||||||||||
| Other non-recurring items (b) | (589) | 9,179 | (731) | 17,822 | ||||||||||||||||||||||
| Loss on extinguishment of debt (c) | — | 674 | — | 674 | ||||||||||||||||||||||
| Amortization of acquired intangible assets (d) | 11,134 | 8,872 | 22,267 | 13,221 | ||||||||||||||||||||||
| Tax Impact (e) | (10,225) | (10,473) | (19,017) | (15,319) | ||||||||||||||||||||||
| Adjusted net income | $ | 72,655 | $ | 40,725 | $ | 177,210 | $ | 92,050 | ||||||||||||||||||
| Weighted average number of shares outstanding – diluted | 60,089,314 | 59,593,910 | 59,898,471 | 58,640,028 | ||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 1.21 | $ | 0.68 | $ | 2.96 | $ | 1.57 | ||||||||||||||||||
(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) Loss on extinguishment of debt includes the write-off of existing debt issuance costs and certain fees paid related to the amended credit agreement.
(d) Represents amortization expense of acquired intangible assets consisting of customer relationships and trademarks.
(e) Represents the tax impact of the above adjustments.