e. Beauty (NYSE: ELF) grows sales and issues 2027 earnings outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
e. Beauty, Inc. reported strong growth for the year ended March 31, 2026, with net sales up 25% to $1.64 billion. All five brands grew, and rhode and Naturium were highlighted as standout performers.
Despite higher sales, full-year GAAP net income fell to $26.3 million from $112.1 million, largely reflecting higher SG&A, interest expense and a $57.6 million fair value increase in contingent consideration tied to the rhode acquisition. However, full-year adjusted net income reached $185.9 million and adjusted EBITDA rose 13% to $335.2 million, or 20% of net sales.
For fiscal 2027, the company expects net sales of $1.84–1.87 billion, implying 12–14% growth, and projects adjusted EBITDA of $379–385 million and adjusted diluted EPS of $3.27–3.32. Cash rose to $289.7 million, while total debt increased to $841.7 million as the company financed acquisitions and growth.
Positive
- Strong growth and profitability: Fiscal 2026 net sales rose 25% to $1.64 billion, while adjusted EBITDA increased 13% to $335.2 million, or 20% of net sales, with all five brands growing.
- Double-digit growth outlook: Fiscal 2027 guidance calls for 12–14% net sales growth, adjusted EBITDA of $379–385 million, and adjusted diluted EPS of $3.27–3.32, extending the growth trajectory.
Negative
- Higher leverage and GAAP earnings pressure: Total debt jumped to $841.7 million from $256.7 million, interest expense rose to $35.3 million, and GAAP net income fell to $26.3 million with a $49.4 million Q4 loss, partly from a $57.6 million contingent consideration charge.
Insights
Strong top-line and adjusted profits, but much higher leverage and GAAP volatility.
e. Beauty delivered robust growth, with fiscal 2026 net sales up 25% to $1.64 billion and adjusted EBITDA up 13% to $335.2 million (20% margin). All brands contributed, with rhode and Naturium called out as particularly strong.
GAAP results were much weaker: net income dropped to $26.3 million and Q4 showed a $49.4 million net loss. Key drivers were a $57.6 million increase in rhode contingent consideration, higher SG&A of $1.03 billion, and interest expense rising to $35.3 million as debt expanded.
Guidance for fiscal 2027 targets net sales of $1.84–1.87 billion (12–14% growth), adjusted EBITDA of $379–385 million, and adjusted EPS of $3.27–3.32. Cash ended at $289.7 million, but total debt increased to $841.7 million, so future filings will show how effectively earnings growth services this higher leverage.
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
FY 2026 net sales: $1,636.5 million
FY 2026 GAAP net income: $26.3 million
FY 2026 adjusted EBITDA: $335.2 million
+5 more
8 metrics
FY 2026 net sales
$1,636.5 million
Fiscal year ended March 31, 2026; up 25% year over year
FY 2026 GAAP net income
$26.3 million
Fiscal year ended March 31, 2026; down from $112.1 million
FY 2026 adjusted EBITDA
$335.2 million
Fiscal year ended March 31, 2026; 20% of net sales, up 13% YoY
Q4 2026 net sales
$449.3 million
Three months ended March 31, 2026; 35% growth vs prior-year quarter
Q4 2026 GAAP net loss
$49.4 million
Three months ended March 31, 2026
Debt balance
$841.7 million
Total debt as of March 31, 2026; up from $256.7 million
Cash balance
$289.7 million
Cash and cash equivalents as of March 31, 2026
Fiscal 2027 net sales outlook
$1,835–1,865 million
Company guidance; implies 12–14% growth vs fiscal 2026
Key Terms
Adjusted EBITDA, contingent consideration, loss on extinguishment of debt, adjusted net income, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $335.2 million, or 20% of net sales, up 13% year over year."
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 rhode Acquisition."
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.
loss on extinguishment of debt financial
"Loss on extinguishment of debt includes the write-off of existing debt issuance costs and certain fees paid related to the amended credit agreement."
Loss on extinguishment of debt is the accounting hit a company records when it retires or restructures a loan or bond for an amount that exceeds the debt’s recorded value—like paying more than the remaining balance to settle a loan early. It matters to investors because it reduces reported profit and can use cash, but may also cut future interest costs or signal financial stress; understanding it helps assess earnings quality and balance-sheet strength.
adjusted net income financial
"Adjusted net income (net income excluding the items identified in the reconciliation table below) was $185.9 million."
Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.
non-GAAP financial measures financial
"This press release includes references to non-GAAP measures, including adjusted EBITDA, adjusted SG&A, adjusted net income and adjusted diluted earnings per share."
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.
Adjusted effective tax rate financial
"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."
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
Revenue: $1,636.5 million · Guidance included
Fiscal 2026 and Q4 2026
Revenue
$1,636.5 million
+25% YoY
Q4 Revenue
$449.3 million
+35% YoY
GAAP Net Income
$26.3 million
down vs $112.1 million prior year
Adjusted Net Income
$185.9 million
vs $197.6 million prior year
Adjusted EBITDA
$335.2 million
+13% YoY
Diluted EPS
$0.44
vs $1.92 prior year
Guidance
For fiscal 2027, the company guides to net sales of $1.84–1.87 billion (12–14% growth), adjusted EBITDA of $379–385 million, adjusted net income of $198–201 million, and adjusted diluted EPS of $3.27–3.32.
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): May 20, 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 May 20, 2026 , the Company issued a press release announcing its financial results for the three and twelve months ended March 31, 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 May 20, 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 Fourth Quarter Fiscal 2026 Results
– Delivered Fiscal 2026 net sales growth of 25% year over year –
– Provides Fiscal 2027 outlook –
OAKLAND, California; May 20, 2026 — e.l.f. Beauty (NYSE: ELF) today announced results for the three and twelve months ended March 31, 2026.
“Fiscal 26 marked our 7th consecutive year of net sales and market share growth—a track record that reflects the strength of our team, strategy and portfolio of brands,” said Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer. “All five of our brands grew this year, with rhode and Naturium delivering particularly strong results and reinforcing the power of our expanding brand portfolio. The whitespace opportunity in front of us across brands, categories, and geographies gives us great confidence in the runway ahead.”
Three Months Ended March 31, 2026 Results
For the three months ended March 31, 2026, compared to the three months ended March 31, 2025:
•Net sales increased 35% to $449.3 million, primarily driven by growth in both our retailer and e-commerce channels, in the US and internationally.
•Gross margin increased approximately 140 basis points to 73%, primarily driven by benefits from pricing, partially offset by higher tariffs.
•Selling, general and administrative (“SG&A”) expenses increased $126.4 million to $319.1 million. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) increased $126.6 million to $300.0 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 and regulatory fees.
•Change in fair value of contingent consideration related to the acquisition of rhode (the “rhode Acquisition”). The Company recorded a fair value adjustment of $57.6 million for the fiscal year ended March 31, 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 $1.6 million to $1.0 million, primarily driven by an increase in foreign currency losses for the period attributable to currency rate fluctuation.
•Net loss was $49.4 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $19.4 million.
•Diluted loss per share was $0.82 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 $0.32.
•Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $58.8 million, or 13% of net sales, down 28% year over year.
Twelve Months Ended March 31, 2026 Results
For the twelve months ended March 31, 2026, compared to the twelve months ended March 31, 2025:
•Net sales increased 25% to $1,636.5 million, primarily driven by growth in both our retailer and e-commerce channels, in the US and internationally.
•Gross margin decreased approximately 50 basis points to 71%, primarily driven by higher tariff costs, partially offset by benefits from pricing.
•Selling, general and administrative (“SG&A”) expenses increased $248.4 million to $1,026.1 million. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) increased $228.8 million to $919.7 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 and regulatory fees.
•Change in fair value of contingent consideration related to the rhode Acquisition. The Company recorded a fair value adjustment of $57.6 million for the fiscal year ended March 31, 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 increased $1.5 million to $2.8 million, primarily driven by income from insurance recovery and a decrease in foreign currency losses for the period attributable to currency rate fluctuation.
•Net income was $26.3 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $185.9 million.
•Diluted earnings per share was $0.44 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 $3.13.
•Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $335.2 million, or 20% of net sales, up 13% year over year.
Liquidity
As of March 31, 2026, the Company had $289.7 million in cash and cash equivalents, and $841.7 million of total debt, as compared to $148.7 million in cash and cash equivalents and $256.7 million of total debt outstanding as of March 31, 2025.
Fiscal 2027 Outlook
The Company is providing the following outlook for fiscal 2027. When compared to fiscal 2026, the outlook for fiscal 2027 reflects an expected 12-14% increase in net sales.
| Fiscal 2027 Outlook | Fiscal 2026 Actuals | ||||||||||
| Net sales | $1,835-1,865 million | $1,636 million | |||||||||
| Adjusted EBITDA | $379-385 million | $335 million | |||||||||
| Adjusted effective tax rate | 25-26% | 23% | |||||||||
| Adjusted net income | $198-201 million | $186 million | |||||||||
| Adjusted diluted earnings per share | $3.27-3.32 | $3.13 | |||||||||
| Weighted average diluted shares outstanding | 60.5 million | 59 million | |||||||||
Webcast Details
The Company will hold a webcast to discuss the results from its fourth quarter fiscal 2026 today, May 20, 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, 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, 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, change in fair value of contingent consideration, 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.
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 “Fiscal 2027 Outlook” above and those statements that the whitespace opportunity in front of us across brands, categories, and geographies gives us great confidence in the runway ahead. 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 March 31, | Twelve months ended March 31, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net sales | $ | 449,292 | $ | 332,645 | $ | 1,636,472 | $ | 1,313,517 | ||||||||||||||||||
| Cost of sales | 122,839 | 95,606 | 479,125 | 377,831 | ||||||||||||||||||||||
| Gross profit | 326,453 | 237,039 | 1,157,347 | 935,686 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 319,137 | 192,723 | 1,026,066 | 777,659 | ||||||||||||||||||||||
| Change in fair value of contingent consideration | 57,649 | — | 57,649 | — | ||||||||||||||||||||||
| Operating (expense) income | (50,333) | 44,316 | 73,632 | 158,027 | ||||||||||||||||||||||
| Other income, net | 951 | 2,594 | 2,785 | 1,294 | ||||||||||||||||||||||
| Interest expense, net | (11,148) | (2,860) | (35,284) | (13,813) | ||||||||||||||||||||||
| Loss on extinguishment of debt | — | (13) | (674) | (13) | ||||||||||||||||||||||
| (Loss) Income before provision for income taxes | (60,530) | 44,037 | 40,459 | 145,495 | ||||||||||||||||||||||
| Income tax benefit (provision) | 11,165 | (15,784) | (14,141) | (33,406) | ||||||||||||||||||||||
| Net (loss) income | $ | (49,365) | $ | 28,253 | $ | 26,318 | $ | 112,089 | ||||||||||||||||||
| Net (loss) income per share: | ||||||||||||||||||||||||||
| Basic | $ | (0.84) | $ | 0.50 | $ | 0.45 | $ | 1.99 | ||||||||||||||||||
| Diluted | $ | (0.82) | $ | 0.49 | $ | 0.44 | $ | 1.92 | ||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||
| Basic | 59,064,337 | 56,159,804 | 58,263,255 | 56,210,459 | ||||||||||||||||||||||
| Diluted | 59,942,437 | 57,980,746 | 59,351,449 | 58,345,174 | ||||||||||||||||||||||
e.l.f. Beauty, Inc. and subsidiaries
Condensed consolidated balance sheets
(unaudited)
(in thousands, except share and per share data)
| March 31, 2026 | March 31, 2025 | |||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 289,685 | $ | 148,692 | ||||||||||
| Accounts receivable, net | 174,644 | 126,010 | ||||||||||||
| Inventory, net | 220,246 | 187,170 | ||||||||||||
| Prepaid expenses and other current assets | 104,792 | 78,688 | ||||||||||||
| Total current assets | 789,367 | 540,560 | ||||||||||||
| Property and equipment, net | 41,496 | 28,787 | ||||||||||||
| Intangible assets, net | 553,110 | 207,698 | ||||||||||||
| Goodwill | 853,475 | 340,582 | ||||||||||||
| Other assets | 156,710 | 130,548 | ||||||||||||
| Total assets | $ | 2,394,158 | $ | 1,248,175 | ||||||||||
| Liabilities and stockholders' equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Current portion of long-term debt | $ | 30,000 | $ | — | ||||||||||
| Current portion of contingent consideration | 26,227 | — | ||||||||||||
| Accounts payable | 97,467 | 72,180 | ||||||||||||
| Accrued expenses and other current liabilities | 182,470 | 104,876 | ||||||||||||
| Total current liabilities | 336,164 | 177,056 | ||||||||||||
| Long-term debt | 809,348 | 256,676 | ||||||||||||
| Long-term contingent consideration | 38,522 | — | ||||||||||||
| Deferred tax liabilities | 6,197 | 3,812 | ||||||||||||
| Long-term operating lease obligations | 69,928 | 48,721 | ||||||||||||
| Other long-term liabilities | 3,469 | 1,055 | ||||||||||||
| Total liabilities | 1,263,628 | 487,320 | ||||||||||||
| Stockholders' equity: | ||||||||||||||
Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of March 31, 2026 and March 31, 2025; 59,089,708 and 55,730,037 shares issued and outstanding as of March 31, 2026 and March 31, 2025, respectively | 590 | 556 | ||||||||||||
| Additional paid-in capital | 1,284,987 | 942,025 | ||||||||||||
| Accumulated other comprehensive income | 882 | 521 | ||||||||||||
| Accumulated deficit | (155,929) | (182,247) | ||||||||||||
| Total stockholders' equity | 1,130,530 | 760,855 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 2,394,158 | $ | 1,248,175 | ||||||||||
e.l.f. Beauty, Inc. and subsidiaries
Condensed consolidated statements of cash flows
(unaudited)
(in thousands)
| Twelve months ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income | $ | 26,318 | $ | 112,089 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 79,361 | 44,115 | ||||||||||||
| Non-cash lease expense | 10,948 | 9,740 | ||||||||||||
| Stock-based compensation expense | 86,919 | 71,786 | ||||||||||||
| Amortization of debt issuance costs and discount on debt | 1,433 | 545 | ||||||||||||
| Deferred income taxes | (3,524) | 446 | ||||||||||||
| Acquisition-related seller expenses | (47,100) | — | ||||||||||||
| Loss on extinguishment of debt | 674 | 13 | ||||||||||||
| Change in fair value of contingent consideration | 57,649 | — | ||||||||||||
| Other, net | 2,175 | 136 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Accounts receivable | (17,505) | (2,742) | ||||||||||||
| Inventory | 7,327 | 4,874 | ||||||||||||
| Prepaid expenses and other assets | (67,401) | (75,854) | ||||||||||||
| Accounts payable and accrued expenses | 75,291 | (23,397) | ||||||||||||
| Other liabilities | (54) | (7,911) | ||||||||||||
| Net cash provided by (used in) operating activities | 212,511 | 133,840 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Acquisition, net of cash acquired | (581,682) | — | ||||||||||||
| Purchase of property and equipment | (22,449) | (18,520) | ||||||||||||
| Investment contributions | (1,117) | (577) | ||||||||||||
| Net cash used in investing activities | (605,248) | (19,097) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Proceeds from revolving line of credit | 50,000 | — | ||||||||||||
| Repayment of revolving line of credit | (50,000) | (89,500) | ||||||||||||
| Proceeds from long-term debt | 600,000 | 256,676 | ||||||||||||
| Repayment of long-term debt | (15,000) | (173,376) | ||||||||||||
| Debt issuance costs paid | (6,891) | (2,083) | ||||||||||||
| Repurchase of common stock | (49,987) | (67,062) | ||||||||||||
| Cash received from issuance of common stock | 5,797 | 953 | ||||||||||||
| Other, net | — | (57) | ||||||||||||
| Net cash provided by (used in) financing activities | 533,919 | (74,449) | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (189) | 215 | ||||||||||||
| Net increase in cash and cash equivalents | 140,993 | 40,509 | ||||||||||||
| Cash and cash equivalents - beginning of period | 148,692 | 108,183 | ||||||||||||
| Cash and cash equivalents - end of period | $ | 289,685 | $ | 148,692 | ||||||||||
e.l.f. Beauty, Inc. and subsidiaries
Reconciliation of GAAP net (loss) income to non-GAAP adjusted EBITDA
(unaudited)
(in thousands)
| Three months ended March 31, | Twelve months ended March 31, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net (loss) income | $ | (49,365) | $ | 28,253 | $ | 26,318 | $ | 112,089 | ||||||||||||||||||
| Interest expense, net | 11,148 | 2,860 | 35,284 | 13,813 | ||||||||||||||||||||||
| Income tax (benefit) provision | (11,165) | 15,784 | 14,141 | 33,406 | ||||||||||||||||||||||
| Depreciation and amortization | 26,327 | 13,216 | 79,361 | 44,115 | ||||||||||||||||||||||
| EBITDA | $ | (23,055) | $ | 60,113 | $ | 155,104 | $ | 203,423 | ||||||||||||||||||
| Stock-based compensation | 17,700 | 14,835 | 86,919 | 71,786 | ||||||||||||||||||||||
| Change in fair value of contingent consideration (a) | 57,649 | — | 57,649 | — | ||||||||||||||||||||||
| Loss on extinguishment of debt (b) | — | 13 | 674 | 13 | ||||||||||||||||||||||
| Other non-cash and non-recurring items (c) | 6,535 | 6,404 | 34,811 | 21,617 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 58,829 | $ | 81,365 | $ | 335,157 | $ | 296,839 | ||||||||||||||||||
(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 March 31, | Twelve months ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Selling, general and administrative expenses | $ | 319,137 | $ | 192,723 | $ | 1,026,066 | $ | 777,659 | |||||||||||||||
| Stock-based compensation | (17,699) | (14,827) | (86,907) | (71,732) | |||||||||||||||||||
| Other non-recurring items (a) | (1,459) | (4,563) | (19,420) | (15,029) | |||||||||||||||||||
| Adjusted selling, general and administrative expenses | $ | 299,979 | $ | 173,333 | $ | 919,739 | $ | 690,898 | |||||||||||||||
(a) Represents other non-recurring ERP implementation costs and acquisition related costs.
e.l.f. Beauty, Inc. and subsidiaries
Reconciliation of GAAP net (loss) income to non-GAAP adjusted net income
(unaudited)
(in thousands, except share and per share data)
| Three months ended March 31, | Twelve months ended March 31, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Net (loss) income | $ | (49,365) | $ | 28,253 | $ | 26,318 | $ | 112,089 | ||||||||||||||||||
| Stock-based compensation | 17,700 | 14,835 | 86,919 | 71,786 | ||||||||||||||||||||||
| Change in fair value of contingent consideration (a) | 57,649 | — | 57,649 | 57,649 | — | — | ||||||||||||||||||||
| Other non-recurring items (b) | 1,952 | 4,563 | 21,504 | 15,029 | ||||||||||||||||||||||
| Loss on extinguishment of debt (c) | — | 13 | 674 | 13 | ||||||||||||||||||||||
| Amortization of acquired intangible assets (d) | 11,134 | 4,350 | 35,488 | 17,397 | ||||||||||||||||||||||
| Tax Impact (e) | (19,698) | (6,779) | (42,654) | (18,733) | ||||||||||||||||||||||
| Adjusted net income | $ | 19,372 | $ | 45,235 | $ | 185,898 | $ | 197,581 | ||||||||||||||||||
| Weighted average number of shares outstanding – diluted | 59,942,437 | 57,980,746 | 59,351,449 | 58,345,174 | ||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 0.32 | $ | 0.78 | $ | 3.13 | $ | 3.39 | ||||||||||||||||||
(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.
FAQ
How did e. Beauty (ELF) perform financially in fiscal 2026?
e. Beauty grew net sales 25% to $1.64 billion in fiscal 2026. GAAP net income was $26.3 million, while adjusted net income reached $185.9 million and adjusted EBITDA rose 13% to $335.2 million, or 20% of net sales.
What were e. Beauty’s Q4 2026 results?
In Q4 2026, e. Beauty’s net sales increased 35% to $449.3 million. The company reported a GAAP net loss of $49.4 million, but generated adjusted net income of $19.4 million and adjusted EBITDA of $58.8 million, or 13% of net sales.
What outlook did e. Beauty (ELF) provide for fiscal 2027?
For fiscal 2027, e. Beauty expects net sales of $1.84–1.87 billion, implying 12–14% growth. It projects adjusted EBITDA of $379–385 million, adjusted net income of $198–201 million, and adjusted diluted earnings per share in the $3.27–3.32 range.
How has e. Beauty’s debt and cash position changed year over year?
As of March 31, 2026, e. Beauty held $289.7 million in cash and cash equivalents versus $148.7 million a year earlier. Total debt increased significantly to $841.7 million from $256.7 million, reflecting financing for acquisitions and growth initiatives.
What drove the contingent consideration expense for e. Beauty?
e. Beauty recorded a $57.6 million increase in the fair value of contingent consideration tied to the rhode acquisition. This adjustment reflected rhode’s revenue outperformance versus earnout thresholds in the merger agreement and contributed materially to lower GAAP earnings.
How do e. Beauty’s non-GAAP metrics differ from GAAP results?
Non-GAAP metrics exclude stock-based compensation, contingent consideration changes, acquisition and ERP costs, amortization of acquired intangibles, and certain debt items. For 2026, this lifted results from GAAP net income of $26.3 million to adjusted net income of $185.9 million and adjusted EBITDA of $335.2 million.