e.l.f. Beauty Announces Fourth Quarter Fiscal 2026 Results
OAKLAND, Calif.--( BUSINESS WIRE)--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:
Twelve Months Ended March 31, 2026 Results
For the twelve months ended March 31, 2026, compared to the twelve months ended March 31, 2025:
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 For those unable to listen to the live broadcast, an archived version will be available at the same location.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.
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
—
—
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.