e.l.f. Beauty Announces Third Quarter Fiscal 2026 Results

OAKLAND, Calif.--( BUSINESS WIRE)--e.l.f. Beauty (NYSE: ELF) today announced results for the three and nine months ended December 31, 2025.

“Our Q3 results, which included 130 basis points of market share gains for our namesake e.l.f. Cosmetics brand and a record-breaking launch of rhode in Sephora in the U.K., are a continuation of the consistent, category-leading growth we’ve delivered over the past 28 quarters,” said Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer. “Our value proposition, powerhouse innovation and disruptive marketing engine continue to fuel our brands. We remain confident in our ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook.”

Three Months Ended December 31, 2025 Results

For the three months ended December 31, 2025, compared to the three months ended December 31, 2024:

Nine Months Ended December 31, 2025 Results

For the nine months ended December 31, 2025, compared to the nine months ended December 31, 2024:

Liquidity

As of December 31, 2025, the Company had $196.8 million in cash and cash equivalents, and $816.7 million of long-term debt, as compared to $73.8 million in cash and cash equivalents and $154.1 million of long-term debt outstanding as of December 31, 2024.

Updated Fiscal 2026 Outlook

The Company is providing the following updated outlook for fiscal 2026. The updated outlook for fiscal 2026 reflects an expected 22-23% year-over-year increase in net sales, as compared to an expected 18-20% increase previously.

Fiscal 2025 Actuals

Previous Fiscal 2026 Outlook

Current Fiscal 2026 Outlook

Net sales

$1,314 million

$1,550-1,570 million

$1,600-1,612 million

Adjusted EBITDA

$297 million

$302-306 million

$323-326 million

Adjusted effective tax rate

21%

23%

Adjusted net income

$198 million

$165-168 million

$180-183 million

Adjusted diluted earnings per share

$3.39

$2.80-2.85

$3.05-3.10

Diluted shares outstanding

58 million

59 million

Webcast Details

The Company will hold a webcast to discuss the results from its third quarter fiscal 2026 today, February 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 For those unable to listen to the live broadcast, an archived version will be available at the same location.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 fueled by a belief that anything is e.l.f.ing possible. e.l.f. 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, Keys Soulcare, Well People, Naturium and rhode, are led by purpose, driven by results and elevated by superpowers. 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, 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, 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 2026 under “Fiscal 2026 Outlook” above and those statements that we remain confident in our ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook. 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 our business resulting from acquisitions or investments, such as our 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 December 31,

Nine months ended December 31,

2025

2024

2025

2024

Net sales

489,505

355,320

1,187,180

980,872

Cost of sales

142,010

102,015

356,286

282,225

Gross profit

347,495

253,305

830,894

698,647

Selling, general and administrative expenses

279,955

218,220

706,929

584,936

Operating income

67,540

35,085

123,965

113,711

Other (expense) income, net

(1,325

)

(5,278

)

1,834

(1,300

)

Interest expense, net

(12,351

)

(3,527

)

(24,136

)

(10,953

)

Loss on extinguishment of debt

—

(674

)

—

Income before provision for income taxes

53,864

26,280

100,989

101,458

Income tax provision

(14,488

)

(9,019

)

(25,306

)

(17,622

)

Net income

39,376

17,261

75,683

83,836

Net income per share:

Basic

0.66

0.31

1.30

1.49

Diluted

0.65

0.30

1.28

1.43

Weighted average shares outstanding:

Basic

59,294,883

56,358,694

58,001,083

56,227,037

Diluted

60,190,799

58,353,219

59,159,308

58,463,343

e.l.f. Beauty, Inc. and subsidiaries

Condensed consolidated balance sheets

(unaudited)

(in thousands, except share and per share data)

December 31, 2025

March 31, 2025

December 31, 2024

Assets

Current assets:

Cash and cash equivalents

196,821

148,692

73,845

Accounts receivable, net

190,304

126,010

187,744

Inventory, net

220,622

187,170

214,786

Prepaid expenses and other current assets

93,842

78,688

82,702

Total current assets

701,589

540,560

559,077

Property and equipment, net

44,836

28,787

19,878

Intangible assets, net

564,243

207,698

212,047

Goodwill

852,768

340,582

Other assets

160,284

130,548

133,250

Total assets

2,323,720

1,248,175

1,264,834

Liabilities and stockholders' equity

Current liabilities:

Current portion of long-term debt

30,000

—

100,250

Accounts payable

73,980

72,180

65,293

Accrued expenses and other current liabilities

150,317

104,876

128,364

Total current liabilities

254,297

177,056

293,907

Long-term debt

816,701

256,676

154,061

Deferred tax liabilities

16,737

3,812

493

Long-term operating lease obligations

67,477

48,721

48,116

Other long-term liabilities

6,662

1,055

870

Total liabilities

1,161,874

487,320

497,447

Stockholders' equity:

Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of December 31, 2025, March 31, 2025 and December 31, 2024; 59,052,239, 55,730,037 and 56,398,608 shares issued and outstanding as of December 31, 2025, March 31, 2025 and December 31, 2024, respectively

589

556

563

Additional paid-in capital

1,266,793

942,025

977,141

Accumulated other comprehensive income

1,028

521

183

Accumulated deficit

(106,564

)

(182,247

)

(210,500

)

Total stockholders' equity

1,161,846

760,855

767,387

Total liabilities and stockholders' equity

2,323,720

1,248,175

1,264,834

e.l.f. Beauty, Inc. and subsidiaries

Condensed consolidated statements of cash flows

(unaudited)

(in thousands)

Nine months ended December 31,

2025

2024

Cash flows from operating activities:

Net income

75,683

83,836

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization

53,033

30,899

Non-cash lease expense

8,253

7,010

Stock-based compensation expense

69,219

56,951

Amortization of debt issuance costs and discount on debt

962

413

Deferred income taxes

15,055

(4,153

)

Acquisition-related seller expenses

(47,100

)

—

Loss on extinguishment of debt

674

—

Other, net

2,416

844

Changes in operating assets and liabilities:

Accounts receivable

(32,611

)

(65,067

)

Inventory

7,405

(23,652

)

Prepaid expenses and other assets

(53,537

)

(77,534

)

Accounts payable and accrued expenses

9,807

(5,691

)

Other liabilities

794

(6,116

)

Net cash provided by (used in) operating activities

110,053

(2,260

)

Cash flows from investing activities:

Acquisition, net of cash acquired

(581,682

)

—

Purchase of property and equipment

(20,564

)

(7,461

)

Other, net

(704

)

(278

)

Net cash used in investing activities

(602,950

)

(7,739

)

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

(7,500

)

(8,062

)

Debt issuance costs paid

(6,891

)

—

Repurchase of common stock

(49,987

)

(17,076

)

Cash received from issuance of common stock

5,301

917

Other, net

—

(57

)

Net cash provided by (used in) financing activities

540,923

(24,278

)

Effect of exchange rate changes on cash and cash equivalents

103

(61

)

Net increase (decrease) in cash and cash equivalents

48,129

(34,338

)

Cash and cash equivalents - beginning of period

148,692

108,183

Cash and cash equivalents - end of period

196,821

73,845

e.l.f. Beauty, Inc. and subsidiaries

Reconciliation of GAAP net income to non-GAAP adjusted EBITDA

(unaudited)

(in thousands)

Three months ended December 31,

Nine months ended December 31,

2025

2024

2025

2024

Net income

39,376

17,261

75,683

83,836

Interest expense, net

12,351

3,527

24,136

10,953

Income tax (benefit) provision

14,488

9,019

25,306

17,622

Depreciation and amortization

21,513

11,599

53,033

30,899

EBITDA

87,728

41,406

178,158

143,310

Stock-based compensation

29,874

22,339

69,219

56,951

Loss on extinguishment of debt (a)

—

674

—

Other non-cash and non-recurring items (b)

5,425

4,966

28,276

15,213

Adjusted EBITDA

123,027

68,711

276,327

215,474

(a) Loss on extinguishment of debt includes the write-off of existing debt issuance costs and certain fees paid related to the amended credit agreement.

(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 December 31,

Nine months ended December 31,

2025

2024

2025

2024

Selling, general and administrative expenses

279,955

218,220

706,929

584,936

Stock-based compensation

(29,860

)

(22,303

)

(69,208

)

(56,905

)

Other non-recurring items (a)

(873

)

(3,036

)

(17,961

)

(10,466

)

Adjusted selling, general and administrative expenses

249,222

192,881

619,760

517,565

(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 December 31,

Nine months ended December 31,

2025

2024

2025

2024

Net income

39,376

17,261

75,683

83,836

Stock-based compensation

29,874

22,339

69,219

56,951

Other non-recurring items (a)

1,730

3,036

19,552

10,466

Loss on extinguishment of debt (b)

—

674

—

Amortization of acquired intangible assets (c)

11,133

4,349

24,354

13,047

Tax Impact (d)

(7,637

)

(3,952

)

(22,956

)

(11,954

)

Adjusted net income

74,476

43,033

166,526

152,346

Weighted average number of shares outstanding – diluted

60,190,799

58,353,219

59,159,308

58,463,343

Adjusted diluted earnings per share

1.24

0.74

2.81

2.61

(a) Represents other non-recurring ERP implementation costs and acquisition related costs.

(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.

(d) Represents the tax impact of the above adjustments.