– Delivered 51% Net Sales Growth –

– Raises Fiscal 2027 Outlook –

OAKLAND, Calif.--(BUSINESS WIRE)--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.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261104156328/en/

Investors:
Ashley Helgans
VP, Investor Relations
ahelgans@elfbeauty.com

Media:
Sam Critchell
VP, Corporate Communications
scritchell@elfbeauty.com

Source: e.l.f. Beauty