Okay. Welcome, everybody. For our next session, I'm thrilled to welcome for the first time ever the e.l.f. Beauty company to our conference. And with us today, Chairman and Chief Executive Officer Tarang Amin. Tarang, nice to see you here. Thank you. Thanks for having me. We're going to use the entirety of our time for Q&A, and we will just dive right in. Tarang, I think, as I said, your company is new to the conference and arguably newer or maybe at least less familiar to many European investors. I guess first question, just who is e.l.f. and what do you think differentiates it most from the rest of the beauty industry? Sure. Again, thank you for having me. e.l.f. was founded 21 years ago with a revolutionary idea at the time. This is 2004. They set out about selling cosmetics over the internet for $1 each. Everyone thought the founders were crazy. This is pre-iPhone. You can sell cosmetics over the internet. You certainly could make money at $1, but they figured it out. While we've migrated over time at different price points and different channels, that core is still with us. Our mission is to make the best of beauty accessible to every eye, lip, face. e.l.f. actually is an acronym for eyes, lips, and face. We make cosmetics and skincare. What we're really known for and what differentiates us is our ability, our unique ability to have prestige quality and take inspiration from our community and introduce those products at a much better value. That value proposition has really propelled the business for the last 21 years. We just completed our 25th consecutive quarter of net sales and market share growth in the U.S. We're one of only, I think, five public companies, consumer companies in the U.S. out of 546 that's been able to grow sales for 25 consecutive quarters, averaging at least 20% sales growth. We're known for high growth. Core differentiators, again, is our value proposition, our powerhouse innovation, again, that unique ability to take prestige quality and introduce it at incredible prices, and our disruptive marketing engine. Those have really propelled the business for a very long time. Really, out of our 21 years, I think all but one have been pretty strong growth. Great. I think one initial reaction is a low price, kind of mass market beauty positioning has typically been challenged and very competitive. Is e.l.f.'s path to growth share gain within that mass beauty segment, or do you believe e.l.f. can redefine the category and enable it to take share from mass stage or even prestige? Yeah, we're definitely a disruptor in the category. I would say, while we've grown share, again, for 25 consecutive quarters against the mass players, we're now the number one unit share brand in the US, number two dollar share brand, but with clear line of sight of clear leadership. I think what really differentiates e.l.f. is our ability to expand different categories. I'll give you one example. We introduced a few years ago our Poreless Putty Primer. There was a prestige item that was selling for $56. We saw an opportunity. We studied it. We always put our e.l.f. twist on. We never directly copy a particular product. We introduced our Poreless Putty Primer instead of at $56, at $9. We tracked the prestige item over time. We saw it continue to grow. There was a demand, a certain niche of consumers who love paying $56 for that primer, but the vast majority of consumers can't afford $56 for a primer. In fact, I mean, I think around the world, most consumers live paycheck to paycheck. This ability of having access to a category they never could have access to, we saw the prestige item and continue to grow. We sell nine times the number of units as a prestige item. It's our ability to actually expand the category. We certainly are growing share and have a great position there. The more important thing is our ability to bring millions of consumers access to the best of beauty they previously couldn't. You have described the company as a 20-year-old startup. Lots of focus on speed and agility, as that example, I think, demonstrates. Can you talk about how that manifests a bit more in your execution and how you keep alive that culture? Maybe also touch upon the digitally native roots and how that plays into it. I'd say, I always say our biggest competitive advantage is a passionate team of owners in a high-performance team culture. We're unique in our space in that we grant every single employee equity every single year, strongly aligning their interests with the long-term interests of our shareholders. We put them in a culture that really focuses on developing passionate relationships, giving pinpointed specific feedback to help the team succeed, strong mutual accountability. It's led to that along with the overall demographics of our workforce. 74% of our employee base is women, 76% are Gen Z and Millennial, 44% are diverse. The reason why that's important is they absolutely reflect the consumer base that we are of the community that we wish to serve. It gives us a huge advantage in terms of speed, both that culture, actual owners of businesses, and the ability to actually move at something we call e.l.f. speed. Our time from initial idea to selling online, from concept to selling online, is around 26 weeks, as compared to a few years for a number of our competitors. We have a unique innovation engine that is integrated with our supply chain that gives us this ability to really jump on it. The digitally native roots have always been with us. Our main engagement model from a consumer standpoint is all digital. We are not a traditional beauty company in terms of big TV ads, lots of print and billboards. Our approach is digital, and we live where our community lives. It has allowed us to really have strength across multiple demographics, which I'll touch on in a minute here. Yeah. Yeah. I mean, so taking a step sideways, tariffs, clear topic of conversation, definitely this week here at the conference. Can you talk about your tariff exposure? The supply chain is very rooted in China. The mitigation strategies around that and how that has played into your 2026 planning? Yeah. I would say we've been subject to tariffs since 2019 in the U.S., the 25% that were imposed by the first Trump administration. The way we dealt with that is really a balanced plan. Back in 2019, almost 100% of our production came out of China. We took pricing a dollar up on a third of our lineup. We had cost concessions, supplier concessions from our suppliers. FX helped us. We actually, in that period, grew margin even in the face of 25% tariffs. We took a second round of pricing in 2022 with all the inflationary pressures many companies were facing post-pandemic. We just recently announced, last week, we announced another round of pricing, $1 up. Now, we have a phenomenal value proposition. Our average unit retails in cosmetics around $6.50. Legacy mass cosmetics players are around $10. Prestige brands are well over $20. We do have a great pricing umbrella. We're quite disciplined in terms of pricing. We've only taken three price increases in the 21-year history of our brand. Yet we've been able to grow our gross margins from the low 40s to over 70%, primarily through innovation mix. We like the balanced plan that we have. It's a combination of pricing that we're taking, supply chain optimization. As I mentioned five years ago, 100% of our production was in China. Today, it's about 75%. By the end of the year, it'll be even lower than that. Importantly, we're committed to the supply chain we have. We have a massive competitive advantage when it comes to our supply chain in terms of having the best combination of quality, cost, and speed in our industry. We want to be quite thoughtful in terms of how we continue to optimize. In fact, our optimization on supply chain has less to do with tariffs and more to supply the rapid global demand that we see for our brands. The third thing is continued business diversification. Both in our brand portfolio, but also international, is the fastest growing part of our business. About 20% of our business is outside the U.S. today, and that's rapidly growing in terms of mix. We are going to use that same balanced plan. The last thing I'd say back to pricing is we're highly transparent with our community. When we take pricing, we actually announce it on social to our community. We're facing these cost pressures. We're going to absorb many of them, but we're going to pass on a dollar. We get 98% positive consumer sentiment. I've been in the consumer space 34 years. If you told me that 98% of your consumer base would be positive to you taking pricing, I think a lot of it is we take very seriously our ability to deliver a superior value proposition. Our community knows it, and that's allowed us to be able to successfully have pricing over time and have that balanced plan. While you haven't given guidance for 2026, the last couple of price increases or the last two price increases, I think, came with very limited and certainly less than expected elasticity, correct? No, that's right. I think it's that disciplined approach. We take value very seriously. We've used innovation mix as a way of driving margins up. Our everyday value is still a superior proposition. We know we have pricing power as a brand, but we're quite disciplined in terms of when we take that, usually only for external events. Yes. Clearly, the tariff could be anything, right, which moves around. I think at the current rates, you'd called $50 million headwind on COGS, which is about a 13% headwind. The $1 price increase on the total portfolio, inclusive of skincare, is by our math about a 14% increase. Is the pricing strategy to protect margin or just to offset the dollar cost inflation? Like I said, it's a balanced plan. We never look to pricing to fully get you necessarily to the margin rate that you have because we do have the other levers and continued supply chain optimization and business diversification. I think once we have greater clarity on what the long-term tariff environment is, we'll gladly provide guidance and lay all that out. Great. Okay. So as you mentioned, innovation critical to e.l.f. success. What is e.l.f.'s innovation process and how is it differentiated? Yeah. We have a differentiated innovation process, the unique ability of taking inspiration from prestige or the best products or what our community demands and bringing it to market at a very fast pace with a superior value. I'll describe one example. Our community will come to us with what they want. We engage two-way conversation on social. A couple of years ago, they came to us and Dior has made these Lip Oils for more than a decade. For some reason, the last couple of years, they took off virally. The community would be like, "Hey, e.l.f., help us out. We love this product, but we can't afford $38." We'll study that product and we'll basically say what do consumers like. They like the glossy finish. They like the pigmentation on their lips. We'll also study what don't they like. For many consumers, that product dried out their lips. The applicator was quite small. Lip oil is something you have to apply throughout the day. When we introduce our lip oils, a completely different hydrating formula, that is all the thing that consumers were complaining about with a much bigger doe foot applicator, still same kind of prestige quality, amazing payoff, glossy finish. Instead of the $38, we introduce ours at $8. You introduce that product, community has been wanting it, it goes viral right away. In fact, the lip oils are probably our biggest product launch ever. We can do this over and over again, basically taking consumer input as well as our innovation team. They are constantly scouring the earth for different ideas. Like I said, our consumers, I mean, our employees represent the community. They're highly in touch with what are the trends, what are the things that are going to come out. The other thing about our innovation approach is we're not like many cosmetics companies kind of do a one and done. They launch something, they have to launch something else, and they end up doing a lot of SKU proliferation. For us, we build these growing franchises. If you look at our Power Grip franchise, our Halo Glow franchise, a number of our core franchises, every one of them grows every year because when we put innovation, it kind of lifts the entire franchise. It's a much more franchise approach, a bigger focus on productivity and SKU efficiency. That's the combination. We have a great, I think, through our innovation, we have the number one or two position in 19 segments of the cosmetics category, highly defensible, very high share positions in those, and the ability to conquest some of the bigger categories we have lower share in through that continued innovation approach. You have talked about this in the past, but just how do you leverage experiences online in DTC to increase the odds of new product success when they move into brick and mortar channels? Yeah. Like I say, we're highly engaged with our community. In fact, my Chief Marketing Officer sometimes traumatizes me by dragging me on TikTok Live. She'll put me on TikTok Live and she'll be, "All right, you got the big boss here. What do you want?" Our community is not shy. I think last year, I got on one of those TikTok Lives and the community goes, "Oh, there's this great prestige bronzing drops. We like it, but we can't afford $40 for it. Help us out." I'm looking at the chat and I'm like, "All right, you want bronzing drops." Then there'll be like another hundred chats. "No, no, we want, no, no, boss, man, we want them now. Get them." I'll leave that call a bit traumatized. I'll call my head of innovation and I'll say, "Well, and our product pipelines go out at least three years." I'll basically say, "All right, please tell me we have on our pipeline somewhere bronzing drops." She goes, "Yeah, no, we've been studying the trend. We know that that is highly appealing to consumers." I'm like, "Oh, great. When are they coming out?" She's like, "Well, we have slated 18 months from now." I'm like, "Oh, no, no, I can't go on another TikTok Live and have our community berate me on these bronzing drops." We have that ability to pull something up where in six months we launch those bronzing drops. They're a great kind of hit last year. That ability, again, to be well in touch with your community. We're very strong on social. The community is very much in touch with us. Both our team's own ideas from an innovation standpoint, but also our ability to jump on something that is trending. Many of these items that we look at have actually existed for a long time in prestige. We are also not dependent on whatever last year's cycle of innovation was or the last couple of years. A number of the things we do have been around for a while. They have a certain point where they really take off. We build them into our franchise approach. Great. The brand has historically skewed young. TikTok Live is sort of partly an example of that, which is a great thing in many ways and something a lot of legacy brands struggle with. There has been some question whether it can appeal to consumers as they age or appeal directly to older consumers. How do you respond to that? Yeah, I'd say, look, we have multi-generational appeal. This ability of having prestige quality at great prices really appeals to every age group. Now, we're particularly strong in Gen Z. We're the number one brand amongst teens. I think we're three and a half times mind share to the number two brand on that list. Quite strong on Gen Z. We're also the most purchased brands among Gen Alpha and Millennials. You find consumers following us up. We have this effect of like the reverse effect. It used to be traditionally in cosmetics and skincare, the mothers would teach their daughters. Maybe the mothers would go to the makeup counter, do a makeover, kind of learn how to do your makeup. Our consumers are incredibly digitally savvy. It's almost the other way around. The moms are tired of keep dragging them to Target or the kids keep dragging them to Target or Walmart or Ulta Beauty. We find that our younger consumers that basically tell their mothers, like, "Mom, why are you paying $50 for a foundation? The e.l.f. one's actually better." We are finding every single demographic we are picking up more consumers in, particular strength in Gen Z, Gen Alpha, and Millennials, but we are also picking up that older generation over time. Certainly, we can see longitudinally, our e-commerce business has existed for 21 years. We can track and we see that consumers stay with us, particularly given the quality of the products. Yeah. The marketing model is differentiated. I think the fact that you're on TikTok Live is part of the differentiation. It's not just leveraging influencers or celebrity endorsements, but really creating content and not being afraid to take on pretty bold collaborations, Liquid Death, Dunkin' Donuts, etc. I guess, how do you foster such creativity? And then how do you control it to make sure that it's really contributing to brand equity in the right way? Yeah. If you look at our marketing ROIs, they're multiples above industry benchmarks and they have been for a long time, even as we've taken up our marketing spend over time. The approach is very digitally native. Primary engagement model is digital for us. We live where our community lives. We were the first beauty brand on TikTok a number of years ago. A member of my CMO said, "Hey, we need to get on TikTok. That's where Gen Z is." I'm like, "Is that where Gen Z is?" We absolutely. Now, what's TikTok? This was a number of years ago. We not only are strong on TikTok, we have our own channel on Twitch under the insight that 70% of our consumers either play video games or watch others play video games. We have a female empowerment platform on that. We have the number one branded experience on Roblox. It has, I think, over 98% rating, over 16 million plays. We are quite strong across multiple digital platforms. The entire approach is how do we engage and entertain our community? We sometimes say we are an entertainment company that happens to sell beauty products, but that level of engagement is what drives those very strong ROIs. We have great ways of measuring it across core vehicles as we look. We are constantly testing back to our digital roots. We are constantly testing. We are constantly learning and pivoting. There is real strong affinity. All the metrics support that. Our unaided awareness has basically gone up 20 points just in the last few years. I have been in the consumer space a long time. I have never seen a 20-point increase in unaided awareness. It is about 33% right now. The market leader has 55%. We still have plenty of room to grow. Our brand equity scores have gone up. You take a look at our purchase patterns. Every metric has gone up. That combination between the innovation and the way to engage our community is a unique advantage. Okay. Switching gears a little bit. The SKU assortment is, in many ways, pretty simple. Lots of power SKUs that have great scale and great velocity. Clearly, as the brand expands, you explore more white space, SKU count inevitably increases. How do you guard against SKU complexity and how do you guard against diminishing returns on new innovation? Yeah. Fundamentally, the business was founded on a productivity model. By that, I mean we have a big online business. That online business provides us insights that we use to decide what we are going to take to retailers. When we first started at Target, we are unique. Most of our competitors will wait till an item gets in the bottom 50% of the category rankings, the bottom third, and the retailer will discontinue an item. Our approach is different. We are quite proactive. Every year, we change out as much as 20% of our assortment in retail shelves, taking those insights we have from our digital business, also our Beauty Squad loyalty program. We have 6 million Beauty Squad loyalty members that are a rich source of insights, also first-party data to help us optimize our marketing. Because of that optimization, we're able to have the strongest productivity of any cosmetics brand in the US. That's measured by dollar per linear foot of sales. We outsell every other brand by a wide margin. The other important thing is over the years, we've been able to take that dollar per foot productivity up at every single customer that we're in. Not only are we the most productive brand that Ulta Beauty, Target, Walmart, really all of our customers carry, but our ability to take that productivity up every single year has actually been the biggest driver of our business. We're picking up space every single year at most of our customers. You've got a good track record of picking up space, but the biggest driver is that productivity model. What that has allowed us to do, I've been CEO 11 and a half years, our SKU count is relatively constant over that 11 and a half years. We're constantly weeding and feeding. We'll have a broader assortment online, but we have these power kind of SKUs and lineups, and that ability to drive productivity is off to a virtuous circle. It also allows very strong unit volumes. We're unique in our space that we primarily drive our business through unit growth versus average unit retail growth. Those very strong unit growth in turn also aids our supply chain and the costs that we're able to achieve. Great. Now, how do you frame the opportunity? You mentioned earlier color cosmetics roots, but you've moved into skincare. How do you frame that opportunity? I guess, what's the interplay between the e.l.f. Skin brand itself and the acquired brand Naturium? Yeah. Skincare is a huge strategic priority for us. We started a few years ago. We had strength, as I mentioned, in the cosmetics category, particularly in the face products, the complexion products. That gave us permission to say, "Hey, should we do something in skincare?" We built up that team. Our Head of Innovation drove La Mer, a number of the Lauder brands. Our Head of R&D is a 20-year skincare scientist from Johnson & Johnson. We built up that capability and we introduced e.l.f. Skin. e.l.f. Skin very much is the same model as e.l.f. Cosmetics. We look and we take inspiration from the best products of prestige, introduce them at incredible value, and we've seen great success. e.l.f. Skin is now, just in a few years, a top 10 brand in the US in skincare. The remarkable thing about that is the other brands on that list average about 63 years in age. We have been able to do in a very short amount of time what has taken decades for other players to do. They are amazing products, incredible quality for the price that you get. We have, though, two of the fastest growing product brands in skincare. e.l.f. Skin is one of the fastest growing. The other one is Naturium. Naturium is a brand that we bought in 2023. What really appealed to us about Naturium is they went from zero to $100 million of net sales in less than two years, which is remarkable because there are many brands in cosmetics and skincare. It is a very fragmented category, but very few have been able to scale. In fact, in the U.S., there's only 26 that have more than $100 million in retail sales, not even net sales. When we saw Naturium, we went in and Naturium is founded by Susan Yara. She's an influencer, but had this vision of how do you create the science of consistent skincare for everyone, everywhere, every day, and these clinically effective biocompatible formulas. It differentiates from e.l.f. in terms of it's a higher price point, around $18 on average, primarily appealing to millennial consumers versus e.l.f. around $9, appealing to Gen Z. The other important thing is almost 40% of Naturium's user base is men. It has a very kind of neutral aesthetic. They're very strong in body care products. We have two very different brands that both are amongst the fastest growing in skincare. What we see over time, global skincare is bigger than global color cosmetics. We have successful, kind of in a short amount of time, kind of proven our ability to be able to use both the same model in e.l.f. and have a very different model in Naturium and continue to grow that. Okay. We have not yet talked about international, specifically anyway. You definitely are prioritizing to a degree overseas expansion. I guess, how maybe articulate the ambition and what you've seen over the last several quarters. Yeah. International is amongst the strongest growing parts of our business. For perspective, we're a U.S. company, been in the U.S. for 21 years. Really, we're just focused on the U.S. We have a massive opportunity. We still do in the U.S. As I mentioned, we're number two in dollar share, clear line of sight to number one, core outright leadership. For further perspective on that, I talked about our productivity model before. The first customer we went into in the U.S. was Target. They were the first customer to carry e.l.f. If you look at Target today, not only are we the number one brand, but we have over 20% of their category. We see every other customer following that same trajectory. If I look at Walmart, I look at Ulta Beauty, I look at all of our main customers, you're seeing that same kind of linear kind of line like Target had. We have very strong hopes and track record in the US, but only 20% of our business is outside the US. That compares to many of our peers that have over 70% of their business outside the US. International is a massive opportunity. The best thing about international is our brands really resonate outside the US. The first place we started was Canada, the U.K. We're now in a top two, three position in both those countries with a very limited distribution footprint. We started in the U.K. with Shoppers Drug Mart. Boots came calling on us. We're in Boots. We have a very strong business there. The vast majority of our international business, frankly, over the last few years has been really driven by Canada and the U.K. We have been sequentially rolling the brand out. Our strategy is very much what I described in the U.S. We partner with a leading retailer in a market. They introduce and help establish the brand. Very quickly, every other retailer wants e.l.f. in that market. We usually often seed also digitally first. In the last year alone, we have launched the brand with Douglas in Italy, Rossmann in Germany, Etos in the Netherlands. We just announced on our call, Kruidvat, we are rolling out through the rest of the Netherlands and Belgium. The interesting thing is every single customer we enter, we often enter in a top three position. Even last year, we entered Sephora Mexico. It was the best launch Sephora had ever seen. If you think about Sephora Mexico, every other brand in that box is a prestige brand. And e.l.f. looks like it belongs. In Douglas, Italy, our gondola is right next to Chanel and it belongs. It is a very elastic brand in terms of that prestige quality at these incredible prices really resonate. I would say part of the success that we are having internationally is so much of our strength in social in the U.S. is consumed outside the U.S. Long before we get into a market, there is pent-up consumer demand. I remember in Douglas, Italy, we asked them, we said, "Look, we do not have any employees in Italy. We are an American brand. How should we customize this for the Italian consumer?" They said, "No, you do not need to customize it. The Italians like hot American brands. Sure enough, the day we launched in Douglas, there are lines down the block. We quickly became and we've maintained the number one position within Douglas, Italy. That talks about that strength. The only argument we had with Douglas is, "You guys are very strong in primers. Our Power Grip Primer is the number one item in the US in all of color cosmetics across mass and prestige. We have a 63% share of the primer category." They said, "That category does not really exist here." I said, "You know, look, we're a test and learn brand. Why do we not start with it? It is a number one product for us. If it does not work, we have other assortment. Sure enough, not only were we the number one brand with Douglas in Italy, Power Grip Primer is the number one item in Italy as well. The world is more alike than different. Our value proposition, innovation, and market engine absolutely resonate outside the U.S. Great. Among the news last week was the announcement to acquire Rhode. I guess the question is why now and why Rhode? Yeah. What we saw in Rhode, this is a brand created by Hailey Bieber and her co-founders three years ago. It was just one of the most phenomenal businesses I've seen. I talked about how difficult it is, almost out of 1,900 cosmetics and skincare brands, how difficult it is to scale. Hailey and her team were able to take their business from zero to $212 million of net sales in three years, DTC only, with only 10 products. Never seen anything like that in my career in terms of the strength that you have. We're always, we're a disruptor. We're always attracted by like-minded disruptors. To have a direct-to-consumer business that got to over $200 million in net sales with 10 products not only caught our attention, it caught the attention of Sephora, the world's largest global retailer. In fact, Sephora is so excited, instead of their normal model of testing a brand at a subset of their doors and then expanding from there, they're going to launch Rhode in all of their U.S. and Canadian doors this fall, followed by the U.K. by the end of the year. We see massive white space for Rhode. Part of the reason why they were attracted to e.l.f., because they could have gotten probably a lot more money if they did not partner with us, is they were attracted by the disruption they see e.l.f. continue to do. We are a founder's dream. Instead of over-integrating a brand, if you look at our brand portfolio, a few of our other brands, I mentioned Naturium and Susan Yara's vision and being able to see that through. We appreciate Hailey has a unique vision in beauty, a very simple regimen, one of everything really good. I talked about the Power SKU lineup, but her same approach in terms of community engagement. One of Rhode's activations, I mean, I've never seen consumers willing to camp out overnight, wait 14 hours in line, not only to buy another product, but actually buy into the entire lifestyle. This entire lifestyle beauty approach was incredible, and Hailey's one of the best founders I've met, incredible instincts, beautiful aesthetic, certainly a pulse on where consumers are and gives us another fast-growing brand in our portfolio that we look forward to helping her achieve her global ambition. Great. I mean, the pushback that I've heard from investors on it is simply that celebrity beauty brands have not always had longevity. I guess, how tied is the brand to Hailey in your mind? I guess, how committed is she to staying on? Yeah. No, we've traditionally stayed away from celebrity brands for that very reason of the volatility that you often see with them. I would tell you Hailey is way more than a celebrity. She's one of the most thoughtful founders I've ever met. The brand has some of the best brand metrics I've ever seen. It's got the highest repeat rates, almost any brand I've ever seen. That fervent community I talk about, it's where we can add value. We know how to build brands. We know how to really drive awareness. As successful as Rhode has been, it's got 20% aided awareness, which is actually really good considering it's only three years old, but most of the prestige brands in its space have well over 40%. We know how to drive brand awareness, primary previous example. We have an incredible innovation engine that can also help within that. Obviously our ability in retail and be able to expand distribution. We've passed on most celebrity brands. This is not a celebrity brand. Yes, it is very tied to Hailey. She's an incredible founder. She's in it very hands-on, which is the other thing I've seen. Most celebrity brands haven't worked because it's just a celebrity lending their name to something. It's not a founder and the founder kind of core energy that goes into it. Part of why she sold to us is she wants to stay for the long term and basically have the brand reflect every stage of her life. She's also built an incredible team. Their CEO, Nick Vlahos, he and I worked together 20 years ago at Clorox. I've known him for 20 years. He's experienced kind of general manager, CEO, co-founders, the rest of that team, and we'll be able to enhance that team further. We would not have bought this. We do not need to buy anything, frankly. We've got strong organic growth within our existing portfolio. When we see something special like a Naturium, like a Rhode that we know we have a long runway with, we'll jump at that as well. I mean, if you took the next couple of years, what do you think the biggest one, two, or three growth opportunities is for Rhode? And also as a premium brand coming in with fantastic economics, what impact does it have on your P&L? Yeah. Rhode has unbelievable white space. It's direct-to-consumer in the U.S. only. About 20% is outside the U.S., but a very limited distribution footprint. We know how to expand distribution. Our first priority is going to be fully to maximize the potential we see with Sephora. I was just talking with them the other day. They couldn't be more excited. They think this is going to be their biggest launch over the last few years. They're that excited about it. We have a long runway. Sephora's had a great track record of further nurturing and growing brands over time. Certainly, the global opportunity is there, not only with Sephora, with other retailers. Our biggest priorities are to continue to enhance the team for the growth that we see, really make sure we broaden that distribution footprint, their joint ideas we have on innovation and category that we see opportunity for. We have a number of years kind of mapped out on Rhode as we go through. The second part of your question. Just the impact on the P&L given. Yeah. Road is accretive. We have not issued guidance. We have not talked about what we have said is even after investments we plan to make in increasing marketing and the retail rollout at Sephora, including field sales support, et cetera, it will still be accretive to the e.l.f. Beauty company overall. It is great on both sides. That is also the other beauty of it. Yeah. As you say, you don't need acquisition. You just did one. As you think about capital allocation priorities and portfolio construction, because you've also with the two acquisitions you made, you've moved the price point higher. I don't know if that's intentional or just happenstance. How do you think about portfolio construction and what is the role of M&A over time? Yeah. For portfolio construction, we have a portfolio of complementary yet distinct brands that are quite different from each other. The one unifying theme for all of them is they're disruptors and they all have strong growth potential. In fact, the five brands we had before we acquired Rhode all grew in fiscal 2025. That ability of really taking the core capabilities we have, seeing a founder's vision of being able to continue to grow them. I talked about e.l.f. Skin, Naturium, e.l.f. Color. I didn't talk about Well People, which is a pioneer and plant-powered clean beauty brand. Well People was really, it started as a capability investment for us. It gave us the confidence to reformulate e.l.f. into clean formulations. The FDA in the U.S. only bans 11 ingredients from cosmetics formulations. We don't formulate with over 2,500. We would not have been able to get there without Well People, but it is also growing over 100 EWG verified products, pregnancy-friendly claim. It is absolutely perfect for that audience of moms and new moms. We are seeing strong growth there. Keys Soulcare is a brand we created with Alicia Keys. It is based on holistic wellness. We really support our vision of wellness. I would say portfolio construction for us is, does it disrupt industry? Does it complement our existing portfolio of brands? There is an accessibility point to it. We do not have any real aspirations in luxury. Even Rhode, if you take a look at Rhode's price points, they are entry-level prestige. It is fitting our mission of making the best of beauty accessible. We have these distinct price points. You have got e.l.f., as I mentioned, e.l.f. Color is around $6.50. e.l.f. Skin is around $9. You've got Naturium around $18. You've got Keys Soulcare kind of in that early $20 price point. You've got Rhode in the kind of that mid to high $20 price point. You have differentiation kind of in price tiers, but they all share that ability of making the best of prestige accessible and different tiers, different audiences. I would say, look, we haven't had any grand ambitions. We're not trying to be the next L'Oréal or Estée Lauder. That's not our strategy. It is primarily on capital allocation, support our strategic imperatives. We have these growing brands, our ability to invest in those brands, expand them around the world. We have a strong balance sheet. When we do see these disruptor brands, we have a very high bar for them. We look at a lot of things. We generally say no to everything because we do not have the confidence it has that organic, the same growth profile that e.l.f. and our other brands would, or it does not have the right profitability. We are also very disciplined on valuation. If you look at the valuation on Rhode and Naturium, they are incredibly attractive from any kind of precedent transactions. I would say it is all about for us being a different kind of beauty company or a different kind of company, period. That is our vision by building brands that disrupt norms, shape culture, and connect communities through positivity, inclusivity, and accessibility. Every one of our brands fits that vision. When we see some of that fits that vision that has very strong growth, we are open to it, but we have plenty on our hands with the existing portfolio and what we can do. We look forward to hearing more about it next year when you're back. That, we're right at time. I'll leave it there. Thanks, Tarang. Thanks for having me. Appreciate it.