Earnings release
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This site uses cookies . To see how cookies are used , please review our cookie notice . If you agree to our use of cookies , please Continue to use our site . C.I.I. DLAVI HOME / INVESTORS / PRESS RELEASES e.l.f. Beauty Announces First Quarter Fiscal 2027 Results Aug 05,2026 · Delivered 36 % Net Sales Growth - - Raises Fiscal 2027 Outlook - OAKLAND , Calif .- ( BUSINESS WIRE ) - e.l.f. Beauty ( NYSE : ELF ) today announced results for the three months ended June 30 , 2026 . " I'm proud of the e.l.f. Beauty team for achieving another quarter of industry - leading results , " said Tarang Amin , e.l.f. Beauty's Chairman and Chief Executive Officer . " In Q1 , we delivered 36 % net sales growth , marking our 30th consecutive quarter - over seven continuous years - of net sales growth . This consistent , category - leading growth is a testament to the strength of our team , strategy , and portfolio of brands . With the momentum we're seeing , we're raising our fiscal 2027 outlook to 18 to 20 percent net sales growth from 12 to 14 percent previously . " Three Months Ended June 30 , 2026 Results For the three months ended June 30 , 2026 , compared to the three months ended June 30 , 2025 : • Net sales increased 36 % to $ 479.4 million , driven by strong performance in both our retailer and e - commerce channels , in the US and internationally . • Gross margin increased approximately 1,400 basis points to 83 % , including approximately 1,050 basis points benefit from IEEPA tariff refunds , with the remaining increase primarily driven by benefits from pricing and lower year - over - year tariff rates . • • Selling , general and administrative ( " SG & A " ) expenses increased $ 84.5 million to $ 280.3 million . Adjusted SG & A ( SG & A excluding the items identified in the reconciliation table below ) increased $ 83.4 million to $ 260.7 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 considerationrelated to the acquisition of rhode ( the " rhode Acquisition " ) . The Company recorded a fair value adjustment of $ 16.1 million for the three months ended June 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 ( expense ) income , net changed by $ 5.4 million year over year from $ 5.0 million in income to $ 0.3 million of expense , primarily driven by a decrease in foreign currency gains for the period attributable to currency rate fluctuation . • • • Net income was $ 66.6 million on a GAAP basis . Adjusted net income ( net income excluding the items identified in the reconciliation table below ) was $ 104.6 million . Diluted earnings per share was $ 1.12 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 $ 1.75 . Adjusted EBITDA ( EBITDA excluding the items identified in the reconciliation table below ) was $ 168.2 million , or 35 % of net sales , up 93 % year over year . Liquidity As of June 30 , 2026 , the Company had $ 344.2 million in cash and cash equivalents , and $ 834.2 million of total debt , as compared to $ 170.0 million in cash and cash equivalents and $ 256.7 million of total debt outstanding as of June 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 18- 20 % year - over - year increase in net sales , as compared to an expected 12-14 % increase previously . Net sales Adjusted EBITDA Adjusted effective tax rate Previous Fiscal 2027 Outlook $ 1,835-1,865 million $ 379-385 million 25-26 % Updated Fiscal 2027 Outlook $ 1,938-1,968 million $ 401-407 million 25-26 % Page 1 of 7
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Adjusted net income $198-201 million $212-215 millionAdjusted diluted earnings per share $3.27-3.32 $3.50-3.55Weighted average diluted shares outstanding 60.5 million 60.5 million Webcast Details The Company will hold a webcast to discuss the results from its first quarter fiscal 2027 today,August 5, 2026, at 4:30 p.m. EasternTime. The webcast will be broadcast live at https://investor.elfbeauty.com/stock-and-financial/events-and-presentations. For thoseunable 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, throughpositivity, 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 byresults. e.l.f. Beauty offers e.l.f. clean and vegan products, all double-certified by PETA and Leaping Bunny as cruelty free, and proudlystands as the first beauty company with Fair Trade Certified™ facilities. With a kind heart at the center of e.l.f.’s ethos, the companydonates 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 andadjusted diluted earnings per share. The Company presents these non-GAAP measures because its management uses them assupplemental measures in assessing its operating performance, and believes they are helpful to investors, securities analysts and otherinterested parties in evaluating the Company’s performance. The non-GAAP measures included in this press release are notmeasurements of financial performance under GAAP and they should not be considered as alternatives to or substitutes for measures ofperformance derived in accordance with GAAP. In addition, these non-GAAP measures should not be construed as an inference thatthe Company’s future results will be unaffected by unusual or non-recurring items. These non-GAAP measures have limitations asanalytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing the Company’s results asreported under GAAP. The Company’s definitions and calculations of these non-GAAP measures are not necessarily comparable toother 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 considerationand other non-cash and non-recurring items. Such other non-cash or non-recurring items include amortization of internal-use softwarecosts 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 itemsinclude 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-basedcompensation, other non-cash and non-recurring items, amortization of acquired intangible assets, as well as the related tax impact forthese 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, othernon-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 statementsrelating to the Company’s outlook for Fiscal 2027 under “Updated Fiscal 2027 Outlook” above and those statements that with themomentum we’re seeing, we’re raising our fiscal 2027 outlook to 18 to 20 percent net sales growth from 12 to 14 percent previously.Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, actual results and thetiming of selected events may differ materially from those expectations. Factors that could cause actual results to differ materially fromthose in the forward looking statements include, among other things, the risks and uncertainties that are described in the Company'smost 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 abilityto effectively compete with other beauty companies; the Company’s ability to successfully introduce new products; the Company’sability to attract new retail customers and/or expand business with its existing retail customers; the Company’s ability to optimize shelfspace at its key retail customers; the loss of any of the Company’s key retail customers or if the general business performance of its keyretail customers declines; disruptions to the Company’s business resulting from acquisitions or investments, such as the Company’sacquisition of rhode; and the Company’s ability to effectively manage its SG&A and other expenses. Potential investors are urged toconsider these factors carefully in evaluating the forward-looking statements. These forward-looking statements speak only as of thedate hereof. Except as required by law, the Company assumes no obligation to update or revise these forward-looking statements forany reason, even if new information becomes available in the future. This site uses cookies. To see how cookies are used, please review our cookie notice. If you agree to our use of cookies, please to use our site. Page 2 of 7
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e.l.f. Beauty, Inc. and subsidiariesCondensed consolidated statements of operations(unaudited)(in thousands, except share and per share data) Three months ended June 30, 2026 2025 Net sales $ 479,373 $ 353,739 Cost of sales 80,533 109,198 Gross profit 398,840 244,541 Selling, general and administrative expenses 280,319 195,832 Change in fair value of contingent consideration 16,080 — Operating income 102,441 48,709 Other (expense) income, net (331) 5,037 Interest expense, net (7,808) (2,632) Income before provision for income taxes 94,302 51,114 Income tax provision (27,703) (17,803) Net income $ 66,599 $ 33,311 Net income per share: Basic $ 1.13 $ 0.59 Diluted $ 1.12 $ 0.58 Weighted average shares outstanding: Basic 59,144,587 56,328,483 Diluted 59,727,575 57,675,035 e.l.f. Beauty, Inc. and subsidiariesCondensed consolidated balance sheets(unaudited)(in thousands, except share and per share data) June 30,2026 March 31,2026 June 30,2025Assets Current assets: Cash and cash equivalents $ 344,241 $ 289,685 $ 170,029 Accounts receivable, net 174,529 174,644 173,352 Inventory, net 246,814 220,246 170,379 Prepaid expenses and other current assets 94,257 104,792 88,766 Total current assets 859,841 789,367 602,526 Property and equipment, net 39,692 41,496 39,182 Intangible assets, net 541,976 553,110 203,348 Goodwill 853,475 853,475 340,582 Other assets 165,665 156,710 129,258 Total assets $2,460,649 $2,394,158 $1,314,896 Liabilities and stockholders' equity Current liabilities: Current portion of long-term debt $ 30,000 $ 30,000 $ — Current portion of contingent consideration 28,240 26,227 — Accounts payable 95,918 97,467 74,603 Accrued expenses and other current liabilities 183,498 182,470 110,136 Total current liabilities 337,656 336,164 184,739 Long-term debt 801,996 809,348 256,676 Long-term contingent consideration 52,589 38,522 — Deferred tax liabilities 6,208 6,197 17,009 Long-term operating lease obligations 89,659 69,928 50,351 Other long-term liabilities 3,651 3,469 1,269 This site uses cookies. To see how cookies are used, please review our cookie notice. If you agree to our use of cookies, please to use our site. Page 3 of 7
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Total liabilities 1,291,759 1,263,628 510,044 Stockholders' equity: Common stock, par value of $0.01 per share; 250,000,000 shares authorized as ofJune 30, 2026, March 31, 2026 and June 30, 2025; 58,936,996, 59,089,708 and56,734,903 shares issued and outstanding as of June 30, 2026, March 31, 2026and June 30, 2025, respectively 589 590 566 Additional paid-in capital 1,256,706 1,284,987 952,015 Accumulated other comprehensive income 925 882 1,207 Accumulated deficit (89,330) (155,929) (148,936) Total stockholders' equity 1,168,890 1,130,530 804,852 Total liabilities and stockholders' equity $2,460,649 $2,394,158 $1,314,896 e.l.f. Beauty, Inc. and subsidiariesCondensed consolidated statements of cash flows(unaudited)(in thousands) Three months ended June 30, 2026 2025 Cash flows from operating activities: Net income $66,599 $33,311 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 26,101 13,192 Non-cash lease expense 3,196 2,843 Stock-based compensation expense 19,677 9,868 Amortization of debt issuance costs and discount on debt 473 134 Deferred income taxes 1,782 14,216 Change in fair value of contingent consideration 16,080 — Other, net 2 911 Changes in operating assets and liabilities: Accounts receivable 198 (46,170)Inventory (26,524) 18,684 Prepaid expenses and other assets 8,202 (16,332)Accounts payable and accrued expenses (2,429) (1,542) Other liabilities (1,692) (1,882) Net cash provided by operating activities 111,665 27,233 Cash flows from investing activities: Purchase of property and equipment (1,431) (7,095) Other, net (240) (464) Net cash used in investing activities (1,671) (7,559) Cash flows from financing activities: Repayment of long-term debt (7,500) — Repurchase of common stock (49,982) — Cash received from issuance of common stock 2,022 121 Net cash (used in) provided by financing activities (55,460) 121 Effect of exchange rate changes on cash and cash equivalents 22 1,542 Net increase in cash and cash equivalents 54,556 21,337 Cash and cash equivalents - beginning of period 289,685 148,692 Cash and cash equivalents - end of period $344,241 $170,029 e.l.f. Beauty, Inc. and subsidiariesReconciliation of GAAP net income to non-GAAP adjusted EBITDA(unaudited)(in thousands) This site uses cookies. To see how cookies are used, please review our cookie notice. If you agree to our use of cookies, please to use our site. Page 4 of 7
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Three months ended June 30, 2026 2025 Net income $66,599 $33,311Interest expense, net 7,808 2,632Income tax provision 27,703 17,803 Depreciation and amortization 26,101 13,192 EBITDA $128,211 $66,938Stock-based compensation 19,677 9,868Change in fair value of contingent consideration (a) 16,080 — Other non-cash and non-recurring items (b) 4,232 10,257 Adjusted EBITDA $168,200 $87,063 (a)Represents increase in fair value of contingent consideration related to rhode Acquisition.(b)Represents other non-cash or non-recurring items, which include amortization of internal-use software costs related to cloudapplications, acquisition related costs and ERP implementation costs. e.l.f. Beauty, Inc. and subsidiariesReconciliation of GAAP SG&A to non-GAAP adjusted SG&A(unaudited)(in thousands) Three months ended June 30, 2026 2025 Selling, general and administrative expenses $280,319 $195,832 Stock-based compensation (19,678) (9,879) Other non-recurring items (a) 23 (8,643) Adjusted selling, general and administrative expenses $260,664 $177,310 (a)Represents other non-recurring ERP implementation costs and acquisition related costs. e.l.f. Beauty, Inc. and subsidiariesReconciliation of GAAP net income to non-GAAP adjusted net income(unaudited)(in thousands, except share and per share data) Three months ended June 30, 2026 2025 Net income $ 66,599 $ 33,311 Stock-based compensation 19,677 9,868 Change in fair value of contingent consideration (a) 16,080 — Other non-recurring items (b) (142) 8,643 Amortization of acquired intangible assets (c) 11,133 4,349 Tax Impact (d) (8,792) (4,846) Adjusted net income $ 104,555 $ 51,325 Weighted average number of shares outstanding – diluted 59,727,575 57,675,035 Adjusted diluted earnings per share $ 1.75 $ 0.89 (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)Represents amortization expense of acquired intangible assets consisting of customer relationships and trademarks.(d)Represents the tax impact of the above adjustments. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805101140/en/ Investors: KC Katten This site uses cookies. To see how cookies are used, please review our cookie notice. If you agree to our use of cookies, please to use our site. Page 5 of 7
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VP, Corporate Development & Investor Relations kkatten@elfbeauty.com Media: Sam Critchell VP, Corporate Communications scritchell@elfbeauty.com Source: e.l.f. Beauty This site uses cookies. To see how cookies are used, please review our cookie notice. If you agree to our use of cookies, please to use our site. Page 6 of 7
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