Earnings release
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Exhibit 99.1 e.l.f. Beauty Announces Second Quarter Fiscal 2027 Results – Delivered 51% Net Sales Growth – – Raises Fiscal 2027 Outlook – OAKLAND, California; November 4, 2026 — 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.
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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. Previous Fiscal 2027 Outlook Updated Fiscal 2027 Outlook Net sales $1,938-1,968 million $2,003-2,029 million Adjusted EBITDA $401-407 million $421-427 million Adjusted effective tax rate 25-26% 25-26% Adjusted net income $212-215 million $231-233 million Adjusted diluted earnings per share $3.50-3.55 $3.82-3.86 Weighted average diluted shares outstanding 60.5 million 60.5 million 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.
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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.
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Investors: Media: Ashley Helgans Sam Critchell VP, Investor Relations ahelgans@elfbeauty.com VP, Corporate Communications scritchell@elfbeauty.com
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e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated statements of operations (unaudited) (in thousands, except share and per share data) Three months ended September 30, Six months ended September 30, 2026 2025 2026 2025 Net sales $ 520,816 $ 343,936 $ 1,000,189 $ 697,675 Cost of sales 150,592 105,078 231,125 214,276 Gross profit 370,224 238,858 769,064 483,399 Selling, general and administrative expenses 300,120 231,142 580,439 426,974 Change in fair value of contingent consideration 17,678 — 33,758 — Operating income 52,426 7,716 154,867 56,425 Other income (expense), net 563 (1,878) 232 3,159 Interest expense, net (9,978) (9,153) (17,786) (11,785) Loss on extinguishment of debt — (674) — (674) Income (loss) before (provision for) benefit from income taxes 43,011 (3,989) 137,313 47,125 Income tax (provision) benefit (12,981) 6,985 (40,684) (10,818) Net income $ 30,030 $ 2,996 $ 96,629 $ 36,307 Net income per share: Basic $ 0.51 $ 0.05 $ 1.64 $ 0.63 Diluted $ 0.50 $ 0.05 $ 1.61 $ 0.62 Weighted average shares outstanding: Basic 59,030,317 58,361,701 59,087,140 57,350,647 Diluted 60,089,314 59,593,910 59,898,471 58,640,028
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e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated balance sheets (unaudited) (in thousands, except share and per share data) September 30, 2026 March 31, 2026 September 30, 2025 Assets Current assets: Cash and cash equivalents $ 350,799 $ 289,685 $ 194,403 Accounts receivable, net 246,229 174,644 154,688 Inventory, net 260,612 220,246 247,390 Prepaid expenses and other current assets 119,985 104,792 110,756 Total current assets 977,625 789,367 707,237 Property and equipment, net 37,742 41,496 44,419 Intangible assets, net 530,843 553,110 575,376 Goodwill 853,475 853,475 851,830 Other assets 167,563 156,710 139,920 Total assets $ 2,567,248 $ 2,394,158 $ 2,318,782 Liabilities and stockholders' equity Current liabilities: Current portion of long-term debt $ 30,000 $ 30,000 $ 22,500 Current portion of contingent consideration 30,000 26,227 — Accounts payable 124,046 97,467 109,296 Accrued expenses and other current liabilities 196,202 182,470 130,074 Total current liabilities 380,248 336,164 261,870 Long-term debt 794,646 809,348 831,551 Long-term contingent consideration 68,507 38,522 — Deferred tax liabilities 6,228 6,197 20,897 Long-term operating lease obligations 88,135 69,928 55,629 Other long-term liabilities 3,974 3,469 9,826 Total liabilities 1,341,738 1,263,628 1,179,773 Stockholders' equity: Common stock, par value of $0.01 per share; 250,000,000 sharesauthorized as of September 30, 2026, March 31, 2026 and September30, 2025; 59,075,366, 59,089,708 and 59,430,231 shares issued andoutstanding as of September 30, 2026, March 31, 2026 andSeptember 30, 2025, respectively 590 590 593 Additional paid-in capital 1,283,235 1,284,987 1,283,385 Accumulated other comprehensive income 985 882 971 Accumulated deficit (59,300) (155,929) (145,940) Total stockholders' equity 1,225,510 1,130,530 1,139,009 Total liabilities and stockholders' equity $ 2,567,248 $ 2,394,158 $ 2,318,782
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e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated statements of cash flows (unaudited) (in thousands) Six months ended September 30, 2026 2025 Cash flows from operating activities: Net income $ 96,629 $ 36,307 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 50,162 31,478 Non-cash lease expense 7,174 5,541 Stock-based compensation expense 44,304 39,345 Amortization of debt issuance costs and discount on debt 948 487 Deferred income taxes (6,754) 18,716 Acquisition-related seller expenses — (47,100) Loss on extinguishment of debt — 674 Change in fair value of contingent consideration 33,758 — Other, net 583 2,390 Changes in operating assets and liabilities: Accounts receivable (71,423) 2,958 Inventory (40,218) (19,211) Prepaid expenses and other assets (23,923) (48,755) Accounts payable and accrued expenses 39,698 24,358 Other liabilities (4,628) 3,460 Net cash provided by operating activities 126,310 50,648 Cash flows from investing activities: Acquisition, net of cash acquired — (580,603) Purchase of property and equipment (3,981) (13,944) Other, net (240) (464) Net cash used in investing activities (4,221) (595,011) 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 (15,000) — Debt issuance costs paid — (6,891) Repurchase of common stock (49,982) — Cash received from issuance of common stock 3,924 1,771 Net cash (used in) provided by financing activities (61,058) 594,880 Effect of exchange rate changes on cash, cash equivalents and restricted cash 83 194 Net increase in cash, cash equivalents and restricted cash 61,114 50,711 Cash, cash equivalents and restricted cash - beginning of period 289,685 148,692 Cash, cash equivalents and restricted cash - end of period $ 350,799 $ 199,403
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e.l.f. Beauty, Inc. and subsidiaries Reconciliation of GAAP net income to non-GAAP adjusted EBITDA (unaudited) (in thousands) Three months ended September 30, Six months ended September 30, 2026 2025 2026 2025 Net income $ 30,030 $ 2,996 $ 96,629 $ 36,307 Interest expense, net 9,978 9,153 17,786 11,785 Income tax provision (benefit) 12,981 (6,985) 40,684 10,818 Depreciation and amortization 24,061 18,328 50,162 31,520 EBITDA $ 77,050 $ 23,492 $ 205,261 $ 90,430 Stock-based compensation 24,627 29,477 44,304 39,345 Change in fair value of contingent consideration (a) 17,678 — 33,758 — Loss on extinguishment of debt (b) — 674 — 674 Other non-cash and non-recurring items (c) 4,006 12,594 8,238 22,851 Adjusted EBITDA $ 123,361 $ 66,237 $ 291,561 $ 153,300 (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.
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e.l.f. Beauty, Inc. and subsidiaries Reconciliation of GAAP SG&A to non-GAAP adjusted SG&A (unaudited) (in thousands) Three months ended September 30, Six months ended September 30, 2026 2025 2026 2025 Selling, general and administrative expenses $ 300,120 $ 231,142 $ 580,439 $ 426,974 Stock-based compensation (24,628) (29,469) (44,306) (39,348) Other non-recurring items (a) (390) (8,445) (367) (17,088) Adjusted selling, general and administrative expenses $ 275,102 $ 193,228 $ 535,766 $ 370,538 (a) Represents other non-recurring ERP implementation costs and acquisition related costs.
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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 September 30, Six months ended September 30, 2026 2025 2026 2025 Net income $ 30,030 $ 2,996 $ 96,629 $ 36,307 Stock-based compensation 24,627 29,477 44,304 39,345 Change in fair value of contingent consideration (a) 17,678 — 33,758 — Other non-recurring items (b) (589) 9,179 (731) 17,822 Loss on extinguishment of debt (c) — 674 — 674 Amortization of acquired intangible assets (d) 11,134 8,872 22,267 13,221 Tax Impact (e) (10,225) (10,473) (19,017) (15,319) Adjusted net income $ 72,655 $ 40,725 $ 177,210 $ 92,050 Weighted average number of shares outstanding – diluted 60,089,314 59,593,910 59,898,471 58,640,028 Adjusted diluted earnings per share $ 1.21 $ 0.68 $ 2.96 $ 1.57 (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.