e.l.f. Beauty Announces Second Quarter Fiscal 2026 Results
OAKLAND, Calif.--( BUSINESS WIRE)--e.l.f. Beauty (NYSE: ELF) today announced results for the three and six months ended September 30, 2025.
“Our Q2 results, which included 140 basis points of market share gains for our namesake e.l.f. brand and a record-breaking launch of rhode in Sephora North America, are a continuation of the consistent, category-leading growth we’ve delivered over the past 27 quarters,” said Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer. “We remain confident in our strategy to grow market share and capitalize on the significant whitespace ahead of us.”
Three Months Ended September 30, 2025 Results
For the three months ended September 30, 2025, compared to the three months ended September 30, 2024:
Six Months Ended September 30, 2025 Results
For the six months ended September 30, 2025, compared to the six months ended September 30, 2024:
Liquidity
As of September 30, 2025, the Company had $194.4 million in cash and cash equivalents, and $831.6 million of long-term debt, as compared to $96.8 million in cash and cash equivalents and $156.6 million of long-term debt outstanding as of September 30, 2024.
Fiscal 2026 Outlook
The Company is providing the following outlook for Fiscal 2026. When compared to Fiscal 2025, the outlook for Fiscal 2026 reflects an expected 18-20% increase in net sales.
Fiscal 2025 Actuals
Fiscal 2026 Outlook
Net sales
$1,314 million
$1,550-1,570 million
Adjusted EBITDA
$297 million
$302-306 million
Adjusted effective tax rate
21%
23%
Adjusted net income
$198 million
$165-168 million
Adjusted diluted earnings per share
$3.39
$2.80-2.85
Fiscal year ending diluted shares outstanding
58 million
59 million
Webcast Details
The Company will hold a webcast to discuss the results from its second quarter fiscal 2026 today, November 5, 2025, 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 For those unable to listen to the live broadcast, an archived version will be available at the same location.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 cloud computing 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 cloud computing 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 cloud computing 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 strategy to grow market share and capitalize on the significant whitespace ahead of us. 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; 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 September 30,
Six months ended September 30,
2025
2024
2025
2024
Net sales
$
343,936
$
301,075
$
697,675
$
625,552
Cost of sales
105,078
87,016
214,276
180,210
Gross profit
238,858
214,059
483,399
445,342
Selling, general and administrative expenses
231,142
186,141
426,974
366,716
Operating income
7,716
27,918
56,425
78,626
Other (expense) income, net
(1,878
)
3,791
3,159
3,978
Interest expense, net
(9,153
)
(3,761
)
(11,785
)
(7,426
)
Loss on extinguishment of debt
(674
)
—
(674
)
—
(Loss) Income before provision for income taxes
(3,989
)
27,948
47,125
75,178
Income tax benefit (provision)
6,985
(8,928
)
(10,818
)
(8,603
)
Net income
$
2,996
$
19,020
$
36,307
$
66,575
Net income per share:
Basic
$
0.05
$
0.34
$
0.63
$
1.19
Diluted
$
0.05
$
0.33
$
0.62
$
1.14
Weighted average shares outstanding:
Basic
58,361,701
56,345,648
57,350,647
56,160,796
Diluted
59,593,910
58,482,530
58,640,028
58,517,993
e.l.f. Beauty, Inc. and subsidiaries
Condensed consolidated balance sheets
(unaudited)
(in thousands, except share and per share data)
September 30,
2025
March 31,
2025
September 30,
2024
Assets
Current assets:
Cash and cash equivalents
$
194,403
$
148,692
$
96,768
Accounts receivable, net
154,688
126,010
146,559
Inventory, net
247,390
187,170
238,798
Prepaid expenses and other current assets
110,756
78,688
71,914
Total current assets
707,237
540,560
554,039
Property and equipment, net
44,419
28,787
15,563
Intangible assets, net
575,376
207,698
216,396
Goodwill
851,830
340,582
340,582
Other assets
139,920
130,548
110,435
Total assets
$
2,318,782
$
1,248,175
$
1,237,015
Liabilities and stockholders' equity
Current liabilities:
Current portion of long-term debt
$
22,500
$
—
$
100,250
Accounts payable
109,296
72,180
93,617
Accrued expenses and other current liabilities
130,074
104,876
117,030
Total current liabilities
261,870
177,056
310,897
Long-term debt
831,551
256,676
156,648
Deferred tax liabilities
20,897
3,812
4,833
Long-term operating lease obligations
55,629
48,721
36,176
Other long-term liabilities
9,826
1,055
766
Total liabilities
1,179,773
487,320
509,320
Stockholders' equity:
Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of September 30, 2025, March 31, 2025 and September 30, 2024; 59,430,231, 55,730,037 and 56,331,038 shares issued and outstanding as of September 30, 2025, March 31, 2025 and September 30, 2024, respectively
593
556
562
Additional paid-in capital
1,283,385
942,025
954,455
Accumulated other comprehensive income
971
521
439
Accumulated deficit
(145,940
)
(182,247
)
(227,761
)
Total stockholders' equity
1,139,009
760,855
727,695
Total liabilities and stockholders' equity
$
2,318,782
$
1,248,175
$
1,237,015
e.l.f. Beauty, Inc. and subsidiaries
Condensed consolidated statements of cash flows
(unaudited)
(in thousands)
Six months ended September 30,
2025
2024
Cash flows from operating activities:
Net income
$
36,307
$
66,575
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
31,478
19,300
Non-cash lease expense
5,541
4,503
Stock-based compensation expense
39,345
34,612
Amortization of debt issuance costs and discount on debt
487
276
Deferred income taxes
18,716
1,324
Acquisition-related seller expenses
(47,100
)
—
Loss on extinguishment of debt
674
—
Other, net
2,390
18
Changes in operating assets and liabilities:
Accounts receivable
2,958
(21,221
)
Inventory
(19,211
)
(45,071
)
Prepaid expenses and other assets
(48,755
)
(48,863
)
Accounts payable and accrued expenses
24,358
5,188
Other liabilities
3,460
(4,192
)
Net cash provided by operating activities
50,648
12,449
Cash flows from investing activities:
Acquisition, net of cash acquired
(580,603
)
—
Purchase of property and equipment
(13,944
)
(2,409
)
Other, net
(464
)
(93
)
Net cash used in investing activities
(595,011
)
(2,502
)
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
—
(5,375
)
Debt issuance costs paid
(6,891
)
—
Repurchase of common stock
—
(17,076
)
Cash received from issuance of common stock
1,771
533
Other, net
—
(58
)
Net cash provided by (used in) financing activities
594,880
(21,976
)
Effect of exchange rate changes on cash and cash equivalents
194
614
Net increase (decrease) in cash, cash equivalents and restricted cash
50,711
(11,415
)
Cash, cash equivalents and restricted cash - beginning of period
148,692
108,183
Cash, cash equivalents and restricted cash - end of period
$
199,403
$
96,768
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,
2025
2024
2025
2024
Net income
$
2,996
$
19,020
$
36,307
$
66,575
Interest expense, net
9,153
3,761
11,785
7,426
Income tax (benefit) provision
(6,985
)
8,928
10,818
8,603
Depreciation and amortization
18,328
10,242
31,520
19,300
EBITDA
$
23,492
$
41,951
$
90,430
$
101,904
Stock-based compensation
29,477
21,648
39,345
34,612
Loss on extinguishment of debt (a)
674
—
674
—
Other non-cash and non-recurring items (b)
12,594
5,730
22,851
10,247
Adjusted EBITDA
$
66,237
$
69,329
$
153,300
$
146,763
(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 cloud computing 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 September 30,
Six months ended September 30,
2025
2024
2025
2024
Selling, general and administrative expenses
$
231,142
$
186,141
$
426,974
$
366,716
Stock-based compensation
(29,469
)
(21,644
)
(39,348
)
(34,602
)
Other non-recurring items (a)
(8,445
)
(4,226
)
(17,088
)
(7,430
)
Adjusted selling, general and administrative expenses
$
193,228
$
160,271
$
370,538
$
324,684
(a) Represents other non-recurring cloud computing 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 September 30,
Six months ended September 30,
2025
2024
2025
2024
Net income
$
2,996
$
19,020
$
36,307
$
66,575
Stock-based compensation
29,477
21,648
39,345
34,612
Other non-recurring items (a)
9,179
4,226
17,822
7,430
Loss on extinguishment of debt (b)
674
—
674
—
Amortization of acquired intangible assets (c)
8,872
4,349
13,221
8,698
Tax Impact (d)
(10,473
)
(4,248
)
(15,319
)
(8,002
)
Adjusted net income
$
40,725
$
44,995
$
92,050
$
109,313
Weighted average number of shares outstanding – diluted
59,593,910
58,482,530
58,640,028
58,517,993
Adjusted diluted earnings per share
$
0.68
$
0.77
$
1.57
$
1.87
(a) Represents other non-recurring cloud computing 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.
(c) Represents amortization expense of acquired intangible assets consisting of customer relationships and trademarks.
(d) Represents the tax impact of the above adjustments.