e.l.f. Beauty, Inc. (ELF): Results of Operations and Financial Condition
e.l.f. Beauty, Inc. (ELF) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 e.l.f. Beauty Announces First Quarter Fiscal 2027 Results – Delivered 36% Net Sales Growth – – Raises Fiscal 2027 Outlook – OAKLAND, California; August 5, 2026 — e.l.f. Beauty (NYSE: ELF) today announced results for the three months ended June 30, 2026. “I’m proud of
How this was made
The 30-second read
Why it matters
The filing provides fresh, decision-relevant numbers: Q1 revenue growth, gross margin level and drivers, adjusted profitability metrics, and a raised FY2027 guidance range for net sales and adjusted EBITDA.
Market read
Guidance uplift to 18-20% net sales growth from 12-14% previously is likely to drive immediate estimate changes and sentiment.
What to watch
SG&A rose materially, and adjusted metrics exclude items like contingent consideration fair value; traders may scrutinize whether operating leverage persists beyond the quarter.
e.l.f. Beauty Announces First Quarter Fiscal 2027 Results – Delivered 36% Net Sales Growth – – Raises Fiscal 2027 Outlook –
Net sales increased 36% to $479.4 million, gross margin increased approximately 1,400 basis points to 83%, adjusted EBITDA rose 93% year over year, and the Company raised its fiscal 2027 net sales, adjusted EBITDA, adjusted net income and adjusted diluted earnings per share outlooks.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Net sales | $1,835-1,865 million | $479.4 million | n/a |
| Adjusted EBITDA | $379-385 million | $168.2 million | n/a |
| Adjusted effective tax rate | 25-26% | 25-26% | n/a |
| Adjusted net income | $198-201 million | $104.6 million | n/a |
| Adjusted diluted earnings per share | $3.27-3.32 | $1.75 | n/a |
| Weighted average diluted shares outstanding | 60.5 million | 59,727,575 | n/a |
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $479.4 million | – | 36% |
| Cost of salesGAAP | 80,533 (in thousands) | – | – |
| Gross profitGAAP | 398,840 (in thousands) | – | – |
| Gross marginGAAP | 83% | – | increased approximately 1,400 basis points |
| Selling, general and administrative expensesGAAP | $280.3 million | – | increased $84.5 million |
| Adjusted SG&Anon-GAAP | $260.7 million | – | increased $83.4 million |
| Change in fair value of contingent considerationGAAP | $16.1 million | – | – |
| Operating incomeGAAP | 102,441 (in thousands) | – | – |
| Other (expense) income, netGAAP | $(0.3 million) of expense | – | changed by $5.4 million year over year |
| Interest expense, netGAAP | 7,808 (in thousands) | – | – |
| Income before provision for income taxesGAAP | 94,302 (in thousands) | – | – |
| Income tax provisionGAAP | 27,703 (in thousands) | – | – |
| Net incomeGAAP | $66.6 million | – | – |
| Adjusted net incomenon-GAAP | $104.6 million | – | – |
| Basic earnings per shareGAAP | $1.13 | – | – |
| Diluted earnings per shareGAAP | $1.12 per share | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $1.75 | – | – |
| Adjusted EBITDAnon-GAAP | $168.2 million, or 35% of net sales | – | up 93% year over year |
| Weighted average basic shares outstandingGAAP | 59,144,587 | – | – |
| Weighted average diluted shares outstandingGAAP | 59,727,575 | – | – |
Fiscal 2027 outlook
- Revenue$1,938-1,968 million
- Tax rate25-26%
- NoteNet sales: expected 18-20% year-over-year increase
- NoteAdjusted EBITDA: $401-407 million
- NoteAdjusted net income: $212-215 million
- NoteAdjusted diluted earnings per share: $3.50-3.55
- NoteWeighted average diluted shares outstanding: 60.5 million
What drove it
- Strong performance in both retailer and e-commerce channels, in the US and internationally.
- Gross margin benefited by approximately 1,050 basis points from IEEPA tariff refunds.
- The remaining gross-margin increase was primarily driven by benefits from pricing and lower year-over-year tariff rates.
- The fair value adjustment related to the rhode Acquisition was driven by the outperformance of rhode's revenue results relative to the earnout thresholds.
Concerns
- SG&A expenses increased $84.5 million to $280.3 million, primarily related to increases in marketing, merchandising and distribution costs, compensation and benefits, and depreciation and amortization.
- The Company recorded a $16.1 million fair value adjustment for contingent consideration related to 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.
- Total debt was $834.2 million as of June 30, 2026.
What to watch
- Execution against the updated fiscal 2027 expectation for 18-20% year-over-year net sales growth.
- The persistence of gross-margin benefits from pricing, lower year-over-year tariff rates and IEEPA tariff refunds.
- Marketing, merchandising and distribution costs, compensation and benefits, and depreciation and amortization within SG&A.
- rhode revenue performance relative to earnout thresholds and future fair value changes in contingent consideration.
- Delivery against updated fiscal 2027 adjusted EBITDA of $401-407 million.
Balance sheet and cash flow
- Cash and cash equivalents: $344.2 million as of June 30, 2026, compared to $170.0 million as of June 30, 2025.
- Total debt: $834.2 million as of June 30, 2026, compared to $256.7 million as of June 30, 2025.
- Cash and cash equivalents: $ 344,241 (in thousands) as of June 30, 2026; $ 289,685 (in thousands) as of March 31, 2026; $ 170,029 (in thousands) as of June 30, 2025.
- Accounts receivable, net: 174,529 (in thousands) as of June 30, 2026; 174,644 (in thousands) as of March 31, 2026; 173,352 (in thousands) as of June 30, 2025.
- Inventory, net: 246,814 (in thousands) as of June 30, 2026; 220,246 (in thousands) as of March 31, 2026; 170,379 (in thousands) as of June 30, 2025.
- Total assets: $ 2,460,649 (in thousands) as of June 30, 2026; $ 2,394,158 (in thousands) as of March 31, 2026; $ 1,314,896 (in thousands) as of June 30, 2025.
- Current portion of long-term debt: $ 30,000 (in thousands) as of June 30, 2026.
- Long-term debt: 801,996 (in thousands) as of June 30, 2026; 809,348 (in thousands) as of March 31, 2026; 256,676 (in thousands) as of June 30, 2025.
- Total liabilities: 1,291,759 (in thousands) as of June 30, 2026; 1,263,628 (in thousands) as of March 31, 2026; 510,044 (in thousands) as of June 30, 2025.
Analysis
e.l.f. Beauty reported a strong first quarter fiscal 2027. Net sales increased 36% to $479.4 million, with the Company citing strong performance in retailer and e-commerce channels across the US and international markets. The quarter marked the Company’s 30th consecutive quarter of net sales growth, according to management.
Profitability improved sharply. Gross margin increased approximately 1,400 basis points to 83%, including approximately 1,050 basis points of benefit from IEEPA tariff refunds. The Company said the remaining increase was primarily driven by pricing and lower year-over-year tariff rates. Operating income was 102,441 (in thousands), compared with 48,709 (in thousands) in the prior-year quarter, while adjusted EBITDA was $168.2 million, or 35% of net sales, and was up 93% year over year.
Expense growth and acquisition accounting remain important offsets to the gross-margin strength. GAAP SG&A increased $84.5 million to $280.3 million, driven primarily by marketing, merchandising and distribution costs, compensation and benefits, and depreciation and amortization. The Company also recognized a $16.1 million fair value adjustment of contingent consideration tied to rhode's revenue outperformance relative to earnout thresholds. GAAP net income was $66.6 million and GAAP diluted earnings per share was $1.12, while adjusted net income was $104.6 million and adjusted diluted earnings per share was $1.75.
Liquidity included $344.2 million in cash and cash equivalents at June 30, 2026. Total debt was $834.2 million, compared with $256.7 million at June 30, 2025. The balance sheet also reported 246,814 (in thousands) of inventory, compared with 220,246 (in thousands) at March 31, 2026.
Management raised fiscal 2027 outlook. Net sales guidance increased to $1,938-1,968 million from $1,835-1,865 million, adjusted EBITDA increased to $401-407 million from $379-385 million, adjusted net income increased to $212-215 million from $198-201 million, and adjusted diluted earnings per share increased to $3.50-3.55 from $3.27-3.32. The adjusted effective tax rate outlook remained 25-26%, and weighted average diluted shares outstanding remained 60.5 million.
Management, verbatim
I’m proud of the e.l.f. Beauty team for achieving another quarter of industry-leading results.
Tarang Amin, 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.
Tarang Amin, Chairman and Chief Executive Officer
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.
Tarang Amin, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Segment revenue disclosure and segment-level comparisons
- Operating cash flow
- Free cash flow
- Capital return activity, including share repurchases and dividends
- GAAP effective tax rate
- Prior-year gross margin on its own reported line
- Prior-year adjusted SG&A, adjusted net income and adjusted diluted earnings per share
- Fiscal 2027 actual results needed to assess performance versus prior full-year guidance
- Guidance for gross margin and operating expenses
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Exhibit 99.1 covering e.l.f. Beauty’s first quarter fiscal 2027 results and an updated full-year outlook.
Ticker impact
e.l.f. Beauty reported Q1 FY2027 results with 36% net sales growth and raised FY2027 net sales outlook to 18-20% from 12-14%.
Likely positive near-term bias as traders reprice FY2027 revenue and EBITDA expectations; watch for margin sustainability given tariff-refund contribution.
The filing includes specific Q1 financials (revenue, gross margin, adjusted EBITDA) and an updated FY2027 outlook with higher ranges, which are direct inputs to valuation and forward estimates.
Market effects
Supports the narrative that beauty brands with direct-to-consumer and retailer distribution can sustain growth, potentially improving sentiment for discretionary/beauty peers.
Limited direct regional read-through; results cite US and international channel strength.
Tariff-refund mechanics and international demand could influence how investors model gross margin for other consumer brands exposed to similar trade policy.
Counterpoint
Gross margin expansion includes a sizable tariff-refund benefit, so the guidance raise may be partially dependent on policy/timing that could normalize later.
Key entities
- public_companye.l.f. Beauty, Inc.
Reported Q1 FY2027 results and raised FY2027 outlook in the 8-K.
- corporate_eventrhode Acquisition
Contingent consideration fair value adjustment tied to rhode revenue outperformance versus earnout thresholds.
