OAKLAND, California; November 4, 2026 — e.l.f. Beauty (NYSE: ELF) today announced results for the three and six months ended September 30, 2026
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 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, 202
How this was made
The 30-second read
Why it matters
The raised guidance signals robust demand and may attract growth‑oriented investors, potentially lifting the stock.
Market read
The earnings beat and raised outlook are likely to generate buying pressure in the short term.
What to watch
Higher SG&A spending and contingent consideration adjustments could pressure near‑term profitability.
e.l.f. Beauty Announces Second Quarter Fiscal 2027 Results – Delivered 51% Net Sales Growth – – Raises Fiscal 2027 Outlook
Net sales increased 51% to $520.8 million, gross margin increased approximately 160 basis points to 71%, adjusted EBITDA increased 86% year over year to $123.4 million, and the Company raised fiscal 2027 net sales and adjusted EBITDA outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30GAAP | $520.8M | – | 51% |
| Cost of sales, three months ended September 30GAAP | 150.6M | – | – |
| Gross profit, three months ended September 30GAAP | 370.2M | – | – |
| Gross margin, three months ended September 30GAAP | 71% | – | increased approximately 160 basis points |
| Selling, general and administrative expenses, three months ended September 30GAAP | $300.1M | – | – |
| Adjusted selling, general and administrative expenses, three months ended September 30non-GAAP | $275.1M | – | – |
| Change in fair value of contingent consideration, three months ended September 30GAAP | 17.68M | – | – |
| Operating income, three months ended September 30GAAP | 52.43M | – | – |
| Other income (expense), net, three months ended September 30GAAP | 563K | – | changed by $2.4 million year over year |
| Interest expense, net, three months ended September 30GAAP | −9.98M | – | – |
| Loss on extinguishment of debt, three months ended September 30GAAP | — | – | – |
| Income (loss) before (provision for) benefit from income taxes, three months ended September 30GAAP | 43.01M | – | – |
| Income tax (provision) benefit, three months ended September 30GAAP | −12.98M | – | – |
| Net income, three months ended September 30GAAP | $30.03M | – | – |
| Adjusted net income, three months ended September 30non-GAAP | $72.66M | – | – |
| Basic earnings per share, three months ended September 30GAAP | $ 0.51 | – | – |
| Diluted earnings per share, three months ended September 30GAAP | $ 0.50 | – | – |
| Adjusted diluted earnings per share, three months ended September 30non-GAAP | $ 1.21 | – | – |
| Weighted average shares outstanding - basic, three months ended September 30GAAP | 59,030,317 | – | – |
| Weighted average shares outstanding - diluted, three months ended September 30GAAP | 60,089,314 | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $123.4M | – | up 86% year over year |
| Adjusted EBITDA margin, three months ended September 30non-GAAP | 24% of net sales | – | – |
| Net sales, six months ended September 30GAAP | $1.00B | – | 43% |
| Cost of sales, six months ended September 30GAAP | 231.1M | – | – |
| Gross profit, six months ended September 30GAAP | 769.1M | – | – |
| Gross margin, six months ended September 30GAAP | 77% | – | increased approximately 760 basis points |
| Selling, general and administrative expenses, six months ended September 30GAAP | $580.4M | – | – |
| Adjusted selling, general and administrative expenses, six months ended September 30non-GAAP | $535.8M | – | – |
| Change in fair value of contingent consideration, six months ended September 30GAAP | 33.76M | – | – |
| Operating income, six months ended September 30GAAP | 154.9M | – | – |
| Other income, net, six months ended September 30GAAP | 232K | – | decreased by $2.9 million year over year |
| Interest expense, net, six months ended September 30GAAP | −17.79M | – | – |
| Loss on extinguishment of debt, six months ended September 30GAAP | — | – | – |
| Income before provision for income taxes, six months ended September 30GAAP | 137.3M | – | – |
| Income tax provision, six months ended September 30GAAP | −40.68M | – | – |
| Net income, six months ended September 30GAAP | $96.63M | – | – |
| Adjusted net income, six months ended September 30non-GAAP | $177.2M | – | – |
| Basic earnings per share, six months ended September 30GAAP | $ 1.64 | – | – |
| Diluted earnings per share, six months ended September 30GAAP | $ 1.61 | – | – |
| Adjusted diluted earnings per share, six months ended September 30non-GAAP | $ 2.96 | – | – |
| Weighted average shares outstanding - basic, six months ended September 30GAAP | 59,087,140 | – | – |
| Weighted average shares outstanding - diluted, six months ended September 30GAAP | 59,898,471 | – | – |
| Adjusted EBITDA, six months ended September 30non-GAAP | $291.6M | – | up 90% year over year |
| Adjusted EBITDA margin, six months ended September 30non-GAAP | 29% of net sales | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal 2027 outlook
- Revenue$2,003-2,029 million
- Tax rate25-26%
- NoteNet sales: expected 22-24% year-over-year increase
- NoteAdjusted EBITDA: $421-427 million
- NoteAdjusted net income: $231-233 million
- NoteAdjusted diluted earnings per share: $3.82-3.86
- NoteWeighted average diluted shares outstanding: 60.5 million
Capital returns
- Repurchase of common stock: $(49,982) (in thousands) for the six months ended September 30, 2026.
What drove it
- Strong performance in both retailer and e-commerce channels, in the US and internationally, drove net sales growth.
- Quarterly gross-margin expansion included approximately 30 basis points of benefit from incremental IEEPA tariff refunds flowing through cost of sales.
- Six-month gross-margin expansion included approximately 520 basis points of benefit from IEEPA tariff refunds flowing through cost of sales.
- The remaining gross-margin improvement was primarily driven by lower year-over-year tariffs and favorable mix, partially offset by price investments.
- SG&A growth was primarily related to marketing, merchandising and distribution costs, compensation and benefits, and depreciation and amortization.
- The $17.7 million quarterly and $33.8 million six-month contingent-consideration fair-value adjustments reflected rhode revenue outperformance relative to earnout thresholds.
Concerns
- Price investments partially offset the benefits from lower tariffs and favorable mix.
- GAAP results included a $17.7 million quarterly and $33.8 million six-month increase in the fair value of contingent consideration related to the rhode Acquisition.
- Interest expense, net was $(9,978) (in thousands) for the quarter and $(17,786) (in thousands) for the six-month period.
- Total debt was $826.7 million as of September 30, 2026.
- Other income, net decreased by $2.9 million year over year to $0.2 million for the six months ended September 30, 2026, primarily due to a decrease in foreign currency gains.
What to watch
- Delivery against updated fiscal 2027 net sales guidance of $2,003-2,029 million and expected 22-24% year-over-year growth.
- Delivery against updated fiscal 2027 adjusted EBITDA guidance of $421-427 million.
- The persistence of tariff-related benefits, including IEEPA tariff refunds, in gross margin.
- The impact of price investments on gross margin.
- Marketing, merchandising and distribution costs, compensation and benefits, and depreciation and amortization within SG&A.
- rhode revenue performance relative to earnout thresholds and associated contingent-consideration fair-value adjustments.
Balance sheet and cash flow
- Cash and cash equivalents were $ 350,799 (in thousands) as of September 30, 2026, compared with $ 289,685 (in thousands) as of March 31, 2026 and $ 194,403 (in thousands) as of September 30, 2025.
- Total debt was $826.7 million as of September 30, 2026, compared with $856.7 million as of September 30, 2025.
- Current portion of long-term debt was $ 30,000 (in thousands) and long-term debt was $ 794,646 (in thousands) as of September 30, 2026.
- Accounts receivable, net was $ 246,229 (in thousands), inventory, net was $ 260,612 (in thousands), and total current assets were $ 977,625 (in thousands) as of September 30, 2026.
- Intangible assets, net were $ 530,843 (in thousands), goodwill was $ 853,475 (in thousands), and total assets were $ 2,567,248 (in thousands) as of September 30, 2026.
- Current portion of contingent consideration was $ 30,000 (in thousands) and long-term contingent consideration was $ 68,507 (in thousands) as of September 30, 2026.
- Total liabilities were $ 1,341,738 (in thousands) and total stockholders' equity was $ 1,225,510 (in thousands) as of September 30, 2026.
- Net cash provided by operating activities was $ 126,310 (in thousands) for the six months ended September 30, 2026, compared with $ 50,648 (in thousands) for the six months ended September 30, 2025.
- Purchase of property and equipment was $(3,981) (in thousands), and net cash used in investing activities was $(4,221) (in thousands), for the six months ended September 30, 2026.
- Repayment of long-term debt was $(15,000) (in thousands), net cash used in financing activities was $(61,058) (in thousands), and net increase in cash, cash equivalents and restricted cash was $ 61,114 (in thousands) for the six months ended September 30, 2026.
Analysis
e.l.f. Beauty reported strong second-quarter fiscal 2027 growth, with net sales increasing 51% to $520.8 million. The Company attributed growth to strong retailer and e-commerce performance in the US and internationally. For the six months ended September 30, 2026, net sales increased 43% to $1,000.2 million, and management said the Company delivered its 31st consecutive quarter of net sales growth.
Profitability improved materially. Quarterly gross margin increased approximately 160 basis points to 71%, including approximately 30 basis points from incremental IEEPA tariff refunds. For the six-month period, gross margin increased approximately 760 basis points to 77%, including approximately 520 basis points from IEEPA tariff refunds. Lower year-over-year tariffs and favorable mix were additional drivers, while price investments were a partial offset.
The Company continued to invest in operating capacity and demand generation. Quarterly GAAP SG&A increased $69.0 million to $300.1 million, while adjusted SG&A increased $81.9 million to $275.1 million, primarily reflecting marketing, merchandising and distribution, compensation and benefits, and depreciation and amortization. A $17.7 million quarterly fair-value adjustment to contingent consideration, driven by rhode revenue outperformance against earnout thresholds, affected GAAP earnings. GAAP net income was $30.0 million and adjusted net income was $72.7 million, while adjusted EBITDA rose 86% year over year to $123.4 million, or 24% of net sales.
Liquidity increased, with cash and cash equivalents of $350.8 million as of September 30, 2026, while total debt was $826.7 million. Six-month operating cash flow was $126.3 million, and the Company repurchased $49.982 million of common stock during the six-month period. The Company raised fiscal 2027 net sales guidance to $2,003-2,029 million from $1,938-1,968 million and raised adjusted EBITDA guidance to $421-427 million from $401-407 million. Updated adjusted diluted earnings per share guidance is $3.82-3.86, compared with previous guidance of $3.50-3.55.
Management, verbatim
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.
Tarang Amin, Chairman and CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported income-statement metrics were not provided.
- Reportable segment revenue and segment-level growth were not provided.
- Free cash flow was not provided.
- Quarterly operating cash flow was not provided.
- Dividend declaration or payment information was not provided.
- Fiscal 2027 gross-margin guidance was not provided.
- Fiscal 2027 operating-expense guidance was not provided.
- A previous-release outlook section was not provided for actual-versus-prior-guidance comparison.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
e.l.f. Beauty is a publicly traded cosmetics company that regularly reports quarterly results and guidance.
Ticker impact
e.l.f. Beauty disclosed Q2 fiscal 2027 results with 51% net sales growth and raised full-year net sales guidance to 22‑24% YoY.
upward pressure as investors price in higher sales growth and improved margins
The company reported double‑digit sales growth, higher gross margin, and an upgraded outlook, which typically drives buying interest.
Market effects
Strengthens the cosmetics and personal care sector outlook, highlighting consumer spending resilience.
Positive for U.S. consumer discretionary stocks, especially retailers and e‑commerce platforms.
May boost sentiment toward international beauty brands with similar growth trajectories.
Counterpoint
If the sales surge is driven by temporary promotions, the guidance raise could be overstated.
Key entities
- ExecutiveTarang Amin
Chairman and CEO who presented the results and guidance.
