– Delivered 38% Net Sales Growth –

– Raises Fiscal 2026 Outlook –

e.l.f. Beauty (NYSE:ELF) today announced results for the three and nine months ended December 31, 2025.

"Our Q3 results, which included 130 basis points of market share gains for our namesake e.l.f. Cosmetics brand and a record-breaking launch of rhode in Sephora in the U.K., are a continuation of the consistent, category-leading growth we've delivered over the past 28 quarters," said Tarang Amin, e.l.f. Beauty's Chairman and Chief Executive Officer. "Our value proposition, powerhouse innovation and disruptive marketing engine continue to fuel our brands. We remain confident in our ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook."

Three Months Ended December 31, 2025 Results

For the three months ended December 31, 2025, compared to the three months ended December 31, 2024:

Net sales increased 38% to $489.5 million, primarily driven by growth in both our retailer and e-commerce channels, in the US and internationally.
Gross margin decreased approximately 30 basis points to 71%, primarily driven by higher tariff costs, partially offset by benefits from pricing and mix.
Selling, general and administrative ("SG&A") expenses increased $61.7 million to $280.0 million. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) increased $56.3 million to $249.2 million. The increase in SG&A is primarily related to an increase in marketing, merchandising and distribution costs, compensation and benefits, depreciation and amortization and professional fees.
Other (expense) income, net decreased from $5.3 million of other expense to $1.3 million of other expense, primarily driven by an increase in foreign currency losses in the period attributable to currency rate fluctuation.
Net income was $39.4 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $74.5 million.
Diluted earnings per share were $0.65 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 $1.24.
Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $123.0 million, or 25% of net sales, up 79% year over year.

Nine Months Ended December 31, 2025 Results

For the nine months ended December 31, 2025, compared to the nine months ended December 31, 2024:

Net sales increased 21% to $1,187.2 million, primarily driven by growth in both our retailer and e-commerce channels, in the US and internationally.
Gross margin decreased approximately 124 basis points to 70%, primarily driven by higher tariff costs, partially offset by benefits from pricing and mix.
Selling, general and administrative ("SG&A") expenses increased $122.0 million to $706.9 million. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) increased $102.2 million to $619.8 million. The increase in SG&A is primarily related to an increase in marketing, merchandising and distribution costs, compensation and benefits, depreciation and amortization, professional fees.
Other (expense) income, net changed from $1.3 million of other expense to $1.8 million other income, primarily driven by an increase in foreign currency gains in the period attributable to currency rate fluctuation.
Net income was $75.7 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $166.5 million.
Diluted earnings per share were $1.28 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 $2.81.
Adjusted EBITDA (EBITDA excluding the items identified in the reconciliation table below) was $276.3 million, or 23% of net sales, up 28% year over year.

Liquidity

As of December 31, 2025, the Company had $196.8 million in cash and cash equivalents, and $816.7 million of long-term debt, as compared to $73.8 million in cash and cash equivalents and $154.1 million of long-term debt outstanding as of December 31, 2024.

Updated Fiscal 2026 Outlook

The Company is providing the following updated outlook for fiscal 2026. The updated outlook for fiscal 2026 reflects an expected 22-23% year-over-year increase in net sales, as compared to an expected 18-20% increase previously.

	Fiscal 2025 Actuals	Previous Fiscal 2026 Outlook	Current Fiscal 2026 Outlook
Net sales	$1,314 million	$1,550-1,570 million	$1,600-1,612 million
Adjusted EBITDA	$297 million	$302-306 million	$323-326 million
Adjusted effective tax rate	21%	23%	23%
Adjusted net income	$198 million	$165-168 million	$180-183 million
Adjusted diluted earnings per share	$3.39	$2.80-2.85	$3.05-3.10
Diluted shares outstanding	58 million	59 million	59 million

Webcast Details

The Company will hold a webcast to discuss the results from its third quarter fiscal 2026 today, February 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.

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 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, 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 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 ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook. 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 our business resulting from acquisitions or investments, such as our 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.

e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated statements of operations (unaudited) (in thousands, except share and per share data)

	Three months ended December 31,						Nine months ended December 31,
	2025			2024			2025			2024
Net sales	$	489,505		$	355,320		$	1,187,180		$	980,872
Cost of sales		142,010			102,015			356,286			282,225
Gross profit		347,495			253,305			830,894			698,647
Selling, general and administrative expenses		279,955			218,220			706,929			584,936
Operating income		67,540			35,085			123,965			113,711
Other (expense) income, net		(1,325	)		(5,278	)		1,834			(1,300	)
Interest expense, net		(12,351	)		(3,527	)		(24,136	)		(10,953	)
Loss on extinguishment of debt		—			—			(674	)		—
Income before provision for income taxes		53,864			26,280			100,989			101,458
Income tax provision		(14,488	)		(9,019	)		(25,306	)		(17,622	)
Net income	$	39,376		$	17,261		$	75,683		$	83,836

Net income per share:
Basic	$	0.66		$	0.31		$	1.30		$	1.49
Diluted	$	0.65		$	0.30		$	1.28		$	1.43
Weighted average shares outstanding:
Basic		59,294,883			56,358,694			58,001,083			56,227,037
Diluted		60,190,799			58,353,219			59,159,308			58,463,343

e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated balance sheets (unaudited) (in thousands, except share and per share data)

	December 31, 2025			March 31, 2025			December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	196,821		$	148,692		$	73,845
Accounts receivable, net		190,304			126,010			187,744
Inventory, net		220,622			187,170			214,786
Prepaid expenses and other current assets		93,842			78,688			82,702
Total current assets		701,589			540,560			559,077
Property and equipment, net		44,836			28,787			19,878
Intangible assets, net		564,243			207,698			212,047
Goodwill		852,768			340,582			340,582
Other assets		160,284			130,548			133,250
Total assets	$	2,323,720		$	1,248,175		$	1,264,834

Liabilities and stockholders' equity
Current liabilities:
Current portion of long-term debt	$	30,000		$	—		$	100,250
Accounts payable		73,980			72,180			65,293
Accrued expenses and other current liabilities		150,317			104,876			128,364
Total current liabilities		254,297			177,056			293,907
Long-term debt		816,701			256,676			154,061
Deferred tax liabilities		16,737			3,812			493
Long-term operating lease obligations		67,477			48,721			48,116
Other long-term liabilities		6,662			1,055			870
Total liabilities		1,161,874			487,320			497,447

Stockholders' equity:
Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of December 31, 2025, March 31, 2025 and December 31, 2024; 59,052,239, 55,730,037 and 56,398,608 shares issued and outstanding as of December 31, 2025, March 31, 2025 and December 31, 2024, respectively		589			556			563
Additional paid-in capital		1,266,793			942,025			977,141
Accumulated other comprehensive income		1,028			521			183
Accumulated deficit		(106,564	)		(182,247	)		(210,500	)
Total stockholders' equity		1,161,846			760,855			767,387
Total liabilities and stockholders' equity	$	2,323,720		$	1,248,175		$	1,264,834

e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated statements of cash flows (unaudited) (in thousands)

	Nine months ended December 31,
	2025			2024
Cash flows from operating activities:
Net income	$	75,683		$	83,836
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		53,033			30,899
Non-cash lease expense		8,253			7,010
Stock-based compensation expense		69,219			56,951
Amortization of debt issuance costs and discount on debt		962			413
Deferred income taxes		15,055			(4,153	)
Acquisition-related seller expenses		(47,100	)		—
Loss on extinguishment of debt		674			—
Other, net		2,416			844
Changes in operating assets and liabilities:
Accounts receivable		(32,611	)		(65,067	)
Inventory		7,405			(23,652	)
Prepaid expenses and other assets		(53,537	)		(77,534	)
Accounts payable and accrued expenses		9,807			(5,691	)
Other liabilities		794			(6,116	)
Net cash provided by (used in) operating activities		110,053			(2,260	)

Cash flows from investing activities:
Acquisition, net of cash acquired		(581,682	)		—
Purchase of property and equipment		(20,564	)		(7,461	)
Other, net		(704	)		(278	)
Net cash used in investing activities		(602,950	)		(7,739	)

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		(7,500	)		(8,062	)
Debt issuance costs paid		(6,891	)		—
Repurchase of common stock		(49,987	)		(17,076	)
Cash received from issuance of common stock		5,301			917
Other, net		—			(57	)
Net cash provided by (used in) financing activities		540,923			(24,278	)

Effect of exchange rate changes on cash and cash equivalents		103			(61	)

Net increase (decrease) in cash and cash equivalents		48,129			(34,338	)
Cash and cash equivalents - beginning of period		148,692			108,183
Cash and cash equivalents - end of period	$	196,821		$	73,845

e.l.f. Beauty, Inc. and subsidiaries Reconciliation of GAAP net income to non-GAAP adjusted EBITDA (unaudited) (in thousands)

	Three months ended December 31,				Nine months ended December 31,
	2025		2024		2025		2024
Net income	$	39,376	$	17,261	$	75,683	$	83,836
Interest expense, net		12,351		3,527		24,136		10,953
Income tax (benefit) provision		14,488		9,019		25,306		17,622
Depreciation and amortization		21,513		11,599		53,033		30,899
EBITDA	$	87,728	$	41,406	$	178,158	$	143,310
Stock-based compensation		29,874		22,339		69,219		56,951
Loss on extinguishment of debt (a)		—		—		674		—
Other non-cash and non-recurring items (b)		5,425		4,966		28,276		15,213
Adjusted EBITDA	$	123,027	$	68,711	$	276,327	$	215,474

(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 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 December 31,						Nine months ended December 31,
	2025			2024			2025			2024
Selling, general and administrative expenses	$	279,955		$	218,220		$	706,929		$	584,936
Stock-based compensation		(29,860	)		(22,303	)		(69,208	)		(56,905	)
Other non-recurring items (a)		(873	)		(3,036	)		(17,961	)		(10,466	)
Adjusted selling, general and administrative expenses	$	249,222		$	192,881		$	619,760		$	517,565

(a) Represents other non-recurring 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 December 31,						Nine months ended December 31,
	2025			2024			2025			2024
Net income	$	39,376		$	17,261		$	75,683		$	83,836
Stock-based compensation		29,874			22,339			69,219			56,951
Other non-recurring items (a)		1,730			3,036			19,552			10,466
Loss on extinguishment of debt (b)		—			—			674			—
Amortization of acquired intangible assets (c)		11,133			4,349			24,354			13,047
Tax Impact (d)		(7,637	)		(3,952	)		(22,956	)		(11,954	)
Adjusted net income	$	74,476		$	43,033		$	166,526		$	152,346

Weighted average number of shares outstanding – diluted		60,190,799			58,353,219			59,159,308			58,463,343
Adjusted diluted earnings per share	$	1.24		$	0.74		$	2.81		$	2.61

(a) Represents other non-recurring 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.

(d) Represents the tax impact of the above adjustments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260204234992/en/

Investors:

KC Katten

VP, Corporate Development & Investor Relations

kkatten@elfbeauty.com

Media:

Sam Critchell

VP, Corporate Communications

scritchell@elfbeauty.com

e.l.f. Beauty Announces Third Quarter Fiscal 2026 Results