Press Release from $ELF (+0,74%) from just now
- 38 % net sales growth achieved -
- Raises forecast for the 2026 financial year -
OAKLAND, California--( BUSINESS WIRE )-- elf Beauty (NYSE: ELF) today announced results for the three and nine months ended December 31, 2025.
"Our third quarter results, which include a 130 basis point increase in market share for our eponymous elf Cosmetics brand and a record-breaking launch of rhode at Sephora in the United Kingdom, continue the consistent, industry-leading growth we have delivered over the past 28 quarters," said Tarang Amin, Chairman and CEO of elf Beauty. "Our value proposition, innovation and breakthrough marketing continue to drive our brands. We remain confident in our ability to expand market share and deliver world-class growth in beauty, as reflected in our increased guidance for FY2026."
Results for the three months to December 31, 2025
For the three months ending December 31, 2025 compared to the three months ending December 31, 2024:
Net sales increased 38% to $489.5 million, primarily due to growth in our retail and e-commerce channels, both in the U.S. and internationally.
Gross margin decreased approximately 30 basis points to 71%, primarily due to higher customs costs, partially offset by price and mix benefits.
Selling, general and administrative (SG&A) expenses increased by USD 61.7 million to USD 280.0 million. Adjusted SG&A (SG&A excluding the items listed in the reconciliation below) increased by USD 56.3 million to USD 249.2 million. The increase in SG&A is mainly due to higher costs for marketing, merchandise management and distribution, personnel and employee benefits, depreciation and amortization, professional fees and consulting costs.
Other expenses (income), net, decreased from USD 5.3 million to USD 1.3 million, primarily due to an increase in foreign exchange losses during the period due to currency fluctuations.
GAAP net income amounted to USD 39.4 million. Adjusted net income (net income excluding the items listed in the reconciliation below) amounted to USD 74.5 million.
Diluted earnings per share under US GAAP amounted to USD 0.65. Adjusted diluted earnings per share (calculated from adjusted net income excluding the items listed in the reconciliation below) amounted to USD 1.24.
Adjusted EBITDA (EBITDA excluding the items listed in the reconciliation below) amounted to USD 123.0 million or 25% of net sales, an increase of 79% compared to the previous year.
Results for the first nine months to December 31, 2025
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 due to growth in our retail and e-commerce channels, both in the U.S. and internationally.
Gross margin decreased approximately 124 basis points to 70%, primarily due to higher customs costs, partially offset by price and mix benefits.
Selling, general and administrative (SG&A) expenses increased by USD 122.0 million to USD 706.9 million. Adjusted SG&A (SG&A excluding the items listed in the reconciliation below) increased by USD 102.2 million to USD 619.8 million. The increase in SG&A is mainly due to higher costs for marketing, merchandise management and distribution, salaries and benefits, depreciation and amortization, professional fees and consulting costs.
Other expenses (net income) changed from USD 1.3 million in other expenses to USD 1.8 million in other income, mainly due to an increase in foreign exchange gains during the reporting period as a result of exchange rate fluctuations.
Net profit according to GAAP amounted to USD 75.7 million. Adjusted net income (net income excluding the items listed in the reconciliation below) amounted to USD 166.5 million.
Diluted earnings per share according to US GAAP amounted to USD 1.28. Adjusted diluted earnings per share (calculated from adjusted net income excluding the items listed in the reconciliation below) amounted to USD 2.81.
Adjusted EBITDA (EBITDA excluding the items listed in the reconciliation below) amounted to USD 276.3 million or 23% of net sales, an increase of 28% compared to the previous year.
Liquidity
As at December 31, 2025, the Company had cash and cash equivalents of USD 196.8 million and long-term debt of USD 816.7 million, compared to cash and cash equivalents of USD 73.8 million and long-term debt of USD 154.1 million as at December 31, 2024.
Updated outlook for the 2026 financial year
The company announces the following updated outlook for the financial year 2026. The updated outlook for fiscal year 2026 reflects an expected 22-23% year-over-year increase in net sales compared to a previously expected 18-20% increase.
Actual figures for the financial year 2025
Outlook for the 2026 financial year (previous forecast)
Current outlook for the 2026 financial year
Net revenue
1,314 million US dollars
1,550-1,570 million US dollars
1,600-1,612 million US dollars
Adjusted EBITDA
297 million US dollars
302-306 million US dollars
323-326 million US dollars
Adjusted effective tax rate
21 %
23 %
23 %
Adjusted net profit
198 million US dollars
165-168 million US dollars
180-183 million US dollars
Adjusted diluted earnings per share
3,39 €
2,80-2,85 $
3,05-3,10 $
Diluted number of shares outstanding
58 million
59 million
59 million
Details of the webcast
The Company will host a webcast today, February 4, 2026, at 4:30 p.m. Eastern Time (ET) to discuss the results for the third quarter of fiscal year 2026. The webcast will be broadcast live at https://investor.elfbeauty.com/stock-and-financial/events-and-presentations . For those who miss the live broadcast, a replay will be available there afterwards.
About Elf Beauty
elf Beauty (NYSE: ELF) is driven by the belief that anything is possible. elf is a unique company that disrupts norms, shapes culture and connects communities through positivity, inclusion and accessibility. The mission is clear: to make beauty accessible to every eye, lip and face. elf Beauty and its brands elf Cosmetics, elf SKIN, Keys Soulcare, Well People, Naturium and rhode are purpose-driven, results-oriented and equipped with exceptional capabilities. elf Beauty offers elf Clean & Vegan products, all certified cruelty-free by PETA and Leaping Bunny, and is proud to be the first cosmetics company with Fair Trade Certified™ production facilities. With a good heart at the heart of the elf philosophy, the company donates 2% of net profits to organizations that make a positive difference.
