e.l.f. Beauty Raises Fiscal 2027 Sales Outlook After 51% Quarter

The Tip Desk · November 11, 2026 · 2 min read

Second-quarter net sales reached $520.8 million, and the company lifted full-year sales guidance to 22-24% growth from 18-20%.

e.l.f. Beauty (ELF) reported 51% net sales growth in the three months ended September 30, 2026, accelerating from 36% in the prior quarter, and raised its fiscal 2027 sales outlook to 22-24% growth from the 18-20% range it had set after the June quarter.

Net sales were $520.8 million, up from $343.9 million a year earlier. Chairman and CEO Tarang Amin said the company delivered its 31st consecutive quarter of net sales growth, with strength across the portfolio in retailer and e-commerce channels, in the U.S. and internationally.

Gross margin was 71%, including about 30 basis points of benefit from incremental IEEPA tariff refunds in cost of sales. The company said the remaining increase versus a year earlier was driven primarily by lower year-over-year tariffs and a favorable mix, partially offset by price investments. That 71% rate compared with 83% in the June quarter, when IEEPA refunds contributed about 1,050 basis points.

Selling, general and administrative expenses were $300.1 million. Adjusted SG&A was $275.1 million. The company said the increase was related to marketing, merchandising and distribution costs, compensation and benefits, and depreciation and amortization.

GAAP net income was $30.0 million, or $0.50 a share, versus $2.0 million, or $0.05 a share, a year earlier. Adjusted net income was $72.7 million, or $1.21 a share. Adjusted EBITDA was $123.4 million, or 24% of net sales, up 86% year over year.

The company recorded a $17.7 million fair-value adjustment on contingent consideration tied to the rhode acquisition, citing rhode revenue results above earnout thresholds in the merger agreement. That compared with a $16.1 million adjustment in the June quarter.

For the six months ended September 30, 2026, net sales increased 43% to $1,000.2 million. Gross margin was 77%, including about 520 basis points from IEEPA tariff refunds. GAAP net income was $96.6 million, or $1.61 a share; adjusted net income was $177.2 million, or $2.96 a share. Adjusted EBITDA was $291.6 million, or 29% of net sales.

Cash and cash equivalents were $350.8 million as of September 30, 2026, with total debt of $826.7 million.

The updated fiscal 2027 outlook calls for net sales of $2,003 million to $2,029 million, adjusted EBITDA of $421 million to $427 million, adjusted net income of $231 million to $233 million, and adjusted diluted earnings of $3.82 to $3.86 a share on 60.5 million weighted average diluted shares. The adjusted effective tax rate remains 25-26%.

Amin said the company is raising full-year net sales guidance to 22 to 24 percent with that momentum.