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OAKLAND - e.l.f. Beauty (NYSE:ELF) reported better-than-expected first quarter earnings on Wednesday, as the cosmetics company delivered its 26th consecutive quarter of net sales growth and market share gains. Shares rose 12% following the announcement.
The company posted adjusted earnings per share of $0.89 for the quarter ended June 30, 2025, exceeding analyst estimates of $0.84. Revenue increased 9% year-over-year to $353.7 million, slightly below the consensus estimate of $355.26 million.
"Our strong Q1 results, including 210 basis points of market share gains, are a continuation of the consistent, category-leading growth we’ve delivered over the past 26 quarters," said Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer. "The combination of our value proposition, powerhouse innovation and disruptive marketing engine continue to fuel our results."
The company’s gross margin decreased approximately 215 basis points to 69%, primarily due to tariffs, partially offset by favorable foreign exchange impacts and mix. Adjusted EBITDA grew 12% YoY to $87.1 million, representing 25% of net sales.
For the first half of fiscal 2026, e.l.f. Beauty expects net sales growth to exceed the 9% reported in the first quarter. However, the company anticipates adjusted EBITDA margins of approximately 20%, down from 23% in the first half of fiscal 2025, primarily due to higher tariff costs.
The company also announced it had completed its acquisition of rhode, a beauty brand founded by Hailey Bieber, for $800 million, with potential earnout consideration of up to $200 million based on future growth over three years.
As of June 30, 2025, e.l.f. Beauty had $170 million in cash and cash equivalents and $256.7 million in long-term debt.
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