e.l.f. Beauty Beats Expectations, Raises Full‑Year Forecast After Strong Q3 Results
OAKLAND, Calif. — e.l.f. Beauty Inc. delivered a better‑than‑expected third quarter for fiscal 2026, reporting robust sales growth and profitability that exceeded Wall Street forecasts and prompted the company to lift its full‑year revenue and earnings outlook, corporate filings show. ([turn0search1][turn0news22])
For the quarter ending Dec. 31, 2025, net sales jumped 38 percent year‑over‑year to $489.5 million, outpacing analysts’ estimates of roughly $460 million. Adjusted earnings per share came in at $1.24, significantly higher than consensus expectations near $0.72. ([turn0search1][turn0news22])
Shares React and Outlook Strengthens
Shares of e.l.f. Beauty surged in after‑hours trading, climbing more than 10 percent on the news as investors responded to the company’s strong quarterly performance and raised guidance for the full fiscal year. The improved outlook reflects sustained consumer demand for affordable makeup and skincare products, even amid broader macroeconomic uncertainty. ([turn0news22][turn0search3])
Management now expects full‑year net sales of $1.60 billion to $1.612 billion, up from a previous forecast range of $1.55 billion to $1.57 billion. Adjusted earnings per share are projected between $3.05 and $3.10, also above earlier guidance. ([turn0search1][turn0search3])
Drivers of Growth: Value Positioning and Brand Expansion
CEO Tarang Amin attributed the company’s 28th consecutive quarter of net sales growth to a combination of broad market share gains across its core e.l.f. cosmetics line and the accelerating performance of newly acquired brands. The company’s Rhode brand, acquired last year, played a key role in the boost, with strong sell‑throughs in major retailers, including Sephora in the United Kingdom. ([turn0search1][turn0search3])
e.l.f.’s value‑oriented positioning — with approximately 75 percent of products priced at $10 or less — has resonated with cost‑conscious consumers, particularly in the United States, where lower‑priced beauty and skincare items continue to attract demand. Distribution through a wide range of retailers, including Target, Walmart, Amazon and Dollar General, helped fuel growth across both physical and online channels. ([turn0search1][turn0search3])
Analysts also highlighted that international net sales grew at a faster pace than domestic figures during the quarter, driven by expansion efforts in new markets and strategic distribution partnerships. ([turn0search2])
Operational Highlights and Financial Strength
During the earnings call, executives emphasised continued market share gains in key product categories and noted that adjusted EBITDA margins expanded, signalling that the company is successfully balancing growth with cost management. The company finished the quarter with a healthy cash position of roughly $197 million, up from $74 million a year earlier, further underpinning financial flexibility for growth initiatives and potential shareholder returns. ([turn0search2])
Despite headwinds related to U.S. import tariffs on products manufactured in China — which account for a significant share of e.l.f.’s global supply chain — management said pricing actions and product mix improvements have supported margin resilience and demand. ([turn0search1][turn0search2])
Looking Ahead
The upgraded forecast for fiscal 2026 reflects confidence that momentum will continue through the year, with the company poised to benefit from both affordable core collections and expanding premium or specialty segments. The strong performance of Rhode and ongoing global market expansion are likely to remain focal points for investors and industry observers tracking e.l.f.’s trajectory. ([turn0search1][turn0news22])
As consumer preferences evolve, e.l.f.’s blend of accessible pricing, brand innovation and retail reach positions it as a notable competitor in the crowded beauty sector, standing out for consistent growth even in challenging economic conditions.
