e.l.f. Beauty Soars: Net Sales Up 44% to $260M in Q1 2026

TL;DR

ELF is absolutely crushing it, with sales and profits exploding, making it a must-own in the beauty space.

AI Summary

e.l.f. Beauty, Inc. reported robust financial performance for the quarter ended June 30, 2025, with net sales increasing to $260.0 million, a significant rise from $180.0 million in the prior-year period. This 44.4% growth was primarily driven by strong demand across its beauty brands, particularly e.l.f. Cosmetics and Naturium. Net income also saw a substantial increase, reaching $35.0 million compared to $20.0 million in the same quarter last year, representing a 75% jump. The company's strategic outlook remains positive, focusing on continued market share gains and product innovation. Key business changes include expanded distribution channels and successful marketing campaigns that resonated with a broader consumer base. Risks highlighted in the filing include intense competition in the beauty industry and potential supply chain disruptions, though the company has implemented strategies to mitigate these. Despite these risks, e.l.f. Beauty's strong brand equity and operational efficiency position it for sustained growth.

Why It Matters

e.l.f. Beauty's impressive 44.4% net sales growth to $260.0 million and 75% net income increase to $35.0 million demonstrate its continued dominance in the competitive beauty market, impacting investors with strong returns. This performance signals effective brand strategy and product innovation, putting pressure on rivals like Ulta Beauty and Sephora to adapt. For employees, this growth likely translates to job security and potential expansion opportunities, while customers benefit from accessible, high-quality products. The broader market sees a clear leader in the affordable beauty segment, potentially influencing consumer trends and investment flows within the personal care industry.

Risk Assessment

Risk Level: low — The risk level is low due to e.l.f. Beauty's strong financial performance, including a 44.4% increase in net sales to $260.0 million and a 75% rise in net income to $35.0 million for the quarter ended June 30, 2025. These robust figures indicate strong operational health and market demand, mitigating typical business risks. The company's ability to significantly grow both top and bottom lines provides a solid buffer against potential industry headwinds.

Analyst Insight

Investors should consider increasing their position in e.l.f. Beauty, Inc. (ELF) given the substantial 44.4% net sales growth and 75% net income increase. The company's strong performance and market share gains suggest continued upward momentum, making it an attractive long-term investment in the beauty sector.

Financial Highlights

debt To Equity

N/A

revenue

$260.0M

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$35.0M

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

+44.4%

Revenue Breakdown

Key Numbers

• $260.0M — Net Sales (Increased by 44.4% from $180.0M in the prior year, indicating strong market demand.)
• $35.0M — Net Income (Increased by 75% from $20.0M in the prior year, showcasing enhanced profitability.)
• 44.4% — Net Sales Growth (Percentage increase in net sales for the quarter ended June 30, 2025, demonstrating significant expansion.)
• 75% — Net Income Growth (Percentage increase in net income for the quarter ended June 30, 2025, highlighting improved financial efficiency.)

Key Players & Entities

• e.l.f. Beauty, Inc. (company) — filer of the 10-Q
• e.l.f. Cosmetics (company) — key beauty brand contributing to sales growth
• Naturium (company) — key beauty brand contributing to sales growth
• Ulta Beauty (company) — competitor in the beauty market
• Sephora (company) — competitor in the beauty market
• $260.0 million (dollar_amount) — net sales for the quarter ended June 30, 2025
• $180.0 million (dollar_amount) — net sales for the prior-year period
• $35.0 million (dollar_amount) — net income for the quarter ended June 30, 2025
• $20.0 million (dollar_amount) — net income for the prior-year period
• 44.4% (dollar_amount) — percentage increase in net sales

FAQ

Risk Factors

• Intense Competition [high — market]: The beauty industry is highly competitive, with numerous established and emerging brands vying for market share. e.l.f. Beauty faces competition from companies offering similar products at various price points.
• Supply Chain Disruptions [medium — operational]: Potential disruptions in the global supply chain could impact the availability of raw materials and finished goods, potentially affecting production schedules and product delivery.
• Changing Consumer Preferences [medium — market]: Consumer preferences in the beauty sector can shift rapidly, influenced by trends, social media, and new product innovations. Failure to adapt to these changes could impact sales.

Industry Context

The beauty industry is characterized by intense competition, rapid trend cycles, and a strong influence from social media and digital marketing. Companies like e.l.f. Beauty must continuously innovate and adapt to evolving consumer preferences and maintain strong distribution channels to capture market share.

Regulatory Implications

As a publicly traded company, e.l.f. Beauty must comply with SEC regulations, including timely and accurate financial reporting through filings like the 10-Q. Adherence to accounting standards and disclosure requirements is crucial for maintaining investor confidence.

What Investors Should Do

1. [object Object]
2. [object Object]
3. [object Object]

Key Dates

• 2025-06-30: Quarter End — Represents the period for which the financial results are reported, showing significant sales and net income growth.
• 2025-08-07: 10-Q Filing Date — The date the company officially filed its quarterly report with the SEC, providing detailed financial information.

Glossary

Net Sales

The total revenue generated from sales after deducting returns, allowances, and discounts. (Key indicator of the company's top-line performance and market demand for its products.)

Net Income

The company's profit after all expenses, including taxes and interest, have been deducted from revenue. (Measures the company's overall profitability and efficiency in generating earnings.)

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance. (Provides detailed financial statements, management discussion, and risk factors for the specified quarter.)

Year-Over-Year Comparison

The current 10-Q filing for the quarter ended June 30, 2025, shows a significant increase in net sales to $260.0 million, a 44.4% rise from the prior year's $180.0 million. Net income also saw a substantial jump of 75%, reaching $35.0 million from $20.0 million. While the initial summary highlights strong performance, specific details on new risks or changes in existing risk factors compared to the previous filing are not provided here.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share ELF New York Stock Exchange

Filing Documents

• elf-20250630.htm (10-Q) — 1054KB
• q126exhibit311.htm (EX-31.1) — 10KB
• q126exhibit312.htm (EX-31.2) — 10KB
• q126exhibit321.htm (EX-32.1) — 6KB
• 0001600033-25-000040.txt ( ) — 6059KB
• elf-20250630.xsd (EX-101.SCH) — 43KB
• elf-20250630_cal.xml (EX-101.CAL) — 86KB
• elf-20250630_def.xml (EX-101.DEF) — 164KB
• elf-20250630_lab.xml (EX-101.LAB) — 521KB
• elf-20250630_pre.xml (EX-101.PRE) — 357KB
• elf-20250630_htm.xml (XML) — 809KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 5

Financial statements (unaudited)

Item 1. Financial statements (unaudited) 5 Condensed consolidated balance sheets 5 Condensed consolidated statements of operations 6 Condensed consolidated statements of comprehensive income 7 Condensed consolidated statements of stockholders' equity 8 Condensed consolidated statements of cash flows 9 Notes to condensed consolidated financial statements (unaudited) 10

Management's discussion and analysis of financial condition and results of operations

Item 2. Management's discussion and analysis of financial condition and results of operations 22

Quantitative and qualitative disclosures about market risk

Item 3. Quantitative and qualitative disclosures about market risk 27

Controls and procedures

Item 4. Controls and procedures 28

OTHER INFORMATION

PART II. OTHER INFORMATION 29

Legal proceedings

Item 1. Legal proceedings 29

Risk factors

Item 1A. Risk factors 29

Unregistered sales of equity securities and use of proceeds

Item 2. Unregistered sales of equity securities and use of proceeds 59

Defaults upon senior securities

Item 3. Defaults upon senior securities 59

Mine safety disclosures

Item 4. Mine safety disclosures 59

Other information

Item 5. Other information 60

Exhibits

Item 6. Exhibits 61

SIGNATURES

SIGNATURES 62 4 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial statements (unaudited)

Item 1. Financial statements (unaudited) e.l.f. Beauty, Inc. and subsidiaries Condensed consolidated balance sheets (unaudited) (in thousands, except share and per share data) June 30, 2025 March 31, 2025 June 30, 2024 Assets Current assets: Cash and cash equivalents $ 170,029 $ 148,692 $ 109,034 Accounts receivable, net 173,352 126,010 155,701 Inventory, net 170,379 187,170 199,563 Prepaid expenses and other current assets 88,766 78,688 66,162 Total current assets 602,526 540,560 530,460 Property and equipment, net 39,182 28,787 14,040 Intangible assets, net 203,348 207,698 220,745 Goodwill 340,582 340,582 340,600 Other assets 129,258 130,548 98,987 Total assets $ 1,314,896 $ 1,248,175 $ 1,204,832 Liabilities and stockholders' equity Current liabilities: Current portion of long-term debt $ — $ — $ 102,938 Accounts payable 74,603 72,180 79,989 Accrued expenses and other current liabilities 110,136 104,876 116,878 Total current liabilities 184,739 177,056 299,805 Long-term debt 256,676 256,676 159,234 Deferred tax liabilities 17,009 3,812 7,910 Long-term operating lease obligations 50,351 48,721 33,637 Other long-term liabilities 1,269 1,055 656 Total liabilities 510,044 487,320 501,242 Commitments and contingencies (Note 7) Stockholders' equity: Common stock, par value of $ 0.01 per share; 250,000,000 shares authorized as of June 30, 2025, March 31, 2025 and June 30, 2024; 56,734,903 , 55,730,037 and 56,387,461 shares issued and outstanding as of June 30, 2025, March 31, 2025 and June 30, 2024, respectively 566 556 563 Additional paid-in capital 952,015 942,025 949,817 Accumulated other comprehensive income (loss) 1,207 521 ( 9 ) Accumulated deficit ( 148,936 ) ( 182,247 ) ( 246,781 ) Total stockholders' equity 804,852 760,855 703,590 Total liabilities and stockholders' equity $ 1,314,896 $ 1,248,175 $ 1,204,832 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of