For the quarter ended December 31, 2025, e.l.f. Beauty reported net sales of $489.5 million, representing a 38% year-over-year increase driven by gains in both retail and e-commerce channels across the U.S. and international markets. Adjusted diluted earnings per share came in at $1.24, up from $0.74 a year ago, and adjusted net income rose to $74.5 million. Gross margin slipped by 30 basis points to 71% due to higher tariff costs, partially offset by pricing and mix benefits. Selling, general and administrative expenses increased by $56.3 million on an adjusted basis, reflecting investments in marketing, distribution and brand innovation.

Shares of e.l.f. Beauty declined more than 5% in intraday trading following the release, as the full-year guidance increase of $42 million to $50 million in revenue fell short of several analysts’ projections. While management lifted its revenue outlook to a range of $1.600 billion to $1.612 billion—up from a prior range of $1.550 billion to $1.570 billion—some investors had anticipated a more aggressive revision given the pace of recent market-share gains, which reached 130 basis points for the core e.l.f. Cosmetics brand in the quarter.

e.l.f. Beauty now expects full-year net sales to grow 22%–23% versus the prior expectation of 18%–20%, and has raised its adjusted EBITDA guidance to $323 million–$326 million from $302 million–$306 million. The company highlighted the recent Rhode acquisition—which contributed $128 million in third-quarter net sales and is projected to add up to $265 million this fiscal year—as a key growth catalyst. CEO Tarang Amin emphasized continued investment in disruptive marketing, product innovation and global retail expansion, including a record-breaking launch of the rhode brand in U.K. Sephora stores.