E.l.f. Beauty Q3 Earnings Surge 38%, Raises 2026 Forecasts


E.l.f. Beauty has lifted its full-year forecasts on the top and bottom lines after a better-than-expected third quarter.

The beauty company, which now also owns Hailey Bieber-founded Rhode and Naturium in addition to its namesake brand, is forecasting 2026 net sales to come in at between $1.6 billion and $1.61 billion, up from the previous estimate of $1.55 billion and $1.57 million.

Adjusted net income is now expected in the region of $180 million to $183 million, up from the prior forecast of $165 million to $168 million.

For the three months ended Dec. 31 compared with the same period a year earlier, net sales increased 38 percent to $489.5 million, primarily driven by growth in retailer and e-commerce channels, in the U.S. and internationally. Analysts polled by FactSet had predicted sales of $462 million.

Adjusted net income was $74.5 million, down from $83.8 million, while adjusted diluted earnings per share were $1.24, beating Wall Street forecasts of 72 cents.

Detailing the third quarter, chief executive officer Tarang Amin said Rhode’s international rollout was continuing to go from strength to strength, breaking records at Sephora in the U.K. and poised to enter Mecca in Australia.

“Rhode’s performance has been phenomenal, exceeding every possible expectation, not only the number-one brand at Sephora in North America, but our U.K. Sephora launch exceeded the prior best launch ever by five times. So Rhode has such incredible momentum,” said Amin in an interview. 

Naturium, meanwhile, which has also been busy expanding its retail presence, is gearing up to enter Walmart.

Most recently, E.l.f. made its first foray into fragrance with H&M, launching three long-lasting eau de parfums inspired by its bestselling product families: Power Grip, Halo Glow and Camo Blend. The trio of scents, each priced at $29.99, are available to purchase online and at select H&M stores around the world for a limited time.

And Sunday will see the official launch of its telenovela-inspired Super Bowl ad, starring Academy Award–nominated actor Melissa McCarthy, actor and TV doctor Nicholas Gonzalez, and telenovela star Itatí Cantoral, marking the fourth year in a row that E.l.f. has had a Super Bowl presence.

“We’re known for broadening our presence in the best of entertainment, sports and culture. We saw this opportunity, particularly with Bad Bunny’s halftime show and his ‘Saturday Night Live’ performance four months ago where he encouraged everyone they have four months to learn Spanish,” Amin said. “It’s a great example of us being able to move at the speed of culture.”

Amid all this, the company is still navigating the complex tariffs backdrop. After raising prices last year, Amin said: “I’m proud of the team. This fiscal year, we’re facing about 60 percent tariffs. Not only have we been able to address the tariffs, but we’re also growing our adjusted EBITDA in the process. It’s a balanced plan — a combination of pricing, supply chain diversification, and business diversification, particularly as we grow more internationally.”



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