olivLaw · US equity research
e.l.f. Beauty, Inc. ELF
Perfumes, Cosmetics & Other Toilet Preparations · SIC 2844 · Vertical: Perfumes, Cosmetics & Other Toilet Preparations (SIC 2844)
e.l.f. Beauty is a multi-brand cosmetics and skin care company, with brands such as e.l.f. Cosmetics, e.l.f. SKIN and rhode, sold mainly through mass retailers and online channels. The company reported net sales growth of 25% in fiscal 2026, and net sales rose 36% in the first quarter of fiscal 2027, in a context where tariffs and tariff refunds remain important factors.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, e.l.f. Beauty, Inc. (ELF) stock was 113.63 USD (+1.91% on the day), with market capitalisation 6.7 bn USD, P/E 113.6 on diluted EPS of 1.00 USD over the last 12 months, dividend yield 1.58%, beta 1.56, 52-week range 49.57–117.83 USD. Latest reported quarter (Q1 2027): revenue of 479.4 m USD (+35.5% YoY), net income of 66.6 m USD (+99.9% YoY), diluted EPS 1.12 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 59.1
- strong (55–70)
- Bollinger (20, 2)
- 106.87 – 117.56
- in the upper half of the band · %B 0.63 · band width 9.5%
- SMA 50 / 200
- 105.97 / 81.64
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 2.32 / 2.91
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +9.5% | −1.1% | +10.6 pp | — |
| 3 months | +31.6% | −0.5% | +32.0 pp | — |
| 6 months | +85.0% | +4.4% | +80.6 pp | — |
| Year to date | +49.4% | +12.3% | +37.1 pp | — |
| 1 year | −3.9% | +13.5% | −17.5 pp | +4.5% |
| 3 years | +18.2% | +76.4% | −58.2 pp | −14.8% |
| 5 years | +262.7% | +63.7% | +199.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 301.1 m | 355.3 m | 332.6 m | 353.7 m | 343.9 m | 489.5 m | 449.3 m | 479.4 m |
| Cost of revenue | 87.0 m | 102.0 m | 95.6 m | 109.2 m | 105.1 m | 142.0 m | 122.8 m | 80.5 m |
| Gross profit | 214.1 m | 253.3 m | 237.0 m | 244.5 m | 238.9 m | 347.5 m | 326.5 m | 398.8 m |
| SG&A | 186.1 m | 218.2 m | 192.7 m | 195.8 m | 231.1 m | 280.0 m | 319.1 m | 280.3 m |
| Operating income | 27.9 m | 35.1 m | 44.3 m | 48.7 m | 7.7 m | 67.5 m | -50.3 m | 102.4 m |
| Depreciation & amortisation | 10.2 m ≈ | 11.6 m ≈ | 13.2 m | 13.2 m | 18.3 m ≈ | 21.6 m ≈ | 26.3 m | 26.1 m |
| Pre-tax income | 27.9 m | 26.3 m | 44.0 m | 51.1 m | -4.0 m | 53.9 m | -60.5 m | 94.3 m |
| Income tax | 8.9 m | 9.0 m | 15.8 m | 17.8 m | -7.0 m | 14.5 m | -11.2 m | 27.7 m |
| Net income | 19.0 m | 17.3 m | 28.3 m | 33.3 m | 3.0 m | 39.4 m | -49.4 m | 66.6 m |
| Diluted EPS | 0.33 | 0.30 | 0.49 | 0.58 | 0.05 | 0.65 | -0.82 | 1.12 |
| Operating cash flow | 11.2 m ≈ | -14.7 m ≈ | 136.1 m | 27.2 m | 23.4 m ≈ | 59.4 m ≈ | 102.5 m | 111.7 m |
| Capex | 1.6 m ≈ | 5.1 m ≈ | 11.1 m | 7.1 m | 6.8 m ≈ | 6.6 m ≈ | 1.9 m | 1.4 m |
| Share repurchases | — | 0 ≈ | 50.0 m | 0 | 0 ≈ | 50.0 m ≈ | 0 | 50.0 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 91 percentile of its own 32-quarter history (min 22.7, median 64.2, max 229.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 267.4 m | 282.9 m | 318.1 m | 392.2 m | 578.8 m | 1.0 bn | 1.3 bn | 1.6 bn |
| Revenue YoY | −0.9% | unavailable | +12.5% | +23.3% | +47.6% | +76.9% | +28.3% | +24.6% |
| Net income | 15.5 m | 17.9 m | 6.2 m | 21.8 m | 61.5 m | 127.7 m | 112.1 m | 26.3 m |
| Net income YoY | −53.6% | unavailable | −65.2% | +249.3% | +182.6% | +107.5% | −12.2% | −76.5% |
| Diluted EPS | 0.32 | 0.35 | 0.12 | 0.41 | 1.11 | 2.21 | 1.92 | 0.44 |
| Diluted EPS YoY | −52.9% | unavailable | −65.7% | +241.7% | +170.7% | +99.1% | −13.1% | −77.1% |
| net % | 5.8% | 6.3% | 2.0% | 5.6% | 10.6% | 12.5% | 8.5% | 1.6% |
| Free cash flow | 46.7 m | 34.9 m | 23.0 m | 14.7 m | 100.2 m | 62.5 m | 115.3 m | 190.1 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 289.7 m USD
- Financial debt
- 871.7 m USD
- Net debt
- 582.0 m USD
- Equity
- 1.1 bn USD
- Total assets
- 2.4 bn USD
- Debt / equity
- 0.77x
- Current ratio
- 2.35x
- ROE
- 2.8%
- ROA
- 1.4%
- FCF margin
- 11.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 318.1 m | 392.2 m | 578.8 m | 1.0 bn | 1.3 bn | 1.6 bn | SEC (XBRL)· 21 May 2026verified |
| Cost of revenue | 111.9 m | 140.4 m | 188.4 m | 299.8 m | 377.8 m | 479.1 m | SEC (XBRL)· 21 May 2026verified |
| Gross profit | 206.2 m | 251.7 m | 390.4 m | 724.1 m | 935.7 m | 1.2 bn | SEC (XBRL)· 21 May 2026verified |
| SG&A | 194.2 m | 221.9 m | 322.3 m | 574.4 m | 777.7 m | 1.0 bn | SEC (XBRL)· 21 May 2026verified |
| Operating income | 9.4 m | 29.8 m | 68.1 m | 149.7 m | 158.0 m | 73.6 m | SEC (XBRL)· 21 May 2026verified |
| Depreciation & amortisation | 25.2 m | 27.1 m | 17.6 m | 30.2 m | 44.1 m | 79.4 m | SEC (XBRL)· 21 May 2026verified |
| EBITDA | 34.6 m ≈ | 56.9 m ≈ | 85.7 m ≈ | 179.8 m ≈ | 202.1 m ≈ | 153.0 m ≈ | SEC (XBRL)· 21 May 2026derived |
| Pre-tax income | 3.7 m | 25.4 m | 64.1 m | 141.0 m | 145.5 m | 40.5 m | SEC (XBRL)· 21 May 2026verified |
| Income tax | -2.5 m | 3.7 m | 2.5 m | 13.3 m | 33.4 m | 14.1 m | SEC (XBRL)· 21 May 2026verified |
| Net income | 6.2 m | 21.8 m | 61.5 m | 127.7 m | 112.1 m | 26.3 m | SEC (XBRL)· 21 May 2026verified |
| Diluted EPS | 0.12 | 0.41 | 1.11 | 2.21 | 1.92 | 0.44 | SEC (XBRL)· 21 May 2026verified |
| Weighted average diluted shares | 52.0 m | 53.7 m | 55.3 m | 57.8 m | 58.3 m | 59.4 m | SEC (XBRL)· 21 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 57.8 m | 43.4 m | 120.8 m | 108.2 m | 148.7 m | 289.7 m | SEC (XBRL)· 21 May 2026verified |
| Receivables | 40.2 m | 45.6 m | 67.9 m | 123.8 m | 126.0 m | 174.6 m | SEC (XBRL)· 21 May 2026verified |
| Inventories | 56.8 m | 84.5 m | 81.3 m | 191.5 m | 187.2 m | 220.2 m | SEC (XBRL)· 21 May 2026verified |
| Current assets | 170.1 m | 193.0 m | 303.3 m | 477.1 m | 540.6 m | 789.4 m | SEC (XBRL)· 21 May 2026verified |
| Property, plant & equipment, net | 13.8 m | 10.6 m | 7.9 m | 14.0 m | 28.8 m | 41.5 m | SEC (XBRL)· 21 May 2026verified |
| Goodwill | 171.6 m | 171.6 m | 171.6 m | 340.6 m | 340.6 m | 853.5 m | SEC (XBRL)· 21 May 2026verified |
| Intangibles (excl. goodwill) | 94.3 m | 86.2 m | 78.0 m | 225.1 m | 207.7 m | 553.1 m | SEC (XBRL)· 21 May 2026verified |
| Total assets | 487.4 m | 494.6 m | 595.6 m | 1.1 bn | 1.2 bn | 2.4 bn | SEC (XBRL)· 21 May 2026verified |
| Accounts payable | 15.7 m | 19.2 m | 31.4 m | 81.1 m | 72.2 m | 97.5 m | SEC (XBRL)· 21 May 2026verified |
| Short-term debt | 16.3 m | 5.8 m | 5.6 m | 100.3 m | 0 | 30.0 m | SEC (XBRL)· 21 May 2026verified |
| Long-term debt | — | — | — | — | — | 841.7 m | SEC (XBRL)· 21 May 2026verified |
| Current liabilities | 73.3 m | 65.0 m | 108.0 m | 299.1 m | 177.1 m | 336.2 m | SEC (XBRL)· 21 May 2026verified |
| Total liabilities | 217.7 m | 182.2 m | 184.6 m | 486.7 m | 487.3 m | 1.3 bn | SEC (XBRL)· 21 May 2026verified |
| Equity | 269.6 m † | 312.4 m † | 411.0 m † | 642.6 m † | 760.9 m † | 1.1 bn † | SEC (XBRL)· 21 May 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 29.5 m | 19.5 m | 101.9 m | 71.2 m | 133.8 m | 212.5 m | SEC (XBRL)· 21 May 2026verified |
| Capex | 6.5 m | 4.8 m | 1.7 m | 8.7 m | 18.5 m | 22.4 m | SEC (XBRL)· 21 May 2026verified |
| Free cash flow | 23.0 m ≈ | 14.7 m ≈ | 100.2 m ≈ | 62.5 m ≈ | 115.3 m ≈ | 190.1 m ≈ | SEC (XBRL)· 21 May 2026derived |
| Investing cash flow | -6.5 m | -4.8 m | -1.7 m | -284.7 m | -19.1 m | -605.2 m | SEC (XBRL)· 21 May 2026verified |
| Financing cash flow | -11.4 m | -29.1 m | -22.7 m | 200.9 m | -74.4 m | 533.9 m | SEC (XBRL)· 21 May 2026verified |
| Share repurchases | 0 | 0 | 0 | 0 | 67.1 m | 50.0 m | SEC (XBRL)· 21 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 40 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 6.7 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation15
- Returns21
- Quality60
- Balance sheet57
- Growth50
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 12.78 – 73.55 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDA43.05 – 73.55 (Mid 59.90)4 companies used · median multiple 18.5x · quartiles 13.9x – 22.1xCL, COTY, EPC, KVUE
- Peers: P/E12.78 – 21.90 (Mid 16.68)5 companies used · median multiple 16.7x · quartiles 12.8x – 21.9xAXIL, IPAR, KVUE, ODD, UG
- Dividend discount (DDM)23.52 – 31.63 (Mid 26.98)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 40/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 7.8% | 40 (vs peers) | 12% |
| Net margin · Quality | 3.4% | 53 (vs peers) | 7% |
| FCF conversion · Quality | 470.0% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 41.4% | 100 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | -26.5% | 0 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 2.4x | 40 (vs peers) | 12% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.5x | 100 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 113.6x | 0 (vs peers) | 12% |
| EV/EBITDA · Valuation | 32.9x | 0 (on a fixed band) | 12% |
| FCF yield · Valuation | 4.2% | 52 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 1.5% | 21 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet57/100 · 2/3 factors with a value
- Growth50/100 · 2/2 factors with a value
- Quality60/100 · 3/3 factors with a value
- Returns· partial21/100 · 1/2 factors with a value
- Valuation15/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
e.l.f. Beauty, Inc. (ELF). Latest full fiscal year: 2026; data up to 2026-06-30.
Figures computed from the financial statements: revenue 1.6 bn USD in 2026; YoY growth 24.6%; net margin 3.4%; ROE 6.0%; net debt/EBITDA 2.4x.
The estimated value range is 23.52–31.63 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 26.98 USD, the price of 113.63 USD leaves a potential of -76.3% (value / price − 1) and a margin of safety of -321.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 40/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 470.0%
- Revenue CAGR 3Y: 41.4%
- Current ratio: 2.5x
What contradicts it
- EPS CAGR 3Y: -26.5%
- P/E (TTM): 113.6x
- EV/EBITDA: 32.9x
- Shareholder yield (distributions): 1.5%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Interest coverage, Payout ratio (FCF).
Versus the vertical median
Perfumes, Cosmetics & Other Toilet Preparations (SIC 2844) · same industry (4-digit SIC) · compared with 15 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| CLColgate-Palmolive Company | 78.5 bn | 38.7 | 358.9% | 9.6% | +1.4% | +23% / +25% |
| KVUEKenvue Inc. | 37.1 bn | 21.9 | 16.3% | 10.9% | −2.1% | +34% / +4% |
| ELFe.l.f. Beauty, Inc. | 6.7 bn | 113.6 | 6.0% | 3.4% | +24.6% | −4% / +18% |
| IPARInterparfums, Inc. | 4.0 bn | 23.3 | 19.5% | 11.3% | +2.5% | +52% / −1% |
| COTYCoty Inc. | 3.1 bn | — | -18.5% | -10.4% | −1.5% | +5% / −70% |
| EPCEdgewell Personal Care Company | 1.4 bn | — | -6.2% | -4.2% | −1.3% | +66% / −15% |
| SLSNSolesence, Inc. | 64.6 m | — | -15.1% | -3.8% | +18.6% | −60% / +22% |
| AXILAxil Brands, Inc. | 38.2 m | 16.7 | 23.3% | 9.3% | +17.5% | +10% / unavailable |
| UGUnited-Guardian, Inc. | 31.5 m | 12.8 | 21.4% | 22.0% | −13.4% | +18% / −16% |
| CABRCaring Brands, Inc. | 9.3 m | — | -3,889.1% | -183,298.7% | unavailable | −13% / unavailable |
| BNKKBonk, Inc. | 9.3 m | — | -332.4% | -2,330.4% | +201.6% | −82% / −99% |
| YCBDcbdMD, Inc. | 4.5 m | — | -40.3% | -13.8% | −1.5% | −34% / −93% |
| HLNHaleon plc | — | — | 10.2% | 15.1% | −1.8% | −6% / +8% |
| ODDOddity Tech Ltd | — | 12.0 | 32.6% | 13.7% | +25.2% | −50% / −37% |
| ELEstee Lauder Companies Inc | — | 111.7 | 9.3% | 2.4% | +5.0% | +19% / −12% |
| YSGYatsen Holding Limited | — | — | -2.7% | -1.9% | +32.2% | −67% / −49% |
1- and 3-year price returns: for ELF from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 75.01 Total return -34% · Per year -34% | 132.00 Total return 16% · Per year 16% | 198.00 Total return 74% · Per year 74% |
| 3 years | 88.97 Total return -22% · Per year -8% | 174.57 Total return 54% · Per year 15% | 285.12 Total return 151% · Per year 36% |
| 5 years | 105.53 Total return -7% · Per year -1% | 230.87 Total return 103% · Per year 15% | 410.57 Total return 261% · Per year 29% |
- Exit P/E± 43.64
- Net margin± 30.55
- Annual revenue growth± 22.78
- Annual dilution± 2.57
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
In brief
e.l.f. Beauty is a multi-brand cosmetics and skin care company, with brands such as e.l.f. Cosmetics, e.l.f. SKIN and rhode, sold mainly through mass retailers and online channels. The company reported net sales growth of 25% in fiscal 2026 1, and net sales rose 36% in the first quarter of fiscal 2027 23, in a context where tariffs and tariff refunds remain important factors.
SWOT
Strengths
- A brand portfolio with a clear accessible-price positioning and perceived premium quality, supported by innovations that have reached top positions in mass cosmetics 1.
- A productivity and distribution model built on an own e-commerce channel and strong relationships with large retailers, with strong sales growth in the first quarter of fiscal 2027 12.
- An internal culture and high employee engagement, which the company links to performance and to attracting talent 1.
Weaknesses
- Brand awareness among consumers remains relatively low compared with established brands in the industry 1.
- Dependence on a few large retailers and on manufacturers concentrated in China exposes the company to order changes and trade risks 1.
- Sales growth has not fully translated into stable operating results, and marketing and distribution costs have risen considerably 12.
Opportunities
- Expansion into adjacent categories and international markets could diversify revenue sources, if product launches succeed 1.
- Integrating the rhode brand and other acquisitions could support growth in premium segments 12.
- Digital channels and loyalty programs could raise purchase frequency if the company keeps its innovation pace 1.
Threats
- Tariffs and changes in trade policy can raise costs or reduce access to products, with a direct effect on margins 12.
- Large competitors with greater financial resources can respond with price cuts or aggressive promotions 1.
- Risks related to product safety, regulation and brand reputation can quickly affect sales 1.
- Rapid shifts in consumer trends can make existing or new products less attractive to buyers 1.
Risks
- Customer concentrationhigh
A small number of large retailers generates a major part of sales, and a change in their orders or strategy could affect quarterly results 1.
- Tariffs and trade policyhigh
Most products are made in China, and tariffs and trade retaliation could raise costs or interrupt supply 12.
- Dependence on one acquisition's performancemedium
The rhode acquisition includes contingent payments that depend on reaching revenue thresholds, which adds uncertainty to future reporting 13.
- Competitive pressuremedium
Larger competitors could cut prices or win shelf space, which could affect the company's volumes and margins 1.
- Product safety and reputationmedium
Quality, contamination or compliance problems could lead to product recalls and weaken consumer confidence 1.
Investment thesis
What would need to be true (bull case)
- Sales growth has continued quarter after quarter, and the fiscal 2027 outlook was raised, which could support expansion above expectations if the trend holds 13.
- The rhode brand and continued innovation across existing brands could strengthen the company's position in premium segments at accessible prices 1.
- If tariff refunds and lower sourcing costs continue, margins could remain above historical levels 23.
What would break the thesis
- Dependence on large retailers and on a single supply chain could lead to lost sales if they reduce orders or shelf space 1.
- Part of the margin increase in the first quarter of fiscal 2027 came from tariff refunds, which are not recurring, so future results could be more modest 23.
- Marketing and distribution costs have at times grown faster than sales, which could limit profitability if the trend continues 2.
What to watch
- Gross margin trend excluding IEEPA tariff refund effectsQ2 2027
- Pace of sales growth against the updated fiscal 2027 outlook2027
- Tariff rates on products made in China and the outcome of the government's appeal of the court ordernext 10-K
- Status of the rhode contingent payment and the brand's revenue indicators against earnout thresholdsQ2 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
The business
e.l.f. Beauty aims to offer premium beauty products at accessible prices, with vegan formulas, cruelty-free certification and, in many cases, manufacturing in Fair Trade Certified facilities 1. The portfolio includes e.l.f. Cosmetics, e.l.f. SKIN, rhode, Naturium and Well People, and in the first quarter of fiscal 2027 the company also began reporting the e.l.f. Hair brand 2. The business model is asset-light: products are made by third-party suppliers, mainly in China, and distributed through retailers and the company's own e-commerce channel 1. The rhode acquisition, completed in August 2025 for $897.5 million, significantly expanded the portfolio 1.
Sales are concentrated: Target, Walmart, Amazon and Sephora together accounted for 52% of net sales in fiscal 2026 1, which makes the company sensitive to these customers' shelf and order decisions. Sales are seasonal, with the highest levels in the third and fourth fiscal quarters, linked to the holiday season and shelf resets 1.
On recent performance, quarterly results show a clear gap between sales growth and operating margin: in the first quarter of fiscal 2027, gross margin rose sharply, but a significant part of this increase came from IEEPA tariff refunds 23. The company raised its fiscal 2027 outlook to 18-20% net sales growth 3.
Segments
National and international retailers
Retailers accounted for 76% of net sales in fiscal 2026, and sales through this channel grew 16% in the same year 1. Retailers are the main distribution route and access point to consumers.
E-commerce
The online channel accounted for 24% of net sales in fiscal 2026 and grew 63% in the same year 1. In the first quarter of fiscal 2027, e-commerce growth was even stronger, in part through the rhode acquisition 2.
International markets
Markets outside the United States accounted for 21% of net sales in fiscal 2026, mainly the UK, Canada and Germany 1. This component is smaller but relevant for geographic diversification.
Market context
The cosmetics industry is relatively concentrated, with a significant share of US retail sales generated by brands owned by a few large multinational companies 1. At the same time, independent brands keep entering the market with new and customized offers 1. For e.l.f. Beauty, the relevant market is mass cosmetics, where the average product price of e.l.f. Cosmetics in the US is about $7, compared with $10 for other leading mass brands and $30 for prestige brands 1.
Market dynamics are shaped by consumers' search for premium-quality products at accessible prices, and by the importance of social media and digital channels in promoting products 1. The company says it has gained ground in this direction, but brand awareness remains lower than that of established brands 1.
Trends
- Tariffs and IEEPA refundsmixed
Most products are made in China and were subject to high tariffs; after the Supreme Court ruling in February 2026, IEEPA tariffs paid are refundable, and in the first quarter of fiscal 2027 the company received refunds of about $51.1 million 12. The 10% global tariff applied since February 2026 remains in effect for most importers, which could affect future costs 2.
- Growth of digital channelstailwind
E-commerce sales grew strongly in fiscal 2026 and in the first quarter of fiscal 2027, indicating solid demand for the company's digital channel 12.
- Concentration of large customersheadwind
Reliance on a few large retailers can support volumes, but it means their shelf and order decisions have an outsized effect on results 1.
- Pressure from marketing and distribution costsheadwind
Selling, general and administrative expenses rose in the first quarter of fiscal 2027, mainly for marketing, merchandising and distribution, which could limit operating margin 2.
Competitive position
The company competes with multinational cosmetics groups that own several brands, have greater financial and marketing resources and occupy more shelf space 1. Competition is based on price, quality, innovation, in-store presence and promotional activity 1.
Besides the large groups, online, indie, celebrity- and influencer-backed brands frequently emerge and can quickly build consumer followings 1. Competitive pressure can force price cuts or lost sales, especially when competitors have greater resources 1.
- Estee LauderEL
Multinational cosmetics company owning several brands, competing with e.l.f. Beauty in make-up and skin care 1.
- L'Oréal
Multinational group with numerous cosmetics brands, named in the source among the dominant players in the industry 1.
- CotyCOTY
Cosmetics and fragrance company with several brands, named among major competitors in the industry 1.
- Procter & GamblePG
Consumer group with beauty and personal care brands, competing for shelf space in mass retail 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- E.l.f. Beauty posts 51% sales increase, raises full-year guidanceCNBC — Top News · 04 Nov 2026 · EN
- E.l.f. Beauty CFO Mandy Fields on consumers, pricing and building a foundation in cosmeticsCNBC — Top News · 16 Oct 2026 · EN
- e.l.f. Beauty CEO Tarang Amin on why it ‘never hurts to have a conversation’CNBC — Top News · 13 Oct 2026 · EN
- e.l.f. Beauty Insider Mandy Fields Sells $1.7 Million in StockYahoo Finance — News · 23 Sept 2026 · EN
- An e.l.f. Beauty Insider Sells 5,512 Shares for $606,320Yahoo Finance — News · 10 Sept 2026 · EN
- e.l.f. Beauty Sees Skincare as Growth EngineBloomberg Markets · 10 Sept 2026 · EN
- Chief Future Officer: Mandy Fields, e.l.f. BeautyBloomberg Markets · 10 Sept 2026 · EN
- Ulta Beauty Climbs 4%, e.l.f. Beauty Rises 5% as Post-Earnings Selloff ReversesYahoo Finance — News · 31 Aug 2026 · EN
- Walmart, e.l.f. Beauty use tariff refunds to cut prices in 2026Yahoo Finance — News · 31 Aug 2026 · EN
- Ulta Beauty Slips 4% Despite Raised Guidance and Q2 Earnings Beat, e.l.f. Beauty Pulls BackYahoo Finance — News · 28 Aug 2026 · EN
- e.l.f. Beauty Is Down 53% From Its All-Time High. Is the Sell-Off an Overreaction?Yahoo Finance — News · 27 Aug 2026 · EN
- An e.l.f. Beauty Insider Sells 5,718 Shares. Here's What That Means for Investors.Yahoo Finance — News · 23 Aug 2026 · EN
SEC filings
- Current report04 Nov 2026Results of operations · Financial statements and exhibits
- Current report24 Aug 2026Shareholder vote · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Proxy statement08 Jul 2026
- Annual report21 May 2026
- Current report20 May 2026Results of operations · Financial statements and exhibits
- Current report13 Feb 2026Departure or appointment of officers
- Quarterly report05 Feb 2026
- Current report04 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / e.l.f. Beauty, Inc. · 21 May 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / e.l.f. Beauty, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / e.l.f. Beauty, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.