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Sep 30
e.l.f. Q2 2026 Earnings Report
e.l.f. Beauty reported its Q2 FY26 results, delivering another quarter of net sales growth despite margin pressures.
Key Takeaways
e.l.f. Beauty achieved its 27th consecutive quarter of net sales growth, driven by strong performance in both retail and e-commerce channels, and highlighted by a record-breaking launch of rhode in Sephora North America.
Net sales grew to $343,936,000 during the quarter.
Net income was $2,996,000 on a GAAP basis.
Adjusted EPS reached $0.68 while GAAP EPS was $0.05.
Gross margin declined to 69% due to higher tariff costs.
e.l.f.
e.l.f.
Forward Guidance
e.l.f. Beauty expects full-year FY26 net sales to increase 18–20% with slight improvement in adjusted EBITDA, while adjusting expectations for net income and EPS downward due to higher costs.
Positive Outlook
- Forecasted net sales of $1.55B–$1.57B for FY26.
- Adjusted EBITDA expected to reach $302M–$306M.
- Company continues to gain market share.
- Strong brand momentum, especially for new launches like rhode.
- Ongoing strength in both retail and e-commerce channels.
Challenges Ahead
- Adjusted net income expected to decline to $165M–$168M.
- Adjusted diluted EPS forecast reduced to $2.80–$2.85.
- Increase in foreign currency losses impacting income.
- Gross margin pressures due to higher tariffs.
- Expected increase in SG&A expenses driven by marketing and distribution.