e.l.f. Beauty has announced its financial results for the first quarter fiscal 2026, ending June 30, 2025, showcasing continued strong performance and market share gains. However, tariff uncertainty is preventing the company from issuing a full-year fiscal 2026 forecast. For the first half of fiscal 2026, e.l.f. Beauty expects net sales growth to accelerate, besting the 9% seen in Q1. That said, adjusted EBITDA margins for the period are expected to reach 20%, compared to the approximately 23% seen in the first half of fiscal 2025, "primarily due to higher tariff costs," per the company.
The withholding of a full-year forecast is becoming more common across industries. Earlier this year, Business Insider noted, "As a result of the uncertain and fluid situation, companies are lowering or outright scrapping their earnings forecasts." This has included P&G, Macy's and Snap.
e.l.f Details Extensive Global and Domestic Retail Expansions
Notably, e.l.f. Beauty is expanding its brands across international markets. In fact, per the company, it sold $28,000,000 internationally in 2019, representing 10% of sales. Its international sales now total $266,000,000, representing 20% of e.l.f. Beauty's sales.
On an earnings call following the release of its results, e.l.f. Beauty disclosed that its e.l.f. brand will expand into Rossmann in Poland and Sephora in the six countries of the Golf Cooperation Council. This follows the brand's expansion into Sephora Mexico in 2024.
The e.l.f. brand will also expand its Dollar General partnership; the company noted that 80% of the retailer's shops reach rural markets and that 60% of its customers in the channel had never before purchased cosmetics at the retailer. In addition, 53% of those buying e.l.f. in Dollar General were new to the brand.
e.l.f. Beauty's Notarium brand will also expand into more Boots stores in the United Kingdom, as well as Sephora in Australia.
As previously reported, Rhode is launching in all U.S. and Canadian Sephora stores in September, followed by the retailer's U.K. shops by the close of 2025.
e.l.f. Beauty Reports 9% Sales Growth with $353.7M Revenue
The company reported a net sales increase of 9% year-over-year, reaching $353.7 million. Growth was driven by robust performance in both retail and e-commerce channels, domestically and internationally. However, gross margin fell by 215 basis points to 69%, primarily due to tariffs, offset partially by favorable foreign exchange impacts.
Selling, general, and administrative (SG\&A) expenses rose to $195.8 million, representing 55% of net sales, largely due to higher marketing, retail merchandising, and professional fees. Adjusted SG\&A was $177.3 million, or 50% of net sales.
Net income on a GAAP basis was $33.3 million, while adjusted net income reached $51.3 million. Diluted earnings per share (EPS) were $0.58 GAAP and $0.89 on an adjusted basis. Adjusted EBITDA grew 12% year-over-year to $87.1 million, representing 25% of net sales.
As of June 30, 2025, e.l.f. Beauty held $170 million in cash and cash equivalents and reduced its long-term debt to $256.7 million.
CEO Tarang Amin highlighted the company’s ongoing success, stating, “Our strong Q1 results, including market share gains, showcase the consistent growth we’ve delivered for over six years. We remain excited about the opportunities ahead as we make the best of beauty accessible for all.”
