e.l.f. Beauty has released its Q2 results for three and six months, ended September 30, 2025. For the three months, net sales increased 14% to $343.9 million. For six months, net sales increased 12% to $697.7 million. Growth was driven by both retailer and e-commerce channels in the United States and internationally.
- Gross margin decreased approximately 165 basis points to 69%, primarily due to higher tariff costs, offset partially by benefits from pricing and mix.
- Selling, general and administrative (SG&A) expenses increased $45.0 million to $231.1 million (67% of net sales)—driven by an increase in marketing, merchandising and distribution costs, compensation and benefits, depreciation and amortization and professional fees. Adjusted SG&A increased $33.0 million to $193.2 million (56% of net sales).
- Net income on a GAAP basis was $3.0 million, and adjusted net income hit $40.7 million. Diluted earnings per share were $0.05 (GAAP basis). Adjusted diluted earnings per share were $0.68.
e.l.f. to See 18-20% Increase in 2026
When compared to fiscal 2025, the outlook for fiscal 2026 reflects an expected 18-20% increase in net sales. For fiscal 2025, net sales totaled $1,314 million. For 2026, net sales are projected at $1,550-1,570 million.
As of September 30, 2025, the company had $194.4 million in cash and cash equivalents, and $831.6 million of long-term debt, as compared to $96.8 million in cash and cash equivalents and $156.6 million of long-term debt outstanding as of September 30, 2024.
“Our Q2 results, which included 140 basis points of market share gains for our namesake e.l.f. brand and a record-breaking launch of Rhode in Sephora North America, are a continuation of the consistent, category-leading growth we’ve delivered over the past 27 quarters,” said Tarang Amin, e.l.f. Beauty’s chairman and chief executive officer. “We remain confident in our strategy to grow market share and capitalize on the significant whitespace ahead of us.”
