ELF Beauty Inc (NYSE:ELF) Exceeds Q1 Fiscal 2026 Revenue and Earnings Estimates

e.l.f. Beauty Inc (NYSE:ELF) reported its first-quarter fiscal 2026 results, delivering revenue and earnings that exceeded analyst expectations. The company posted net sales of $353.7 million, a 9% year-over-year increase, slightly above the consensus estimate of $352.9 million. Adjusted diluted earnings per share (EPS) came in at $0.89, surpassing the estimated $0.83. The market reaction has been cautiously positive, with shares rising approximately 0.5% in after-hours trading, suggesting investor approval of the results despite broader market uncertainty.

Key Financial Highlights vs. Estimates

• Revenue: $353.7 million (vs. $352.9 million expected) – a modest beat.
• Adjusted EPS: $0.89 (vs. $0.83 expected) – a stronger-than-anticipated performance.
• Gross Margin: Declined 215 basis points to 69%, primarily due to tariff impacts, partially offset by favorable foreign exchange effects.
• Adjusted EBITDA: $87.1 million, up 12% year-over-year, representing 25% of net sales.

Market Reaction & Performance Context

The stock's after-hours uptick indicates relief that e.l.f. Beauty managed to outperform expectations despite macroeconomic pressures, including tariffs. Over the past month, shares have declined roughly 6%, reflecting broader market volatility and concerns over trade uncertainties. The slight post-earnings rebound suggests that investors see resilience in the company’s growth trajectory, even as margins face pressure.

Press Release Takeaways

1. Continued Market Share Gains: The company reported a 210-basis-point increase in market share, marking 26 consecutive quarters of category-leading growth.
2. Acquisition of Rhode: Post-quarter, e.l.f. completed the $800 million acquisition of HRBeauty LLC ("rhode"), a lifestyle beauty brand founded by Hailey Bieber, signaling aggressive expansion into premium segments.
3. Debt & Liquidity: Cash reserves increased to $170 million, while long-term debt stood at $256.7 million. The company secured a $600 million term loan to fund the Rhode deal.
4. Outlook: Management refrained from providing full-year guidance due to tariff uncertainties but expects net sales growth in the first half of fiscal 2026 to exceed Q1’s 9% increase. Adjusted EBITDA margins are projected at ~20%, down from 23% in the prior-year period, reflecting higher tariff costs.

Forward Estimates & Strategic Moves

Analysts currently forecast full-year 2026 revenue at $1.605 billion, with Q2 sales expectations set at $366.2 million. The Rhode acquisition could provide upside if integration proceeds smoothly, though margin pressures from tariffs remain a near-term headwind.

For a deeper dive into e.l.f. Beauty’s earnings estimates and historical performance, visit the earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.