e.l.f. Beauty, Inc. ( (ELF) ) has released its Q1 earnings. Here is a breakdown of the information e.l.f. Beauty, Inc. presented to its investors.
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e.l.f. Beauty, Inc. is a prominent player in the beauty industry, known for its commitment to making high-quality, cruelty-free beauty products accessible to all. The company operates through various brands including e.l.f. Cosmetics, e.l.f. SKIN, and others, with a focus on innovation and inclusivity.
In its recent earnings report for the first quarter of fiscal 2026, e.l.f. Beauty reported a 9% increase in net sales, reaching $353.7 million. This marks the 26th consecutive quarter of net sales growth, driven by robust performance in both retail and e-commerce channels across the U.S. and international markets.
Key financial highlights include a decrease in gross margin by 215 basis points to 69%, attributed to tariffs, while adjusted EBITDA rose by 12% to $87.1 million. The company also reported a net income of $33.3 million and adjusted net income of $51.3 million, with diluted earnings per share at $0.58 and adjusted diluted earnings per share at $0.89.
Strategically, e.l.f. Beauty has expanded its portfolio by acquiring HRBeauty LLC, known as ‘rhode’, a lifestyle beauty brand founded by Hailey Bieber, for $800 million. This acquisition is expected to enhance e.l.f. Beauty’s market presence and product offerings.
Looking ahead, e.l.f. Beauty anticipates continued net sales growth above the 9% reported in Q1, despite challenges such as increased tariff costs. The company remains optimistic about its future prospects, driven by its innovative strategies and commitment to making beauty accessible to all.