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e.l.f. Beauty (ELF)
NYSE:ELF
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e.l.f. Beauty (ELF) AI Stock Analysis

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ELF

e.l.f. Beauty

(NYSE:ELF)

Rating:77Outperform
Price Target:
$134.00
▲(0.21% Upside)
e.l.f. Beauty's strong financial performance and strategic acquisitions are key strengths, supporting a positive outlook. However, the high P/E ratio suggests potential overvaluation, and technical indicators show mixed signals. The company's ability to navigate tariff challenges and maintain growth will be crucial.
Positive Factors
Growth and Innovation
ELF expects to see the right mix of innovation and marketing in the fall, which is tracking ahead of last year’s.
Market Share
ELF's market share rose year-over-year to +36 basis points in the last week and +39 basis points in the last two weeks.
Negative Factors
Stock Volatility
Pronounced ELF stock volatility after an unexpectedly large US topline slowdown in the last couple of quarters.
Tariffs Impact
Tariff impact is the largest driver of lower FQ2 gross margin, as the majority of product is subject to the 55% tariff rate from China with some product subject to the higher 170% rate.

e.l.f. Beauty (ELF) vs. SPDR S&P 500 ETF (SPY)

e.l.f. Beauty Business Overview & Revenue Model

Company Descriptione.l.f. Beauty, Inc. (ELF) is a cosmetics company based in the United States, known for its commitment to providing high-quality beauty products at affordable prices. Founded in 2004, the company operates primarily in the beauty and personal care sector and offers a diverse range of products, including makeup, skincare, and beauty tools. ELF has established itself as a leader in the accessible beauty market, with a focus on innovation, inclusivity, and sustainability.
How the Company Makes Moneye.l.f. Beauty generates revenue primarily through the sale of its cosmetics and skincare products, which are distributed through various channels, including retail stores, e-commerce platforms, and direct-to-consumer sales. Key revenue streams include product sales from major retailers such as Target, Walmart, and Ulta Beauty, as well as online sales through its website and platforms like Amazon. The company also benefits from its strong online presence and marketing strategies, leveraging social media and influencer partnerships to reach a broader audience. Additionally, e.l.f. invests in product innovation and limited-edition collections to drive sales and maintain customer interest.

e.l.f. Beauty Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance by e.l.f. Beauty, marked by consistent sales growth, market share gains, and strategic acquisitions. However, challenges such as tariff impacts on gross margins and moderated growth in the U.S. market were noted.
Q1-2026 Updates
Positive Updates
Consistent Net Sales Growth
E.l.f. Beauty achieved 9% net sales growth in Q1 on top of 50% growth in the same quarter last year, marking 26 consecutive quarters of both net sales growth and market share gains.
Market Share Gains
E.l.f. Beauty gained 210 basis points of market share in Q1, continuing its streak of being the only cosmetics brand to gain share for 26 consecutive quarters.
Successful Product Innovation
E.l.f. launched several successful products such as the Halo Glow Skin Tint mineral SPF 50 and Bright Icon Vitamin C + E + Ferulic Serum, maintaining a strong position in both cosmetics and skincare segments.
International Expansion
International net sales grew 30% in Q1, with significant growth in the UK and new market entries in Belgium, the Netherlands, Poland, and the Gulf Cooperation Council countries.
Strong Digital and E-commerce Performance
E-commerce channels saw close to a 20% growth rate, maintaining digital sales at about 20% of the overall business.
Acquisition of Rhode
E.l.f. completed the acquisition of Rhode, a high-growth beauty brand, enhancing its portfolio and positioning in the market.
Negative Updates
Impact of Tariffs on Gross Margin
Q1 gross margin was down approximately 215 basis points due to incremental tariff costs.
U.S. Core Business Growth Moderation
U.S. net sales grew 5% year-over-year, a deceleration compared to international sales growth.
Potential Tariff Uncertainty
Ongoing tariff negotiations create uncertainty for fiscal '26, with potential gross impact to cost of goods sold estimated at $50 million annually if tariffs remain at the current level.
Company Guidance
In the first quarter of fiscal 2026, e.l.f. Beauty reported a 9% increase in net sales, building on a 50% growth from the previous year, and achieved an adjusted EBITDA of $87 million, marking a 12% rise. The company gained 210 basis points in market share, its 26th consecutive quarter of growth in both net sales and market share. The average price point for e.l.f. Cosmetics rose to $6.50, following a $1 price increase, yet 75% of products remain under $10. The brand maintained its status as the #1 unit share brand in color cosmetics with a 15% share. International sales surged by 30%, with significant growth in the UK, the Netherlands, and Belgium. The recent acquisition of Rhode, which generated $212 million in net sales in the prior year, is expected to enhance e.l.f. Beauty's market position, with plans to expand Rhode's retail footprint starting with a launch in all Sephora stores in the U.S. and Canada. Despite tariff challenges, e.l.f. Beauty remains confident in its growth trajectory, aiming to more than double its business in the coming years through strategic pricing, supply chain optimization, and business diversification.

e.l.f. Beauty Financial Statement Overview

Summary
e.l.f. Beauty exhibits strong financial health with consistent revenue growth and robust profitability metrics. The balance sheet reflects a stable financial position with manageable debt levels and strong equity returns. Cash flow generation is solid, supporting ongoing operations and potential growth initiatives. While operational efficiency could be improved, the overall financial outlook is positive.
Income Statement
85
Very Positive
e.l.f. Beauty demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 2.23%. The gross profit margin remains robust at over 70%, indicating efficient cost management. However, the EBIT margin is notably low at 0.23%, suggesting potential inefficiencies in operational expenses. The net profit margin has improved to 12.26%, reflecting enhanced profitability.
Balance Sheet
78
Positive
The company maintains a healthy debt-to-equity ratio of 0.39, indicating prudent leverage management. Return on equity is strong at 21.52%, showcasing effective use of shareholder funds. The equity ratio stands at 61.18%, reflecting a solid capital structure. However, the increase in total debt over the periods warrants monitoring.
Cash Flow
80
Positive
Operating cash flow has grown significantly, with a TTM increase of 19.38%. The free cash flow growth rate is impressive at 17.03%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.87, suggesting efficient conversion of income to cash. The free cash flow to net income ratio is high at 0.84, further supporting cash flow strength.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.34B1.31B1.02B578.84M392.15M318.11M
Gross Profit948.94M935.69M724.10M390.40M251.73M206.20M
EBITDA209.44M206.25M182.57M85.31M54.63M32.12M
Net Income115.88M112.09M127.66M61.53M21.77M6.23M
Balance Sheet
Total Assets1.31B1.25B1.13B595.60M494.63M487.39M
Cash, Cash Equivalents and Short-Term Investments170.03M148.69M108.18M120.78M43.35M57.77M
Total Debt314.79M313.02M290.60M77.66M112.61M146.62M
Total Liabilities510.04M487.32M486.68M184.58M182.20M217.75M
Stockholders Equity804.85M760.86M642.57M411.02M312.43M269.65M
Cash Flow
Free Cash Flow134.96M115.32M62.49M100.16M14.70M23.00M
Operating Cash Flow159.79M133.84M71.15M101.88M19.51M29.48M
Investing Cash Flow-25.78M-19.10M-284.66M-1.72M-4.82M-6.47M
Financing Cash Flow-74.74M-74.45M200.94M-22.73M-29.11M-11.40M

e.l.f. Beauty Technical Analysis

Technical Analysis Sentiment
Positive
Last Price133.72
Price Trends
50DMA
118.59
Positive
100DMA
102.63
Positive
200DMA
100.49
Positive
Market Momentum
MACD
3.63
Negative
RSI
63.18
Neutral
STOCH
81.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELF, the sentiment is Positive. The current price of 133.72 is above the 20-day moving average (MA) of 119.26, above the 50-day MA of 118.59, and above the 200-day MA of 100.49, indicating a bullish trend. The MACD of 3.63 indicates Negative momentum. The RSI at 63.18 is Neutral, neither overbought nor oversold. The STOCH value of 81.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELF.

e.l.f. Beauty Risk Analysis

e.l.f. Beauty disclosed 15 risk factors in its most recent earnings report. e.l.f. Beauty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

e.l.f. Beauty Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$7.13B77.2112.97%18.61%-21.36%
74
Outperform
$599.91M6.0513.68%1.99%-11.79%
65
Neutral
$3.68B22.7420.68%2.73%7.04%13.52%
63
Neutral
$20.49B14.78-2.98%3.11%1.86%-5.76%
58
Neutral
$1.10B17.524.12%2.54%-2.92%-43.06%
50
Neutral
$32.67B147.29-24.69%1.60%-8.14%-389.12%
46
Neutral
$3.79B40.12-9.98%-3.68%-631.67%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ELF
e.l.f. Beauty
133.72
11.12
9.07%
EL
The Estée Lauder Companies
87.46
1.56
1.82%
IPAR
Inter Parfums
114.47
-1.35
-1.17%
NUS
Nu Skin
12.30
4.52
58.10%
COTY
Coty
4.38
-4.61
-51.28%
EPC
Edgewell Personal Care
23.58
-13.75
-36.83%

e.l.f. Beauty Corporate Events

Executive/Board ChangesShareholder Meetings
e.l.f. Beauty Stockholders Approve Key Proposals
Neutral
Aug 26, 2025

On August 21, 2025, e.l.f. Beauty, Inc. held its annual meeting of stockholders where three key proposals were voted upon. The election of Class III directors saw all nominees elected, the executive compensation was approved on an advisory basis, and the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2026, was ratified. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its financial oversight and leadership structure.

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
e.l.f. Beauty Completes Acquisition of HRBeauty LLC
Positive
Aug 6, 2025

On August 5, 2025, e.l.f. Beauty completed the acquisition of HRBeauty LLC, known as rhode, for $800 million, with $600 million funded through a new term loan facility. This acquisition is part of e.l.f. Beauty’s strategy to expand its market presence and leverage rhode’s growth potential. Additionally, e.l.f. Beauty reported a 9% increase in net sales to $353.7 million for the quarter ending June 30, 2025, marking its 26th consecutive quarter of growth. The company also experienced a decrease in gross margin due to tariffs but achieved a net income of $33.3 million, reflecting its strong market position and operational strategy.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2025