Education
About Us
Working with TipRanks
Follow Us
e.l.f. Beauty (ELF)
NYSE:ELF
Top Page
e.l.f. Beauty
(NYSE:ELF)
Select Model
Select Model
Rating:68Neutral
Price Target:
$97.00
▲(7.79% Upside)
e.l.f. Beauty's strong financial performance and positive earnings call insights are offset by technical weakness and high valuation. The company's strategic acquisitions and market share gains are promising, but organic sales decline and margin pressures pose risks.
Positive Factors
Market Share Gains
e.l.f. Beauty's ability to consistently outperform its category in market share growth indicates strong brand recognition and competitive positioning, which can lead to sustained revenue growth and market dominance.
Successful Acquisition
The successful acquisition of Rhode enhances e.l.f. Beauty's product portfolio and market reach, providing a new growth avenue and strengthening its competitive edge in the beauty industry.
International Expansion
Expanding into the Gulf Cooperation Council with Sephora opens new markets for e.l.f. Beauty, diversifying revenue streams and reducing dependence on existing markets, which supports long-term growth.
Negative Factors
Organic Sales Decline
A decline in organic sales suggests potential challenges in sustaining growth without acquisitions, which could impact long-term revenue stability if not addressed.
Gross Margin Pressure
Decreasing gross margins due to tariff costs could pressure profitability, requiring strategic cost management to maintain financial health and competitive pricing.
International Sales Growth Slows
Slower international sales growth may indicate challenges in global market penetration, potentially limiting e.l.f. Beauty's ability to capitalize on international opportunities for expansion.
e.l.f. Beauty (ELF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.37B
Dividend YieldN/A
Average Volume (3M)1.60M
Price to Earnings (P/E)63.8
Beta (1Y)2.05
Revenue Growth13.80%
EPS Growth-25.02%
CountryUS
Employees633
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.68
Shares Outstanding59,636,770
10 Day Avg. Volume1,886,487
30 Day Avg. Volume1,601,549
Financial Highlights & Ratios
PEG Ratio-2.16
Price to Book (P/B)4.64
Price to Sales (P/S)2.69
P/FCF Ratio30.61
Enterprise Value/Market Cap1.58
Enterprise Value/Revenue6.10
Enterprise Value/Gross Profit8.68
Enterprise Value/Ebitda44.44
Forecast
1Y Price Target
$116.80Price Target Upside29.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)2.85
Revenue Forecast (FY)$1.57B
e.l.f. Beauty Business Overview & Revenue Model
Company Descriptione.l.f. Beauty, Inc., together with its subsidiaries, provides cosmetic and skin care products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare brand names worldwide. The company offers eye, lip, face, face, paw, and skin care products. It sells its products through national and international retailers and direct-to-consumer channels, which include e-commerce platforms in the United States, and internationally primarily through distributors. The company was formerly known as J.A. Cosmetics Holdings, Inc. and changed its name to e.l.f. Beauty, Inc. in April 2016. e.l.f. Beauty, Inc. was founded in 2004 and is headquartered in Oakland, California.
How the Company Makes Moneye.l.f. Beauty generates revenue through multiple channels, primarily by selling its products directly to consumers via its e-commerce platform and retail partnerships with major retailers such as Target and Walmart. The company's revenue model is heavily reliant on direct-to-consumer sales, which allows for higher profit margins. Key revenue streams include the sale of makeup products, skincare lines, and beauty tools. Additionally, ELF leverages social media marketing and influencer partnerships to enhance brand visibility and drive sales, further contributing to its earnings. The company's focus on product innovation and affordability also helps in attracting a broad customer demographic, ensuring consistent sales growth.
e.l.f. Beauty Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The Flye.l.f. Beauty Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
e.l.f. Beauty reported strong market share gains and a successful acquisition of Rhode. However, organic sales declined, and international growth slowed. Gross margins decreased due to tariff costs, but the overall consumer response to price increases was positive.Q2-2026 Updates
Positive Updates
Consistent Category-Leading Growth
e.l.f. Beauty reported its 27th consecutive quarter of net sales growth, with net sales growing 14% in Q2. The company is one of only six public companies out of 546 that has grown for 27 straight quarters with an average of at least 20% sales growth per quarter.
Market Share Gains
The e.l.f. brand grew 7% in the quarter, three times the category growth, and increased its market share by 140 basis points. This marked the 27th consecutive quarter of market share gains.
Successful Acquisition and Launch of Rhode
The acquisition of Rhode contributed $52 million or approximately 17 percentage points to net sales in Q2. Rhode had the biggest launch in Sephora North America's history, exceeding the previous record by 2.5 times.
Strong Performance in the U.S.
Net sales in the U.S. grew 18% year-over-year in Q2, demonstrating strong domestic performance.
Positive Consumer Response to Price Increase
Despite a $1 global price increase, 75% of the portfolio remains at $10 or less, and consumption continues to outperform category trends.
Negative Updates
Organic Net Sales Decline
Excluding the Rhode acquisition, organic net sales were down approximately 3% in Q2 due to decisions to temporarily stop shipments to certain retailers.
International Sales Growth Slows
International net sales grew only 2% in Q2, impacted by the previous year's large launch into Rossmann, Germany.
Gross Margin Decline
Q2 gross margin decreased by approximately 165 basis points compared to the previous year, primarily due to incremental tariff costs.
Adjusted EBITDA Decrease
Adjusted EBITDA was $66 million, down 4% from the previous year.
Company Guidance
During the call discussing e.l.f. Beauty's second quarter fiscal 2026 results, the company provided guidance for the full fiscal year, projecting net sales growth of 18% to 20% year-over-year. The guidance reflects the impact of the recent acquisition of Rhode, expected to contribute about $200 million in net sales over eight months since the August 5 closing, with an annualized expectation of approximately $300 million in net sales, growing 40% year-over-year. On an organic basis, excluding Rhode, net sales are anticipated to rise by about 3% to 4%. The company expects adjusted EBITDA to be between $302 million and $306 million, with adjusted net income ranging from $165 million to $168 million, translating to adjusted EPS of $2.80 to $2.85 per diluted share. Despite facing tariff headwinds, e.l.f. Beauty remains optimistic about its growth strategy, driven by strong consumption trends and market share gains.e.l.f. Beauty Financial Statement Overview
Summary
e.l.f. Beauty demonstrates strong financial health with robust revenue growth, solid profitability, and effective cash flow management. The company maintains a stable balance sheet, though increased leverage requires attention.Income Statement
e.l.f. Beauty demonstrates strong revenue growth and profitability. The TTM data shows a healthy gross profit margin of 70.27% and a net profit margin of 5.90%. Although the EBIT and EBITDA margins have slightly decreased compared to the previous annual report, the company maintains solid profitability. The revenue growth rate of 3.19% in the TTM period indicates continued expansion, albeit at a slower pace than previous years.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.39 in the TTM period. The return on equity is 10.69%, showing effective use of equity to generate profits. The equity ratio stands at 49.12%, indicating a balanced capital structure. However, the increase in total debt over time suggests a need for careful debt management.78
Positive
Cash Flow
Cash flow analysis reveals a positive trend with a 5.20% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 0.86 and free cash flow to net income ratio of 0.84 indicate good cash generation relative to profits. The company has improved its cash flow position, supporting its operational and strategic initiatives.80
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.31B | 1.02B | 578.84M | 392.15M | 318.11M |
| Gross Profit | 935.69M | 724.10M | 390.40M | 251.73M | 206.20M |
| EBITDA | 206.25M | 182.57M | 85.31M | 54.63M | 32.12M |
| Net Income | 112.09M | 127.66M | 61.53M | 21.77M | 6.23M |
Balance Sheet | |||||
| Total Assets | 1.25B | 1.13B | 595.60M | 494.63M | 487.39M |
| Cash, Cash Equivalents and Short-Term Investments | 148.69M | 108.18M | 120.78M | 43.35M | 57.77M |
| Total Debt | 313.02M | 290.60M | 82.17M | 117.00M | 150.91M |
| Total Liabilities | 487.32M | 486.68M | 184.58M | 182.20M | 217.75M |
| Stockholders Equity | 760.86M | 642.57M | 411.02M | 312.43M | 269.65M |
Cash Flow | |||||
| Free Cash Flow | 115.32M | 62.49M | 100.16M | 14.70M | 23.00M |
| Operating Cash Flow | 133.84M | 71.15M | 101.88M | 19.51M | 29.48M |
| Investing Cash Flow | -19.10M | -284.66M | -1.72M | -4.82M | -6.47M |
| Financing Cash Flow | -74.45M | 200.94M | -22.73M | -29.11M | -11.40M |
e.l.f. Beauty Technical Analysis
Neutral
89.99
Price Trends
79.13
Positive
105.77
Negative
101.74
Negative
Market Momentum
1.81
Negative
64.97
Neutral
91.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELF, the sentiment is Neutral. The current price of 89.99 is above the 20-day moving average (MA) of 81.81, above the 50-day MA of 79.13, and below the 200-day MA of 101.74, indicating a neutral trend. The MACD of 1.81 indicates Negative momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 91.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.88B | 17.58 | 19.95% | 3.80% | 3.12% | 9.01% | |
68 Neutral | $5.37B | 63.78 | 8.77% | ― | 13.80% | -25.02% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $872.17M | 34.99 | 1.62% | 3.51% | -1.34% | -73.59% | |
56 Neutral | $41.46B | -44.54 | -20.73% | 1.30% | -6.36% | -554.84% | |
51 Neutral | $191.25M | -6.79 | -18.73% | ― | -13.14% | 57.98% | |
49 Neutral | $2.67B | -6.71 | -9.96% | ― | -5.68% | -358.36% |
* Consumer Defensive Sector Average
ELF
e.l.f. Beauty
89.99
-28.50
-24.05%
EL
The Estée Lauder Companies
115.05
37.60
48.55%
IPAR
Inter Parfums
89.93
-49.23
-35.38%
COTY
Coty
3.05
-4.24
-58.16%
EPC
Edgewell Personal Care
18.67
-14.20
-43.21%
SKIN
Beauty Health
1.50
-0.31
-17.13%
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.