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e.l.f. Beauty (ELF)
NYSE:ELF
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e.l.f. Beauty
(NYSE:ELF)
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Rating:64Neutral
Price Target:
$80.00
▼(-9.13% Downside)
The score is driven primarily by strong underlying growth and cash generation, reinforced by raised guidance and continued market-share momentum. It is held back by increased leverage and margin compression, and further pressured by weak technicals (stock below major moving averages with negative momentum) alongside a demanding valuation (P/E ~42).
Positive Factors
Robust cash generation and free cash flow growth
Sustained, growing free cash flow provides durable internal funding for marketing, inventory, and M&A while supporting buybacks and debt service. High FCF relative to net income improves financial flexibility and reduces reliance on external capital over the next 2–6 months.
Acquisitions (Rhode) materially scaling revenue
Rhode’s outsized contribution and rapid retail rollouts are moving e.l.f. from single-brand growth to multi-brand scale. This diversification of growth drivers improves top-line resiliency, accelerates market-share gains, and provides a repeatable playbook for future bolt-ons over the medium term.
High gross margins and operational leverage
Sustained ~70% gross margins create a durable profitability buffer that allows the company to invest in marketing and retail expansion while still generating operating leverage. High product-level margins support long-term margin recovery even amid elevated promotional spend.
Negative Factors
Material increase in leverage
The sharp step-up in debt meaningfully reduces balance sheet flexibility and raises refinancing and interest-rate vulnerability. Even with healthy FCF, elevated leverage constrains optionality for further M&A, aggressive buybacks, or cushioning against macro shocks over the coming months.
Net margin compression and near-term margin pressure
Margin compression from higher marketing, investment spend, tariffs, and shipment timing erodes the company’s earnings cushion. If elevated SG&A and promotional spend persist, sustaining prior profitability levels will be challenging and could limit free cash flow conversion durability.
Weak organic growth and regional/operational strains
Heavy reliance on M&A-driven growth masks weak underlying volume trends and regional promotional challenges. Flat unit volumes and UK/Germany softness increase execution risk if Rhode momentum moderates, making near-term top-line sustainability more dependent on integration and rollout success.
e.l.f. Beauty (ELF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.15B
Dividend YieldN/A
Average Volume (3M)2.19M
Price to Earnings (P/E)49.8
Beta (1Y)2.02
Revenue Growth13.80%
EPS Growth-25.02%
CountryUS
Employees633
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.24
Shares Outstanding59,052,240
10 Day Avg. Volume3,119,035
30 Day Avg. Volume2,191,315
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 Cap1.16
Enterprise Value/Revenue3.93
Enterprise Value/Gross Profit5.60
Enterprise Value/Ebitda24.80
Forecast
1Y Price Target
$112.21Price Target Upside27.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Feb 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call conveyed strong financial and operational momentum driven by outsized Q3 growth (38% net sales) and a 79% increase in adjusted EBITDA, supported by successful brand launches (notably Rhode) and improved cash and buyback activity. Management raised full-year guidance and highlighted sustained market share gains, product innovation wins, and international expansion. Offsetting risks include weaker organic growth excluding Rhode (~2%), regional softness in the U.K. and timing-related shipment headwinds, plus near-term margin pressure from elevated marketing and investment spend. On balance, the company expanded revenue, profitability, cash flow, and strategic footprint while acknowledging manageable short-term challenges.Q3-2026 Updates
Positive Updates
Strong Top-Line Growth
Q3 net sales grew 38% year-over-year, marking the company's 28th consecutive quarter of net sales growth and placing e.l.f. Beauty among a small group of high-growth public consumer companies.
Margin and Profit Expansion
Q3 adjusted EBITDA was $123 million, up 79% year-over-year; adjusted net income was $74 million ($1.24 per diluted share) versus $43 million ($0.74) a year ago. Full-year adjusted EBITDA guidance was raised to $323–326 million (up from $302–306 million).
Raised Full-Year Guidance Driven by Rhode
Company raised fiscal 2026 net sales growth outlook to ~22–23% (from 18–20%), driven primarily by Rhode outperformance. Rhode is now expected to contribute $260–265 million to 2026 net sales (previously $200 million), implying ~70% year-over-year growth on an annualized basis.
Brand Momentum and Market Share Gains
e.l.f. Cosmetics namesake brand consumption in the U.S. grew 8% in the quarter (roughly twice the category) and gained 130 basis points of market share — the largest share gain among >700 cosmetics brands tracked by Nielsen.
Successful M&A and Portfolio Scale
Acquisitions are accelerating scale: Rhode contributed $128 million to Q3 net sales (≈36 percentage points of Q3 growth). e.l.f. now has four of the 14 cosmetics/skincare brands tracked by Nielsen that have surpassed $200 million in annual retail sales.
High Gross Margin and Operational Leverage
Q3 gross margin was 71% (down ~30 bps YoY but up ~200 bps sequentially). Adjusted SG&A as a percentage of sales improved to 51% from 54% a year ago; marketing was 21% of net sales (down from 27% prior year), demonstrating leverage.
Strong Cash Position and Share Repurchase
Cash balance grew to $197 million from $74 million year-over-year. The company repurchased ~$50 million of common stock in the quarter and has ~ $400 million remaining under its repurchase authorization; net debt is <2x adjusted EBITDA post-Rhode.
Marketing and Product Launch Wins
Notable consumer/marketing milestones: Liquid Death collaboration sold out (Lip Crip Vault in 19 minutes), campaign drove ~4 billion earned impressions; Rhode achieved the biggest Sephora North America launch in history and a record Sephora UK launch (5x prior record). New product wins include Slipstick (debuted #1 new lipstick on Amazon and TikTok Shop) and Soft Glam Satin Concealer at a $5 price point.
International Expansion Progress
Rhode and Notorium are expanding global distribution (Rhode launching in Australia/New Zealand with Mecca; Notorium rolling into Walmart U.S. this spring). International represented ~20% of company net sales, providing runway vs. legacy peers with higher international exposure.
Negative Updates
Organic Sales Softness
Excluding Rhode, Q3 net sales were up only ~2% year-over-year, below management expectations; updated full-year organic net sales outlook is also ~2% excluding Rhode.
Regional Weakness — UK and Germany
Softer consumption in the U.K. due to a more promotional environment and cycling the large Rossmann Germany launch weighed on organic performance; management called out the UK as the largest international market with heightened promotional activity.
Tariff-Driven Gross Margin Pressure Historically
Gross margin declined ~30 basis points YoY in Q3 largely driven by tariffs (tariff rates peaked earlier in the year before being reset to 45% on Nov 10); tariffs were a headwind in the year-to-date results (though now more stable).
Shipment Timing / Pipeline Headwind
Management expects a ~4 percentage-point pipeline headwind in the back half of the fiscal year as they cycle significant retail expansion (e.g., Dollar General rollout, Target space expansion), which is driving shipments below consumption in the near term.
Near-Term Margin Pressure from Investments
Second-half adjusted EBITDA margins are expected at ~19% (down ~300 basis points vs prior year) due to increased marketing (expected ~27% of net sales in H2), and investments in space expansion (fixturing/merchandising) and team building.
Unit Volumes Relatively Flat After Price Increases
Pricing and product mix contributed ~38 percentage points to net sales growth, while unit volumes were relatively flat year-over-year; a prior 15% price increase led to single-digit unit declines, which pressures organic volume growth.
Operational Strain from Rapid Rhode Demand
Rhode demand materially outpaced expectations, creating supply/forecasting pressure; management noted the team has worked hard to keep up with outsized demand and capacity needs.
Company Guidance
e.l.f. raised its fiscal 2026 outlook, now expecting net sales growth of ~22–23% (up from 18–20%), with Rhode contributing ~$260–265M to FY26 net sales versus $200M previously and projected to grow ~70% YoY on an annualized basis; second‑half guidance implies 31–33% net sales growth and organic (ex‑Rhode) net sales of ~+2%. Management is modeling ~6% global consumption growth partially offset by a 4‑point pipeline headwind (shipments below consumption). Adjusted EBITDA guidance was raised to $323–326M (prior $302–306M), implying ~9–10% EBITDA growth and ~20% full‑year adjusted EBITDA margin (H2 ~19%, down ~300 bps YoY). Marketing is expected to be ~27% of sales in H2 (full‑year target 24–26%); Q3 cash was $197M, the company repurchased ~$50M in the quarter with ~$400M remaining authorization, and net debt is <2x adjusted EBITDA.e.l.f. Beauty Financial Statement Overview
Summary
Strong multi-year revenue growth and healthy, improving free cash flow (TTM FCF $214.5M, +51.1% growth) support the score. However, TTM margin compression (net margin down to 6.8%) and a sharp increase in leverage (TTM debt up to $914.2M; debt-to-equity ~0.79) meaningfully raise financial risk.Income Statement
Revenue has compounded strongly over the last several years (from $318.1M in 2021 to $1.313B in FY2025), with TTM (Trailing-Twelve-Months) revenue at $1.520B and still growing (+9.7%). Profitability remains solid with very high gross margins (~70%), supporting good operating leverage. The main weakness is margin compression versus prior years: net margin fell from 12.5% (FY2024) to 8.5% (FY2025) and to 6.8% in TTM (Trailing-Twelve-Months), alongside lower operating margins versus FY2024.78
Positive
Balance Sheet
The balance sheet has become meaningfully more leveraged in TTM (Trailing-Twelve-Months): total debt rose to $914.2M versus $313.0M in FY2025, pushing debt relative to equity up to ~0.79 (from ~0.41 in FY2025). Equity has grown to $1.162B, but the sharp step-up in leverage reduces flexibility. Returns remain positive (ROE ~9.4% TTM), though down from stronger levels in FY2024–FY2025, suggesting profitability is not yet fully offsetting the higher leverage profile.55
Neutral
Cash Flow
Cash generation is healthy and improving: operating cash flow is $246.2M and free cash flow is $214.5M in TTM (Trailing-Twelve-Months), with very strong free cash flow growth (+51.1%). Free cash flow remains high relative to earnings (about 87% of net income), indicating good earnings quality. The key watch item is consistency of cash conversion—operating cash flow relative to net income is strong in TTM (~0.97) but was notably weaker in earlier periods (e.g., FY2024).72
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.52B | 1.31B | 1.02B | 578.84M | 392.15M | 318.11M |
| Gross Profit | 1.07B | 935.69M | 724.10M | 390.40M | 251.73M | 206.20M |
| EBITDA | 241.10M | 206.25M | 182.57M | 85.31M | 54.63M | 32.12M |
| Net Income | 103.94M | 112.09M | 127.66M | 61.53M | 21.77M | 6.23M |
Balance Sheet | ||||||
| Total Assets | 2.32B | 1.25B | 1.13B | 595.60M | 494.63M | 487.39M |
| Cash, Cash Equivalents and Short-Term Investments | 196.82M | 148.69M | 108.18M | 120.78M | 43.35M | 57.77M |
| Total Debt | 926.14M | 313.02M | 290.60M | 82.17M | 117.00M | 150.91M |
| Total Liabilities | 1.16B | 487.32M | 486.68M | 184.58M | 182.20M | 217.75M |
| Stockholders Equity | 1.16B | 760.86M | 642.57M | 411.02M | 312.43M | 269.65M |
Cash Flow | ||||||
| Free Cash Flow | 214.53M | 115.32M | 62.49M | 100.16M | 14.70M | 23.00M |
| Operating Cash Flow | 246.15M | 133.84M | 71.15M | 101.88M | 19.51M | 29.48M |
| Investing Cash Flow | -614.31M | -19.10M | -284.66M | -1.72M | -4.82M | -6.47M |
| Financing Cash Flow | 490.75M | -74.45M | 200.94M | -22.73M | -29.11M | -11.40M |
e.l.f. Beauty Technical Analysis
Positive
88.04
Price Trends
82.22
Positive
95.22
Negative
104.64
Negative
Market Momentum
-0.69
Negative
56.75
Neutral
57.07
Neutral
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 88.04 is above the 20-day moving average (MA) of 84.02, above the 50-day MA of 82.22, and below the 200-day MA of 104.64, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 56.75 is Neutral, neither overbought nor oversold. The STOCH value of 57.07 is Neutral, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.23B | 19.69 | 19.95% | 3.80% | 3.12% | 9.01% | |
64 Neutral | $5.15B | 49.76 | 10.77% | ― | 13.80% | -25.02% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
55 Neutral | $40.56B | -223.07 | -4.34% | 1.30% | -6.36% | -554.84% | |
52 Neutral | $1.03B | -26.09 | 1.62% | 3.51% | -1.34% | -73.59% | |
51 Neutral | $2.25B | -4.19 | -14.50% | ― | -5.68% | -358.36% | |
51 Neutral | $127.43M | -4.48 | -18.73% | ― | -13.14% | 57.98% |
* Consumer Defensive Sector Average
ELF
e.l.f. Beauty
88.04
14.93
20.42%
EL
The Estée Lauder Companies
111.60
41.44
59.06%
IPAR
Inter Parfums
101.13
-29.12
-22.36%
COTY
Coty
2.61
-2.92
-52.80%
EPC
Edgewell Personal Care
22.10
-7.15
-24.43%
SKIN
Beauty Health
0.99
-0.70
-41.42%
e.l.f. Beauty Corporate Events
Executive/Board Changes
e.l.f. Beauty Adds Veteran Executive Matthew Farrell to Board
Positive
Feb 13, 2026
On February 12, 2026, e.l.f. Beauty, Inc. appointed veteran consumer-products executive Matthew Farrell to its board of directors as a Class I director, with plans for him to stand for election at the company’s 2026 annual meeting of stockholders. Farrell, a certified public accountant with decades of financial and operational leadership experience, will receive standard non-employee director compensation and an indemnification agreement consistent with existing board practices.
Farrell previously served as chief executive officer of Church & Dwight Co. Inc. from January 2016 until April 2025 and as its chairman until September 2025, following earlier roles as chief financial officer and chief operating officer. His addition brings extensive board and C-suite experience across consumer products, pharmaceuticals, industrials, and specialty materials, potentially strengthening e.l.f. Beauty’s governance, financial oversight, and strategic capabilities without any disclosed related-party conflicts or special appointment arrangements.
The most recent analyst rating on (ELF) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on e.l.f. Beauty stock, see the ELF Stock Forecast page.
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.