e.l.f. Beauty reported fiscal third‑quarter 2026 results that surpassed expectations on every key metric. Net sales climbed to $489.5 million, a 38% year‑over‑year increase that translates to a jump from $355.3 million in Q3 2025. Adjusted earnings per share rose to $1.24, beating the consensus estimate of $0.72 by $0.52, or 72% of the expected figure. The company also captured a 130‑basis‑point lift in market share for its e.l.f. Cosmetics brand and celebrated a record‑breaking launch of the Rhode line in Sephora stores across the United Kingdom.
The 38% revenue growth masks a modest 2% organic increase when the $128 million contribution from the Rhode acquisition is excluded. Organic sales growth is driven by steady demand in the core mass‑beauty categories, while the Rhode acquisition has added a high‑margin, high‑growth channel that accounted for a significant portion of the headline growth. Compared with Q3 2025, the company’s adjusted EPS grew from $0.74 to $1.24, a 67% year‑over‑year gain that reflects both pricing power and disciplined cost management amid rising tariff costs.
Management raised its fiscal 2026 outlook, lifting net‑sales growth guidance to 22%‑23% from the prior 18%‑20% range and raising adjusted EPS guidance to $3.05‑$3.10 from $2.80‑$2.85. Gross margin fell to 71% from 71.3% year‑over‑year, a 30‑basis‑point compression largely attributable to higher tariff costs, which the company has partially offset through pricing adjustments and mix shifts toward higher‑margin products.
CEO Tarang Amin highlighted the company’s “consistent, category‑leading growth” and praised the Rhode acquisition for delivering “the #1 brand ranking in Sephora North America.” CFO Mandy Fields noted that the acquisition contributed $128 million to Q3 sales and that adjusted EBITDA rose 79% to $123 million, underscoring the company’s ability to scale new brands while maintaining profitability. Both executives emphasized continued confidence in the brand’s momentum and the company’s strategic focus on high‑margin, high‑growth segments.
Investors reacted positively to the results, with analysts citing the substantial EPS beat and the upward revision of full‑year guidance as key drivers of the favorable market response. The strong performance of the Rhode acquisition, combined with sustained market‑share gains for the e.l.f. Cosmetics brand, signals robust execution and a solid foundation for future growth.
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