Business
E.l.f. Beauty Announces Fourth Quarter Fiscal 2026 Results
E.l.f. Beauty Announces Fourth Quarter Fiscal 2026
About this update from E.l.f. Beauty, Inc.
[{"type":"text","content":"\ne.l.f. Beauty (NYSE: ELF) today announced results for the three and twelve months ended March 31, 2026.\n\n\n“Fiscal 26 marked our 7th consecutive year of net sales and market share growth—a track record that reflects the strength of our team, strategy and portfolio of brands,” said Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer. “All five of our brands grew this year, with rhode and Naturium delivering particularly strong results and reinforcing the power of our expanding brand portfolio. The whitespace opportunity in front of us across brands, categories, and geographies gives us great confidence in the runway ahead.”\n\n\nThree Months Ended March 31, 2026 Results\nFor the three months ended March 31, 2026, compared to the three months ended March 31, 2025:\n\nNet sales increased 35% to $449.3 million, primarily driven by growth in both our retailer and e-commerce channels, in the US and internationally.\n\nGross margin increased approximately 140 basis points to 73%, primarily driven by benefits from pricing, partially offset by higher tariffs.\n\nSelling, general and administrative (“SG&A”) expenses increased $126.4 million to $319.1 million. Adjusted SG&A (SG&A excluding the items identified in the reconciliation table below) increased $126.6 million to $300.0 million. The increase in SG&A is primarily related to an increase in marketing, merchandising and distribution costs, compensation and benefits, depreciation and amortization, professional fees and regulatory fees.\n\nChange in fair value of contingent consideration related to the acquisition of rhode (the “rhode Acquisition”). The Company recorded a fair value adjustment of $57.6 million for the fiscal year ended March 31, 2026, driven by the outperformance of rhode's revenue results relative to the earnout thresholds set forth in the merger agreement entered into in connection with the rhode Acquisition.\n\nOther income, net decreased $1.6 million to $1.0 million, primarily driven by an increase in foreign currency losses for the period attributable to currency rate fluctuation.\n\nNet loss was $49.4 million on a GAAP basis. Adjusted net income (net income excluding the items identified in the reconciliation table below) was $19.4 million.\n\nDiluted loss per share was $0.82 per share on a GAAP basis. Adjusted diluted earnings pe...