E.l.f. Beauty, Inc. · NYSE:ELF
E.l.f. Beauty — Q3 2025 Earnings Presentation
77 slides from E.l.f. Beauty's earnings presentation, Feb 6, 2025
Slide 1: Q3 FY 2025 Earnings Webcast
Q3 FY 2025 EARNINGS WEBCAST
Slide 2: Forward-looking statements and non-GAAP notice
As a reminder, this call contains forward- looking statements that are based on management’s expectations – including those relating to the category trends and longer-term outlook – and are subject to known and unknown risks and uncertainties, and therefore, actual results may differ materially. Imp
Slide 3: Tarang Amin, Chairman & Chief Executive Officer
TAR AN G AMIN CHAIRMAN & CHIEF EXECUTIVE OFFICER
Slide 4: Q3 Results FY 2025 / Outlook
1 2 Q3 FY 2025 RES ULTS OUTLOOK
Slide 5: Q3 Results
Q3 RESULTS + 31 % $ 69 M + 220 BPS NET SALES ADJUSTED EB IT DA MARKET SHARE Q3 FY 2025. NIELSEN XAOC LATEST 12 WEEKS ENDING 12/28/2024, COLOR COSMETICS CATEGORY
Slide 6: Consecutive quarters of market share growth
24 CONSECUTIVE QUARTERS 1 6 OF CONSUMER COMPANIES 1 1 OF COSMETICS BRANDS OF NET SALES & OUT OF 546 TO GROW 24 OUT OF 988 TO GAIN MARKET SHARE GROWTH CONSECUTIVE QUARTERS MARKET SHARE FOR 24 AVERAGING >20% CONSECUTIVE QUARTERS FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 BARS REPRESENT NET SALES $. NIE
Slide 7: Gaining market share, significant whitespace
GAINING MARKET SHARE + 40 % SIGNIFICANT NE T SAL ES GROWTH W H I T E S PA C E (FY25-TO- DATE) CONSUMPTION SOFTER THAN EXPECTED FY25-TO-DATE PERFORMANCE THROUGH Q3 FY 2025
Slide 8: Cosmetic category slow down
COSMETIC CYCLING NEW C AT E G O RY LIP OIL PRODUCTS SLOW DOWN LAUNCH RAMPING UP
Slide 9: Net sales growth outlook 2H FY 2025
NET SALES GROWTH OUTLOOK + 14-16% 2H F Y 2025 EXPECTED FY 2025 OUTLOOK
Slide 10: Areas with significant runway for growth
A R E A S W I T H S I G N I F I C A N T R U N W AY F O R G R O W T H
Slide 11: Only top 5 mass cosmetics brand with owned site
ONLY TO P 5 MAS S COS METICS BRAND WIT H OWNED S ITE
Slide 12: Digital consumption growth
D I G I TA L C O N S U M P T I O N G R O W T H ~ 30 % Q3 FY 2025
Slide 13: Digital penetration
D I G I TA L P E N E T R AT I O N 24 % 24 % Q3 FY 2024 Q3 FY 2025 % OF CONSUMPTION
Slide 14: Beauty Squad loyalty members
5.6M MEMB ERS 20 % GROWTH >3M DOWNLOADS 4.9 RATING Q3 FY 2025 GROWTH IN TOTAL ENROLLMENT VERSUS PY | BEAUTY SQUAD LOYALTY MEMBERS AS OF 12/31/2024
Slide 15: Cosmetics
COSMETICS:
Slide 16: Q3 FY 2025 cosmetics category
Q3 FY 2025 + 16 % +220 BPS SHARE GAINS -5 % COSMETICS E.L .F. CATEGORY CO SMET IC S NIELSEN XAOC LATEST 12 WEEKS ENDING 12/28/2024, COLOR COSMETICS CATEGORY
Slide 17: e.l.f. share of mass cosmetics
E . L . F. S H A R E O F M A S S C O S M E T I C S 14% 12 % #1 #2 UNIT SHAR E $ SH ARE NIELSEN XAOC LATEST 52 WEEKS ENDING 12/28/2024, COLOR COSMETICS CATEGORY
Slide 18: e.l.f. Cosmetics dollar share
E . L . F. C O S M E T I C S $ S H A R E 20 % 12 % #1 #2 NATIONA L SHARE TARGET SHARE DOLLAR SHARE, NIELSEN XAOC LATEST 52 WEEKS ENDING 12/28/2024, COLOR COSMETICS CATEGORY
Slide 19: Share gains at Target
+170 BPS NIELSEN LATEST 12 WEEKS ENDING 12/28/2024, COLOR COSMETICS CATEGORY AT TARGET
Slide 20: Share and rank at Walmart
#2 #4 NIELSEN, LATEST 52 WEEKS ENDING 12/28/2024, COLOR COSMETICS CATEGORY AT WALMART
Slide 21: For every eye, lip and face
ii nail elle FOR EVERY EYE, LIP AND FACE, x
Slide 22: Democratizing access
D E M O C R AT I Z I N G ACCESS S E R V I N G T H E U N D E R S E RV E D
Slide 23: #1 most productive brand
#1 MOST PRODUCTIVE BRAND MEASURED ON DOLLARS PER LINEAR FEET, COLOR COSMETICS CATEGORY
Slide 24: Skincare
SKINCARE -
Slide 25: Facial skin care category rank
#10 # 25 NIELSEN XAOC LATEST 52 WEEKS ENDING 12/28/2024, FACIAL SKIN CARE CATEGORY.
Slide 26: Years young: skincare brand comparison
121 116 95 78 73 51 50 5 YEARS 20 8 YOUNG GAR NI ER L’OREAL NEUT ROGENA CETAPHIL OLAY PAN OXYL LA ROCHE POSAY CERAVE HER O E.L.F. S KIN
Slide 27: Outperformed the category
O U T P E R F O R M E D T H E C AT E G O RY +4 % -0.1 % SKIN C ARE CATEGORY E.L .F. SKIN NIELSEN XAOC LATEST 12 WEEKS ENDING 12/28/2024, SKIN CARE CATEGORY
Slide 28: Significant runway for growth
S I G N I F I C A N T R U N W AY F O R G R O W T H 2% 14 % # 10 #1 E.L.F. SKIN LEADING BRAND NIELSEN XAOC LATEST 52 WEEKS ENDING 12/28/2024, FACIAL SKIN CARE CATEGORY.
Slide 29: Two of the fastest growing mass skin care brands
TWO OF THE FASTEST GROWING MASS SKIN CARE BRANDS
Slide 30: International
INTERNATIONAL
Slide 31: International net sales growth
66% INTERN ATIO NAL N ET SALES GRO WT H Q3 FY 2025 YEAR-OVER YEAR INTERNATIONAL NET SALES GROWTH
Slide 32: International penetration
I N T E R N AT I O N A L P E N E T R AT I O N 15 % 20% Q3 FY 2024 Q3 FY 2025 % OF NET SALES
Slide 33: Global social audience
al, ono =) oO | GLOBAL | re. AUDIENCE Oo oO Oo. e609
Slide 34: Retail presence in countries today
R E T A I L P R E S E N C E I N 1 5 C O U N T R I E S T O D AY 15 COUNT RIES GERM AN Y NET HERLA NDS ITA LY MEXICO ROSSMANN ETOS DOUGLAS SEPHORA
Slide 35: Top ranking in new markets
TOP RANKING IN NEW MARKETS WE’VE LAUNCHED IN TOP 3 GERM AN Y NET HERLA NDS ITA LY MEXICO ROSSMANN ETOS DOUGLAS SEPHORA
Slide 36: Bringing our disruptive marketing to new markets
BRINGING OUR DISRUPTIVE MARKETING TO NEW MARKETS
Slide 37: Five areas of competitive advantage
F I V E A R E A S O F C O M P E T I T I V E A D VA N TA G E PASSIONATE OWNERS PRODUCTIVITY VALUE MODEL PROPOSITION DISRUPTIVE POWERHOUSE MARKETING ENGINE INNOVATION
Slide 38: Unique ability to deliver holy grails
U N I Q U E A B I L I T Y T O D E L I V E R “ H O LY G R A I L S ” $14 $10 $8 $12 VS $49 VS $38 VS $40 VS $38 PRESTIGE PRESTIGE PRESTIGE PRESTIGE
Slide 39: Share of top 10 new product SKUs
6 OF TOP 10 NEW PRODUCT SKUS COLOR COSMETICS CATEGORY. NIELSEN XAOC, CALENDAR 2024 THROUGH 12/28/2024
Slide 40: Share of top 10 SKUs in mass and prestige
OF TOP 10 SKUS IN 4 MASS AND PRESTIGE CIRCANA, LLC, COMPLETE BEAUTY, US, MAKEUP ITEM DOLLAR AND UNIT SALES, 3 MONTHS ENDING JANUARY 4, 2025
Slide 41: e.l.f. Cosmetics dollar share by category
E . L . F. C O S M E T I C S $ S H A R E 22% 12 % #1 11% 8% #2 #4 #4 TOTAL COLOR FAC E LIP EYE COSMETICS MAKEUP MAKEUP MAKEUP SHARE GAINS + 220 BPS + 130 BPS + 825 BPS + 175 BPS SHARE GAINS REPRESENT NIELSEN XAOC LATEST 12 WEEKS, $ SHARE AND RANK REPRESENT NIELSEN XAOC LATEST 52 WEEKS ENDING 12/28/2
Slide 42: Building holy grails into franchises
B U I L D I N G “ H O LY G R A I L S ” I N T O F R A N C H I S E S
Slide 43: Cosmetics SKU in mass and prestige
COSMETICS SKU IN MASS AND PRESTIGE CIRCANA, LLC, COMPLETE BEAUTY, US, MAKEUP ITEM DOLLAR AND UNIT SALES, 3 MONTHS ENDING JANUARY 4, 2025
Slide 44: e e e
e e e
Slide 45: Multiple high visibility placements
MULTIPLE HIGH VISIBILITY PLACEMENTS
Slide 46: Sentiment lift, site traffic and sales increase
97 % POSITIVE SENTIMENT LIFT IN SITE TRAFFIC INCREASE IN POWER GRIP SALES
Slide 47: Slide 47
Slide 48: Slide 48
Slide 49: e.l.f.ing entertaining
E . L . F. I N G E N T E R TA I N I N G
Slide 50: Entertainment partnerships and campaigns
CHIPOTLE AMERICAN EAGLE LIQUID DEATH INDY 500 PWHL BJK CUP EYES.LIPS.FACE. MANUEL TURIZO GRWM, THE ALBUM BIG MOOD, COSMETIC SHOW YOURSE.L.F. Original Song Topped Music Charts 4 Spots on Spotify Top List e.l.f. Made Album Release BIG E.L.F.ING CITY CRIMINALS TRIBECA FILM FESTIVAL
Slide 51: Most purchased brand by generation
#1 #1 #1 GEN Z MILLENNIALS GEN ALPHA MOST PURCHASED MOST PURCHASED MOST PURCHASED use Benny drama in one b megan trainor, the young from cosmetic criminals a characters. CIVIC SCIENCE (APRIL 2024)
Slide 52: Unaided awareness
55% 39% 41% + 20 2024 33% PTS UNAIDED 2020 AWARENESS E.L. F. L’O REAL COVERGIRL MAYBELLINE BOVITZ, INC. (2024 AUGUST) MAKEUP CATEGORY ATTITUDES & USAGE STUDY COMMISSIONED BY E.L.F. COSMETICS; CONFIDENTIAL & PROPRIETARY
Slide 53: Mandy Fields, SVP & Chief Financial Officer
MANDY F IELDS SVP & CHIEF FINANCIAL OFFICER
Slide 54: Q3 Results FY 2025 / Outlook
1 2 Q3 FY 202 5 RESU LTS OUTLOOK
Slide 55: Net sales
NET SALES + 31 % GROWTH UNITS AUR + 30 +1 PPTS PPT Q3 FY 2025
Slide 56: Gross margin
71% GROSS M ARGIN + 40 BPS Q3 FY 2025
Slide 57: Q3 FY 2025 gross margin drivers
FAV O R A B L E F X R AT E S C O S T S AV I N G S I N V E N T O RY A D J U S T M E N T S MIX H I G H E R T R A N S P O R TAT I O N C O S T S Q3 FY 2025 GROSS MARGIN DRIVERS
Slide 58: Adjusted SG&A
ADJUSTED SG&A 54 % 54 % Q3 FY 2024 Q3 FY 20 25 % OF NET SALES
Slide 59: Marketing & digital investment
M A R K E T I N G & D I G I TA L I N V E S T M E N T 26 % 27 % Q3 FY 2024 Q3 FY 20 25 % OF NET SALES
Slide 60: Adjusted EBITDA
$ 69 M ADJUSTED EBITDA +16% GROWTH Q3 FY 2025
Slide 61: Adjusted net income & adjusted EPS
ADJUSTED NET INCOME & ADJUSTED EPS $ 43 M $ 43 M $ 0.74 $ 0.74 Q3 FY 2024 Q3 FY 2025 Q3 FY 2024 Q3 FY 2025
Slide 62: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW
Slide 63: Cash on hand
$ 74 M CASH ON HAND ENDING CASH BALANCE, Q3 FY 2025
Slide 64: Inventory
$ 215 M INVENTORY Q3 FY 2025
Slide 65: Net debt / LTM adjusted EBITDA
<1 X NET DEBT / LTM ADJUSTED EBITDA Q3 FY 2025
Slide 66: Cash flow priorities: growth initiatives
CASH FLOW PRIORITIES INVESTING IN G R O W T H I N I T I AT I V E S SUPPORTING S T R AT E G I C E X T E N S I O N S
Slide 67: Cash flow priorities: people & infrastructure
CASH FLOW PRIORITIES PEOPLE & INFRASTRUCTURE TRANSITION TO SAP INCREASED D I S T R I B U T I O N C A PA C I T Y
Slide 68: FY 2025 Outlook
FY 2025 OUTLOOK
Slide 69: Net sales growth outlook
NET SALES GROWTH OUTLOOK 27-28% FY 2025 FY 2025 EXPECTED NET SALES GROWTH
Slide 70: 2H net sales growth outlook
NET SALES GROWTH OUTLOOK 14-16% 2H FY 2025 77% 2H FY 2024 FY 2025 EXPECTED NET SALES GROWTH
Slide 71: Gross margin outlook
GROSS MARGIN OUTLOOK 71% GROSS MARGIN + 40 BPS FY 2025 OUTLOOK, EXPECTED YEAR OVER YEAR GROSS MARGIN CHANGE
Slide 72: Recently announced tariffs
R E C E N T LY A N N O U N C E D TA R I F F S W I L L N O T I M PA C T F I S C A L 2 5 FISCAL 2026 O U T L O O K I N M AY
Slide 73: Tariff playbook
T A R I F F P L AY B O O K SUPPLIER FAV O R A B L E CONCESSIONS F X R AT E S COST SUPPLIER S AV I N G S D I V E R S I F I C AT I O N PRICE I N T E R N AT I O N A L INCREASES GROWTH
Slide 74: Marketing & digital outlook
M A R K E T I N G & D I G I TA L O U T L O O K 24-26 % OF NET SALES EXPECTED FY 2025 OUTLOOK
Slide 75: Adjusted EBITDA outlook
ADJUSTED EBITDA OUTLOOK $ 289- $ 293 M ADJUSTED EBITDA + 23-25% GROWTH EXPECTED FY 2025 OUTLOOK
Slide 76: Category-leading sales & market share growth
Q3 2025 C AT E G O R Y- L E A D I N G SALES & MARKET SHARE GROWTH
Slide 77: TRISE agoye
TRISE agoye YE ME TRANS CENDE fs