e.l.f. Beauty 2025 Q4 Earnings Strong Performance as Net Income Soars 94.5%

e.l.f. Beauty (ELF) reported its fiscal 2025 Q4 earnings on May 29th, 2025. The company beat expectations, with net income surging 94.5% to $28.25 million, significantly higher than the previous year. e.l.f. Beauty maintained its impressive record of profitability for 11 consecutive years over the corresponding fiscal quarter. However, due to tariff uncertainties, the company chose not to provide specific guidance for fiscal 2026. Despite these concerns, e.l.f. Beauty remains focused on expanding market share within the U.S. and internationally, with plans to invest in marketing and infrastructure to drive growth.

Revenue
The total revenue of e.l.f. Beauty increased by 3.6% to $332.64 million in 2025 Q4, up from $321.14 million in 2024 Q4.

Earnings/Net Income
e.l.f. Beauty's EPS rose 94.0% to $0.51 in 2025 Q4 from $0.26 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $28.25 million in 2025 Q4, marking 94.5% growth from $14.53 million in 2024 Q4. Despite tariff challenges, this EPS showcases e.l.f. Beauty's robust financial performance.

Price Action
The stock price of e.l.f. Beauty has edged up 2.73% during the latest trading day, has surged 41.46% during the most recent full trading week, and has surged 80.45% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing ELF stocks when revenues miss expectations and holding for 30 days shows promising backtested performance. The strategy yielded a 14.42% return over 30 days, significantly surpassing the NASDAQ Composite's 5.01% return during the same period. This suggests the strategy effectively leveraged positive momentum following the earnings report, a common market occurrence. However, the introduction of tariff uncertainty caused a slight decline in ELF's stock price, decreasing 0.99% over 30 days. Tariff concerns may have led to volatility due to potential near-term cost pressures and preserved cross-border demand. Moreover, the acquisition of Hailey Bieber's Rhode skincare brand for $1 billion triggered a significant positive reaction, with ELF's stock price jumping 24% following the announcement, reflecting market appreciation for the strategic move. Nonetheless, ELF's stock remains highly volatile, with 51 moves greater than 5% over the last year, underscoring the risk of short-term holdings.

CEO Commentary
Tarang Amin, Chairman and Chief Executive Officer, expressed pride in e.l.f. Beauty’s performance, highlighting a 28% growth in net sales and 26% in adjusted EBITDA for fiscal 2025. He noted the company’s achievement of 25 consecutive quarters of net sales growth and market share gains, attributing success to their value proposition and innovative marketing. Amin emphasized the strategic acquisition of rhode, stating it aligns with their vision to disrupt the beauty industry and offers significant growth potential. He conveyed an optimistic outlook, stating, “We feel great about our business as we are in Q1,” while acknowledging challenges related to tariffs.

Guidance
Mandy Fields, Senior Vice President and Chief Financial Officer, indicated that due to uncertainty regarding tariffs, e.l.f. Beauty is not providing specific guidance for fiscal 2026. However, she noted a focus on share gains in the U.S. and international expansion. The company plans to maintain marketing and digital spending at approximately 24% to 26% of net sales while remaining cautious about gross margin impacts starting in Q1 due to anticipated tariff costs. Fields emphasized ongoing investments in team and infrastructure to support growth.

Additional News
e.l.f. Beauty has recently acquired Hailey Bieber's Rhode skincare brand for $1 billion, with Bieber serving as Chief Creative Officer and Head of Innovation for the combined companies. Rhode, which expanded into blushes, lip balms, and liners, plans to partner with Sephora in North America and the U.K. e.l.f. Beauty's strategic acquisition aims to leverage Rhode's popularity among young consumers and the fresh-faced aesthetic popularized by Bieber. Additionally, e.l.f. Beauty's products, known for being vegan and cruelty-free, align with Rhode's ethical standards, further enhancing their market positioning in the beauty industry.