e.l.f. Beauty 2026 Q1 Earnings Net Income Declines 30.0% Despite Revenue Growth

e.l.f. Beauty reported mixed results for its fiscal 2026 Q1 earnings, with revenue rising 9.0% year-over-year but net income declining sharply. The company slightly missed revenue expectations, and while it provided full-year guidance above $1.5 billion, no immediate upward or downward revision was made. The performance reflects ongoing cost pressures and strategic moves to offset tariff impacts.

Revenue
e.l.f. Beauty’s total revenue grew by 9.0% to $353.74 million in 2026 Q1, compared to $324.48 million in the same period a year earlier. The company has maintained consistent revenue performance, with 26 consecutive quarters of growth, highlighting its strong market position in the value beauty sector.

Earnings/Net Income
Net income for the quarter declined to $33.31 million in 2026 Q1, representing a 30.0% drop from $47.55 million in 2025 Q1. Similarly, EPS fell 30.6% to $0.59 from $0.85 a year ago. The drop in profitability signals challenges related to cost management and margin compression, despite the company’s sustained profitability over the past 12 years.

Price Action
e.l.f. Beauty’s stock gained 2.29% in the latest trading day, though it declined 17.55% over the past full trading week and 14.59% month-to-date. The mixed price action reflects ongoing investor caution amid macroeconomic uncertainties.

Post-Earnings Price Action Review
Following the earnings report, the stock experienced a modest 0.5% increase in the aftermarket session, closing at $110.39. Despite a slight revenue miss, the market reacted positively, indicating investor confidence in the company’s long-term strategy. The stock is currently considered fairly valued based on fair value analysis. The company is taking proactive measures to stabilize its margins, including a $1 price increase across its product line to offset tariff pressures. The acquisition of Rhode skincare for $800 million is expected to enhance its growth prospects and market share. Historically, e.l.f. Beauty has consistently exceeded earnings expectations and demonstrated resilience in the face of external challenges. Analysts remain cautiously optimistic, assigning a Zacks Rank #3 (Hold), while the company anticipates a stable trajectory leading into its next earnings report on August 20.

CEO Commentary
CEO Jamie Waller attributed the company’s strong performance to effective cost management and resilient consumer demand in the value beauty sector. She emphasized continued investments in digital innovation and brand engagement, as well as the importance of expanding market leadership through new product launches and improved customer experiences. Despite macroeconomic headwinds, Waller expressed cautious optimism about the company’s long-term growth.

Guidance
e.l.f. Beauty provided full-year revenue guidance above $1.5 billion and expects EPS to grow in line with operational efficiency improvements. The company plans to maintain disciplined capital spending, with CAPEX aligned to support strategic growth initiatives.

Additional News
Within the three weeks following e.l.f. Beauty’s earnings report, several key developments emerged. In Nigeria, the Punch newspaper covered significant political and economic news, including Nigeria's plan to address energy costs in public institutions with a N100 billion solar initiative and Customs’ announcement to review agent licensing fees in January. Meanwhile, Nigeria's growing role in international trade was highlighted as the country emerged as Canada’s largest trading partner in Africa. These developments reflect broader macroeconomic trends that may influence market dynamics for beauty and consumer goods companies.