e.l.f. Beauty Stock Plunges 44.01% on Weak 2025 Guidance, Tariff Pressures

The share price fell to its lowest level since May 2025 today, with an intraday decline of 9.79%.

e.l.f. Beauty’s stock has plunged 44.01% over eight consecutive sessions, driven by mixed third-quarter 2025 results and weak full-year guidance. Revenue of $343.9 million missed estimates, while adjusted earnings per share of $0.68 exceeded expectations. However, management’s forecast of $1.56 billion in revenue and $304 million in adjusted EBITDA for 2025 fell short of Wall Street’s $1.65 billion and $3.58 EPS consensus. Tariff costs exceeding $50 million in fiscal 2026 and margin compression—operating margins dropped to 2.2% in Q3 2025 from 9.3% a year earlier—further dented investor confidence.

Compounding challenges include reliance on the Rhode acquisition for growth, which contributed $200 million in projected 2025 sales. While Rhode’s Sephora launch showed promise, the core e.l.f. brand faces softer demand without disruptive innovations. Strategic moves like supply chain diversification and $1 price hikes aim to offset tariffs, but near-term profitability remains uncertain. With shares down 38.3% since 2025’s start, the stock’s volatility underscores investor skepticism about the company’s ability to balance cost pressures and growth ambitions.