What were the key takeaways from e.l.f. Beauty’s earnings call?

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Did e.l.f. Beauty beat or miss consensus estimates last quarter?

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What is the revenue and EPS growth rate for e.l.f. Beauty year over year?

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What were the key takeaways from e.l.f. Beauty's earnings call?

- **Record Growth**: Q2 net sales up 14% to $344 million, driven by Rhode acquisition and 7% e.l.f. brand consumption growth vs. 2% category.
- **Market Share Expansion**: 140bps market share gain, with Rhode contributing $52 million and 2.5x Sephora launch record.
- **Tariff Resilience**: Gross margin improved to 71% in H2, offsetting 3,500bps tariffs through price increases and mix.
- **Guidance Confidence**: 18-20% FY26 growth (including $200M Rhode), $302-306M EBITDA, and 40% Rhode YoY expansion.
- **Consumer Demand**: 10% YoY consumption growth despite $1 price increase, with Q3 showing stronger momentum.

**【CEO Summary Section】**
- Q2 net sales grew 14% to $344 million, driven by the acquisition of Rhode ($52 million contribution) and organic growth despite 3% decline in shipments due to retailer pricing delays.
- 27th consecutive quarter of net sales growth, with e.l.f. brand consumption up 7% vs. 2% category growth, gaining 140bps market share.
- Full-year guidance: 18-20% net sales growth (including $200 million from Rhode), 3-4% organic growth, and $302-306 million adjusted EBITDA.
- Rhode launch in Sephora North America was record-breaking, with plans to expand into U.K. and GCC markets.
- Tariffs reduced gross margin by 165bps in Q2, but second-half gross margin expected to improve to 71% due to price increases and mix benefits.

**【CFO Financial Commentary】**
- Q2 adjusted EBITDA of $66 million (-4% YoY) due to higher marketing spend (23% of sales vs. 24% last year) and tariff impacts.
- Gross margin 69% (-165bps YoY), with 45% tariffs expected for remainder of fiscal year (vs. 55% in Q2).
- Strong liquidity with $194 million cash and <2x leverage post-Rhode acquisition.
- Second-half marketing spend expected to rise to 27-29% of sales, partially offset by gross margin improvements.

**【Q&A Highlights】**
- **Retailer Pricing Resolution**: Shipment delays resolved as retailers updated prices, with no long-term impact on relationships.
- **Consumption Trends**: Q2 consumption up 10% YoY, with Q3 showing stronger momentum despite $1 price increase across portfolio.
- **International Growth**: 2% Q2 growth (cycling large Rossmann Germany launch), with expansion plans into Poland, GCC, and U.K.
- **Rhode Performance**: $57 million pre-acquisition Q2 sales, targeting $300 million annualized post-acquisition, with 40% YoY growth.
- **Tariff Mitigation**: Price increases and mix improvements offset 3,500bps tariff headwinds, with gross margin stabilizing in second half.


e.l.f. Beauty, Inc. (ELF) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ELF

ELF fundamentals

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