US cosmetics company e.l.f. Beauty reported 38% third-quarter net sales growth and raised its fiscal 2026 revenue outlook to 22%-23%.
Net sales for the quarter ended 31 December 2025 totalled $489.5m, which the company said was driven by higher volumes across store-based retail and e-commerce channels in the US and overseas.
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The company increased its full-year revenue projection from a previously expected 18%-20% growth.
Quarterly net income rose to $39.3m from $17.2m a year earlier while adjusted net income advanced to $74.4m from $43.03m.
Diluted earnings per share were $0.65, or $1.24 on an adjusted basis.
Adjusted EBITDA jumped 79% year-on-year to $123.02m, equal to 25% of net sales.
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By GlobalDataGross margin eased by around 30 basis points to 71%, reflecting higher tariff-related costs that were partly offset through pricing measures and product mix.
Selling, general and administrative expenses climbed $61.7m to $279.9m while adjusted SG&A rose $56.3m to $249.2m.
The increases were mainly linked to higher marketing, merchandising and distribution spending, along with greater compensation and benefits, depreciation and amortisation, and professional fees.
For the nine months ended 31 December 2025, net sales increased 21% to $1.18bn.
Net income for the period was $75.6m, down from $83.8m in the same period last year, with adjusted net income at $166.5m from $152.3m.
Diluted earnings per share stood at $1.28, or $2.81 on an adjusted basis.
Adjusted EBITDA for the nine-month period rose 28% to $276.3m, representing 23% of revenue.
Gross margin declined by around 124 basis points to 70%, again largely due to tariff impacts.
SG&A expenses expanded $122m to $706.9m while adjusted SG&A grew $102.2m to $619.8m.
For fiscal 2026, the company now expects net sales of $1.60bn-$1.61bn, up from a prior forecast of $1.55bn-$1.57bn.
It also projects adjusted EBITDA of $323m-$326m, adjusted net income of $180m-$183m and adjusted diluted earnings per share of $3.05-$3.10, based on approximately 59 million diluted shares outstanding.
