e.l.f. Beauty, Inc. (ELF) · Nov 4, 2026 · Earnings
Beat — Adjusted EPS $1.21 vs ~$0.60 consensus
e.l.f. Beauty earnings beat Q2 expectations sharply, with 51% sales growth and a second fiscal 2027 guidance increase.
The setup: e.l.f. Beauty entered this quarter as a fast-growing, multi-brand cosmetics company using the rhode acquisition to extend its growth runway; it had already raised fiscal 2027 sales-growth guidance from 12–14% to 18–20% in August. This filing says that momentum is still accelerating, not fading.
The quarter was a clear beat, not just a year-over-year growth story. Net sales reached $520.8 million, well above the published consensus of about $473.5 million, while adjusted diluted EPS was $1.21 versus roughly $0.60 expected. The sales gain was 51% year over year, and adjusted EBITDA rose to $123.4 million from $66.2 million.
| Q2 FY2027 | Q2 FY2026 | Consensus | |
|---|---|---|---|
| Net sales (Financial Statements) | $520.8M (+51.4%) | $343.9M | $473.5M |
| Adjusted diluted EPS (Adjusted Net Income) | $1.21 (+77.9%) | $0.68 | ~$0.60 |
| Adjusted EBITDA (Adjusted EBITDA) | $123.4M (+86.2%) | $66.2M | |
| Gross margin (Financial Highlights) | 71% (+160 bps) |
Management raised the full-year bar for the second time this fiscal year. Fiscal 2027 sales guidance moved to $2.003–2.029 billion from $1.938–1.968 billion, while adjusted EPS rose to $3.82–3.86 from $3.50–3.55. That is roughly a 3% lift to the revenue midpoint and a 9% lift to the EPS midpoint, making this more than a routine confirmation.
The quality of the beat is good, but not entirely organic or cost-free. Gross margin expanded to 71%, helped by lower tariffs and IEEPA tariff refunds, while SG&A rose sharply as e.l.f. invested in marketing, merchandising, distribution, compensation and depreciation. The rhode earnout was also revalued upward by $17.7 million because the brand is outperforming its earnout thresholds, which supports the acquisition thesis but creates a reported expense.
The balance sheet is improving despite the acquisition burden. Cash rose to $350.8 million from $194.4 million a year earlier, while total debt declined to $826.7 million from $856.7 million. Operating cash flow reached $126.3 million in the first six months, although working-capital investment in receivables and inventory absorbed cash.
Bottom line: This materially strengthens e.l.f.’s current growth story: the business beat a demanding quarterly benchmark and raised an already-raised outlook again. Tariff benefits and acquisition-driven growth are part of the result, but the filing still shows execution running ahead of expectations rather than merely meeting them.
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