Beauty Industry

E.l.f. Beauty Announces Q3 Fiscal 2026 Results

With a 38% growth in net sales, the company raises its fiscal outlook for 2026.

February 5, 2026

By: Rachel Klemovitch

Assistant Editor

E.l.f. Beauty announced results for the three and nine months ended December 31, 2025.

Tarang Amin, e.l.f. Beauty’s Chairman and CEO, said,

“Our Q3 results, which included 130 basis points of market share gains for our namesake e.l.f. Cosmetics brand and a record-breaking launch of rhode in Sephora in the U.K., are a continuation of the consistent, category-leading growth we’ve delivered over the past 28 quarters. Our value proposition, powerhouse innovation, and disruptive marketing engine continue to fuel our brands. We remain confident in our ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook.”

Three-Month Results

Net sales increased 38% to $489.5 million, primarily driven by growth in retailer and e-commerce channels, in the U.S. and internationally. Gross margin decreased roughly 30 basis points to 71%, driven by higher tariff costs, partially offset by benefits from pricing and mix.

Selling, general, and administrative (SG&A) expenses increased $61.7 million to $280.0 million. Adjusted SG&A increased $56.3 million to $249.2 million. The increase in SG&A is mostly from an increase in marketing, merchandising, and distribution costs, compensation and benefits, depreciation and amortization, and professional fees.

Adjusted EBITDA was $123.0 million, or 25% of net sales, up 79% year over year.

Nine-Month Results

Net sales increased 21% to $1,187.2 million, also driven by growth in retailer and e-commerce channels, in the U.S. and internationally. Gross margin decreased about 124 basis points to 70%, mostly driven by higher tariff costs, partially offset by benefits from pricing and mix.

SG&A expenses increased $122.0 million to $706.9 million. Adjusted SG&A increased $102.2 million to $619.8 million.

The increase in SG&A is primarily related to an increase in marketing, merchandising, and distribution costs, compensation and benefits, depreciation and amortization, and professional fees.

Adjusted EBITDA was $276.3 million, or 23% of net sales, up 28% year over year.

Liquidity

As of December 31, 2025, e.l.f. Beauty had $196.8 million in cash and cash equivalents, and $816.7 million of long-term debt, as compared to $73.8 million in cash and cash equivalents and $154.1 million of long-term debt outstanding as of December 31, 2024.