E.l.f. Beauty announced its financial results for the three and twelve months ended March 31, 2025.

The company also acquired Hailey Bieber’s rhode beauty. 

This $1 billion deal diversifies e.l.f.’s business as it enters the prestige beauty channel and expands its outreach. Together, rhode and e.l.f. will focus on disruption and product innovation, setting the stage for transformative global expansion.

Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer, said, 

“In this dynamic environment, we continue to deliver industry-leading results. In Fiscal 2025, we grew net sales 28%, gained 190 basis points of market share in the U.S. and continued our international expansion strategy. 

Fourth Quarter Results

Net sales increased by 4% to $332.6 million, mostly from retailer and e-commerce channels, as well as geographically across the U.S. and international markets.

Net income was $28.3 million on a GAAP basis. Adjusted net income was $45.2 million.

In Q4 e.l.f.’s gross margin increased approximately 50 basis points to 71%. This was driven by the foreign exchange on goods purchased from China and lower transportation costs.

2025 Fiscal Year Results

Net sales increased by 28% to $ 1.313 billion. This was also driven by retailer and e-commerce channels, and geographically across the U.S. and international markets.

The gross margin increased approximately 50 basis points to 71%. The growth was again driven by foreign exchange on goods purchased from China and cost savings. 

Net income was $112.1 million on a GAAP basis. Adjusted net income was $197.6 million.

Amin added, 

“We believe we have the right strategy to drive continued category-leading sales and market share growth in the years to come, and believe the acquisition of rhode will further strengthen and diversify our portfolio of fast-growing disruptive brands.”

Regarding the rhode acquisition, e.l.f. expects a potential earnout of up to $200 million. This is based on the future growth of the brand over a three-year timeframe.

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