e.l.f. Beauty Reports Strong Growth and Strategic Acquisition

e.l.f. Beauty, Inc. ( (ELF) ) has released its Q4 earnings. Here is a breakdown of the information e.l.f. Beauty, Inc. presented to its investors.

e.l.f. Beauty, Inc. is a leading company in the beauty industry, known for its innovative and inclusive approach to cosmetics and skincare, offering cruelty-free and vegan products. In its latest earnings report, e.l.f. Beauty announced a significant 28% increase in net sales for the fiscal year 2025, marking its 25th consecutive quarter of growth and market share gains. The company also revealed its strategic move to acquire rhode, a beauty brand founded by Hailey Bieber, to diversify its portfolio further.

The financial highlights for the fourth quarter of fiscal 2025 include a 4% increase in net sales to $332.6 million, with a gross margin improvement to 71%. The company reported a net income of $28.3 million and an adjusted net income of $45.2 million, with adjusted EBITDA nearly doubling year-over-year to $81.4 million. For the full year, e.l.f. Beauty’s net sales reached $1.31 billion, with an adjusted EBITDA of $296.8 million, showcasing robust growth across its retail and e-commerce channels.

Strategically, e.l.f. Beauty’s acquisition of rhode is a significant step, involving a deal valued at $800 million, with potential additional earnout considerations. This acquisition aligns with the company’s strategy to strengthen its position in the beauty market by expanding its range of high-performance, skin-focused products.

Looking ahead, e.l.f. Beauty remains optimistic about continuing its growth trajectory, although it has refrained from providing a fiscal 2026 outlook due to uncertainties related to tariffs. The company’s management believes that its strategic initiatives, including the acquisition of rhode, will support sustained sales and market share growth in the coming years.