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Elf 8K points to weaker than expected quarter at rhode, says Morgan Stanley

Morgan Stanley analyst Dara Mohsenian notes that Elf Beauty (ELF) filed an 8-K Friday intra-day providing rhode standalone financials for the six months ended June as well as the implied March 2025 quarter-end and other time periods. Rhode revenue was $40.2M in the June quarter and $62.5M implied in the March quarter, according to the analyst, who says June revenue was below what the firm expected. However, given quarterly volatility at a small brand, a lack of historical quarters/seasonality, and the record launch at Sephora in September since then, the firm remains “comfortable” with its 45% FY26 rhode revenue growth forecast, adds the analyst, who has an Overweight rating and $170 price target on Elf shares.

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