E.l.f. Beauty Stock Earnings Reports

e.l.f. Beauty reported Q1 FY26 results with net sales of $354 million, up 9% year-over-year, adjusted EBITDA of $87 million (up 12%), and 210 basis points of market share gains — marking 26 consecutive quarters of sales growth and share gains. U.S. sales grew 5% while international grew 30%, now representing ~20% of total sales. The company completed the acquisition of Rhode (closed yesterday), which it expects to accelerate brand awareness and distribution (Sephora launch planned in U.S./Canada in September and the U.K. by year-end). Management took a $1 price increase across the portfolio (effective August 1) to help mitigate tariffs; roughly 75% of SKUs remain under $10. Q1 gross margin was 69% (down ~215 bps) due primarily to incremental tariffs; the company is pursuing mitigation via pricing, supply-chain optimization and diversification. They are delaying full-year FY26 guidance pending greater clarity on tariffs; however, they expect first-half adjusted EBITDA margins of ~20%, and they forecast Q2 to reflect more of the higher-tariff cost flow-through, timing of marketing spend, and Rhode’s inclusion (without Sephora sell-in benefit). The balance sheet remains strong ($170M cash; $20M free cash flow in Q1), and management expects the Rhode deal to be accretive over time while investing behind growth (ERP/SAP go-live completed).