e.l.f. Beauty (ELF) investor relations material

Executive summary

• Q2 net sales rose 51% YoY to $520.8M, marking the 31st consecutive quarter of growth; adjusted EBITDA increased 86% to $123.4M.

• FY27 net sales growth guidance rose to 22%-24% from 18%-20%; organic growth guidance increased to 9%-11% from 6%-7%.

Financial highlights

• Q2 gross margin reached 71%, up ~160 bps YoY; a $1.7M IEEPA tariff refund contributed ~30 bps, alongside lower tariffs and favorable mix, partly offset by price investments.

• Q2 adjusted net income was $72.7M and adjusted diluted EPS was $1.21; GAAP net income was $30.0M and diluted EPS was $0.50.

• Q2 adjusted EBITDA was $123.4M, or 24% of sales; adjusted SG&A was 53% of sales versus 56% a year earlier, with marketing and digital investment at 21% versus 23%.

• H1 net sales increased 43% to $1,000.2M; gross margin was 77%, up ~760 bps, including ~520 bps from IEEPA tariff refunds.

• Q2 net income included a $17.7M rhode contingent-consideration fair-value expense; the adjustment was $33.8M for H1.

Outlook and guidance

• FY27 net sales guidance is $2,003M-$2,029M; adjusted EBITDA is $421M-$427M, adjusted net income $231M-$233M, and adjusted EPS $3.82-$3.86.

• FY27 adjusted EBITDA growth guidance increased to 26%-27%; margin expansion outlook rose to ~50 bps YoY.

• H2 net sales growth is expected at 7%-10%, with Q3 above and Q4 below the range, primarily due to prior-year launch timing; each brand is expected to contribute.

• FY27 gross margin is forecast to rise ~250 bps YoY but remain approximately flat excluding tariff refunds; H2 gross margin is expected to decline YoY as rhode expands in retail.

• FY27 marketing and digital spending is projected at 23%-25% of sales; H2 adjusted EBITDA margin is expected in the low teens as tariff refunds are reinvested and marketing shifts later.