e.l.f. Beauty (ELF) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY2025 increased 40% year-over-year to $301.1 million, marking the 23rd consecutive quarter of net sales and market share gains.

• International net sales surged 91%, now representing 21% of total sales, up from 16% a year ago.

• Digital channels drove 20% of consumption, with digital trends up nearly 40% year-over-year.

• Raised FY25 guidance to 28%-30% net sales growth, reflecting strong Q2 performance and ongoing momentum across color cosmetics, skin care, and international segments.

• Completed the acquisition of Naturium, finalizing purchase accounting in the quarter.

Financial highlights

• Q2 net sales up 40% year-over-year to $301.1M; six-month net sales up 45% to $625.6M.

• Q2 gross margin was 71%, up 40 basis points from prior year, aided by cost savings, FX, and price increases.

• Adjusted EBITDA reached $69.3 million in Q2 (23% margin), up 15% year-over-year; six-month adjusted EBITDA $146.8M, up 9%.

• Q2 GAAP net income was $19.0M; adjusted net income $45.0M. Six-month GAAP net income $66.6M; adjusted net income $109.3M.

• Marketing and digital investment was 24% of net sales, up from 21% last year.

Outlook and guidance

• FY25 net sales growth outlook raised to 28%-30%, up from 25%-27%.

• Adjusted EBITDA guidance raised to $304-$308 million, implying 29%-31% growth.

• Adjusted net income expected at $205–$208M; adjusted diluted EPS $3.47–$3.53.

• FY25 gross margin expected to be up 30 basis points year-over-year.

• Marketing and digital investment expected at 24%-26% of net sales for FY25.