e.l.f. Beauty (ELF) Q3 2026 earnings summary

Executive summary

• Net sales grew 38% year-over-year in Q3 FY26 to $489.5 million, marking the 28th consecutive quarter of growth, with strong gains in both retailer and e-commerce channels and significant contribution from the Rhode acquisition.

• Adjusted EBITDA increased 79% year-over-year to $123 million, driven by strong brand performance and acquisitions.

• The company gained 130 basis points of market share, the largest among over 700 tracked cosmetics brands, and achieved record-breaking launches, including Rhode in Sephora UK.

• Four brands in the portfolio now exceed $200 million in annual retail sales, out of only 14 such brands tracked by Nielsen.

• The $897.5 million Rhode acquisition was completed, funded by cash, equity, and a $600 million term loan.

Financial highlights

• Q3 net sales rose 38% year-over-year to $489.5 million, with Rhode contributing $128 million, or 36 percentage points, to growth.

• Organic Q3 net sales (excluding Rhode) increased 2% year-over-year, impacted by softer trends in the UK and Germany.

• U.S. net sales grew 36% and international net sales grew 44% year-over-year in Q3.

• Q3 gross margin was 71%, down 30 basis points year-over-year but up 200 basis points sequentially.

• Adjusted net income was $74 million ($1.24 per diluted share), compared to $43 million ($0.74 per share) a year ago.

• Ended Q3 with $197 million in cash and $849.2 million in total debt, up from $74 million in cash a year ago.

Outlook and guidance

• Full-year net sales growth expected at 22%-23% year-over-year, up from prior guidance of 18%-20%.

• Rhode is projected to contribute $260-$265 million in net sales for fiscal 2026.

• Adjusted EBITDA for the full year is now expected at $323-$326 million, up from $302-$306 million.

• Adjusted EBITDA margin for the year is projected at approximately 20%.

• Organic net sales (excluding Rhode) expected to grow about 2% for the year.