NYSE:ELF

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e.l.f. Beauty Surges 10% in Premarket as Revenue Growth and FY27 Outlook Impress

e.l.f. Beauty jumped 10% in premarket trading after the value-focused beauty company reported its seventh consecutive year of net sales and market share growth, delivered a strong fourth quarter beat and provided a fiscal 2027 outlook that gave investors confidence the growth story remains intact despite significant tariff headwinds.

For the fourth quarter ended March 31, 2026, net sales surged 35% to $449.3 million, driven by growth across both retailer and e-commerce channels in the US and internationally. Gross margin expanded approximately 140 basis points to 73%, with pricing benefits more than offsetting higher tariff costs — a notable achievement given the broader consumer goods sector's struggle with tariff-related margin pressure. Adjusted diluted EPS was $0.32 and adjusted EBITDA was $58.8 million. The GAAP net loss of $49.4 million was driven almost entirely by a $57.6 million fair value adjustment on contingent consideration related to the rhode acquisition earnout — a charge that reflects rhode dramatically outperforming its revenue targets, which is a positive signal rather than a negative one.

For the full fiscal year 2026, net sales grew 25% to $1,636.5 million. Adjusted net income reached $185.9 million and adjusted diluted EPS was $3.13. Adjusted EBITDA grew 13% to $335.2 million, representing 20% of net sales. All five brands grew during the year, with rhode and Naturium cited as particularly strong performers.

The fiscal 2027 outlook was the catalyst for the premarket surge. The company guided for net sales of $1,835 million to $1,865 million, implying 12% to 14% growth, adjusted EBITDA of $379 million to $385 million and adjusted diluted EPS of $3.27 to $3.32. The guidance represents continued deceleration from recent hypergrowth rates but still points to a business compounding at a healthy pace while expanding absolute profitability.

The balance sheet warrants monitoring. Total debt rose to $841.7 million from $256.7 million a year ago, largely reflecting acquisition financing for rhode, while cash grew to $289.7 million.

The 10% premarket gain reflects a market that had been concerned about e.l.f.'s ability to sustain momentum amid tariff pressure and slowing category growth, and found in the results and guidance a credible case that the company's value proposition and brand portfolio expansion continue to resonate with consumers.
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Author
The Investor 05-21-26
e.l.f. Beauty Announces Board Transition: Beth Pritchard Resigns, Chip Bergh Appointed as Director

OAKLAND, Calif. – April 1, 2025 – e.l.f. Beauty, Inc. (NYSE: ELF) today announced that Beth Pritchard, who has served on the company’s Board of Directors since 2017, has resigned from the Board and its committees, effective March 31, 2025. Her resignation follows seven years of service and was not due to any disagreement with the company’s policies or practices. The Board expressed its gratitude for Ms. Pritchard’s valuable contributions.

Simultaneously, the company announced that Charles (“Chip”) Victor Bergh has been appointed to the Board as a Class III director, effective April 1, 2025, with an initial term expiring at the company’s 2025 annual meeting of stockholders.

Mr. Bergh is a Senior Lecturer at Harvard Business School, and formerly served as President and CEO of Levi Strauss & Co. from 2011 to 2024. He brings nearly four decades of global leadership experience, including 28 years at Procter & Gamble. He currently chairs the board of HP, Inc. and serves on the board of Pinterest, Inc.

Mr. Bergh will receive standard compensation for his role as a non-employee director and is expected to enter into the company's standard form of indemnification agreement. There are no related party transactions or arrangements in connection with his appointment.
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