e.l.f. Beauty (ELF)·Q3 2026 Earnings Summary

e.l.f. Beauty Crushes Q3, Stock Surges 15% as rhode Integration Shines

February 4, 2026 · by Fintool AI Agent

e.l.f. Beauty delivered a blowout Q3 FY2026 quarter, trouncing estimates across all key metrics and raising full-year guidance. Revenue soared 38% year-over-year to $489.5 million, crushing the $461.8 million consensus by 6% . Adjusted EPS of $1.24 obliterated expectations of $0.72 by 72%, while adjusted EBITDA of $123 million (25% margin) beat estimates by 49% . The stock responded with a 15% surge in after-hours trading, jumping from $84.63 to $96.96.

CEO Tarang Amin attributed the results to "the consistent, category-leading growth we've delivered over the past 28 quarters," highlighting 130 basis points of market share gains for the namesake e.l.f. Cosmetics brand and a "record-breaking launch" of rhode in Sephora U.K. .

Did e.l.f. Beauty Beat Earnings?

A resounding yes. e.l.f. delivered a triple beat across revenue, EPS, and EBITDA—one of the strongest earnings surprises in the consumer discretionary space this quarter.

*Consensus estimates from S&P Global.

The 38% revenue growth represents a significant acceleration from Q2's 14% and Q1's 9% growth, signaling the rhode acquisition is delivering ahead of expectations . Gross margin held steady at 71%, down just 30 basis points year-over-year despite tariff headwinds, as pricing actions and favorable mix offset higher duties .

What Did Management Guide?

e.l.f. meaningfully raised its FY2026 outlook across all key metrics, reflecting confidence in continued momentum:

The new guidance midpoint of $1.606B compares to street consensus of $1.57B*—implying ~2.3% upside to current estimates. Management's confidence is underpinned by the rhode integration success and continued market share gains .

2H FY26 Specific Outlook:

The 2H organic outlook of +2% reflects +6% expected global consumption offset by a -4% pipeline headwind from cycling space expansion in the prior year .

How Did the Stock React?

ELF shares closed the regular session at $84.63 (essentially flat) but exploded 14.6% higher in after-hours trading to $96.96—adding nearly $750 million to market cap.

The stock remains 36% below its 52-week high of $150.99, suggesting significant room for recovery if execution continues. The after-hours move represents one of the largest post-earnings reactions in e.l.f.'s history.

What Changed From Last Quarter?

The Q3 results marked a dramatic acceleration from Q2, which saw margin compression and integration noise from the rhode acquisition:

Key changes driving the improvement:

1. rhode Contribution: The brand's first full quarter contributed meaningfully to revenue, with the Sephora U.K. launch described as "record-breaking"

2. Market Share Momentum: 130 basis points of share gains in U.S. cosmetics demonstrates the core e.l.f. brand remains healthy

3. SG&A Leverage: Despite higher marketing spend, operating leverage improved as revenue accelerated faster than expenses

4. Tariff Mitigation: Prior pricing actions and supply chain diversification limited gross margin erosion to just 30 bps despite elevated tariff costs

How Much Did rhode Contribute?

The earnings slide deck provides the first detailed breakdown of rhode's contribution since the August 2025 acquisition:

The organic vs. inorganic split tells an important story:

The +2% organic growth vs +38% total reveals that rhode is carrying most of the growth. For 2H FY26, management expects +6% global consumption growth offset by a -4% pipeline headwind, resulting in +2% organic growth . This is notable because it shows the core e.l.f. business is seeing flat volume—growth is coming from price/mix and the acquisition.

Geographic Growth:

• U.S. net sales: +36% YoY
• International net sales: +44% YoY

International remains a significant white space opportunity—e.l.f. has just 20% international sales penetration vs 70% for global beauty peers .

Market Share Deep Dive

e.l.f. Cosmetics continues to dominate mass color cosmetics, growing from 5% share in 2020 to 13% in 2025 :

Consumption Outperformance:

• e.l.f. Cosmetics: +8% vs Mass Cosmetics category +4%
• e.l.f. SKIN: +16% vs Mass Skin Care category +7%

The company captured 4 of the top 10 new products in color cosmetics for the latest 52 weeks , demonstrating continued innovation leadership.

Key Takeaways

Bull Case Strengthened:

• 28 consecutive quarters of market share gains demonstrates brand durability
• rhode acquisition delivering ahead of plan with "record-breaking" U.K. launch
• Guidance raise implies continued momentum through fiscal year end
• Value proposition (avg. price ~$6.50 vs $20+ prestige) increasingly resonant in macro uncertainty

Risks to Monitor:

• Gross margin pressure from tariffs partially offset by pricing (71% vs 71.3% prior year)
• Long-term debt increased to $817M from $154M a year ago due to rhode financing
• Stock still trading at a significant discount to 52-week highs—market needs to see continued execution

Balance Sheet:

• Cash: $196.8M (up from $73.8M YoY)
• Long-term debt: $816.7M
• Net debt/EBITDA: Manageable given strong cash flow generation

Historical Beat/Miss Trend

e.l.f. has consistently beaten earnings estimates, with Q3 FY26 representing one of the largest EPS surprises in company history:

*Values retrieved from S&P Global.

The consistent beat pattern, combined with management credibility on guidance (now raised for the second consecutive quarter), suggests estimates may still be conservative.

Q&A Highlights: What Management Said

On UK Market Challenges: CEO Tarang Amin addressed softness in the UK: "We have seen the UK have a higher promotional environment than has been normal... A number of our competitors have announced they typically take pricing in the spring, so we'll see how that pricing plays out in terms of how that helps our overall value proposition" .

On Consumption Trends: CFO Mandy Fields explained the guidance math: "We were seeing that consumption rate closer to 8%, when we came out with our guidance in November and have since seen that come to around 6%. So I would say that would be the key change, as we look at the organic business overall" .

On Tariffs: CFO Fields provided an update: "The tariff rate is now at 45%. As you know, it had been as high as 170% earlier in the fiscal year... And if it remains at 45%, that becomes a little bit of a tailwind for us as we get into fiscal 2027" .

On Rhode Expansion Strategy: CEO Amin on international pacing: "It's really the quality of execution that we've had. Sephora North America, the biggest launch ever, number one position there. Sephora UK, 5x bigger than the next biggest launch... Only 20% of our DTC sales are outside the U.S., yet 74% of our social followers are outside the U.S." .

On Spring Innovation: CEO Amin highlighted key launches: "Our Slipstick at $10 versus a prestige item at $48. I look at our Soft Glam Satin Concealer at a jaw-dropping price of $5 versus a prestige item at $32" .

Marketing Activations: What's Driving Buzz

e.l.f. continues to punch above its weight with viral marketing campaigns that generate billions of impressions:

Super Bowl Activation: e.l.f. is debuting a commercial at the "big game" on Peacock this Sunday, with a total estimated campaign reach of nearly 300 million across 8 additional weeks of airtime .

Liquid Death Collaboration: The sequel to their 2024 Corpse Paint collection—"Lip Imbalm" in six Liquid Death flavors—drove phenomenal engagement:

• Lip Crypt Vault sold out in 19 minutes
• Over 4 billion earned impressions
• Date with Death stunt generated over 10 million views
• 25 million+ attempts at the Liquid Death obstacle course in e.l.f.'s Roblox experience

H&M Fragrance Collaboration: A first-of-its-kind partnership marking multiple firsts:

• e.l.f.'s first global collaboration (27 countries)
• e.l.f.'s first fragrance launch
• H&M's first partnership with another beauty brand
• Activation includes outreach to H&M's 150 million loyalty members globally

International Expansion Updates

Rhode:

• Launching in Australia and New Zealand with Mecca in February 2026
• 74% of Rhode's social followers are outside the U.S., signaling pent-up global demand

e.l.f. Cosmetics:

• DM Germany launch coming in spring 2026, joining Rossmann and Amazon to cover "the majority of German consumers"
• Ulta Beauty space expansion in the U.S.

Naturium:

• Launching at Walmart for the first time this spring (subset of U.S. stores)
• Already expanded to Ulta, Shoppers Drug Mart (Canada), Boots (UK), and Sephora (Australia/NZ) since acquisition

Looking Ahead

Key Catalysts:

• Super Bowl ad debut (February 9, 2026) with 8-week follow-on campaign reaching ~300M
• Rhode Mecca launch in Australia/NZ in February 2026
• Spring innovation rollout with Slipstick and Soft Glam Satin Concealer
• Q4 FY26 earnings (expected May 2026) will show full rhode integration
• rhode earnout potential of up to $200M if brand outperforms

What to Watch:

• Gross margin trajectory—tariffs now at 45% (down from 170% earlier in FY26), could be FY27 tailwind
• U.S. market share trends for core e.l.f. brand (consumption slowed to 6% from 8% in November)
• rhode execution toward $260-265M FY26 target (currently at +70% annualized growth)
• UK market recovery—management cited "higher promotional environment" as headwind
• Spring innovation traction (Slipstick, Soft Glam Satin Concealer) expected to show in March data

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For the full 8-K filing, see e.l.f. Beauty Q3 FY2026 8-K. For company research, visit e.l.f. Beauty Research.