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1. Company Snapshot

1.a. Company Description

e.l.f. Beauty, Inc., together with its subsidiaries, provides cosmetic and skin care products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare brand names worldwide.The company offers eye, lip, face, face, paw, and skin care products.It sells its products through national and international retailers and direct-to-consumer channels, which include e-commerce platforms in the United States, and internationally primarily through distributors.


The company was formerly known as J.A. Cosmetics Holdings, Inc.and changed its name to e.l.f. Beauty, Inc.in April 2016.


e.l.f. Beauty, Inc.was founded in 2004 and is headquartered in Oakland, California.

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1.b. Last Insights on ELF

Breaking News: e.l.f. Beauty Inc reported recent earnings results that led to a sharp decline in its shares. The company's earnings release appears to have disappointed investors. As of February 9 2026 e.l.f. Beauty stock was falling. Some analysts have weighed in on the stock with varying recommendations one analyst recommends a buy rating while another suggests holding the stock. The earnings report seems to have driven the negative sentiment. Investors are reacting to the news. The company operates in the beauty industry.

1.c. Company Highlights

2. e.l.f. Beauty's Q3 Fiscal 2026 Earnings: A Strong Performance

e.l.f. Beauty reported a robust third-quarter fiscal 2026, with net sales growing 38% year-over-year to reach a significant milestone. The company's adjusted EBITDA increased 79% during the same period, demonstrating its ability to scale and maintain profitability. The actual EPS came in at $0.654, slightly below the estimated $0.73. The e.l.f. Cosmetics brand grew 8% in the U.S., while the recently acquired Rhode brand delivered strong growth, contributing to the overall revenue increase.

Publication Date: Feb -09

📋 Highlights
  • Net Sales & EBITDA Growth:: Q3 FY2026 net sales rose 38% YoY; adjusted EBITDA surged 79% to $232M.
  • Rhode Acquisition Impact:: Rhode contributed $128M in Q3 and is projected to add $260-265M in FY2026 net sales.
  • Guidance Raised:: FY2026 net sales outlook lifted to 22-23% growth, with adjusted EBITDA of $323-326M (20% margin).
  • Global Expansion:: 74% of social followers outside the U.S., with new markets including Australia/New Zealand (Mecca) and Germany (DM).
  • Tariff Mitigation:: Tariff rate reduced to 45% (from 170%), expected to become a tailwind in FY2027 alongside price increases.

Revenue Growth and Brand Performance

The company's namesake e.l.f. Cosmetics brand continued to show resilience, growing 8% in the U.S. market. The Rhode brand, acquired in August, has been a significant contributor to the company's growth story, with $128 million in revenue and 20% of its business coming from outside the U.S. The company's global aspirations are evident, with 74% of its social followers being outside the U.S., indicating a strong potential for international expansion.

Margin Expansion and Operating Performance

Adjusted EBITDA margins expanded significantly, reaching approximately 20%. The company's focus on innovation, marketing, and expanding its global distribution footprint has been a key driver of its operating performance. e.l.f. Beauty's business fundamentals remain strong, with a solid balance sheet and a history of delivering best-in-class growth in the beauty industry.

Guidance and Outlook

The company raised its fiscal 2026 outlook, expecting net sales growth of 22-23% year-over-year. Adjusted EBITDA is expected to be $323-326 million, implying adjusted EBITDA margins of approximately 20%. The guidance implies a strong second half, driven by the company's continued investment in its brands and global expansion.

Valuation and Growth Prospects

With a P/E Ratio of 46.83 and an EV/EBITDA multiple of 23.56, the company's valuation reflects its strong growth prospects. Analysts estimate next year's revenue growth at 17.1%, indicating a continued upward trajectory. The company's ability to innovate and expand its global footprint positions it well for long-term success in the beauty industry.

3. NewsRoom

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e.l.f. Beauty (NYSE:ELF) Trading Down 8.2% After Analyst Downgrade

Feb -10

Source: defenseworld.net

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E.l.f. Beauty Stock Is Sliding Monday: What's Going On?

Feb -09

Source: feeds.benzinga.com

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Prediction: The e.l.f. Sell-Off Is a Golden Opportunity

Feb -08

Source: fool.com

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Gen Z is obsessed with 2016, and beauty stocks like e.l.f. and Ulta are riding the nostalgia wave

Feb -07

Source: marketwatch.com

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e.l.f. Beauty Is Looking Good Again: Reversal in Play

Feb -06

Source: marketbeat.com

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e.l.f. Beauty: A Reasonable Valuation With Upside Potential

Feb -06

Source: seekingalpha.com

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Elf Beauty shares slip as guidance lift falls short of expectations

Feb -05

Source: proactiveinvestors.com

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E.l.f. Delivers Q3 Beat, Lifts Full-Year Outlook, Shares Pull Back

Feb -05

Source: feeds.benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.90%)

6. Segments

Cosmetics and Skin Care Products

Expected Growth: 8.9%

e.l.f. Beauty, Inc.'s 8.9% growth in cosmetics and skin care products is driven by increasing demand for affordable, cruelty-free, and vegan products, particularly among Gen Z and millennials. Strong e-commerce presence, influencer partnerships, and innovative product launches also contribute to the growth.

7. Detailed Products

e.l.f. Cosmetics

A wide range of affordable and cruelty-free cosmetics, including eyeshadows, lipsticks, foundations, and more.

W3LL PEOPLE

A premium, natural, and organic skincare and makeup line that promotes healthy, glowing skin.

BareMinerals

A popular mineral-based cosmetics brand offering a variety of products, including foundation, eyeshadow, and skincare.

Physicians Formula

A dermatologist-recommended brand offering a range of skincare and makeup products, including mineral-based and organic options.

8. e.l.f. Beauty, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

e.l.f. Beauty, Inc. faces moderate threat from substitutes due to the presence of established brands in the beauty and personal care industry. However, the company's focus on affordable and cruelty-free products helps to differentiate it from competitors.

Bargaining Power Of Customers

e.l.f. Beauty, Inc. has a large customer base, but individual customers do not have significant bargaining power due to the company's wide distribution network and affordable pricing strategy.

Bargaining Power Of Suppliers

e.l.f. Beauty, Inc. relies on a diverse supplier base, which reduces the bargaining power of individual suppliers. However, the company may face some pressure from suppliers of critical ingredients or components.

Threat Of New Entrants

The beauty and personal care industry is highly competitive, and new entrants can easily enter the market with innovative products or business models. e.l.f. Beauty, Inc. needs to continuously innovate and adapt to changing consumer preferences to stay competitive.

Intensity Of Rivalry

The beauty and personal care industry is highly competitive, with many established brands and new entrants vying for market share. e.l.f. Beauty, Inc. faces intense rivalry from competitors, which can lead to pricing pressure and advertising wars.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.89%
Debt Cost 3.95%
Equity Weight 84.11%
Equity Cost 11.93%
WACC 10.66%
Leverage 18.89%

11. Quality Control: e.l.f. Beauty, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Inter Parfums

A-Score: 6.0/10

Value: 5.5

Growth: 8.0

Quality: 8.1

Yield: 6.0

Momentum: 1.5

Volatility: 7.0

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Clorox

A-Score: 5.7/10

Value: 6.2

Growth: 3.9

Quality: 7.1

Yield: 7.0

Momentum: 0.5

Volatility: 9.3

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Newell Brands

A-Score: 4.0/10

Value: 8.8

Growth: 1.4

Quality: 2.3

Yield: 9.0

Momentum: 0.0

Volatility: 2.3

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e.l.f. Beauty

A-Score: 3.5/10

Value: 1.6

Growth: 9.6

Quality: 5.7

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

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Coty

A-Score: 2.9/10

Value: 7.3

Growth: 3.1

Quality: 2.8

Yield: 0.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

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Helen of Troy

A-Score: 2.6/10

Value: 7.7

Growth: 3.2

Quality: 2.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.26$

Current Price

73.26$

Potential

-0.00%

Expected Cash-Flows