e.l.f. Beauty, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $489.5 million for the three months ended December 31, 2025, a 38% increase from $355.3 million in the same period last year. The company's gross profit also rose to $347.5 million, up 37% from $253.3 million, while net income surged to $39.4 million, compared to $17.3 million in the prior year. This growth was largely attributed to the acquisition of rhode, which contributed $128.2 million to sales, alongside a 101% increase in e-commerce sales and a 23% rise in retail sales.
In terms of operational changes, e.l.f. Beauty completed the acquisition of rhode on August 5, 2025, for a total consideration of $897.5 million, which included cash, equity, and potential earnouts. This acquisition is expected to enhance the company's market position in the skincare segment. Additionally, e.l.f. Beauty acquired Naturium in October 2023 for $333 million, further expanding its portfolio. The company has also been actively managing its debt, with total liabilities increasing to $1.16 billion as of December 31, 2025, primarily due to the financing of these acquisitions.
The company reported a total of 59.1 million shares outstanding as of January 29, 2026, reflecting a slight decrease from previous periods due to share repurchase activities. e.l.f. Beauty has been actively repurchasing shares under its $500 million share repurchase program, with $400 million remaining available as of the end of December 2025. The company’s cash and cash equivalents stood at $196.8 million, alongside a borrowing capacity of $243.3 million under its revolving credit facility, indicating a solid liquidity position to support ongoing operations and strategic initiatives.
Looking ahead, e.l.f. Beauty anticipates continued growth driven by its strategic acquisitions and expansion into new markets. However, the company also faces challenges, including potential impacts from tariffs on imported goods, particularly as a significant portion of its products are sourced from China. The management has indicated that they are actively monitoring these risks and adjusting their strategies accordingly, including potential price increases to mitigate tariff impacts. The company remains focused on innovation and expanding its product offerings to maintain its competitive edge in the beauty industry.
Overall, e.l.f. Beauty's recent financial performance and strategic developments position it well for future growth, although it must navigate various market and operational challenges to sustain its momentum.
About e.l.f. Beauty, Inc.
e.l.f. Beauty, Inc. is a multi-brand beauty company offering inclusive, cruelty-free, vegan cosmetics and skincare products. Its core brands—e.l.f. Cosmetics, e.l.f. SKIN, Naturium, Well People, and Keys Soulcare—serve global markets through retail and e-commerce channels. The company emphasizes innovation, affordability, and sustainability, leveraging digital marketing and direct-to-consumer sales to disrupt industry norms and connect with diverse, value-conscious consumers.
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