e.l.f. Beauty Reports 28% Revenue Growth to $1.31 Billion in Fiscal Year 2025

e.l.f. Beauty, Inc. reported significant financial growth in its fiscal year ending March 31, 2025, with net sales reaching $1.31 billion, a 28% increase from $1.02 billion in the previous year. The company's gross profit also rose to $935.7 million, reflecting a gross margin of 71.2%, up from 71% in the prior year. This growth was primarily driven by increased sales across both retail and e-commerce channels, with retail sales up 26% and e-commerce sales up 42%. The company attributed the revenue increase to a higher volume of units sold, which accounted for $246.1 million of the sales growth, alongside a favorable product mix.

In comparison to the previous fiscal year, e.l.f. Beauty's selling, general, and administrative (SG&A) expenses increased by 35% to $777.7 million, representing 59% of net sales. This rise was largely due to increased marketing and digital spending, as well as higher personnel-related costs. The company's operating income for the year was $158 million, slightly up from $149.7 million in the prior year. However, net income decreased to $112.1 million from $127.7 million, influenced by a higher income tax provision and increased interest expenses.

Strategically, e.l.f. Beauty has made significant moves to expand its market presence, including the acquisition of Naturium for $333 million in October 2023 and a definitive agreement to acquire rhode, a lifestyle beauty brand founded by Hailey Bieber, for $800 million. This acquisition is expected to close in the second quarter of fiscal 2026 and is anticipated to enhance e.l.f.'s product offerings and market reach. The company is also focused on maintaining strong relationships with key retail partners, including Target, Walmart, and Ulta Beauty, which collectively accounted for a significant portion of its net sales.

Operationally, e.l.f. Beauty reported a workforce of 633 employees as of March 31, 2025, and emphasized its commitment to diversity and employee engagement, achieving a 90% engagement score. The company continues to leverage its digital-first approach, with 17% of net sales coming from e-commerce channels. The U.S. market remains the primary source of revenue, accounting for 81% of total sales, while international markets contributed 19%.

Looking ahead, e.l.f. Beauty anticipates continued growth driven by its innovative product offerings and strategic acquisitions. 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 evolving regulatory landscape and competitive pressures in the beauty industry are additional factors that could influence future performance. The company remains focused on enhancing its operational efficiencies and expanding its market share while navigating these challenges.