e.l.f. Beauty Q2 Sales Surge 51% to $520.8 Million; Raises Fiscal 2027 Outlook
e.l.f. Beauty extended its growth streak with another 50%-plus sales quarter and lifted its full-year outlook across sales, EBITDA and adjusted EPS.
Oakland-based e.l.f. Beauty reported net sales of $520.8 million for the three months ended Sept. 30, 2026, up 51% from $343.9 million a year earlier, according to its earnings release filed with an 8-K Wednesday. GAAP net income was $30.0 million, or $0.50 per diluted share. Adjusted net income was $72.7 million. Adjusted EBITDA was $123.4 million, or 24% of net sales, up 86% year over year.
Gross margin rose 160 basis points to 71%, including 30 basis points of benefit from incremental IEEPA tariff refunds in cost of sales, with the rest from lower year-over-year tariffs and mix, partly offset by price investments, the company said. SG&A rose to $300.1 million from a year earlier as marketing, merchandising, distribution and compensation costs increased.
Six-month view and guidance
For the first six months of fiscal 2027, net sales were $1.000 billion, up 43%. GAAP diluted EPS was $1.61; adjusted diluted EPS was $2.96. Adjusted EBITDA was $291.6 million, or 29% of sales.
Chairman and CEO Tarang Amin said the quarter was the company’s 31st consecutive period of net sales growth and that the company is raising full-year net sales guidance growth to 22% to 24%. Updated fiscal 2027 outlook calls for net sales of $2.003 billion to $2.029 billion, Adjusted EBITDA of $421 million to $427 million, adjusted net income of $231 million to $233 million, and adjusted diluted EPS of $3.82 to $3.86.
Why it matters
e.l.f.’s print is a rare consumer beauty growth outlier: 51% sales growth, expanding gross margin and a higher full-year guide. Retail investors tracking category share shifts will focus on whether retailer and e-commerce strength can sustain mid-20s full-year growth after such a strong first half.
By the numbers
- Q2 net sales: $520.8 million, up 51%
- GAAP diluted EPS: $0.50
- Adjusted EBITDA: $123.4 million (24% of sales)
- Gross margin: 71%
- FY2027 net sales guide: $2.003 billion to $2.029 billion
- FY2027 adjusted EPS guide: $3.82 to $3.86
Sources
- e.l.f. Beauty Form 8-K with fiscal 2027 second-quarter results, filed Nov. 4, 2026 (accession 0001600033-26-000048)
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