e.l.f. Beauty Raises 2027 Forecast After Sales Jump 51 Percent

Strong demand across cosmetics and skincare products helped e.l.f. Beauty deliver a 51 percent revenue increase in the three months ended September 30, 2026. The US-based beauty company reported $520.8 million in net sales, surpassed Wall Street expectations, and raised its full-year financial projections following growth across domestic and international markets.

According to CNBC, quarterly revenue exceeded the $470.3 million analysts had expected in an LSEG survey. Adjusted earnings per share reached $1.21, more than double the consensus estimate of 60 cents.

The company recorded net income of $30.03 million, equivalent to 50 cents per share, compared with approximately $3 million, or 5 cents per share, during the corresponding period a year earlier. Adjusted net income reached $72.7 million, up from $40.7 million, according to Yahoo Finance.

Chief Executive Officer Tarang Amin attributed the performance to contributions from multiple brands and sales channels.

"The thing I'm most pleased about is we saw strength across our entire portfolio. Every one of our brands contributed strong growth this quarter." Amin told CNBC.

The company also recorded its 31st consecutive quarter of net sales growth. Its performance benefited from retail and e-commerce operations in the United States and international markets.

In another statement, Amin highlighted the company's position on TikTok Shop, where e.l.f. is the most-searched brand and ranks second in cosmetics. He also described the company's outlook for the holiday shopping season as "very bullish."

International operations emerged as a particularly strong growth driver, with sales increasing 165 percent during the quarter. Amin said overseas markets represent a significant expansion opportunity.

"We have a tremendous opportunity" Amin told CNBC, referring to international expansion. He noted that markets outside the United States currently account for only 25 percent of the company's business, compared with 70 percent for its industry peers.

Amin also highlighted the company's pricing strategy following tariff refunds.

"We're seeing great unit momentum based on that," Amin said, referring to lower product prices funded partly by tariff benefits.

According to CNBC, e.l.f. reduced prices by $1 on approximately 10 percent of its units. The company expects total tariff refunds of around $55 million for the year and reported a 1.6 percent increase in gross margin, including a 0.3 percent contribution from tariff refunds.

Rhode, the skincare brand acquired by e.l.f. Beauty in 2025, also contributed to the company's expansion. Its European launch through Sephora covered 19 countries, marking the retailer's largest launch in its history, according to Yahoo Finance.

Amin described the international rollout and brand performance in greater detail during the company's earnings discussion.

"We reignited unit movement on E.l.f., building 30 basis points of market share. Rhode continues its phenomenal momentum. We launched Rhode in Sephora Europe, into 19 countries — the biggest launch Sephora has ever seen.

The only launch that even came close to that was our Rhode launch into Sephora North America. It's the first time they saw Sephora Europe actually beat Sephora North America, which shows the momentum on that brand. And Naturium remains one of the fastest-growing brands in skin care."

Amin said.

He also pointed to international consumer engagement as evidence of demand beyond the US market.

"We've often talked about the white space we have internationally. Only 25 percent of our business is outside the U.S. versus 70 percent for our peers and we know there's pent-up demand for our brands. 65 percent of E.l.f. social feed is consumed outside the U.S., 75 percent of Rhode's social feed is consumed outside the U.S., and we definitely saw that. Not only was Rhode the biggest launch Sephora ever had in their history, but we also launched E.l.f. into Sephora Brazil.

We're the number-one brand in Sephora Brazil on both dollars and units, which builds on our number-one position in Sephora Mexico. Naturium continues its expansion into Sephora Canada and Mexico, so we have really great momentum across the board." Amin said.

Following the results, e.l.f. raised its annual net sales forecast to between $2 billion and $2.03 billion, compared with its previous projection of $1.94 billion to $1.97 billion. Adjusted EBITDA guidance also increased to $421 million to $427 million from $401 million to $407 million.

The company now expects adjusted earnings per share of $3.82 to $3.86, compared with its earlier estimate of $3.50 to $3.55. Its adjusted net income projection stands at $231 million to $233 million, up from $212 million to $215 million.

Separately, Simply Wall St examined the company's valuation following its acquisition of Naturium in 2023. Its analysis estimated trailing 12-month free cash flow at approximately $276 million and compared projected cash flows through 2036 with the company's market valuation.

The analysis referenced a share price of $111.69 and a five-year share price return of 260.8 percent. Its bullish scenario highlighted expansion into skincare, haircare, and additional consumer categories.

However, its bearish scenario raised concerns about marketing expenses, which were estimated at 23 percent to 25 percent of net sales, alongside selling, general and administrative expenses reaching 54 percent of revenue. The analysis identified potential pressure on operating leverage and EBITDA margins as risks to future financial performance.