e.l.f. Beauty (ELF) Q1 2025 earnings summary

Executive summary

• Net sales grew 50% year-over-year to $324.5 million in Q1 FY25, marking the 22nd consecutive quarter of sales and market share gains, with broad-based growth across color cosmetics, skincare, and international markets.

• Gross margin increased by 80 basis points to 71%, aided by favorable FX, lower transportation costs, and price/mix.

• Adjusted EBITDA reached $77.4 million, or 24% of net sales, up 4% year-over-year.

• International net sales surged 91% year-over-year, now representing 16% of total sales, and digital consumption grew over 40%.

• Beauty Squad loyalty program membership exceeded 5 million, up 30% from the prior year.

Financial highlights

• Net sales: $324.5 million, up 50% year-over-year; retailer channel up 43%, e-commerce up 105%.

• Gross profit: $231.3 million, up 52% year-over-year; gross margin at 71%.

• Adjusted net income was $64.3 million or $1.10 per diluted share, flat year-over-year; GAAP net income was $47.6 million.

• SG&A expenses rose to $180.6 million (56% of sales); adjusted SG&A was $164.4 million (51% of sales).

• Cash on hand at quarter-end was $109 million; inventory stood at $200 million, reflecting strong demand and Naturium inclusion.

Outlook and guidance

• Fiscal 2025 net sales expected to increase 25–27% year-over-year to $1,280–1,300 million, up from prior guidance of 20–22%.

• Adjusted EBITDA forecasted at $297–301 million; adjusted net income at $198–201 million; adjusted diluted EPS projected at $3.36–3.41.

• Q2 net sales growth expected to be slightly above annual outlook; gross margin to be flat year-over-year in Q2.

• Adjusted EBITDA margin expected to expand by 20 basis points for the full year.

• Marketing and digital investment to remain elevated at 24–26% of net sales.