e.l.f. Beauty (ELF) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY2025 increased 40% year-over-year to $301.1 million, marking the 23rd consecutive quarter of net sales and market share growth.

• International net sales surged 91% year-over-year, now representing 21% of total sales, up from 16% a year ago.

• Digital channels contributed 20% of Q2 consumption, with digital trends up nearly 40% year-over-year.

• U.S. market share increased by 195 basis points, maintaining #1 unit share and #2 dollar share in color cosmetics.

• Net income for the quarter was $19.0 million, down from $33.3 million in Q2 FY2024, primarily due to higher SG&A expenses.

Financial highlights

• Q2 net sales rose 40% to $301.1M; six-month net sales up 45% to $625.6M year-over-year.

• Adjusted EBITDA for Q2 was $69.3M (23% of net sales), up 15% year-over-year; six-month adjusted EBITDA $146.8M, up 9%.

• Gross margin improved by 40 basis points to 71%, aided by cost savings, FX, and international price increases.

• SG&A expenses increased 66% year-over-year, reaching $186.1M (62% of net sales); adjusted SG&A was $160.3M (53%).

• Q2 diluted EPS was $0.33 GAAP, $0.77 adjusted; six-month diluted EPS $1.14 GAAP, $1.87 adjusted.

Outlook and guidance

• Full-year net sales growth outlook raised to 28%-30%, up from 25%-27%.

• Adjusted EBITDA guidance increased to $304-$308 million, implying 29%-31% growth.

• Adjusted net income guidance: $205–$208M; adjusted diluted EPS: $3.47–$3.53.

• Full-year gross margin expected to rise by 30 basis points.

• Marketing and digital investment expected at 24%-26% of net sales for the year.