e.l.f. Beauty (ELF) Q4 2025 earnings summary

Executive summary

• Net sales grew 28% in fiscal 2025, with 25 consecutive quarters of net sales and market share growth across major geographies.

• Achieved significant market share gains in the U.S., Canada, and U.K., and expanded international presence, including major launches in Germany, Netherlands, Italy, and Mexico.

• Announced acquisition of rhode, a fast-growing DTC beauty brand, for up to $1 billion, expected to be accretive to growth and earnings.

Financial highlights

• Q4 net sales rose 4% year-over-year to $332.6M; full-year net sales reached $1.31B, up 28%.

• Q4 gross margin reached 71%, up 50 basis points year-over-year; full-year gross margin also 71%.

• Q4 adjusted EBITDA was $81.4M, up 99% year-over-year; full-year adjusted EBITDA $296.8M, up 26%.

• Q4 adjusted net income was $45.2M ($0.78 per diluted share); full-year adjusted net income $197.6M.

• Fiscal 2025 free cash flow was $115M, up from $62M last year; ended year with $149M in cash.

Outlook and guidance

• No fiscal 2026 outlook provided due to tariff uncertainty; Q1 trends are positive, with continued market share gains and strong consumption.

• Price increases of $1 per SKU globally effective August 1 to partially offset tariff impact; further mitigation through supply chain optimization and business diversification.

• Marketing and digital spend to remain at 24%-26% of net sales in fiscal 2026.