e.l.f. Beauty delivered a quarter that surpassed Wall Street’s expectations, with management citing broad-based growth across its portfolio and geographies. CEO Tarang Amin attributed the performance to a combination of innovation in core cosmetics, expansion into categories like haircare and fragrance, and notable international momentum, particularly from the rhode brand’s launch in Sephora Europe. Amin highlighted, “Our consistent category-leading growth is a testament to the strength of our team, strategy, and portfolio of brands.”
Is now the time to buy ELF? Find out in our full research report (it’s free for active Edge members).
e.l.f. Beauty (ELF) Q3 CY2026 highlights:
- Revenue $520.8 million vs S&P analysts’ estimates of $475.3 million (51.4% year-on-year growth, 9.6% beat)
- Adjusted EPS $1.21 vs S&P analysts’ estimates of $0.60 (significant beat)
- Adjusted EBITDA $123.4 million vs analyst estimates of $76.8 million (23.7% margin, 60.6% beat)
- Revenue guidance The company lifted its revenue guidance for the full year to $2.02 billion at the midpoint from $1.95 billion, a 3.2% increase
- Adjusted EPS guidance Management raised its full-year adjusted EPS guidance to $3.84 at the midpoint, a 8.9% increase
- EBITDA guidance $424 million at the midpoint for the full year, above analyst estimates of $408.6 million
- Operating margin 10.1%, up from 2.2% in the same quarter last year
- Market capitalization $6.49 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from e.l.f. Beauty’s Q3 earnings call
- Sydney Wagner (Jefferies) asked how category expansion into hair, body, and fragrance could drive incremental shelf space and what constraints might limit broader rollouts. CEO Tarang Amin explained the company’s disciplined, consumer-driven approach and focus on measured investment by brand.
- Andrea Teixeira (JPMorgan) inquired about growth sustainability for e.l.f. and rhode given tougher comparisons, particularly in the U.S. CFO Mandy Fields noted all brands continue to grow above category averages, with strength expected to persist despite cycling major launches.
- Olivia Tong (Raymond James) questioned the pace and impact of rhode’s international expansion, especially in Europe. Amin cited record-breaking launches and high repeat rates, with further global distribution still ahead for the brand.
- Anna Lizzul (Bank of America) probed the evolving split between retail and direct-to-consumer sales for rhode, and the effects on margins. Fields acknowledged some gross margin compression with retail expansion, but maintained strong EBITDA margins through careful pricing and marketing investments.
- Jon Andersen (William Blair) asked what drove improved international performance in key markets like the U.K. and Germany. Amin attributed gains to targeted marketing, strong retailer partnerships, and increased retail and digital presence.
Catalysts in upcoming quarters
In the coming quarters, our team will be monitoring (1) the sustained performance of rhode and e.l.f. Hair as distribution expands, (2) the effectiveness of marketing reinvestment and pricing actions in supporting unit growth and customer acquisition, and (3) the pace of international expansion, with particular focus on new market launches and retail partnerships. Execution on new product introductions and brand diversification will also be key measures of ongoing momentum.
e.l.f. Beauty currently trades at $108.54, down from $113.63 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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