e.l.f. Beauty delivered a quarter that exceeded Wall Street’s expectations, with management crediting the company’s strong performance to the integration of high-growth brands and continued innovation. CEO Tarang Amin emphasized that the Rhode acquisition was a major contributor to growth, particularly with successful launches across new markets and channels. Amin noted, “Rhode delivered an outstanding quarter achieving the number one brand ranking in Sephora North America,” highlighting the impact of new product launches and disruptive marketing campaigns. The team also pointed to share gains in core categories and the effectiveness of their value proposition in a competitive market.
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e.l.f. Beauty (ELF) Q4 CY2025 Highlights:
- Revenue: $489.5 million vs analyst estimates of $460.1 million (37.8% year-on-year growth, 6.4% beat)
- Adjusted EPS: $1.24 vs analyst estimates of $0.72 (71.4% beat)
- Adjusted EBITDA: $123 million vs analyst estimates of $82.65 million (25.1% margin, 48.9% beat)
- The company lifted its revenue guidance for the full year to $1.61 billion at the midpoint from $1.56 billion, a 2.9% increase
- Management raised its full-year Adjusted EPS guidance to $3.08 at the midpoint, a 8.8% increase
- EBITDA guidance for the full year is $324.5 million at the midpoint, above analyst estimates of $306.9 million
- Operating Margin: 13.8%, up from 9.9% in the same quarter last year
- Market Capitalization: $4.33 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are 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 Q4 Earnings Call
- Olivia Tong (Raymond James) asked about the EBITDA margin outlook and Rhode’s expansion pace. CFO Mandy Fields clarified that marketing and infrastructure investments were driving lower margins in the near term, while CEO Tarang Amin emphasized focusing on disciplined and high-quality Rhode launches rather than rapid expansion.
- Dara Mohsenian (Morgan Stanley) questioned the impact of recent price increases and the robustness of the spring innovation pipeline. Amin responded that consumers have largely accepted the 15% price increase, with only single-digit unit declines, and expects innovation to remain a key growth driver.
- Andrea Teixeira (JPMorgan) probed the company’s strategy for innovation in underpenetrated segments like lip and mascara. Amin outlined a dual approach of defending leadership in stronghold categories while targeting gains in segments where e.l.f. has lower share, highlighting upcoming launches.
- Peter Grom (UBS) sought clarity on Rhode’s domestic versus international contribution and the assumptions behind the 6% global consumption outlook. Fields explained that Rhode’s international sales are about 20% of its total, and that the 6% figure reflects company-wide trends, offset by pipeline headwinds.
- Anna Lizzul (Bank of America) asked about the rationale for the increased marketing spend in the second half and the decision to return to Super Bowl advertising. Fields explained that timing shifts and a broader marketing calendar drove higher second-half spend, with the Super Bowl ad part of a long-tail campaign for increased reach.
Catalysts in Upcoming Quarters
Looking ahead, our team will be monitoring (1) the rollout and performance of new e.l.f. and Rhode products across expanded international channels, (2) the effectiveness of increased marketing spend and large-scale campaigns in driving consumer engagement, and (3) the company’s ability to maintain or improve operating margins despite ongoing tariff and investment pressures. Execution on innovation and global retail partnerships will also be important milestones for tracking sustained momentum.
e.l.f. Beauty currently trades at $73.55, down from $84.63 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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