e.l.f. Beauty, Inc. (NYSE: ELF) Q4 2025 Earnings Call | 5/29/2025

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e.l.f. Beauty concluded Fiscal Year 2025 with impressive growth, reporting a 28% increase in net sales and a 26% rise in adjusted EBITDA, marking its 25th consecutive quarter of growth. The company continued to gain market share across key geographies, increasing its U.S. mass cosmetics share by 190 basis points (bps), Canada by 170 bps, and the U.K. by 270 bps. In Q4 alone, net sales grew 4% on top of a strong 71% growth in Q4 2024, with gross margin expanding by 50 bps to reach 71%. International markets surged, with FY25 sales up 60%, now comprising approximately 20% of total revenue. Amid rising tariff pressures—potentially amounting to a $50 million annualized impact if 55% tariffs persist—e.l.f. outlined clear mitigation strategies. These include a global $1 price increase across products effective August 1, continued supply chain diversification (reducing reliance on China from 100% in 2019 to 75% today), and leveraging growth in non-tariff markets such as the Netherlands, Poland, and Mexico. In a major strategic move, e.l.f. announced the acquisition of RODE for $1 billion, comprising $800 million upfront and a $200 million earnout. RODE, a high-performing premium skincare brand, achieved $212 million in direct-to-consumer sales within just three years, with only 10 SKUs. Plans are in place for an expansive Sephora launch across the U.S., Canada, and the U.K. in late 2025. The acquisition is expected to be accretive to sales, EBITDA margins, and EPS, with synergies driven by e.l.f.’s retail, marketing, and global capabilities. While e.l.f. did not issue FY26 guidance due to tariff uncertainty, management emphasized strong Q1 trends and reiterated focus on gaining market share, integrating RODE, and expanding internationally. With this momentum, e.l.f. Beauty continues to disrupt the beauty space through innovation, strategic acquisitions, and a steadfast commitment to accessible, high-quality products.

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e.l.f. Beauty, Inc. (NYSE: ELF) delivered another standout quarter in Q4 2025, reporting net sales of $332.6 million—up 4% year-over-year and ahead of expectations. Adjusted earnings per share soared 47% to $0.78, significantly outpacing analyst forecasts. For the full fiscal year, e.l.f. achieved industry-leading net sales growth of 28% and adjusted EBITDA growth of 26%, marking its 25th consecutive quarter of both net sales and market share gains. The brand continues to dominate among Gen Z and Millennials, ranking as the #1 teen favorite for the seventh straight season and expanding its presence internationally. Profitability remained strong, with Q4 gross margin rising to 71% and adjusted EBITDA for the quarter nearly doubling year-over-year. The company ended fiscal 2025 with $149 million in cash and robust free cash flow, reflecting disciplined execution and a resilient business model. A major highlight of the quarter was the announcement of e.l.f.’s acquisition of Rhode, a high-profile beauty brand, signaling further expansion and innovation. However, management withheld fiscal 2026 guidance due to significant tariff uncertainty, as roughly 75% of e.l.f.’s products are sourced from China and are now subject to a combined 55% tariff rate. The company estimates that if the incremental tariffs remain in place, it could impact annual costs by up to $50 million. Despite these headwinds, e.l.f. remains focused on driving share gains, expanding globally, and investing in high-ROI marketing and innovation. The company’s balance sheet and operational flexibility position it well to navigate near-term challenges and pursue long-term growth. About Inside Ticker: For more expert analysis and real-time updates on e.l.f. Beauty, Inc. (NYSE: ELF) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #ELFBeauty #ELF #EarningsCall #Q42025 #Rhode #BeautyStocks #MarketShare #Cosmetics #StockMarket #Investing #InsideTicker

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