Investing.com -- e.l.f. Beauty Inc ( ELF ) reported second quarter results that significantly exceeded analyst expectations, driving shares up 5% in premarket trading on Thursday as the cosmetics company raised its full-year outlook.
The company posted adjusted earnings per share of $1.21 for the quarter ended September 30, 2026, more than doubling the analyst consensus of $0.57. Revenue surged 51% YoY to $520.8 million, beating the estimate of $469.27 million. The strong performance marked the company's 31st consecutive quarter of net sales growth, driven by strength across both retail and e-commerce channels in the U.S. and internationally.
e.l.f. Beauty raised its fiscal 2027 revenue guidance to $2.00-2.03 billion from a prior range of $1.94-1.97 billion. The midpoint of $2.02 billion exceeds the analyst consensus of $1.98 billion. The company also lifted its adjusted EPS outlook to $3.82-$3.86, with the midpoint of $3.84 exceeding the consensus estimate of $3.63.
"I am proud of the e.l.f. Beauty team for delivering our 31st consecutive quarter of net sales growth, with net sales up 51% driven by strength across our portfolio," said Chairman and CEO Tarang Amin. "With this momentum, we are raising our full-year net sales guidance to 22 to 24%."
Gross margin expanded approximately 160 basis points to 71%, benefiting from lower YoY tariffs and favorable product mix, partially offset by price investments. The company recorded a $17.7 million fair value adjustment related to its rhode acquisition, reflecting the brand's revenue outperformance.
Adjusted EBITDA climbed 86% YoY to $123.4 million, representing 24% of net sales. The company raised its full-year adjusted EBITDA guidance to $421-427 million from $401-407 million previously.
As of September 30, 2026, e.l.f. Beauty held $350.8 million in cash and cash equivalents.
Original Article
e.l.f. Beauty soars on earnings beat and raised guidance
