e.l.f. Beauty, Inc. (ELF)

Price$108.28Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong growth is offset by demanding profit assumptions.

At the observed market value, the stock is roughly 30 times management’s fiscal 2027 adjusted earnings guidance and about 22 times trailing twelve-month free cash flow, meaning cash left after running and investing in the business. Company value including net debt is about 17 times guided adjusted EBITDA, a profit measure before interest, taxes, depreciation and amortization. Those are not bargain multiples, but they are defensible if 18–20% sales growth continues and rhode scales well. With leverage elevated and some recent margin benefit temporary, the evidence supports Fair-priced rather than either extreme.

Big pictureSales and cash generation are rising fast, but reported earnings have been much less steady.

Fiscal 2026 revenue rose 25% to about $1.64 billion, while operating cash flow reached $212.5 million and capital spending was only $22.4 million, leaving about $190 million of free cash flow. The latest quarter improved further, with revenue up 36% and operating cash flow of $111.7 million. Yet fiscal 2026 net income fell to $26.3 million, and the March quarter posted a loss. Cash conversion is encouraging, but earnings remain sensitive to acquisition charges, marketing intensity, tariffs and seasonal sales patterns.

Business strengthThe brands are growing strongly, but the rhode purchase made the balance sheet meaningfully riskier.

By June 2026, cash was about $344 million against roughly $929 million of debt, leaving about $585 million of net debt. Goodwill had climbed to about $853 million, reflecting the acquisition-heavy strategy. The company paid $600 million of cash and issued stock for rhode, then borrowed heavily to fund the deal. Shares outstanding rose from about 51.6 million in fiscal 2021 to 58.9 million by June 2026. Buybacks resumed, but fiscal 2026 stock compensation of $86.9 million exceeded the $50.0 million spent repurchasing shares.

What could change the storyThe valuation works if rhode keeps scaling and stronger growth turns into durable cash flow.

The bull case is concrete: management raised fiscal 2027 sales growth guidance to 18–20%, rhode is expanding through Sephora, and the company has now posted 30 straight quarters of sales growth. The bear case is that current profitability overstates normal economics: the latest quarter’s gross margin received about 10.5 percentage points of benefit from tariff refunds, while debt remains high. Reaching roughly $1.94–$1.97 billion of sales and $401–$407 million of adjusted operating cash profit while reducing debt would strengthen the thesis; weaker growth or stalled deleveraging would weaken it.

AI: News

Growth outlook raisedA strong first quarter pushed management to raise its full-year sales and profit expectations.

On August 5, e.l.f. reported quarterly sales of $479.4 million, up 36%, and doubled reported net income to $66.6 million. Management raised fiscal 2027 sales growth guidance to 18–20% from 12–14% and lifted adjusted earnings guidance to $3.50–$3.55 per share. The next regular session closed about 6.9% higher, consistent with a favorable reaction, although timing alone cannot prove the earnings report caused the move. The upgrade matters because the valuation now depends heavily on this faster growth path.

rhode expands across Europerhode’s Sephora rollout broadens distribution across Europe and gives the acquisition another growth path.

On August 31, rhode said it would launch online and in most Sephora stores across 19 new European countries on September 30. The announcement extends the brand beyond its existing U.S., Canadian and U.K. retail footprint. StockStory reported that e.l.f. shares rose about 4.9% during the session after the announcement; that timing is suggestive, not proof of causation. The business impact is clearer: wider retail access can increase rhode sales, spread brand awareness and help justify the debt and goodwill created by the acquisition.

Cautious annual outlookMay guidance showed that fast sales growth could still be constrained by costs and external shocks.

On May 20, e.l.f. forecast fiscal 2027 sales below the then-current Wall Street average and warned of a possible $15–$20 million hit tied to higher oil prices from the Iran conflict. The company also highlighted tariff refunds after prior duties were overturned. Reuters reported shares rose about 6% after hours despite the cautious outlook. This event matters because it showed both sides of the thesis: resilient demand for affordable beauty, but meaningful sensitivity to freight, tariffs and other cost swings.

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2018	2017	2016	2015	2014
Revenue	$1.64B	$1.31B	$1.02B	$578.8M	$392.2M	$318.1M	$282.9M	$267.4M	$269.9M	$229.6M	$191.4M	$135.1M
Gross profit	$1.16B	$935.7M	$724.1M	$390.4M	$251.7M	$206.2M	$181.1M	$162.7M	$164.7M	$132.2M	$100.3M	$61.5M
Gross margin	70.72%	71.24%	70.72%	67.44%	64.19%	64.82%	64.03%	60.85%	61.03%	57.60%	52.41%	45.47%
Operating expenses	$1.08B	$777.7M	$574.4M	$322.3M	$222.0M	$196.8M	$151.2M	$136.6M	$131.4M	$109.2M	$74.8M	$56.1M
Operating income	$73.6M	$158.0M	$149.7M	$68.1M	$29.8M	$9.4M	$29.9M	$26.2M	$33.3M	$23.1M	$25.6M	$5.3M
Operating margin	4.50%	12.03%	14.62%	11.77%	7.59%	2.95%	10.59%	9.78%	12.33%	10.05%	13.36%	3.96%
EBITDA	$153.0M	$202.1M	$179.8M	$85.7M	$56.9M	$34.6M	$52.8M	$44.0M	$47.8M	$36.2M	$35.9M	$5.7M
EBITDA margin	9.35%	15.39%	17.56%	14.81%	14.50%	10.87%	18.66%	16.46%	17.71%	15.78%	18.73%	4.25%
Net income	$26.3M	$112.1M	$127.7M	$61.5M	$21.8M	$6.2M	$17.9M	$15.5M	$33.5M	$5.3M	$4.4M	−$9.3M
Net profit margin	1.61%	8.53%	12.47%	10.63%	5.55%	1.96%	6.32%	5.81%	12.40%	2.31%	2.28%	−6.87%
Basic EPSper basic share	$0.45	$1.99	$2.33	$1.17	$0.43	$0.13	$0.37	$0.33	$0.74	-$39.47	-$1,559.81	-$709.35
Diluted EPSper diluted share	$0.44	$1.92	$2.21	$1.11	$0.41	$0.12	$0.35	$0.32	$0.68	-$39.47	-$1,559.81	-$709.35

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

11.96%of listed shares

BAILLIE GIFFORD & CO7.05M shares · Jun 30, 2026

View holders

Top 20 reported holders of ELF
Holder	% owned
BAILLIE GIFFORD & CO	11.96%7.05M shares
BlackRock, Inc.	9.82%5.79M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.67%2.75M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.38%2.58M shares
JPMORGAN CHASE & CO	3.33%1.96M shares
GOLDMAN SACHS GROUP INC	3.26%1.92M shares
STATE STREET CORP	3.18%1.87M shares
Ensign Peak Advisors, Inc	2.70%1.59M shares
Holocene Advisors, LP	2.30%1.36M shares
DIMENSIONAL FUND ADVISORS LP	1.90%1.12M shares
GEODE CAPITAL MANAGEMENT, LLC	1.84%1.09M shares
PRIMECAP MANAGEMENT CO/CA/	1.79%1.06M shares
Capital World Investors	1.70%1M shares
CITADEL ADVISORS LLC	1.64%966.65K shares
MORGAN STANLEY	1.57%923.52K shares
Capital International Investors	1.56%919.43K shares
Capital Research Global Investors	1.22%717.39K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.10%647.82K shares
Prime Capital Management Co Ltd	1.03%604.54K shares
UBS Group AG	1.02%602.8K shares

Percentages use 58.94M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$464.8K disclosed value

Sells (SEC code S)163$123.56M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 9, 2026Form 4	Hartnett Jennifer CatherineChief Commercial Officer	SellCommon Stock, $0.01 par value	4.4K	$51.53	$224.3K	54.1K
Jun 9, 2026Form 4	Franks Joshua AllenSVP, Operations	SellCommon Stock, $0.01 par value	3.5K	$51.53	$180.6K	150.0K
Jun 9, 2026Form 4	FIELDS MANDY JSee Remarks	SellCommon Stock, $0.01 par value	4.3K	$51.53	$223.0K	107.0K
Jun 9, 2026Form 4	MARCHISOTTO KORYSee Remarks	SellCommon Stock, $0.01 par value	4.4K	$51.53	$224.3K	181.9K
Jun 9, 2026Form 4	Milsten ScottOther	SellCommon Stock, $0.01 par value	4.2K	$51.53	$214.5K	144.6K

Review ownership filings at SEC.gov ↗

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e.l.f. Beauty, Inc. (ELF)

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