e.l.f. Beauty delivered another blockbuster quarter in Q3 fiscal 2026, with soaring sales, stronger profitability, and a higher full year outlook that keeps the Oakland based beauty disruptor firmly in hyper growth mode. Affordable prestige positioning, the integration of Rhode, and a relentless newness and marketing engine continue to win share across U.S. mass, prestige, and global markets.
Q3 Headline Numbers: 38% Net Sales Growth
For the three months ended December 31, 2025, net sales jumped 38% year over year to $489.5 million, driven by growth in both retailer and e‑commerce channels in the U.S. and internationally. Pricing and mix were the big swing factors, with units roughly flat but higher price points and premium innovation doing the heavy lifting.
Gross profit rose to $347.5 million, though gross margin edged down about 30 basis points to 71% as higher tariff costs outweighed pricing and mix benefits. Operating income climbed to…
$67.5 million, up from $35.1 million a year earlier, underscoring the brand’s ability to scale while still investing heavily in marketing and distribution. On the bottom line, net income reached $39.4 million on a GAAP basis.
Diluted earnings per share were $0.65 on a GAAP basis, while adjusted diluted EPS came in at $1.24, reflecting strong underlying profitability once non recurring items are stripped out. Market Share Gains And Rhode’s Breakout Launch “Our Q3 results, which included 130 basis points of market share gains for our namesake e.l.f.
Cosmetics brand and a record breaking launch of rhode in Sephora in the U.K., are a continuation of the consistent, category leading growth we’ve delivered over the past 28 quarters,” Tarang Amin, Chairman and CEO of e.l.f. Beauty, said.
He added that the company’s “value proposition, powerhouse innovation and disruptive marketing engine” give it confidence to keep growing share and deliver “best in class growth in beauty,” reflected in the raised fiscal 2026 outlook. Across channels, U.S…
Discussion
0 Comments
No comments yet
Start the conversation
Share your take on this story and help shape the discussion.
Sign in to join the discussion.