ELF Beauty reported a 14 per cent increase in net sales to $343.9 million for the three months ended September. 

CEO Tarang Amin attributed the growth to strong performance across retail and e-commerce channels in both domestic and international markets, alongside the integration of Rhode following its May acquisition.

ELF Beauty acquired Rhode in May for a reported $1 billion, comprising an initial $800 million cash-and-stock payment and up to $200 million in potential earnings over the next three years based on performance.

“Our Q2 results, which included 140 basis points of market share gains for our namesake ELF brand and a record-breaking launch of Rhode in Sephora North America, reflect the consistent, category-leading growth we’ve delivered over the past 27 quarters,” Amin said.

However, gross margin for the quarter declined 165 basis points to 69 per cent, primarily due to higher tariff costs, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) fell 4 per cent year over year to $66.2 million, or 19 per cent of net sales. Adjusted net income reached $40.7 million.

For the six months, net sales rose 12 per cent to $697.7 million. Adjusted EBITDA increased 4 per cent to $153.3 million, representing 22 per cent of sales.

Looking ahead, ELF expects fiscal 2026 net sales to grow 18 to 20 per cent year over year to between $1.55 billion and $1.57 billion, with adjusted EBITDA projected at $302 to $306 million.

Amin added that the brand’s ongoing momentum underscores “the strength of our innovation, digital strategy and community engagement; all key drivers as we expand our reach and relevance globally.”

 “We remain confident in our strategy to grow market share and capitalize on the significant whitespace ahead of us,” she concluded.