ELF Beauty reported strong third-quarter growth, as growing market share and overseas expansion drive momentum, even as higher costs squeezed profits.

For the three months to December 31, the company reported net sales of $489.5 million, up 38 per cent year-on-year, supported by growth across retail and e-commerce in the US and international markets.

Chairman and CEO Tarang Amin said the quarter was marked by continued share gains for the ELF brand, alongside what he described as a “record-breaking” launch of Rhode in Sephora stores in the UK.

“Our value proposition, powerhouse innovation, and disruptive marketing engine continue to fuel our brands,” Amin said.

ELF Beauty’s net income for the quarter totalled $39.4 million, while adjusted EBITDA rose 79 per cent to $123 million.

However, gross margin edged down to 71 per cent, and selling, general, and administrative expenses increased to $280 million, driven by higher marketing, merchandising, and distribution costs.

“We remain confident in our ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook,” added Amin.

• Further reading: ELF Beauty snaps up Hailey Bieber’s brand Rhode