E.l.f. Beauty Stock Jumps on Earnings Beat & Raised Guidance | CNBC
- Beauty (ELF) reported a significant earnings beat for its fiscal third quarter and subsequently raised its full-year guidance, sending its stock up as much as 15% in after-hours...
- The company’s earnings per share (EPS) reached $1.24 on an adjusted basis, substantially exceeding the $0.72 per share that analysts surveyed by LSEG had predicted.
- Adjusted net income also saw a considerable jump, increasing to $74.5 million compared to $43 million in the third quarter of the previous fiscal year.
E.l.f. Beauty (ELF) reported a significant earnings beat for its fiscal third quarter and subsequently raised its full-year guidance, sending its stock up as much as 15% in after-hours trading before some gains were relinquished. The company’s performance continues a streak of consistent growth, now spanning 28 quarters, according to CEO Tarang Amin.
Financial Performance: Q3 2025 Results
The company’s earnings per share (EPS) reached $1.24 on an adjusted basis, substantially exceeding the $0.72 per share that analysts surveyed by LSEG had predicted. Revenue for the quarter totaled $490 million, also surpassing expectations of $460 million. This represents a 38% increase in net sales, rising to $489.5 million from $355 million in the same period last year.
Adjusted net income also saw a considerable jump, increasing to $74.5 million compared to $43 million in the third quarter of the previous fiscal year. The growth was driven by gains across both domestic and international markets, as well as across the company’s retail partners and direct-to-consumer e-commerce channels.
Impact of Rhode Acquisition
A key contributor to the strong performance was the recent acquisition of Rhode, the skincare company founded by Hailey Bieber. The acquisition, completed in , for approximately $1 billion, contributed $128 million to E.l.f. Beauty’s net third-quarter sales. The company now projects Rhode will contribute up to $265 million in net sales for the full fiscal year, an increase of $65 million from its prior guidance.
Revised Full-Year Outlook
Following the strong third-quarter results, E.l.f. Beauty raised its full-year revenue guidance. The company now anticipates revenue in the range of $1.72 billion to $1.75 billion, an increase of $42 million to $50 million from its previous forecast. This revised outlook reflects the continued momentum of the E.l.f. Cosmetics brand and the successful integration of Rhode.
CEO Commentary
“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,” stated Tarang Amin, CEO of E.l.f. Beauty. He further emphasized the strength of the company’s value proposition, innovation pipeline, and marketing strategies as key drivers of its continued success.
Market Context and Recent Developments
The earnings report comes amid a broader period of activity in the beauty and retail sectors. , E.l.f. Beauty had already demonstrated strong performance, with sales jumping 50% driven by gains in color cosmetics and skincare, particularly the launch of its Bronzing Drops serum. This earlier success set the stage for the continued growth reflected in the Q3 2025 results.
Recent market activity, as of today, , also shows broader market fluctuations. S&P 500 futures are currently rising following recent earnings reports, including those from Alphabet. However, other companies, such as Shell and Arm, have experienced volatility in their stock prices following their respective earnings releases. Snap shares also rose on fourth-quarter earnings that beat on sales.
The beauty sector, in particular, continues to attract investor attention, as evidenced by the significant investment in and acquisition of Rhode by E.l.f. Beauty. The success of this acquisition will likely be closely monitored by industry analysts and investors as a case study in brand integration and growth strategy.
Looking Ahead
E.l.f. Beauty’s strong performance and optimistic outlook suggest the company is well-positioned to continue its growth trajectory. The successful integration of Rhode, coupled with the continued strength of the E.l.f. Cosmetics brand, provides a solid foundation for future expansion. Investors will be watching closely to see if the company can maintain its momentum and deliver on its revised full-year guidance.