e.l.f. Beauty recently reported substantial financial growth for its Fiscal 2025, indicating a solid performance amid a dynamic market landscape. The company achieved a remarkable 28% increase in net sales, reaching $1.31 billion, driven by strong performance in both retail and e-commerce channels across U.S. and international markets.
Despite an increase in selling, general and administrative (SG&A) expenses, which rose by $203.2 million to $777.7 million—accounting for 59% of net sales—adjusted SG&A was slightly better at $690.9 million, or 53% of net sales. The significant increase in SG&A was primarily attributed to enhanced marketing efforts, digital spending, and other operational costs.
In terms of profitability, e.l.f. Beauty saw an increase in gross margin to 71%, with beneficial impacts from foreign exchange and cost savings efforts. Adjusted EBITDA soared 99% year-over-year to $81.4 million, demonstrating the company’s robust operational performance.
Tarang Amin, Chairman and CEO of e.l.f. Beauty, expressed confidence in the company’s strategy to continue driving sales and market share growth in the coming years, particularly with the anticipated acquisition of rhode, a lifestyle beauty brand founded by Hailey Bieber. The acquisition agreement, valued at $800 million, will combine cash and stock, reflecting e.l.f. Beauty’s commitment to diversifying its portfolio of fast-growing brands.
As of the end of Fiscal 2025, the company maintained a strong liquidity position with $148.7 million in cash and cash equivalents and $256.7 million in total debt, compared to the previous fiscal year.
Looking ahead, e.l.f. Beauty is cautious in providing guidance for Fiscal 2026, citing uncertainties related to tariffs and their potential financial impact. Nonetheless, the company’s strategic initiatives, including the rhode acquisition, position it well for continued growth.
e.l.f. Beauty’s mission emphasizes making high-quality beauty accessible to all, aligning with its values of positivity, inclusivity, and sustainability—demonstrated through their commitment to cruelty-free and Fair Trade Certified practices.
This positive trajectory suggests a resilient and forward-thinking company poised to navigate challenges while expanding its influence in the beauty industry.