ELF Stock Today (Nov. 5, 2025): e.l.f. Beauty plunges after Q2 revenue miss; FY26 outlook lags Street as tariffs bite

5 November 2025

At a glance (Nov. 5, 2025)

Q2 FY26 net sales: $343.9M, +14% YoY; gross margin: 69% (−165 bps); adj. EPS: $0.68. ^[1]
Guidance: FY26 net sales $1.55B–$1.57B; adj. EPS $2.80–$2.85 (below consensus). ^[2]
After-hours move: shares down ~19% on the outlook and tariff commentary; ~75% of products sourced from China; tariff hit seen >$50M annually. ^[3]

What happened today

e.l.f. Beauty reported second‑quarter fiscal 2026 (quarter ended Sept. 30, 2025) results showing net sales of $343.9 million (+14% YoY), gross margin of 69% (down 165 bps primarily on higher tariff costs), and adjusted EPS of $0.68. Management highlighted this as the 27th consecutive quarter of net‑sales growth and cited a record launch of Rhode in Sephora North America. ^[4]

Why the stock sank after the bell

After the release, shares fell about 19% in extended trading as the company’s FY26 outlook—net sales $1.55–$1.57 billion; adjusted EPS $2.80–$2.85—landed below Wall Street estimates (roughly $1.65B and $3.58, respectively). Management commentary also underscored tariff headwinds, with ~75% of products made in China and tariff costs projected at >$50 million annually. ^[5]

How results compared with expectations

Top line missed the Street’s Q2 revenue view (about $366.4M), but adjusted EPS beat (reported $0.68 vs. $0.57 expected). On a GAAP basis, net income was $3.0M (EPS $0.05) for the quarter. ^[6]

The details investors care about

Margins & spending: The 165 bps gross‑margin compression to 69% was “primarily driven by higher tariff costs” (pricing/mix was a partial offset). Adjusted EBITDA was $66.2M (19% of sales). ^[7]
Adjusted profitability:Adjusted net income $40.7M; adjusted EPS $0.68 for Q2. ^[8]
Balance sheet (9/30):Cash $194.4M; long‑term debt $831.6M. ^[9]
Rhode update: Management called out a record‑breaking Sephora North America launch for Rhode, which is now part of the portfolio alongside e.l.f. Cosmetics, e.l.f. SKIN, Keys Soulcare, Well People, and Naturium. ^[10]

Guidance snapshot (FY26)

Net sales:$1.55B–$1.57B (+18%–20% vs. FY25).
Adjusted EPS:$2.80–$2.85.
Adjusted EBITDA:$302M–$306M; adj. effective tax rate:23%; FY diluted shares:~59M.
These figures set the bar beneath consensus and, paired with tariff commentary, drove the after‑hours selloff. ^[11]

Key timing

Management scheduled a webcast at 4:30 p.m. ET today (Nov. 5) to discuss results and outlook; an archived replay will be posted on the investor site. ^[12]

Quick take

e.l.f. continues to grow revenue and win shelf space, but tariff‑driven cost pressure and a more cautious FY26 profit outlook overshadowed the quarter. The revenue miss and lower guide—even as adjusted EPS beat in Q2—signal a year where marketing and integration investments (and tariffs) could keep a lid on margin expansion. Traders focused on those forward‑looking pressures, not the streak of top‑line growth.

News roundup — Nov. 5, 2025

Reuters: Elf Beauty shares slump after annual sales forecast comes below estimates — details on the ~19% after‑hours drop, tariff exposure (~75% China) and >$50M tariff cost; consensus comparisons. ^[13]
Business Wire (company release): e.l.f. Beauty Announces Second Quarter Fiscal 2026 Results — full Q2 line items, margin commentary, and FY26 guidance. ^[14]
Associated Press: Fiscal Q2 earnings snapshot — confirms GAAP EPS $0.05 and FY26 ranges. ^[15]

Bottom line

For today (Nov. 5, 2025), the story on ELF stock is straightforward: solid Q2 growth, but a softer‑than‑hoped FY26 profit outlook plus tariff overhang sent the stock sharply lower after hours. Keep an eye on any updated color from the evening call regarding price actions, tariff mitigation, and Rhode’s rollout, as these will be key to the holiday‑quarter setup. ^[16]

This article is for information only and is not investment advice.

Robinhood Stock (HOOD) Earnings Call | Q3 2025 Breakdown

Watch this video on YouTube.

References

1. www.businesswire.com, 2. www.businesswire.com, 3. www.reuters.com, 4. www.businesswire.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.businesswire.com, 8. www.businesswire.com, 9. www.businesswire.com, 10. www.businesswire.com, 11. www.businesswire.com, 12. www.businesswire.com, 13. www.reuters.com, 14. www.businesswire.com, 15. www.seattlepi.com, 16. www.businesswire.com

Tags:

Marcin Frąckiewicz Latest posts

CEO of TS2 Space and founder of TS2.tech. Expert in satellites, telecommunications, and emerging technologies, covering trends in space, AI, and connectivity.

View all

Halozyme Therapeutics (HALO) Valuation Update: Is HALO Undervalued After a Strong Rally?
November 5, 2025, 10:26 PM EST. Halozyme Therapeutics has surged about 40% year-to-date, fueling investor interest in its valuation. Our latest read points to a fair value of $74.44, suggesting the stock remains undervalued versus the recent close around $68.05, with potential upside if growth drivers materialize. The catalyst is the ENHANZE subcutaneous delivery platform expanding adoption (e.g., DARZALEX SC in the US and Phesgo for at-home use), which could boost royalty revenues and drive net margin expansion over time. However, risks linger from patent challenges and heightened competition that could affect future growth. Investors should weigh this mix and consider how the biotech delivery shift supports Halozyme's long-term thesis.
Robinhood earnings: Prediction markets could be a major growth driver
November 5, 2025, 10:24 PM EST. Robinhood reported solid earnings with top- and bottom-line beats and a sharper uptick in net deposits in September. The stock softened early on amid lofty expectations and news of a CFO retirement. Beyond the quarter, the debate focused on prediction markets as a potential growth engine. Analysts say diversification away from volatile trading could smooth revenue and extend earnings visibility. While currently small, these markets-covering sports, politics, and macro forecasts-could scale meaningfully, especially if institutional money flows in. A successful push hinges on regulatory clarity and user engagement, but the move could redefine growth for Robinhood outside traditional trading.
AMC Entertainment Holdings, Inc. Reports Third Quarter 2025 Results; Announces Investor Webcast
November 5, 2025, 10:22 PM EST. AMC Entertainment Holdings, Inc. (NYSE: AMC) reported its third quarter 2025 results, with the release posted to the company's Investor Relations site. The results press release confirms the quarter ended September 30, 2025, and notes a forthcoming live webcast for investors on November 5, 2025 at 4:00 PM CST/5:00 PM EST. AMC continues to highlight its scale as the largest movie exhibitor with roughly 860 theatres and 9,600 screens worldwide, and its initiatives around Signature power-recliner seats, enhanced food & beverage, and loyalty/subscription platforms, as well as premium formats and diverse programming. For more information, visit the AMC site or the investor relations page. Media and investor contacts are provided.
Dollar Dips From 5-Month High as Stocks Rebound; Fed Path, Shutdowns, and ECB Divergence in Focus
November 5, 2025, 10:14 PM EST. The DXY slipped from a 5.25-month high, finishing down about 0.05% as stocks rebounded and liquidity demand for the dollar eased. The ongoing US government shutdown remains a headwind for growth and could spur further Fed easing bets, though a December cut is not yet certain. On the data front, the Oct ADP payrolls rose by +42,000 and the Oct ISM services index climbed to 52.4, with costs rising, keeping a hawkish tilt on policy. Markets price roughly a 62% chance of a 25 bp cut at the Dec FOMC. In Europe, EUR/USD edged higher as eurozone PMI and German factory orders surprised to the upside amid ECB divergence.
Crude Prices Fall as EIA Inventories Build and Dollar Rises
November 5, 2025, 10:10 PM EST. Crude prices slipped after the EIA reported a surprise build in weekly crude inventories, tempering an earlier rally. December WTI and RBOB declined as a stronger-than-expected dollar index (DXY) weighed on energy prices. Still, a healthier global growth backdrop supported demand, with upbeat US ADP payrolls and services PMI, and eurozone and German data underscoring ongoing expansion. The crude crack spread rose to a multi-week high, signaling refiners' appetite for crude. Support also came from expectations of limited further supply gains from OPEC+ and ongoing supply disruptions in Russia and Venezuela. While geopolitical risk looms, a projected 2026 oversupply and OPEC+'s 2024-25 strategy keep the complex bidirectional near-term, with prices sensitive to macro data and inventories.