NEW YORK, August 5, 2026, 18:07 (EDT) E.l.f. Beauty NYSE:ELF increased its forecast as sales from Rhode represented about one-third of its revenue for the quarter.
- Fiscal first-quarter revenue increased by 36% to $479.4 million, surpassing the LSEG forecast by 11.6%.
- Rhode generated approximately $160 million, representing 33.4% of overall sales.
- Initial normalization calculates ex-refund adjusted EBITDA margin at approximately 24.6%, the same as the previous year.
E.l.f. Beauty increased its fiscal 2027 forecast following a strong quarterly performance. Rhode was a significant contributor to the sales rise. Margin growth was largely due to tariff refunds.
U.S. regular session closed with the shares ending at $86.37, a decline of 1.7%. In after-hours trading, the stock dropped a further 2.8% as of 18:03 EDT.
Rhode accounted for about $160 million, making up 33.4% of revenue for the quarter. Excluding Rhode’s impact, the legacy business brought in $319.4 million, suggesting an initial 9.7% decrease compared to the prior year. The company did not disclose this organic figure.
Fiscal Q1 results Elf Beauty Investor
| Metric | FQ1 2027 | FQ1 2026 | Year-on-year | Street estimate | Beat |
|---|---|---|---|---|---|
| Net sales | $479.4 mln | $353.7 mln | +36% | $429.5 mln | +11.6% |
| Adjusted EPS | $1.75 | $0.89 | +97% | $0.71 | +146% |
| Adjusted EBITDA | $168.2 mln | $87.1 mln | +93% | — | — |
| Gross margin | Roughly 83% | Roughly 69% | +1,400 bps | — | — |
The main vulnerability is significant since Rhode now accounts for a third of all dollars. The namesake e.l.f. brand recorded a drop in the quarter, Wall Street Journal reported. The strength of Rhode compensated for the e.l.f. brand’s decrease.
Gross margin stood at approximately 83%. Tariff refunds accounted for 1,050 basis points, making up three-quarters of the entire 1,400 basis point rise.
Initial investor adjustment Fast Company
| Measure | Preliminary result | Comparison |
|---|---|---|
| Rhode revenue | Roughly $160.0 mln | Accounts for 33.4% of total sales |
| Implied legacy revenue | $319.4 mln | Falls 9.7% from previous year |
| Estimated tariff-refund benefit | $50.3 mln | Represents 10.5% of sales |
| Gross margin excluding refunds | Close to 72.5% | Previously about 69.0% |
| Adjusted EBITDA excluding refunds | Approximately $117.9 mln | Margin at 24.6% |
| Prior-year adjusted EBITDA margin | 24.6% | Little to no change |
The normalization applies Rhode’s estimated sales and information released by the company. It presumes the tariff advantage was entirely reflected in adjusted EBITDA. With this approach, the stated margin of 35% decreases to 24.6%.
Chief Executive Tarang Amin stated, “With the momentum we’re seeing, we’re raising our fiscal 2027 outlook.” The company’s projected sales-growth range increased to 18%-20%, up from the previous 12%-14%. Elf Beauty Investor
Update on Fiscal 2027 outlook Elf Beauty Investor
| Metric | Previous guidance | Updated guidance | Midpoint increase |
|---|---|---|---|
| Net sales | $1.835–$1.865 bln | $1.938–$1.968 bln | $103 mln, or 5.6% |
| Adjusted EBITDA | $379–$385 mln | $401–$407 mln | $22 mln, or 5.8% |
| Adjusted net income | $198–$201 mln | $212–$215 mln | $14 mln, or 7.0% |
| Adjusted EPS | $3.27–$3.32 | $3.50–$3.55 | $0.23, or 7.0% |
The higher midpoint contributes an additional $103 million in revenue. Adjusted EBITDA guidance is up $22 million. The increases are largely offsetting.
Value continues to be the main strategy. Approximately 75% of items are priced at $10 or below. E.l.f. further reduced prices on 10% of its range following demand tests.
Overseas markets provide an additional growth lever, accounting for 20% of revenue compared to upwards of 70% for bigger competitors. CFO Mandy Fields described this as “a big white space opportunity.” Rhode is set to debut in 19 European countries in September. Reuters
The shares saw strong momentum before earnings, rising 7.1% for the week ending July 31. S&P Global Market Intelligence reported a 12% increase in July.
Analyst ratings ahead of the announcement Benzinga España
| Firm and analyst | Date | Recommendation | Target | Versus $86.37 close |
|---|---|---|---|---|
| Bernstein — Cristian Rios | Aug. 5 | Upgraded to Outperform | $113 | +30.8% |
| Jefferies — Sydney Wagner | July 28 | Buy | $100 | +15.8% |
| Canaccord Genuity — Susan Anderson | July 17 | Buy | $97 | +12.3% |
| JPMorgan — Andrea Teixeira | July 16 | Overweight | $94 | +8.8% |
| UBS — Peter Grom | July 16 | Neutral | $80 | -7.4% |
| FactSet consensus | Aug. 5 | Overweight | $82.13 average | -4.9% |
Analysts have shown a more optimistic outlook compared to the overall consensus, with FactSet recording 10 Buy ratings, two Overweight, and six Holds. The average price target according to FactSet stayed lower than Wednesday’s closing level.
Looking to the week ahead, investors will monitor changes to estimates and updates on core-brand performance. Key focus remains on whether Rhode can expand without concealing underlying legacy issues. Projections should also factor in the impact of tariff refunds.
Risks: Around one-third of quarterly revenue currently comes from Rhode. The scale of refund advantages seen before may not occur again. Debt totaled $834.2 million, while cash was $344.2 million.
Rhode’s demand remains evident, but the path to recovery for the namesake brand is uncertain. Ongoing gains now hinge on core sales and improvements in ex-refund margins.
