e.l.f. Beauty Raises Fiscal 2027 Outlook After Strong Q1 Growth
Event summary
- e.l.f. Beauty reported a 36% year-over-year increase in net sales for Q1 Fiscal 2027, reaching $479.4 million.
- Gross margin expanded by approximately 1,400 basis points to 83%, driven by tariff refunds and pricing benefits.
- Adjusted EBITDA surged 93% year over year to $168.2 million, or 35% of net sales.
- The company raised its fiscal 2027 outlook to 18-20% net sales growth from the previous 12-14%.
- Cash and cash equivalents increased to $344.2 million as of June 30, 2026.
The big picture
e.l.f. Beauty's strong Q1 performance underscores its ability to leverage pricing power and cost efficiencies in a competitive beauty market. The company's strategic acquisitions and focus on clean, accessible beauty products position it well for continued growth, but maintaining momentum will require navigating rising operational costs and potential economic headwinds.
What we're watching
- Sustainability of Growth
- Whether e.l.f. Beauty can maintain its 30-quarter streak of net sales growth amid increasing competition and economic volatility.
- Integration Success
- How the integration of rhode will impact operational efficiency and financial performance in the coming quarters.
- Cost Management
- The pace at which e.l.f. Beauty can control SG&A expenses, particularly marketing and distribution costs, to sustain profitability.
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