e.l.f. Beauty shares rose 3.1% in after-hours trading Wednesday after the cosmetics company reported fiscal second-quarter results above analyst expectations and raised its full-year outlook.
For the quarter ended September 30, 2026, adjusted earnings came to $1.21 per share, compared with the analyst consensus of $0.57. Revenue increased 51% year over year to $520.8 million, topping estimates of $469.27 million. The company said growth was driven by its retail and e-commerce businesses in the United States and internationally. It was the 31st consecutive quarter of net sales growth.
The company lifted its fiscal 2027 revenue forecast to $2.00 billion to $2.03 billion, from a previous range of $1.94 billion to $1.97 billion. The new midpoint of $2.02 billion is above the $1.98 billion analyst consensus. e.l.f. also raised its adjusted earnings-per-share outlook to $3.82-$3.86, versus a consensus estimate of $3.63.
Adjusted EBITDA climbed 86% year over year to $123.4 million, equal to 24% of net sales. Full-year adjusted EBITDA guidance was increased to $421 million-$427 million, from $401 million-$407 million.
Gross margin expanded by about 160 basis points to 71%. Lower tariffs and a favorable product mix contributed to the increase, partly offset by investments in pricing. e.l.f. also recorded a $17.7 million fair value adjustment related to its rhode acquisition, reflecting the brand’s revenue outperformance. Cash and cash equivalents stood at $350.8 million as of September 30, 2026.
Chairman and CEO Tarang Amin said the company was raising its full-year net sales growth guidance to 22%-24%, citing continued momentum and growth across its portfolio.
Sources: Investing.com News.