Revenue growth has normalized to 35.1% in 2026Q4, while operating margins have compressed to 1.6% due to persistent reliance on high SG&A expenditures.
| Sales/Revenue | 1.64B | 1.31B | 1.02B | 578.84M | 392.15M | 318.11M | 282.85M | 267.44M | 269.89M | 229.57M | 191.41M | 144.94M |
| Revenue Growth % | 24.59% | 28.28% | 76.89% | 47.61% | 23.28% | 12.47% | 5.76% | -0.91% | 17.56% | 19.93% | 32.06% | - |
| Cost of Goods Sold | 479.13M | 377.83M | 299.84M | 188.45M | 140.42M | 111.91M | 101.73M | 104.69M | 105.16M | 97.33M | 91.08M | 78.72M |
| COGS % of Revenue | 29.28% | 28.76% | 29.28% | 32.56% | 35.81% | 35.18% | 35.97% | 39.15% | 38.97% | 42.4% | 47.59% | 54.31% |
| Gross Profit | 1.16B | 935.69M | 724.1M | 390.4M | 251.73M | 206.2M | 181.12M | 162.74M | 164.72M | 132.24M | 100.33M | 66.22M |
| Gross Margin % | 70.72% | 71.24% | 70.72% | 67.44% | 64.19% | 64.82% | 64.03% | 60.85% | 61.03% | 57.6% | 52.41% | 45.69% |
| Gross Profit Growth % | 23.69% | 29.22% | 85.48% | 55.08% | 22.08% | 13.84% | 11.3% | -1.2% | 24.57% | 31.8% | 51.5% | - |
| Operating Expenses | 1.03B | 777.66M | 574.42M | 322.25M | 221.96M | 196.8M | 151.17M | 136.58M | 131.45M | 109.16M | 74.76M | 65.75M |
| OpEx % of Revenue | 62.7% | 59.2% | 56.1% | 55.67% | 56.6% | 61.86% | 53.45% | 51.07% | 48.7% | 47.55% | 39.06% | 45.36% |
| Selling, General & Admin | 1.03B | 777.66M | 570.81M | 322.25M | 221.91M | 194.16M | 157.16M | 136.58M | 131.45M | 109.16M | 74.76M | 56.35M |
| SG&A % of Revenue | 62.7% | 59.2% | 55.75% | 55.67% | 56.59% | 61.03% | 55.56% | 51.07% | 48.7% | 47.55% | 39.06% | 38.88% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 3.61M | 0 | 50K | 2.64M | -5.98M | 0 | 0 | 0 | 0 | 100K |
| Operating Income | 131.28M | 158.03M | 149.68M | 68.14M | 29.77M | 9.4M | 29.95M | 26.16M | 33.28M | 23.08M | 25.57M | 9.87M |
| Operating Margin % | 8.02% | 12.03% | 14.62% | 11.77% | 7.59% | 2.96% | 10.59% | 9.78% | 12.33% | 10.05% | 13.36% | 6.81% |
| Operating Income Growth % | -16.93% | 5.58% | 119.65% | 128.9% | 216.7% | -68.61% | 14.48% | -21.39% | 44.2% | -9.75% | 158.97% | - |
| EBITDA | 210.64M | 202.14M | 179.84M | 85.74M | 56.85M | 34.58M | 52.79M | 44.02M | 47.8M | 36.23M | 35.86M | 17.86M |
| EBITDA Margin % | 12.87% | 15.39% | 17.56% | 14.81% | 14.5% | 10.87% | 18.66% | 16.46% | 17.71% | 15.78% | 18.73% | 12.32% |
| EBITDA Growth % | 4.21% | 12.4% | 109.76% | 50.81% | 64.41% | -34.5% | 19.92% | -7.9% | 31.93% | 1.03% | 100.8% | - |
| D&A (Non-Cash Add-back) | 79.36M | 44.12M | 30.17M | 17.6M | 27.08M | 25.18M | 22.84M | 17.86M | 14.52M | 13.15M | 10.29M | 7.99M |
| EBIT | 81.24M | 162.13M | 152.4M | 67.72M | 27.54M | 6.94M | 30.49M | 25.02M | 30.43M | 22.08M | 20.37M | 9.87M |
| Net Interest Income | -33.85M | -13.81M | -7.02M | -2.02M | -2.44M | -4.09M | -6.31M | -7.82M | -8.78M | -13.55M | -12.72M | 11.67M |
| Interest Income | 6.93M | 3.37M | 4.82M | 1.97M | 3K | 5K | 0 | 0 | 0 | 0 | 68K | 11.67M |
| Interest Expense | 40.78M | 17.18M | 11.84M | 3.99M | 2.44M | 4.09M | 6.31M | 7.82M | 7.96M | 12.27M | 11.69M | 0 |
| Other Income/Expense | -90.82M | -12.53M | -8.69M | -4.07M | -4.34M | -5.71M | -5.88M | -8.21M | -10.81M | -13.27M | -16.89M | -21.07M |
| Pretax Income | 40.46M | 145.5M | 140.99M | 64.07M | 25.43M | 3.69M | 24.07M | 17.96M | 22.47M | 9.81M | 8.68M | -11.2M |
| Pretax Margin % | 2.47% | 11.08% | 13.77% | 11.07% | 6.48% | 1.16% | 8.51% | 6.71% | 8.33% | 4.27% | 4.53% | -7.72% |
| Income Tax | -14.14M | 33.41M | 13.33M | 2.54M | 3.66M | -2.54M | 6.18M | 2.43M | -11.01M | 4.5M | 4.32M | 3M |
| Effective Tax Rate % | -34.95% | 22.96% | 9.45% | 3.97% | 14.4% | -68.89% | 25.7% | 13.54% | -48.98% | 45.85% | 49.79% | -26.82% |
| Net Income | 54.6M | 112.09M | 127.66M | 61.53M | 21.77M | 6.23M | 17.88M | 15.53M | 33.48M | 5.31M | 4.36M | -19.57M |
| Net Margin % | 3.34% | 8.53% | 12.47% | 10.63% | 5.55% | 1.96% | 6.32% | 5.81% | 12.4% | 2.31% | 2.28% | -13.5% |
| Net Income Growth % | -51.29% | -12.2% | 107.48% | 182.64% | 249.33% | -65.15% | 15.19% | -53.62% | 530.06% | 21.94% | 122.26% | - |
| Net Income (Continuing) | 54.6M | 112.09M | 127.66M | 61.53M | 21.77M | 6.23M | 17.88M | 15.53M | 33.48M | 5.31M | 4.36M | - |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.44 | 1.92 | 2.21 | 1.11 | 0.41 | 0.12 | 0.35 | 0.32 | 0.68 | 0.11 | -1.14 | -0.71 |
| EPS Growth % | -77.08% | -13.12% | 99.1% | 170.73% | 241.67% | -65.71% | 9.38% | -52.94% | 518.18% | 109.65% | -60.56% | - |
| EPS (Basic) | 0.45 | 1.99 | 2.33 | 1.17 | 0.43 | 0.13 | 0.37 | 0.33 | 0.74 | 0.11 | -1.14 | -0.71 |
| Diluted Shares Outstanding | 59.35M | 58.34M | 57.79M | 55.34M | 53.65M | 51.99M | 50.82M | 49.27M | 49.37M | 50.31M | 44.61M | 27.59M |
| Basic Shares Outstanding | 58.26M | 56.21M | 54.75M | 52.47M | 50.94M | 49.38M | 48.5M | 46.83M | 45.36M | 47.42M | 41.92M | 27.59M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
High Marketing Spend Dependency
As reported in recent financial filings, e.l.f. Beauty's year-over-year revenue growth has decelerated from the 84.9% peak observed in 2024Q3 to 35.1% by 2026Q4, reflecting a transition from hyper-growth to a more mature, albeit still elevated, expansion phase within the competitive color cosmetics market.
The moderation in top-line growth suggests that the initial surge in market share gains is encountering natural saturation in core US retail channels. Investors should monitor whether the company can sustain these double-digit growth rates through international expansion or if the brand's reliance on viral social media cycles creates inherent volatility in quarterly performance.
Based on the company's reported figures, gross margins have remained remarkably consistent, hovering near 71% over the last ten quarters, which underscores a structural pricing advantage despite the broader income statement's susceptibility to significant fluctuations in operating and net profitability metrics during recent periods.
This stability in gross margin indicates that the outsourced manufacturing model effectively shields the company from direct production cost inflation. However, the disconnect between these high gross margins and the thin, sometimes negative, net margins suggests that the cost of maintaining brand relevance is rising faster than the company's ability to scale its bottom line.
According to historical income statement data, operating income has failed to scale proportionally with gross profit, as evidenced by the 2026Q4 operating margin compression to 1.6% despite generating over $326 million in gross profit, highlighting a persistent reliance on heavy SG&A investment to drive sales.
The lack of operating leverage suggests that the company's business model is currently optimized for market share acquisition rather than profit maximization. This trend warrants investigation into whether the high SG&A spend is a fixed requirement for brand survival or a discretionary choice that could be dialed back to improve earnings quality.
As indicated by recent quarterly disclosures, stock-based compensation remains a material factor, with $17.7 million recorded in 2026Q4 alone, which significantly obscures the underlying operational profitability and contributes to the volatility observed in reported net income and diluted earnings per share across the last two years.
The recurring nature of these non-cash expenses suggests that the reported net income may not fully reflect the true economic cost of talent retention. Investors should be cautious of the wide swings in EPS, which appear heavily influenced by these accounting adjustments rather than purely operational performance.
Based on an analysis of the income statement, the primary risk to the current narrative is the extreme sensitivity of net income to SG&A fluctuations, which suggests that the company's growth is essentially purchased through aggressive marketing spend rather than organic, sustainable brand equity.
Short-term profitability appears highly fragile, as any reduction in marketing spend could lead to immediate revenue deceleration, while maintaining current levels risks further margin erosion. This dynamic creates a precarious balance that may not be sustainable if retail partners demand higher promotional support or if digital customer acquisition costs continue to rise.
Quick answers to the most common questions about buying ELF stock.
For fiscal year 2026, e.l.f. Beauty, Inc. (ELF) reported total revenue of $1.64B. This represents a 1029.0% increase compared to $144.9M in 2015.
e.l.f. Beauty, Inc. (ELF) is profitable, generating $54.6M in net income for the fiscal year ending 2026 with a net profit margin of 3.3%.
e.l.f. Beauty, Inc. (ELF) reported an operating income of $131.3M, resulting in an operating profit margin of 8.0%. This margin reflects the operational efficiency of the business before interest and taxes.
e.l.f. Beauty, Inc. (ELF) generated $1.16B in gross profit for the year, representing a gross profit margin of 70.7%. This demonstrates the company's core pricing power and production efficiency.