Core Viewpoint - The nostalgia for 2016 among Gen Z is expected to drive a new boom cycle in the beauty industry, particularly benefiting companies like e.l.f. Beauty and Ulta Beauty [1] Group 1: Industry Trends - Gen Z's current social media trend involves sharing photos from 2016, indicating a longing for that era when social media was less commercialized [1] - The year 2016 is identified as a peak time for bold makeup styles, which contrasts with the subsequent trend of "no-makeup makeup" [1] Group 2: Company Impact - Companies such as e.l.f. Beauty and Ulta Beauty are positioned to benefit from this nostalgia-driven trend, potentially leading to increased sales and market interest [1] - The anticipated "supercycle" in beauty products, especially makeup, suggests a significant opportunity for growth for these companies [1]

Core Insights - The market perception of e.l.f. Beauty has shifted from viewing it as a strong growth story to a more cautious stance [1] Company Analysis - e.l.f. Beauty was previously considered a company with a compelling growth narrative, indicating strong potential in the beauty industry [1]

Financial Performance - Net sales increased by $134.2 million, or 38%, to $489.5 million for the three months ended December 31, 2025, compared to $355.3 million for the same period in 2024, driven by the rhode acquisition and growth in both e-commerce and retailer channels [115]. - Gross profit rose by $94.2 million, or 37%, to $347.5 million for the three months ended December 31, 2025, with a gross margin of 71%, slightly down from 71.3% in the previous year due to tariffs [116]. - Net income for the three months ended December 31, 2025, was $39.4 million, representing an increase from $17.3 million in the same period of 2024, with an effective tax rate of 26.9% [120]. - For the nine months ended December 31, 2025, net sales increased by $206.3 million, or 21%, to $1,187.2 million, with the rhode acquisition contributing $180.6 million to this growth [121]. Expenses - Selling, general and administrative (SG&A) expenses increased by $61.7 million, or 28%, to $280.0 million for the three months ended December 31, 2025, primarily due to higher marketing and compensation costs [117]. - SG&A expenses for the nine months ended December 31, 2025, were $706.9 million, an increase of $122.0 million, or 21%, from the previous year, driven by marketing and distribution costs [125]. Acquisition - The rhode acquisition on August 5, 2025, was completed for a purchase price of $897.5 million, funded through a combination of cash, equity, and potential earnout [110]. - Net cash used in investing activities for the nine months ended December 31, 2025, was $603.0 million, primarily related to the rhode Acquisition and capital expenditures [137]. Cash and Liquidity - As of December 31, 2025, the company had $196.8 million in cash and cash equivalents, along with a borrowing capacity of $243.3 million under its Amended Revolving Credit Facility [129]. - The unused balance of the Amended Revolving Credit Facility as of December 31, 2025, was $243.3 million [132][149]. - The company anticipates funding ongoing cash needs from existing cash, cash generated from operations, and if necessary, draws on the Amended Revolving Credit Facility [130]. - The company expects to meet its planned operating, investing, and financing needs for the next twelve months through operating cash flow and available financing [132]. Interest and Debt - Interest expense, net increased to $12.4 million for the three months ended December 31, 2025, compared to $3.5 million in the same period of 2024, largely due to increased debt from the Fifth Amendment to the Amended Credit Agreement [119]. - The interest rate for the Term Facility as of December 31, 2025, was approximately 5.9%, while the interest rate for the Revolving Credit Facility was approximately 5.8% [149]. Operational Strategy - The company raised prices globally for all products sold as of August 1, 2025, to mitigate risks associated with ongoing tariff exposure [108]. - The company has made significant investments in infrastructure, digital capabilities, and expansion to new retailer locations [130]. - The Fourth Amendment to the Amended Credit Agreement established a revolving credit facility of $500.0 million, available for working capital and acquisitions [144]. Working Capital - As of December 31, 2025, working capital, excluding cash and cash equivalents, was $250.5 million, an increase from $214.8 million as of March 31, 2025 [131]. - For the nine months ended December 31, 2025, net cash provided by operating activities was $110.1 million, compared to a net cash used of $2.3 million for the same period in 2024 [134][136]. - Net cash provided by financing activities for the nine months ended December 31, 2025, was $540.9 million, mainly driven by proceeds from the Fifth Amendment establishing the Term Facility [138].

Hailey Bieber is currently the million-dollar tailwind in e.l.f. Beauty's (ELF) sails — and CEO Tarang Amin is betting that's strong enough to blow away Wall Street's skepticism. "I've never seen a brand that's gone from 0 to 212 million in net sales in less than three years," Amin told Yahoo Finance's Opening Bid, referring to the company's recent acquisition of Bieber's skin care line, Rhode. Consumers are "willing to wait for one of their [Rhode's] pop events 14 hours overnight," Amin said, noting t ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

If it feels like your portfolio has been over uh run over this week by Mac Truck, well, I'm here to say two things. One, it may be Thursday, but the trading week is still young. So, hang in there.And two, if you own a lot of software stocks, ask yourself why. Because the selloff is getting darn ugly. I'm Yahoo Finance executive editor Brian Sazy and this is opening bid live from Yahoo Finance's New York City headquarters.Here's what else is on my mind right now. Qualcomm's guidance stunk and the sell-off is ...

NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of e.l.f. Beauty, Inc. (NYSE: ELF) breached their fiduciary duties to shareholders. If you currently own e.l.f. Beauty stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your. ...

US cosmetics company e.l.f. Beauty reported 38% third-quarter net sales growth and raised its fiscal 2026 revenue outlook to 22%-23%. Net sales for the quarter ended 31 December 2025 totalled $489.5m, which the company said was driven by higher volumes across store-based retail and e-commerce channels in the US and overseas. The company increased its full-year revenue projection from a previously expected 18%-20% growth. Quarterly net income rose to $39.3m from $17.2m a year earlier while adjusted net ...

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e.l.f. Beauty (ELF) came out with quarterly earnings of $1.24 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +69.63%. A quarter ago, it was expected that this cosmetics company would post earnings of $0.57 per share when it actually produced earnings of $0.68, delivering a surprise of +19.3%.Over the last four quarters, the ...