e.l.f.(ELF) - 2026 Q2 - Quarterly Results

Financial Performance - Net sales for the six months ended September 30, 2025, increased by 14% to $343.9 million compared to the same period in 2024[3] - Adjusted net income for the six months ended September 30, 2025, was $40.7 million, with adjusted diluted earnings per share at $0.68[3] - The company reported a net income of $3.0 million on a GAAP basis for the three months ended September 30, 2025[3] - Net income for the six months ended September 30, 2025, was $36,307 thousand, a decrease of 45% compared to $66,575 thousand for the same period in 2024[23] - Adjusted net income for the six months ended September 30, 2025, was $92,050 thousand, down from $109,313 thousand in 2024, a decrease of 15.8%[30] Expenses - Selling, general and administrative (SG&A) expenses increased by $45.0 million to $231.1 million, representing 67% of net sales[3] - Adjusted SG&A for the six months ended September 30, 2025, increased by $45.9 million to $370.5 million, or 53% of net sales[3] - Selling, general and administrative expenses for the six months ended September 30, 2025, were $426,974 thousand, up 16% from $366,716 thousand in 2024[28] - The company incurred acquisition-related seller expenses of $47,100 thousand during the six months ended September 30, 2025[23] Cash and Assets - As of September 30, 2025, the company had $194.4 million in cash and cash equivalents, up from $96.8 million a year earlier[5] - Cash and cash equivalents at the end of the period increased to $199,403 thousand, compared to $96,768 thousand a year earlier, marking a growth of 106%[23] - Total assets increased to $2,318,782 thousand as of September 30, 2025, up from $1,237,015 thousand a year ago, representing a growth of 87%[21] Liabilities and Debt - Total liabilities increased to $1,179,773 thousand as of September 30, 2025, compared to $509,320 thousand a year ago, reflecting a rise of 131%[21] - Long-term debt increased significantly to $831,551 thousand as of September 30, 2025, from $156,648 thousand a year ago, an increase of 431%[21] Future Projections - The company expects an 18-20% increase in net sales for Fiscal 2026, projecting net sales between $1,550 million and $1,570 million[6][7] - Adjusted EBITDA for Fiscal 2026 is projected to be between $302 million and $306 million, compared to $297 million in Fiscal 2025[7] Operational Highlights - The company achieved a record-breaking launch of the rhode brand in Sephora North America, contributing to market share gains[2] - Adjusted EBITDA for the six months ended September 30, 2025, was $153,300 thousand, an increase of 4.4% from $146,763 thousand in 2024[25] - The company reported a net cash provided by operating activities of $50,648 thousand for the six months ended September 30, 2025, compared to $12,449 thousand in 2024[23]