ELF's Gross Margin Falls 165 bps: Are Tariffs the Main Drag Now?

Key Takeaways Gross margin fell 165 bps to 69% as tariffs outweighed pricing and mix benefits at e.l.f. Beauty. ELF's operating income and adjusted EBITDA fell as higher expenses continued to pressure profitability. Easing tariff comparisons later this year may support margin stabilization for e.l.f. Beauty. e.l.f. Beauty, Inc. (ELF) delivered another quarter of solid top-line momentum in the second quarter of fiscal 2026, though profitability remained under pressure as tariffs continued to weigh on costs. ...