Financial Data and Key Metrics Changes - In fiscal year 2025, the company achieved a net sales growth of 28% and adjusted EBITDA growth of 26% [3][32] - Q4 net sales grew 4% year over year, following a 71% growth in Q4 of the previous year [29] - The gross margin for Q4 was 71%, up approximately 50 basis points compared to the prior year, driven by favorable foreign exchange impacts and lower transportation costs [30] Business Line Data and Key Metrics Changes - The U.S. market share increased by 190 basis points, with the company being the number one brand in unit share and number two in dollar share in the U.S. cosmetics market [32][9] - International sales grew by 60% in fiscal year 2025, now representing nearly 20% of total sales [16][34] - The company expanded its skincare line, achieving strong results with Naturium and e.l.f. Skin, which are among the fastest-growing mass skincare brands [10][41] Market Data and Key Metrics Changes - The company gained market share in key geographies, including 190 basis points in the U.S., 170 basis points in Canada, and 270 basis points in the UK [3][32] - The company is the only cosmetics brand tracked by Nielsen to gain market share for 25 consecutive quarters [5] - The brand's unaided awareness increased from 13% in 2020 to 33% in 2024, indicating strong brand recognition [7] Company Strategy and Development Direction - The company aims to continue its focus on share gains in the U.S. and expanding internationally, with plans to launch e.l.f. in over 1,200 stores in the Netherlands and Belgium [17][36] - The acquisition of Road is seen as a unique opportunity to enhance growth and disrupt the beauty industry further [43][49] - The company plans to maintain marketing and digital spend at approximately 24% to 26% of net sales in fiscal year 2026, aligning with previous targets [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's performance, noting that consumption trends are better than in Q4 and that the company is gaining market share [61][36] - The impact of tariffs is expected to start affecting gross margins in Q1, but the company is optimistic about its ability to navigate these challenges [37][72] - Management refrained from providing a fiscal year 2026 outlook due to uncertainties surrounding tariffs but emphasized ongoing growth initiatives [35][61] Other Important Information - The company ended the fiscal year with $149 million in cash and generated approximately $115 million in free cash flow, up from $62 million the previous year [34] - The company is pursuing a pricing strategy to mitigate tariff impacts, planning a $1 increase across its product assortment globally [13][96] - The acquisition of Road is expected to close in the second quarter of fiscal year 2026, with the potential to enhance top-line growth and profitability [54][55] Q&A Session Summary Question: Can you provide insights on performance and Dollar General? - Management noted that performance at Dollar General is exceeding expectations, particularly in underserved rural areas [63] Question: Can you elaborate on the impact of tariffs? - Management indicated that the impact of tariffs will start in Q1, with some inventory already affected, and pricing adjustments will not mitigate this in the first quarter [72][88] Question: What are the growth opportunities with Road? - The acquisition of Road will be run independently, with a focus on executing the Sephora rollout and enhancing global expansion opportunities [65][66] Question: How will the pricing increase affect sales? - Management expects a positive sentiment towards the pricing increase, with a 99% positive response from the community [96] Question: What are the top line trends and growth potential? - Management expressed optimism about top line trends, noting strong consumption and growth in international markets [103]

Financial Data and Key Metrics Changes - In fiscal year 2025, the company achieved a net sales growth of 28% and adjusted EBITDA growth of 26% [3][31] - Q4 net sales grew 4% year over year, following a 71% growth in Q4 of the previous year [28] - Q4 adjusted EBITDA was $81 million, up 99% compared to the previous year [30] - The company ended the year with $149 million in cash, an increase from $108 million a year ago [33] Business Line Data and Key Metrics Changes - The U.S. market share increased by 190 basis points, achieving new highs in mass cosmetics and skincare [31] - International sales grew by 60% in fiscal year 2025, now representing nearly 20% of total sales [16][17] - The company is the number one brand in the U.S. by unit share in cosmetics and has expanded its ranking in Walmart from number four to number two [10] Market Data and Key Metrics Changes - The company gained market share in key geographies, including 190 basis points in the U.S., 170 basis points in Canada, and 270 basis points in the UK [3] - The company is the only cosmetics brand tracked by Nielsen to gain share for 25 consecutive quarters [5] - The average price point for the company's products is approximately $6.5, significantly lower than legacy mass cosmetics brands [19] Company Strategy and Development Direction - The company plans to mitigate tariff impacts through pricing adjustments, supply chain optimization, and business diversification [12][14] - The acquisition of Road is seen as a unique opportunity to enhance growth and brand awareness, with plans for a significant rollout in Sephora [42][44] - The company aims to continue expanding its international presence and product offerings, particularly in skincare and hybrid makeup categories [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to gain market share despite tariff uncertainties and macroeconomic pressures [34][36] - The company is not providing a fiscal 2026 outlook due to the broad range of potential tariff outcomes [34] - Management noted that consumption trends in Q1 are better than in Q4, with positive growth in the U.S. cosmetics market [35][61] Other Important Information - The company has a strong balance sheet with less than 1x leverage in terms of net debt to adjusted EBITDA [33] - The company plans to increase marketing and digital spend to approximately 24% to 26% of net sales in fiscal 2026 [37] - The company has seen a significant increase in unaided brand awareness from 13% in 2020 to 33% in 2024 [7] Q&A Session Summary Question: Can you provide insights on Q1 performance and Dollar General? - Management indicated that Q1 performance is strong, with Dollar General exceeding expectations and gaining market share [63] Question: What are the growth opportunities with Road? - The acquisition of Road will be run independently, with a focus on executing the Sephora rollout and expanding globally [65][66] Question: Can you elaborate on the tariff impact and Naturium's performance? - Management confirmed that tariff impacts will start in Q1, and Naturium is performing well in Ulta Beauty and Boots [88][90] Question: What is the expected impact of the upcoming price increase? - The price increase is expected to be well-received, with positive sentiment from the community, and is aimed at preserving market share [96][97] Question: How diversified is Road's product offering? - Road currently has a tight product assortment of 10 products across skincare, color cosmetics, and accessories, with plans for future expansion [102]

Financial Data and Key Metrics Changes - In fiscal 2025, the company achieved a net sales growth of 28% and adjusted EBITDA growth of 26% [2][35] - Q4 net sales grew 4% year over year, following a 71% growth in Q4 of the previous year [32] - Adjusted net income for Q4 was $45 million, or $0.78 per diluted share, compared to $31 million, or $0.53 per diluted share a year ago [34] Business Line Data and Key Metrics Changes - The company is the number one brand in the U.S. by unit share in cosmetics and has seen significant growth in skincare with e.l.f. Skin and Naturium [9][46] - International net sales grew 60% in fiscal 2025, with total international sales reaching $250 million, representing nearly 20% of total sales [15][36] - The company expanded its market share in the U.S. mass cosmetics and skincare sectors, achieving new highs [35] Market Data and Key Metrics Changes - The company gained 190 basis points of market share in the U.S. and 270 basis points in the UK during fiscal 2025 [2][35] - In Q4, U.S. net sales grew 1% year over year, while international sales grew 19% [32][33] - The company’s household penetration in the U.S. grew almost 400 basis points compared to the previous year [6] Company Strategy and Development Direction - The company plans to mitigate tariff impacts through pricing adjustments, supply chain optimization, and business diversification [12][14] - The acquisition of Rhode is seen as a unique opportunity to enhance growth and innovation in the beauty industry [47][61] - The company aims to maintain a strong focus on share gains in the U.S. and expanding its international business [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to continue gaining market share despite tariff uncertainties [30][66] - The company is not providing a fiscal 2026 outlook due to the broad range of potential tariff outcomes [11][38] - Management noted that consumption trends in Q1 are better than in Q4, with positive growth in various channels [39][66] Other Important Information - The company ended fiscal 2025 with $149 million in cash, up from $108 million the previous year, and generated approximately $115 million in free cash flow [37] - The company plans to implement a $1 price increase across its entire product assortment globally, effective August 1 [12][100] - The company’s marketing and digital investment for Q4 was 23% of net sales, down from 34% the previous year [34] Q&A Session Summary Question: Can you provide insights on Q1 performance and Dollar General? - Management indicated that Q1 performance is strong, with Dollar General exceeding expectations and gaining market share [68] Question: Can you elaborate on the Road acquisition and its integration? - The Road brand will continue to operate independently from Los Angeles, with plans for global expansion and a focus on the Sephora rollout [70][72] Question: What are the expected impacts of tariffs in Q1? - Management confirmed that tariff impacts will start in Q1, with no pricing adjustments in effect during that period [94] Question: How will the pricing increase affect sales? - The company anticipates a positive community response to the $1 price increase, with expectations of maintaining market share [102] Question: What are the growth opportunities for Road? - The Road brand has significant growth potential, with plans to expand its product assortment and leverage e.l.f.'s marketing capabilities [110]