e.l.f. Beauty, Inc.

What does e.l.f. Beauty own?

e.l.f. Beauty owns five brands: e.l.f. Cosmetics (affordable makeup, number one by units in US cosmetics), e.l.f. SKIN (affordable skincare), rhode (prestige skincare and beauty brand founded by Hailey Bieber, acquired in August 2025 for $800 million plus earnout), Naturium (high-performance skincare, acquired in 2023 for approximately $355 million), and Well People (clean beauty brand). Keys Soulcare was transferred back to founder Alicia Keys in 2026.

Is e.l.f. Beauty publicly traded?

Yes. e.l.f. Beauty, Inc. is listed on the New York Stock Exchange under ticker ELF. The company went public in 2016 through an initial public offering. As of May 2026, there were approximately 59.4 million shares outstanding. The company has a dispersed shareholder base with institutional investors holding the majority of shares. The market capitalisation is approximately $9.7 billion.

Who founded e.l.f. Beauty?

e.l.f. Beauty was founded in 2004 by Joseph Shamah and Scott Borba in Oakland, California. The company name "e.l.f." stands for "eyes, lips, face." The founders recognised an opportunity to provide high-quality cosmetics at affordable prices, launching as an e-commerce brand with products priced as low as $1. The founders no longer hold significant stakes in the company.

Where is e.l.f. Beauty headquartered?

e.l.f. Beauty is headquartered in Oakland, California, USA. The company has an additional office in New York and employs approximately 735 people across 22 countries, including the United States, India, the United Kingdom, China, and Canada. Distribution centres are located in Ontario, California.

What is e.l.f. Beauty's annual revenue?

e.l.f. Beauty reported $1,636.5 million in net sales for FY2026 (ended March 31, 2026), up 25% from $1,313.5 million in FY2025. Adjusted EBITDA was $335.2 million (20% of net sales). GAAP net income was $26.3 million, impacted by acquisition costs and contingent consideration adjustments. Adjusted net income was $185.9 million with adjusted diluted EPS of $3.13. For FY2027, the company projects net sales of $1,835 to $1,865 million.

What is the rhode acquisition?

In May 2025, e.l.f. Beauty signed a definitive agreement to acquire rhode, a lifestyle beauty brand founded by Hailey Bieber, for $800 million at closing ($600 million cash and $200 million in stock) plus up to $200 million in earnout. The acquisition closed on 5 August 2025. rhode's LTM net sales were approximately $212 million at acquisition. The acquisition marked e.l.f. Beauty's entry into the prestige beauty channel through Sephora. In FY2026, rhode recorded a $57.6 million fair value adjustment to contingent consideration due to revenue outperformance.

What is the Muddy Waters report about?

In November 2024, Muddy Waters Research published a report alleging that e.l.f. Beauty had materially overstated revenue over the past three quarters and that reported inventory was materially inflated. The report accused the company of concealing inventory challenges from investors. A securities fraud class action lawsuit was subsequently filed, and in February 2026, the court partially denied the company's motion to dismiss, finding that CEO Tarang Amin's statements on CNBC's Mad Money were plausibly misleading. The case is ongoing.

e.l.f. Beauty was founded in 2004 by Joseph Shamah and Scott Borba in Oakland, California. The founders recognised an opportunity to provide high-quality cosmetics at affordable prices. The company name "e.l.f." stands for "eyes, lips, face," representing the original focus on makeup products. The company launched as an e-commerce brand, selling products directly to consumers through its website at price points as low as $1.

e.l.f. Beauty gained traction through social media marketing and influencer partnerships. The company expanded its product portfolio to include a wide range of makeup products at low price points. In 2016, e.l.f. Beauty went public through an initial public offering on the New York Stock Exchange under ticker ELF, raising approximately $150 million. The IPO capital was used to expand distribution and product development.

In 2019, the company launched e.l.f. SKIN as a separate brand to accelerate its skincare business. The company expanded its presence in international markets including Canada, the United Kingdom, and Australia.

In 2020, e.l.f. Beauty co-founded and incubated Keys Soulcare with Alicia Keys, a lifestyle beauty brand focused on skincare rituals. The brand sold direct-to-consumer and through select retailers.

In October 2023, e.l.f. Beauty acquired Naturium, a high-performance skincare brand, for approximately $355 million. The acquisition doubled the company's skincare presence and added a brand positioned at a slightly higher price point than e.l.f. SKIN.

In May 2025, e.l.f. Beauty signed a definitive agreement to acquire rhode, a fast-growing lifestyle beauty brand founded by Hailey Bieber, for $800 million at closing ($600 million cash and $200 million in stock) plus up to $200 million in earnout consideration based on future growth. The acquisition closed on 5 August 2025. rhode's LTM net sales were approximately $212 million as of March 31, 2025, meaning the purchase price represented approximately 3.8x revenue. The acquisition marked e.l.f. Beauty's entry into the prestige beauty channel through retail partner Sephora.

In FY2026, rhode recorded a $57.6 million fair value adjustment to contingent consideration due to revenue outperformance relative to earnout thresholds. All five of the company's brands grew in FY2026, with rhode and Naturium delivering particularly strong results.

In 2026, e.l.f. Beauty transferred ownership of Keys Soulcare back to founder Alicia Keys. CEO Tarang Amin stated the decision allows the team to focus on its five remaining brands. The company also announced it is testing price reductions on certain products to address unit sales declines driven by tariff-related price increases.

For FY2027 (ending March 31, 2027), e.l.f. Beauty projects net sales of $1,835 to $1,865 million (12 to 14% growth), adjusted EBITDA of $379 to $385 million, and adjusted diluted EPS of $3.27 to $3.32. The guidance came in below some analyst expectations.

e.l.f. Beauty maintains sustainability and ethical practices focused on cruelty-free products, clean ingredients, and social impact. The company differentiates itself through its commitment to vegan and cruelty-free beauty.

Product Standards:

• Cruelty-Free and Vegan: All e.l.f. Beauty products are double-certified by PETA and Leaping Bunny as cruelty-free and vegan
• Clean Ingredients: Focus on clean formulations across brands, particularly through Well People (clean beauty) and Naturium (biocompatible skincare)
• Fair Trade Certified: e.l.f. Beauty is the first beauty company with Fair Trade Certified facilities

Social Impact:

• Charitable Giving: The company donates 2% of net profits to organisations that make positive impacts
• Positivity and Inclusivity: The company's ethos centres on positivity, inclusivity, and accessibility in beauty

Environmental Practices:

• Packaging: Focus on sustainable packaging and ingredient sourcing
• Supply Chain: Manufacturing relationships with third-party suppliers, primarily in China, with Fair Trade Certified facilities

e.l.f. Beauty is not a certified B Corporation. The company's sustainability reporting is included in its annual Impact Report and Form 10-K filings with the SEC. The concentration of manufacturing in China creates both environmental and supply chain considerations, particularly given the tariff environment.

e.l.f. Beauty has received recognition for its growth, marketing, and product innovation. The company does not prominently feature traditional industry awards in its investor communications, as its competitive positioning is built on digital engagement rather than conventional beauty industry recognition.

e.l.f. Cosmetics is the number one brand by units in US cosmetics and number two in dollar share, a significant achievement in the highly competitive mass-market cosmetics segment. The company has achieved seven consecutive years of net sales and market share growth through FY2026.

The company's marketing has been recognised for its digital-first approach, engaging consumers primarily through social media platforms rather than traditional media. e.l.f. Beauty's marketing spend of $399.8 million in FY2026 (approximately 24% of net sales) reflects its commitment to community-led, digitally-oriented marketing.

The company has been recognised as the first beauty company with Fair Trade Certified facilities, and its products are double-certified by PETA and Leaping Bunny as cruelty-free and vegan.

e.l.f. Beauty has faced several controversies and regulatory challenges in recent years.

Muddy Waters Report (November 2024):

On November 20, 2024, Muddy Waters Research published a 48-page report entitled "e.l.f. Beauty, Inc. A Revenue and Inventory Mystery" alleging that e.l.f. Beauty had "materially overstated revenue over the past three quarters." The report accused the company of reporting inflated revenue and profits beginning in Q2 FY24, and concealing inventory challenges from investors by falsely attributing rising inventory levels to changes in sourcing practices rather than insufficient sales. On this news, e.l.f. Beauty's stock price fell 2.23% to close at $119.00 per share.

Securities Fraud Class Action Lawsuit:

A federal securities class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of investors who purchased e.l.f. Beauty securities between November 1, 2023 and November 19, 2024. The lawsuit alleges that the company and certain executives violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The complaint alleges that defendants made materially false and misleading statements about consumer demand and inventory levels, particularly regarding sales through untracked channels such as Ulta Beauty.

The court partially denied the company's motion to dismiss in February 2026. Judge Edward Kline found that CEO Tarang Amin's statements during a November 2024 interview on CNBC's Mad Money program, where he stated that e.l.f. had "built up inventory to be able to meet the strong demand that [the company was] seeing," were plausibly misleading in context because they conveyed that inventory was building to meet demand when Amin allegedly knew that inventory was building because demand was weakening. The case is ongoing.

Tariff and Pricing Controversy:

e.l.f. Beauty implemented a $1 price increase across all e.l.f. product SKUs in August 2025 in response to 55% tariffs on Chinese goods. The price increase drove dollar sales growth but led to unit sales declines. CEO Tarang Amin acknowledged that "we've seen units drop off a bit more in the last few months as consumers have particularly been suffering with higher costs." The company is now testing price reductions on certain products, including a $4 reduction on its $18 Halo Glow skin tint, which produced a nearly 40% lift in business. The company expects a $55 million tariff refund.

Keys Soulcare Transfer:

In 2026, e.l.f. Beauty transferred ownership of Keys Soulcare back to founder Alicia Keys. The brand was co-founded and incubated by e.l.f. Beauty in 2020. CEO Tarang Amin stated the decision was made to allow the team to focus on its five remaining brands. The transfer raised questions about the company's brand incubation strategy and the performance of celebrity-founded brands.