GET DAILY SIGNALSe.l.f. Beauty (ELF) Reports Strong Q2 with 51% Sales Increase
Key Takeaways
- e.l.f. Beauty reported net sales of $520.8 million for its second quarter of fiscal 2027 (the three months ended September 30, 2026), up 51% year over year.
- Adjusted earnings per share (EPS) came in at $1.21, more than doubling the consensus estimate of roughly $0.57.
- GAAP (Generally Accepted Accounting Principles) net income was $30.0 million, or $0.50 per diluted share, while gross margin expanded about 160 basis points to 71%.
- Management raised its full-year fiscal 2027 outlook, lifting net sales growth guidance to 22%–24% and adjusted EPS guidance to $3.82–$3.86.
- The quarter marked the company's 31st consecutive quarter of net sales growth, supported by strength in both retail and e-commerce channels domestically and internationally.
- For more detail on this ticker's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated pages for a deeper look.
- Interested in automated market scanning? Explore Trending AI Robots to see how AI-driven strategies are being applied across the market.
Why This Quarter Matters
ELF has been one of the faster-growing players in mass-market beauty, and the second-quarter report offers a useful checkpoint on whether that pace can hold as the company scales. After a first quarter that benefited from a one-time tariff refund, attention turned to underlying demand trends, including performance from the acquired rhode brand and new category entries like hair care. The results also highlighted management's skill at expanding margins even while continuing to invest in marketing and pricing. With shares near their 52-week high ahead of the release, the numbers provided a clear read on top-line resilience and the multi-brand approach.
Breaking Down the Reported Numbers
In the second quarter of fiscal 2027, ELF posted net sales of $520.8 million, a 51% rise from $343.9 million the prior year and comfortably above consensus estimates near $469 million. Adjusted EPS reached $1.21, more than double the expected $0.57, while GAAP net income totaled $30.0 million, or $0.50 per diluted share, versus $3.0 million, or $0.05 per share, a year earlier. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Gross margin widened roughly 160 basis points to 71%, aided by lower tariffs and a favorable product mix, though partly offset by pricing investments. Adjusted EBITDA rose 86% to $123.4 million, representing 24% of net sales. The period included a $17.7 million fair-value adjustment related to contingent consideration from the rhode acquisition, reflecting that brand’s strong results.
Management updated full-year fiscal 2027 guidance, now calling for net sales growth of 22%–24% (previously 18%–20%), adjusted EBITDA of $421–$427 million, and adjusted EPS of $3.82–$3.86.
Market Response and Sentiment
Shares moved higher in after-hours trading as the report beat expectations on both the top and bottom lines and included an improved full-year outlook. Pre-release sentiment had been measured, with questions lingering around rhode’s growth sustainability and the reinvestment needed to keep momentum going. The broad beat, fueled by U.S. and international gains—including a 165% increase in international net sales—helped confirm that the multi-brand strategy is on track. Still, the rise in selling, general, and administrative expenses drew attention as investors balanced near-term profitability with ongoing growth investments.
Looking Ahead: What to Watch
Going forward, the focus will be on whether the raised fiscal 2027 guidance can be met as year-over-year comparisons become more difficult. Organic net sales growth is now projected at 9%–11% for the full year, up from the earlier 6%–7% range, with second-half growth expected around 7%–10%.
The rhode brand’s contribution will stay in the spotlight, particularly its expansion into Sephora Europe and its role in international results. Earn-out payments tied to the acquisition may also add volatility to GAAP figures.
Cost control remains relevant as well. Marketing and digital spending came in below plan due to timing, and management intends to reinvest tariff refunds into pricing and marketing. The impact of those decisions on margins in the second half will be worth monitoring.
Category expansion is another area of interest. The new e.l.f. Hair line, introduced via TikTok Shop and Target, marks the first major category move since skincare in 2022, and its initial performance could influence the next phase of growth.
Enhancing Analysis with AI Tools
I find Tickeron’s AI Screener helpful when reviewing results like these. It lets me quickly filter for technical patterns, fundamentals, and sector trends, which adds context when evaluating names in consumer sectors. The tool has become a regular part of my process for spotting comparable setups and staying organized across multiple holdings.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Aroon Indicator for ELF shows an upward move is likely
ELF's Aroon Indicator triggered a bullish signal on October 27, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 308 similar instances where the Aroon Indicator showed a similar pattern. In 267 of the 308 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 87%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +2.67% 3-day Advance, the price is estimated to grow further. Considering data from situations where ELF advanced for three days, in 261 of 323 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
Bearish Trend Analysis
The 10-day RSI Indicator for ELF moved out of overbought territory on October 21, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 56 similar instances where the indicator moved out of overbought territory. In 37 of the 56 cases, the stock moved lower in the following days. This puts the odds of a move lower at 66%.
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ELF as a result. In 61 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 72%.
The Moving Average Convergence Divergence Histogram (MACD) for ELF turned negative on October 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 32 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 70%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ELF declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 75%.
ELF broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 8 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. ELF’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 67 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ELF’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron SMR rating for this company is 81 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 98 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.736) is normal, around the industry mean (21.072). ELF's P/E Ratio (114.778) is considerably higher than the industry average of (16.552). Projected Growth (PEG Ratio) (0.040) is also within normal values, averaging (1.518). Dividend Yield (0.000) settles around the average of (0.033) among similar stocks. P/S Ratio (3.174) is also within normal values, averaging (1.902).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a holding company
Industry HouseholdPersonalCare