In the global beauty market, characterized by fierce competition and frequent shifts in consumer preferences, e.l.f. Beauty stands out as a prominent brand that has successfully positioned itself at the forefront of the industry. With a deep commitment to making high-quality makeup and skincare products accessible at affordable prices, alongside ethical and social principles, e.l.f. Cosmetics, the company’s flagship brand, continues to demonstrate impressive financial performance and an aggressive expansion strategy. The company’s success reflects not only its ability to understand and meet customer needs but also its flexibility and adaptability to the changing business landscape.

An analysis of e.l.f. Beauty’s quantitative data for fiscal year 2025 reveals a picture of consistent growth and exceptional financial performance. The company recorded an increase in net sales for the 25th consecutive quarter, a figure that underscores its stability and sustained strength in the market. Total net sales for fiscal year 2025 amounted to $1,313.5 million, a remarkable 28% increase compared to the previous year. This growth is not merely a number but a clear indication of the widespread adoption of the company’s products by diverse audiences and its ability to consistently expand its market share.

e.l.f. Beauty’s gross margin also saw a significant increase of approximately 50 basis points, reaching 71%. This figure highlights the company’s operational efficiency and its ability to optimally manage production and operational costs while maintaining a high level of quality. Adjusted diluted earnings per share for the fiscal year stood at $3.39, indicating the company’s ability to generate substantial profitability for its shareholders. These figures do not contradict performance but directly reflect the company’s balanced and profitable growth strategy, which integrates innovation, economic accessibility, and corporate responsibility.

Expansion Strategy: Acquiring rhode and Strengthening the Brand Portfolio

As part of its strategic vision to expand its operations and strengthen its position in the beauty market, e.l.f. Beauty announced on May 28, 2025, its intention to acquire rhode, a rapidly growing, multi-category beauty brand founded by Hailey Bieber. This transaction, valued at $800.0 million at closing (in cash and stock), with potential earnout consideration of up to $200.0 million based on the brand’s future performance, represents a significant step in e.l.f. Beauty’s growth strategy. The acquisition of rhode is not merely an expansion of the brand portfolio but also an investment in a high-growth potential brand that appeals to a broad target audience.

The decision to acquire rhode reflects e.l.f. Beauty’s understanding of current beauty market dynamics, which include a trend of developing brands based on public figures and influencers, as well as the need to diversify its product offerings. The addition of rhode to e.l.f. Beauty’s existing brand portfolio – which includes e.l.f. Cosmetics, e.l.f. SKIN, Keys Soulcare, Well People, and Naturium – strengthens the company’s position as a key player offering a wide range of beauty solutions, from makeup to skincare, tailored to different needs and appealing to diverse target audiences.

Chairman’s Statement: A Vision of Growth, Innovation, and Responsibility

The Chairman of e.l.f. Beauty, addressing the company’s achievements and future directions, emphasized an unwavering commitment to the brand’s original vision. “We are proud to complete another fiscal year of industry-leading growth, which testifies to the strength of our unique business model and the deep connection we have forged with our consumer base,” stated the Chairman. “The impressive financial achievements, especially the 25th consecutive quarter of net sales growth and market share gains, are a testament to the dedication of our employees, the continuous innovation in our products, and our ability to remain relevant and leading in a competitive market.”

Beyond addressing business growth, the Chairman emphasized the importance of the guiding values of e.l.f. Beauty: “Beyond the numbers, we remain true to the core of our ethos: positivity, inclusivity, and accessibility. We are committed to providing clean, vegan, and cruelty-free beauty products, as evidenced by our PETA and Leaping Bunny certifications. Furthermore, being the first beauty company with Fair Trade Certified™ facilities reflects our responsibility towards our supply chain. We continue to donate 2% of our net profits to organizations that create a positive impact, out of a deep belief that true beauty lies not only in external appearance but also in the values we represent and the good we spread in the world. We look forward to continuing to build on this strong foundation, as we continue to innovate, grow, and lead the beauty industry towards a better future.”

Clean Beauty, Social Values, and Corporate Responsibility

e.l.f. Beauty bases its operations on a clear system of values, reflecting a social and ethical approach to beauty. The company is committed to “clean beauty” standards, with all its products, especially those of e.l.f. Cosmetics, being vegan and not tested on animals. This commitment is demonstrated by receiving dual certifications from PETA and Leaping Bunny, ensuring strict adherence to cruelty-free principles.

In conclusion, e.l.f. Beauty, led by the e.l.f. Cosmetics brand, continues to demonstrate a successful business model that integrates financial growth, product innovation, and a commitment to social values. The impressive quantitative data, along with a smart expansion strategy such as the acquisition of rhode, positions the company as a leading and influential player in the beauty industry. e.l.f. Beauty’s ability to adapt to changes, offer high-quality products at accessible prices, and operate based on ethical principles ensures its continued growth and influence on the future of the global beauty market.