From Nasdaq, Inc.: 2025-05-30 08:13:00

Shares of e.l.f. Beauty (NYSE: ELF) surged around 25% on May 29, marking the highest single-day return since going public in 2016. The company reported strong earnings, including a 28% increase in net sales and nearly doubled adjusted EBITDA margin. However, the lack of fiscal 2026 guidance due to tariff uncertainty caused concern.

e.l.f. Beauty also announced the acquisition of Rhode, a lifestyle beauty brand founded by Hailey Bieber. The deal, valued at $1 billion, includes an $800 million upfront payment and potential $200 million over the next three years. The acquisition is expected to close in Q3 2025, adding new growth opportunities for e.l.f.

Despite the positive news, e.l.f. Beauty remains far from its all-time high of nearly $222 in March 2024. Bank of America analysts raised their price target on e.l.f. to $113, citing the Rhode acquisition’s potential positive impact on gross margin, EBITDA margin, and earnings. The stock has seen a significant revival since mid-April but has not yet reached previous highs. ELF Beauty (NYSE: ELF) reported a revenue increase of 9% in the fourth quarter, reaching $84.9 million. The company also saw a 37% rise in e-commerce sales. Despite this growth, ELF’s stock fell 4.8% after the earnings report was released due to concerns about future performance.



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