Elf Beauty shares slip as guidance lift falls short of expectations

Elf Beauty Inc (NYSE:ELF) shares fell much than 5% connected Thursday aft the institution reported 3rd 4th fiscal 2026 results and raised its full-year guidance, with the summation seen arsenic humble comparative to expert expectations.

For the 3 months ended December 31, 2025, Elf Beauty posted nett income of $489.5 million, surpassing Wall Street’s statement estimation of astir $460 million.

Adjusted net per stock came successful astatine $1.24, supra the expected $0.72.

“Our Q3 results, which included 130 ground points of marketplace stock gains for our namesake e.l.f. Cosmetics marque and a record-breaking motorboat of rhode successful Sephora successful the UK, are a continuation of the consistent, category-leading maturation we’ve delivered implicit the past 28 quarters,” Elf CEO Tarang Amin said successful a statement.

“We stay assured successful our quality to turn marketplace stock and present best-in-class maturation successful beauty, arsenic reflected by our raised fiscal 2026 outlook.”

Despite the top-line and EPS beats, shares declined aft Elf raised its full-year nett income maturation outlook to 22% to 23%, implying astir $2.55 cardinal to $2.58 cardinal successful full sales. The midpoint of the range, astir $2.565 billion, remained beneath analysts’ pre-earnings statement of astir $2.6 billion.

Much of the guidance summation was driven by Rhode, the company’s precocious acquired brand, which is present expected to lend $260 cardinal to 265 cardinal for the afloat year, up from a anterior forecast of $200 million.

Jefferies highlighted that portion Q3 results exceeded expectations crossed sales, EBITDA, and EPS, capitalist absorption remains connected Elf’s halfway concern performance.

The steadfast noted Rhode’s outsized publication but emphasized that integrated maturation of astir 2% successful the 2nd fractional reflects softer planetary depletion and a 4-point pipeline headwind. “While Rhode’s spot is notable, sentiment remains centered connected halfway concern visibility,” Jefferies wrote.

The steadfast besides pointed retired that Elf’s guidance appears blimpish comparative to beardown US scanner information and ongoing class outperformance, suggesting imaginable upside from selling initiatives, geographic expansion, and pipeline normalization.

The steadfast maintained a terms people of $115.