e.l.f. Beauty (ELF) Business Profile

What it does

e.l.f. Beauty develops and sells makeup, skin care and other beauty products. Its brands are e.l.f. Cosmetics, e.l.f. SKIN, rhode, Naturium and Well People. The company offers vegan and cruelty-free products and aims to make beauty accessible through its pricing and distribution.

The products serve consumers looking for items such as eye, lip and face makeup, skin care, beauty tools and accessories. e.l.f. Cosmetics is the flagship makeup brand, while e.l.f. SKIN focuses on skin care. Rhode offers a range of skin-care essentials; Naturium sells facial and body care; and Well People offers plant-based beauty products. The company also sells directly to consumers through its own websites and apps.

Its products reach shoppers through mass-market stores, drugstores, specialty beauty retailers and online marketplaces in the United States and internationally. The company works with retailers including Target, Walmart, Amazon and Sephora. It transferred Keys Soulcare to Alicia Keys in May 2026, and that brand is no longer in the portfolio.

e.l.f. Beauty was formed in 2013 and is headquartered in Oakland, California. Tarang Amin is chairman, chief executive officer and president. As of March 31, 2026, the company had 849 full-time employees.

How it makes money

e.l.f. Beauty operates as a single reporting segment. It earns revenue by developing, marketing and selling beauty products under its brands. Net sales are recorded after provisions for discounts and allowances, returns, markdowns and price adjustments.

The company sells products to retailers for resale and directly to consumers through its own e-commerce channels. It also makes products available through other online sites. National and international retailers generated 76% of net sales in fiscal 2026, while e-commerce channels generated 24%. Revenue comes from product purchases rather than a disclosed subscription arrangement.

Pricing varies by brand and product. e.l.f. Cosmetics’ average product price in the United States is approximately $7. Its products include makeup as well as tools and accessories, while the broader portfolio includes skin care and body care. The company says it uses consumer insights to develop products and change part of the assortment it offers through retailers each year.

Sales can repeat when consumers replenish products, and retailers reorder inventory. Retail customers are not obligated to keep purchasing, however, and their restocking and shelf-reset schedules affect the timing of orders. Net sales are typically higher in the third and fourth fiscal quarters, reflecting holiday purchasing and customer shelf resets, respectively.

Organic sales grew 35% in the second quarter of fiscal 2027, with rhode contributing and all brands growing. The company invests in inventory ahead of the periods when it expects higher sales.

Customers and how it sells

e.l.f. Beauty sells to retail customers and directly to individual shoppers. Its retail distribution spans mass-market, drugstore, food, dollar and specialty beauty channels. Consumers can also buy the company’s products through its own websites and mobile apps and through sites including Amazon and TikTok Shop.

Four customers each represented a significant portion of fiscal 2026 net sales: Target accounted for 18.0%, Walmart for 13.0%, Amazon for 11.0% and Sephora for 10.0%. The company expects those customers and a small number of others to continue to account for a large portion of sales. None of its customers is obliged to continue purchasing products.

The United States accounted for 79% of fiscal 2026 net sales, with the remaining 21% attributable to international markets. The company’s international retail markets included the United Kingdom, Canada and Germany.

Since fiscal 2026, e.l.f. has entered Ulta and launched on Amazon in Mexico. The company also says its Sephora Europe launch of rhode was supported by inventory placed for the launch. It sees additional distribution opportunities in Mexico and Brazil.

Suppliers and costs

e.l.f. Beauty uses an asset-light model: third-party manufacturers make its products, primarily in China, with additional sourcing in the United States, Italy, South Korea and other countries. The company says it has backup manufacturing capabilities if a supplier cannot meet its needs. It does not identify an individual manufacturer as a sole-source supplier, and says its raw materials are broadly available.

Third-party logistics providers operate its distribution centers. A California center mainly serves national retail customers, while other US centers serve e-commerce consumers. International distribution also uses logistics providers in the UK, Netherlands, Canada and China.

Cost of sales includes finished products purchased from manufacturers, transportation to distribution centers, customs, duties and adjustments for excess or obsolete inventory. Marketing, digital, personnel, warehousing and distribution are among selling, general and administrative expenses. Marketing and digital expenses were $399.8 million in fiscal 2026, approximately 24% of net sales.

The company received $52 million in tariff refunds in the first half of fiscal 2027 and said it was investing a portion in pricing and the majority across marketing and digital in the second half.

Competitive position

e.l.f. Beauty competes in makeup, skin care and related beauty products across stores and online. Multinational competitors include L’Oréal, Estee Lauder, Coty, Unilever, LVMH, Shiseido, Beiersdorf and Procter & Gamble. Independent brands, including online and influencer-backed businesses, also compete for consumers.

The company says e.l.f. had 13% of national mass color cosmetics at the start of the second quarter of fiscal 2027, while its share at Target was over 20%. It uses pricing, product development, digital engagement and retail distribution to compete. Its Beauty Squad loyalty program and direct-to-consumer site provide insights used to adjust retail assortments.

The company’s trademarks cover its principal brand names, and it owns design patents covering packaging, makeup tools and brush-handle shapes. It also protects product formulations and other know-how.

Our reading: Brand recognition and retail presence provide a meaningful competitive base, supported by the company’s stated market share and established retailer relationships. Our reading: Pricing and product innovation help differentiate the business, but their durability depends on continuing to attract shoppers in a market with large multinationals and new entrants. Our reading: Trademarks, designs and formulation know-how support differentiation, although the evidence does not establish that they prevent rivals from offering competing products.

Growth opportunities

e.l.f. Beauty seeks to grow by developing products, building demand for its brands and increasing its sales within existing retail space. It also seeks additional shelf space and new retail customers globally. Its strategy includes investment in digital capabilities and extensions that add products or capabilities.

The company sees opportunities to expand distribution of e.l.f. and Naturium at Walmart and to add customers for Naturium. It also sees room for retail expansion internationally. In Mexico, the e.l.f. brand has entered Ulta and launched on Amazon; the company sees further distribution opportunities in Mexico and Brazil.

The portfolio has moved into hair care. The company says its e.l.f. Hair line has six products, each priced at $10 or less. It also says rhode has expanded through retail, including its launch at Sephora in Europe. The company expects rhode’s gross margin to compress as the brand moves further into retail.

The company says its second-quarter fiscal 2027 organic sales grew 35%, with all brands contributing to that growth. It expects 7% to 10% growth for the second half of fiscal 2027. The company says its top e.l.f. markets of the UK, Germany and Canada performed better in the second quarter, alongside international momentum for rhode.

Structural risks

• Retail concentration: The company depends on a limited number of retailers for a large portion of net sales. Losing a customer, reduced retail space or changes in a retailer’s buying patterns could affect results. Customers are not required to continue purchasing.

• China and trade: The majority of products are sourced and manufactured in China. Tariffs, trade restrictions and other policy changes can affect prices and supply; e.l.f. may not be able to offset their effects, pass costs on or secure alternatives.

• Competition and demand: The beauty industry is highly competitive. The company may be unable to introduce products that appeal to consumers, build brand demand or compete effectively with existing and emerging brands.

• Third-party execution and regulation: Manufacturers and distributors may fail to meet deadlines, quality standards or regulatory requirements. Products may also face regulatory action, recalls or claims concerning labeling, safety or advertising.

• Debt and acquisitions: Indebtedness can require cash for debt service and limit operating flexibility through covenants. Assumptions underlying the rhode acquisition may prove inaccurate, while integrating an acquired business can divert management attention and require coordination across functions.

Bottom line

Our reading

Our reading: e.l.f. Beauty is a brand-led product business whose distribution and pricing depend on sustaining consumer demand and productive relationships with retailers. Its manufacturing model limits the need to own production facilities but leaves it exposed to suppliers and trade policy. Expansion into more products and markets offers additional routes to sales, while customer concentration, competition and debt remain important constraints.