📊 ELF Key Takeaways
Is e.l.f. Beauty, Inc. (ELF) a Good Investment?
e.l.f. Beauty demonstrates strong revenue growth (+24.6% YoY) and robust free cash flow generation ($190.1M, 11.6% FCF margin), suggesting effective operational execution. However, a severe 76.5% decline in net income despite revenue growth, combined with critically low profitability metrics (1.6% net margin, 2.3% ROE, 1.1% ROA), raises fundamental concerns about business model sustainability and capital efficiency.
e.l.f. Beauty shows solid core fundamentals with strong gross margins, positive free cash flow, and healthy liquidity, indicating a resilient operating model. However, relatively modest operating and net margins, low ROE/ROA, and a sizable long-term debt load limit the strength of the overall fundamental picture. The business appears financially sound, but improvement in earnings efficiency and cash generation quality is needed for a more bullish view.
e.l.f. Beauty, Inc. Key Strengths (ELF)
- Strong revenue growth of 24.6% YoY demonstrates market demand and sales execution
- Excellent gross margin of 70.7% indicates strong product pricing power and production efficiency
- Robust free cash flow generation of $190.1M with 11.6% FCF margin provides financial flexibility
- Solid liquidity position with 2.35x current ratio and $289.7M cash equivalents
- Moderate leverage at 0.74x debt-to-equity is manageable given cash generation
- Strong 70.0% gross margin reflects pricing power and efficient product economics
- Healthy liquidity profile with a 2.76x current ratio and 1.89x quick ratio supports near-term financial flexibility
- Positive operating cash flow and $89.49M in free cash flow show the business is generating cash after investment needs
ELF Stock Risks: e.l.f. Beauty, Inc. Investment Risks
- Catastrophic 76.5% YoY decline in net income despite revenue growth signals severe profitability deterioration
- Operating margin of only 4.5% is unsustainably thin for a consumer discretionary company with 70.7% gross margins
- Returns on equity (2.3%) and assets (1.1%) are extremely poor and fail to compensate shareholders or justify asset deployment
- Large gap between gross margin (70.7%) and operating margin (4.5%) suggests excessive SG&A spending or operational inefficiencies
- Lack of profitability visibility coupled with $841.7M long-term debt creates refinancing risk if cash generation deteriorates
- Net margin of 6.4% and operating margin of 10.4% suggest limited bottom-line cushion if costs rise or growth slows
- Long-term debt of $849.18M is meaningful relative to equity and could constrain flexibility
- ROE of 6.5% and ROA of 3.3% indicate capital is not yet being converted into high returns
Key Metrics to Watch
- Operating margin trend - must expand from 4.5% to demonstrate profitability recovery
- Net income recovery and explanation for YoY decline causes (one-time charges vs. structural)
- Return on equity progression - must improve from critical 2.3% level toward industry benchmarks
- Operating expense ratio as percentage of revenue - indicates if growth investments are sustainable
- Free cash flow sustainability and consistency quarter-over-quarter
- Operating margin and net margin trend
- Free cash flow growth relative to revenue growth
e.l.f. Beauty, Inc. (ELF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.35x current ratio provides a solid financial cushion.
ELF Profit Margin, ROE & Profitability Analysis
ELF vs Consumer Sector: How e.l.f. Beauty, Inc. Compares
How e.l.f. Beauty, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is e.l.f. Beauty, Inc. Stock Overvalued? ELF Valuation Analysis 2026
Based on fundamental analysis, e.l.f. Beauty, Inc. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
e.l.f. Beauty, Inc. Balance Sheet: ELF Debt, Cash & Liquidity
ELF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: e.l.f. Beauty, Inc.'s revenue has grown significantly by 317% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.93 reflects profitable operations.
ELF Revenue Growth, EPS Growth & YoY Performance
ELF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $355.3M | $3.0M | $0.30 |
| Q2 2026 | $301.1M | $3.0M | $0.05 |
| Q1 2026 | $324.5M | $33.3M | $0.58 |
| Q3 2025 | $270.9M | $17.3M | $0.30 |
| Q2 2025 | $215.5M | $19.0M | $0.33 |
| Q1 2025 | $216.3M | $47.6M | $0.81 |
| Q3 2024 | $146.5M | $11.7M | $0.34 |
| Q2 2024 | $122.3M | $11.7M | $0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
e.l.f. Beauty, Inc. Dividends, Buybacks & Capital Allocation
ELF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for e.l.f. Beauty, Inc. (CIK: 0001600033)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ELF
What is the AI rating for ELF?
e.l.f. Beauty, Inc. (ELF) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ELF's key strengths?
Claude: Strong revenue growth of 24.6% YoY demonstrates market demand and sales execution. Excellent gross margin of 70.7% indicates strong product pricing power and production efficiency. ChatGPT: Strong 70.0% gross margin reflects pricing power and efficient product economics. Healthy liquidity profile with a 2.76x current ratio and 1.89x quick ratio supports near-term financial flexibility.
What are the risks of investing in ELF?
Claude: Catastrophic 76.5% YoY decline in net income despite revenue growth signals severe profitability deterioration. Operating margin of only 4.5% is unsustainably thin for a consumer discretionary company with 70.7% gross margins. ChatGPT: Net margin of 6.4% and operating margin of 10.4% suggest limited bottom-line cushion if costs rise or growth slows. Long-term debt of $849.18M is meaningful relative to equity and could constrain flexibility.
What is ELF's revenue and growth?
e.l.f. Beauty, Inc. reported revenue of $1.6B.
Does ELF pay dividends?
e.l.f. Beauty, Inc. pays dividends, with $68.0M distributed to shareholders in the trailing twelve months.
Where can I find ELF SEC filings?
Official SEC filings for e.l.f. Beauty, Inc. (CIK: 0001600033) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ELF's EPS?
e.l.f. Beauty, Inc. has a diluted EPS of $0.44.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ELF's fundamental grade?
Based on our AI fundamental analysis in June 2026, e.l.f. Beauty, Inc. has a B grade with 69% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ELF stock overvalued or undervalued?
Valuation metrics for ELF: ROE of 2.3% (sector avg: 18%), net margin of 1.6% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is ELF's AI grade for 2026?
Our dual AI analysis gives e.l.f. Beauty, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ELF's free cash flow?
e.l.f. Beauty, Inc.'s operating cash flow is $212.5M, with capital expenditures of $22.4M. FCF margin is 11.6%.
How does ELF compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 1.6% (avg: 8%), ROE 2.3% (avg: 18%), current ratio 2.35 (avg: 1.5).