E.l.f. Beauty Q2 Earnings Preview: Tariffs, Price Hikes, and Rhode in Focus

E.l.f. Beauty ELF reports its second-quarter fiscal 2026 results on November 5, 2025, after the market closes. Analysts estimate EPS of $0.57 on $366 million in revenue, which would mark a 22% year-over-year growth after two quarters of single-digit expansion. The stock is down around 4% this year, yet it has soared more than 90% over the past month, highlighting just how volatile this name has been lately.

In the last quarter, e.l.f. reported a 9% YoY revenue growth to $354 million, beating expectations but lowering its margin outlook as tariffs started to bite. Gross margin contracted about 215 bps from a year ago to 69%. Management guided EBITDA margins near 20% for the first half, down compared with last year, driven by the tariff hit. Even so, e.l.f. kept expanding its store footprint and introduced global price adjustments to offset some of that pressure. Free cash flow remained positive, supported by disciplined working-capital management.

For this quarter, investors will be watching how much of the tariff and freight burden sticks and whether recent global price hikes held up without hurting demand. They'll also want to see organic growth in skincare and Gen Z-focused color cosmetics. Any details on the Rhode acquisition, which could add a premium DTC edge and improve margins, will be closely watched. Comments on holiday sell-through, supply chain conditions, and potential cost relief in 2026 could easily sway sentiment.

Even after the rebound, e.l.f. trades around 34x forward earnings and roughly 4x forward sales. That's still rich for a mass-beauty name. For the rally to last, investors need to see more than growth. They'll want proof that margins can stabilize and that management has a clear roadmap for integrating Rhode while managing the tariff headwind.