Elf Beauty Reports 14% Q2 Sales Surge, Boosted by Rhode

Elf Beauty reported significant revenue growth in its second quarter of fiscal 2026, driven by various factors including the successful acquisition of the Rhode brand.

Elf Beauty’s Sales Surge and Rhode Brand Influence

The company announced a year-on-year increase in net sales of 14%, reaching a total of $343.9 million. This growth coincides with the first quarter in which results from Rhode were included, having been acquired just before the previous quarter’s earnings report.

Tarang Amin, the Chair and CEO of Elf Beauty, highlighted the company’s continued market share gains. “Our Q2 results reflect consistent, category-leading growth over 27 quarters,” he stated. This includes an increase of 140 basis points in market share for Elf’s namesake brand, alongside a record launch of Rhode in Sephora North America.

Revenue Breakdown

For the second quarter, Elf Beauty experienced notable growth in revenue from different regions:

• U.S. revenues grew by 18%.
• International sales increased by 2%.

Rhode, the newly acquired brand, emerged as a standout performer. Mandy Fields, CFO of Elf Beauty, noted that the launch in Sephora represented the second-best launch in North America to date. “Rhode continues to have momentum behind it,” she remarked.

Financial Projections for Rhode

Elf Beauty anticipates that Rhode will contribute approximately $200 million to its net sales this year, accounting for the period from August through March. On an annualized basis, the brand is expected to generate around $300 million, representing a projected growth rate of 40% year-on-year.

The brand is set to expand further, with a launch planned in Sephora UK on November 10. Fields also emphasized the brand’s international potential due to its large following outside the U.S. “Rhode has over 70% of its followers located outside the U.S.,” she explained.

Sales Expectations Amid Tariff Challenges

Looking ahead, Elf Beauty has set its sights on an 18% to 20% increase in net sales compared to fiscal 2025. The adjusted EBITDA is projected to rise between $302 million and $306 million, a 2% to 3% increase from $297 million during the previous fiscal year.

Despite the challenges posed by tariffs, which have significantly impacted operations, Elf Beauty managed to achieve EBITDA growth. Fields noted, “Last year, we faced 25% tariffs on China; this year, the weighted average is about 60%, more than double the previous impact.”