ELF Beauty Shares Skyrocket 28.41% to $116.21 on Strong Earnings and $1B Rhode Deal

Key Moments:

Quarterly Results Outperform Expectations

ELF Beauty shares climbed sharply on Thursday after the company reported stronger-than-expected Q4 earnings and announced a high-profile acquisition. The market rally followed a late dip Wednesday as traders responded to a legal decision curbing the US President’s ability to impose tariffs.

For the quarter, ELF Beauty posted adjusted earnings of 78 cents per share, up 47% year-over-year. In addition, revenue rose 4% to $332.65 million. These results exceeded analysts’ expectations compiled by FactSet, as forecasts had pointed to an EPS of 72 cents, and revenue was estimated to reach $326.7 million. The company’s gross margin also expanded by approximately 50 basis points, reaching 71%.

ELF stated that this was its 25th straight quarter of increasing net sales and expanding market share. According to Tarang Amin, ELF Beauty’s CFO, the company also captured an additional 190 basis points of market share in the US within the last year. However, no guidance was issued for 2026 due to uncertainty surrounding US tariffs.

Expansion With Rhode Acquisition

ELF Beauty also unveiled its $1 billion agreement to acquire Rhode, the skincare and makeup label founded by Hailey Bieber in 2022. Rhode’s net sales reached $212 million over the 12-month period ending March 31st, and its customer base doubled. The acquisition structure includes $800 million at close, and a further $200 million of earnout payments will be made should Rhode’s performance deliver in the three years post-closing.

This news, along with the ELF’s strong financials, resulted in the beauty giant’s shares surging by over 28% after markets opened on Thursday. The stock price managed to climb above $116 as a result.