e.l.f. Beauty, Inc. (NYSE: ELF), a cosmetics brand known for making beauty products accessible and affordable, announced its fourth-quarter and full-year earnings for fiscal 2025. The company has experienced substantial growth, with net sales increasing by 28% year-over-year, totaling approximately $1.31 billion. Gross margin rose to 71%, an increase of about 50 basis points from the previous year.

In the fourth quarter ending March 31, 2025, e.l.f. reported net sales of $332.6 million, a growth of 4% from $321.1 million in the prior year, driven by strength in both digital and retail channels. The U.S. market saw a 1% increase in sales, while international sales rose by 19%. Gross profit for the quarter was approximately $237.0 million. Adjusted EBITDA for Q4 reached $81 million, marking a year-over-year increase of 99% and representing 24% of net sales.

The company’s strategic initiatives included a $1 price increase on their product assortment, effective August 1, 2025, to help offset rising tariffs, which currently affect around 75% of their production sourced from China. This price adjustment is part of a broader pricing strategy aimed at maintaining e.l.f.’s value proposition. e.l.f.’s selling, general, and administrative expenses decreased to $192.7 million in Q4, primarily due to a reduction in marketing and digital investment, which accounted for 23% of net sales, down from 34% the previous year.

e.l.f. also concluded its fiscal year with a strong balance sheet, ending with $149 million in cash compared to $108 million the prior year. The company generated approximately $115 million in free cash flow, up from $62 million a year ago. As of March 31, 2025, e.l.f. maintained a leverage ratio of less than 1x net debt to adjusted EBITDA.

Looking ahead, e.l.f. declined to provide specific guidance for fiscal 2026, citing uncertainties regarding tariff outcomes. However, the company remains focused on gaining market share in both the U.S. and international markets. Moreover, e.l.f. has announced a definitive agreement to acquire rhode, a rapidly growing beauty brand founded by Hailey Bieber, for $1 billion. The transaction will be financed through a combination of cash and stock and is expected to close in the second quarter of fiscal 2026.

In summary, e.l.f. Beauty’s fiscal 2025 results reflect significant growth in sales and margins, bolstered by strong profitability metrics and strategic initiatives aimed at further expansion and market share gains.