Q2 2026 elf Beauty Inc Earnings Call

November 5, 2025

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Kacey Catton: Thank you for joining us today to discuss e.l.f. Beauty's Q2 fiscal 26 results. I'm Kacey Catton, Vice President of Corporate Development and Investor Relations. With me today are Tarang Amin, Chairman and Chief Executive Officer, and Mandy Fields, Senior Vice President and Chief Financial Officer. We encourage you to tune into our webcast presentation for the best viewing experience, which you can access on our website at investor.elfbeauty.com. Since many of our remarks today contain forward-looking statements, please refer to our earnings release and reports filed with the SEC where you'll find factors that could cause actual results to differ materially from these forward-looking statements. In addition, the company's presentation today includes information presented on a non-GAAP basis. Our earnings release contains reconciliations of the differences between the non-GAAP presentation and the most directly comparable GAAP measure. With that, let me turn the webcast over to Tarang.

Thank you for joining us today to discuss <unk> second quarter fiscal 2006 results I'm KC Cotton, Vice President of corporate development and Investor Relations with me today are terrain Amin, Chairman and Chief Executive Officer, and Mandy fields, Senior Vice President and Chief Financial Officer, We encourage you to tune in.

Two our webcast presentation for the best viewing experience, which you can access on our website at Investor Dot Ulta beauty dotcom.

Since many of our remarks today contain forward looking statements. Please refer to our earnings release and reports filed with the SEC, where you'll find factors that could cause actual results to differ materially from these forward looking statements. In addition, the company's presentation. Today includes information presented on a non-GAAP basis, our earnings release contains.

Kacey Catton: Since many of our remarks today contain forward-looking statements, please refer to our earnings release and reports filed with the SEC where you'll find factors that could cause actual results to differ materially from these forward-looking statements. In addition, the company's presentation today includes information presented on a non-GAAP basis. Our earnings release contains reconciliations of the differences between the non-GAAP presentation and the most directly comparable GAAP measure. With that, let me turn the webcast over to Tarang.

Lesions of the differences between the non-GAAP presentation, and the most directly comparable GAAP measure with that let me turn the webcast over to Turing.

Thank you Casey and good afternoon, everyone. Today, we will discuss our second quarter results and our outlook for fiscal 2026.

Tarang Amin: Thank you, Kacey, good afternoon, everyone. Today, we will discuss our Q2 results and our outlook for fiscal 2026. I'm proud of our incredible e.l.f. Beauty team for another quarter of consistent category-leading growth. In Q2, we grew net sales 14% and delivered $66 million in adjusted EBITDA. Q2 marked our 27th consecutive quarter of net sales growth, putting e.l.f. Beauty in a rarefied group of high-growth companies. We are one of only six public companies out of 546 that has grown for 27 straight quarters and average at least 20% sales growth per quarter. Beauty continues to be a resilient category. In Q2, the US mass cosmetics and skincare categories grew approximately 2% year-over-year, in line with the low single-digit growth we've seen in the category over the last 10 years.

I'm proud of our incredible F beauty team for another quarter of consistent category leading growth.

In Q2, we grew net sales, 14% and delivered $66 million and adjusted EBITDA.

Q2 marked our 27th consecutive quarter of net sales growth, putting L beauty in a rarefied group with high growth companies.

We are one of only six public companies out of 546 that has grown for 27 straight quarters and average at least 20% sales growth per quarter.

Beauty continues to be resilient category.

In Q2, the U S mass cosmetics and skin care categories grew approximately 2% year over year.

Tarang Amin: In Q2, the US mass cosmetics and skincare categories grew approximately 2% year-over-year, in line with the low single-digit growth we've seen in the category over the last 10 years. On a consumption basis, our namesake e.l.f. Cosmetics grew 7% this quarter, 3 times the category, and grew our market share by 140 basis points. We delivered triple-digit share gains across eye, lip, and face. Consumers continue to choose e.l.f. Cosmetics. Q2 marked our 27th consecutive quarter of market share gains, making e.l.f.

In line with the low single digit growth we've seen in the category over the last 10 years on a consumption basis, our namesake Alf brand grew 7% this quarter three times the category.

Tarang Amin: On a consumption basis, our namesake e.l.f. Cosmetics grew 7% this quarter, 3 times the category, and grew our market share by 140 basis points. We delivered triple-digit share gains across eye, lip, and face. Consumers continue to choose e.l.f. Cosmetics. Q2 marked our 27th consecutive quarter of market share gains, making e.l.f. Cosmetics the only brand out of nearly 1,000 cosmetics brands tracked by Nielsen to gain share for 27 consecutive quarters. In August, we closed on the acquisition of Rhode, the high-growth beauty brand founded by Hailey Bieber, and executed a record-breaking launch in Sephora North America. The acquisition contributed $52 million or approximately 17 percentage points to our net sales in Q2. On an organic basis, excluding Rhode, our net sales were down approximately 3% this quarter.

And grew our market share by 140 basis points.

We delivered triple digit share gains across eye lip and face.

Consumers continue to choose F.

Q2 marked our 27th consecutive quarter of market share gains.

Making <unk> the only brand of nearly a thousand cosmetics brands tracked by Nielsen to gain share for 27 consecutive quarters.

Tarang Amin: Cosmetics the only brand out of nearly 1,000 cosmetics brands tracked by Nielsen to gain share for 27 consecutive quarters. In August, we closed on the acquisition of Rhode, the high-growth beauty brand founded by Hailey Bieber, and executed a record-breaking launch in Sephora North America. The acquisition contributed $52 million or approximately 17 percentage points to our net sales in Q2. On an organic basis, excluding Rhode, our net sales were down approximately 3% this quarter.

In August we closed on the acquisition of road the high growth beauty brand founded by Hailey, Bieber and executed a record breaking launch into for North America.

The acquisition contributed $52 million or approximately 17 percentage points to our net sales in Q2.

On an organic basis, excluding road, our net sales were down approximately 3% this quarter.

Shipments were below consumption, primarily driven by our decision to temporarily stop shipments to retailers were slower to execute our price increase that took effect on August 1st.

Tarang Amin: Shipments were below consumption, primarily driven by our decision to temporarily stop shipments to retailers who were slower to execute our price increase that took effect on August first. We're pleased to report this is now resolved and normal shipments have resumed. Looking at fiscal 26, we're pleased to provide full year guidance, which calls for net sales growth of 18% to 20% year-over-year. This is on top of the 28% net sales growth we delivered in fiscal 25 and projects another year of best-in-class growth among consumer companies. Within that, we expect organic net sales excluding Rhode to be up approximately 3% to 4%. We believe our consumption trends and market share gains are the best indicator of the underlying health of our business and are pleased by our ongoing strength we've seen in fiscal 26 to date.

We're pleased to report this is now resolved and normal shipments have resumed.

Looking to fiscal 'twenty six we're pleased to provide full year guidance, which calls for net sales growth of 18% to 20% year over year.

This is on top of the 28% net sales growth we delivered in fiscal 'twenty five and projected another year of best in class growth among consumer companies within that we expect organic net sales excluding road to be up approximately 3% to 4%.

Tarang Amin: Within that, we expect organic net sales excluding Rhode to be up approximately 3% to 4%. We believe our consumption trends and market share gains are the best indicator of the underlying health of our business and are pleased by our ongoing strength we've seen in fiscal 26 to date. We expect our shipments to be below consumption in fiscal 26, particularly as we lap significant distribution gains in Dollar General and Target that occurred in the second half of fiscal 25. Over a longer period of time, shipments tend to even out with consumption.

We believe our consumption trends in market share gains are the best indicator of the underlying health of our business and are pleased by our ongoing strength, we've seen in fiscal 2006 to date.

We expect our shipments to be below consumption in fiscal 'twenty, six, particularly as we lap significant distribution gains and dollar general and target that occurred in the second half of fiscal 'twenty five over a longer period of time shipments tend to even out with consumption.

Tarang Amin: We expect our shipments to be below consumption in fiscal 26, particularly as we lap significant distribution gains in Dollar General and Target that occurred in the second half of fiscal 25. Over a longer period of time, shipments tend to even out with consumption. We remain confident in our strategy to grow market share and capitalize on the white space ahead of us. We believe the addition of Rhode enhances our long-term growth. In fiscal 26, we expect Rhode to contribute about $200 million in net sales to our results.

We remain confident in our strategy to grow market share and capitalize on the white space ahead of us.

Tarang Amin: We remain confident in our strategy to grow market share and capitalize on the white space ahead of us. We believe the addition of Rhode enhances our long-term growth. In fiscal 26, we expect Rhode to contribute about $200 million in net sales to our results. When considering the $98 million of net sales Rhode achieved in the first half of the year prior to the acquisition close, our outlook assumes Rhode will generate approximately $300 million in net sales on an annualized basis for the 12 months ending 31 March 2026, growing approximately 40% year-over-year.

We believe the addition of road enhances our long term growth.

In fiscal 'twenty, six we expect ROE to contribute about $200 million in net sales to our results.

When considering the $98 million of net sales road achieved in the first half of the year prior to the acquisition close our outlook assumes road will generate approximately $300 million in net sales on an annualized basis for the 12 months ending March 31, 2026, growing approximately 40% year over year.

Tarang Amin: When considering the $98 million of net sales Rhode achieved in the first half of the year prior to the acquisition close, our outlook assumes Rhode will generate approximately $300 million in net sales on an annualized basis for the 12 months ending 31 March 2026, growing approximately 40% year-over-year. The strength of our brands is evident when viewed in the context of the overall beauty market. While beauty has comparatively low barriers to entry, very few brands have been able to scale. Of the over 1,900 cosmetics and skincare brands tracked by Nielsen, only 26 have surpassed $100 million in annual retail sales. With our acquisition of Naturium 2 years ago and the acquisition of Rhode in August, we now have 4 brands that surpass this threshold.

Tarang Amin: The strength of our brands is evident when viewed in the context of the overall beauty market. While beauty has comparatively low barriers to entry, very few brands have been able to scale. Of the over 1,900 cosmetics and skincare brands tracked by Nielsen, only 26 have surpassed $100 million in annual retail sales. With our acquisition of Naturium 2 years ago and the acquisition of Rhode in August, we now have 4 brands that surpass this threshold.

The strength of our brands is evident when viewed in the context of the overall beauty market.

While beauty is comparatively low barriers to entry very few brands have been able to scale.

Of the over 1900, cosmetics and skincare brands tracked by Nielsen only 26 has surpassed $100 million in annual retail sales.

With our acquisition of inventory them two years ago and the acquisition of road in August we now have four brands it surpassed this threshold.

Our brands are unified by our vision to be a different kind of company by building brands that disrupt norms shaped culture and connect communities to positivity inclusivity and accessibility.

Tarang Amin: Our brands are unified by our vision to be a different kind of company by building brands that disrupt norms, shape culture. Connect communities through positivity, inclusivity, and accessibility. Let me take a moment to discuss our brands and key milestones we achieved in Q2. First, turning to e.l.f. Cosmetics and e.l.f. Skin. The combination of our value proposition, powerhouse innovation, and disruptive marketing engine continue to fuel our market share gains, deepen existing community connections, and expand our audience segments. In Piper Sandler's semi-annual Taking Stock With Teens survey, e.l.f. Cosmetics ranked the number one favorite teen makeup brand for a record eight consecutive surveys. It's the first time in the 25-year history of this survey that any cosmetics brand has achieved this level of sustained leadership. Notably, our 36% mind share is now 4.5x the number two brand.

Let me take a moment to discuss our brands and key milestones we achieved in Q2.

First turning to F cosmetics skin.

The combination of our value proposition powerhouse innovation and disruptive marketing engine continued to fuel our market share gains deep.

Deepen existing community connections and expand our audience segments.

In Piper Sandler Semiannual, taking stock with teens survey health cosmetics ranked the number one favorite team makeup brand.

Tarang Amin: In Piper Sandler's semi-annual Taking Stock With Teens survey, e.l.f. Cosmetics ranked the number one favorite teen makeup brand for a record eight consecutive surveys. It's the first time in the 25-year history of this survey that any cosmetics brand has achieved this level of sustained leadership. Notably, our 36% mind share is now 4.5x the number two brand.E.l.f. Skin also reached a new high, increasing its ranking to the number seven favorite teen skincare brand, up from number eight last year. We continue to grow our audience beyond Gen Z.

For a record eight consecutive surveys.

It's the first time in the 25 year history of this survey that any cosmetics brand has achieved this level of sustained leadership.

Notably our 36% Mindshare is now four and a half times the number two brand.

L skin also reach new high increases its ranking to the number seven favorite teen skincare brand up from number eight last year.

Tarang Amin: e.l.f. Skin also reached a new high, increasing its ranking to the number seven favorite teen skincare brand, up from number eight last year. We continue to grow our audience beyond Gen Z. Our latest awareness and usage study shows e.l.f. purchasers growing substantially amongst millennials and Gen X. We're also the most purchased brand among Gen Alpha, showing our multigenerational appeal. Today, e.l.f. Cosmetics is purchased by approximately 1 in 3 females in the US. Our marketing is working, delivering ROIs multiples above industry benchmarks and expanding our brand awareness. Over the last five years, we've grown e.l.f.'s unaided awareness in the US from 13% to 45%, in Canada from 8% to 26%, and in the UK from 6% to 19%.

We continue to grow our audience beyond Gen Z.

Our latest awareness and usage study shows <unk> purchasers growing substantially amongst millennials and Gen X.

Tarang Amin: Our latest awareness and usage study shows e.l.f. purchasers growing substantially amongst millennials and Gen X. We're also the most purchased brand among Gen Alpha, showing our multigenerational appeal. Today, e.l.f. Cosmetics is purchased by approximately 1 in 3 females in the US. Our marketing is working, delivering ROIs multiples above industry benchmarks and expanding our brand awareness. Over the last five years, we've grown e.l.f.'s unaided awareness in the US from 13% to 45%, in Canada from 8% to 26%, and in the UK from 6% to 19%.

We're also the most purchased brand among Gen alpha showing our multi generational appeal.

Today of cosmetics is purchased by approximately one in three females in the U S.

Our marketing is working delivering rois multiples above industry benchmarks and expanding our brand awareness.

Over the last five years, we've grown Els unaided awareness in the U S from 13% to 45%.

In Canada from 8% to 26% and.

And in the U K from 6% to 19%.

Looking at innovation, we have a unique ability to deliver a steady stream of Holy Grails, taking inspiration from our community and the best products in prestige and bringing them to market at an extraordinary value with our signature Elf twist.

Tarang Amin: Looking at innovation, we have a unique ability to deliver a steady stream of holy grails, taking inspiration from our community and the best products in prestige and bringing them to market in extraordinary value with our signature e.l.f. twist. As one example, Power Grip Primer is the number one SKU across the entire US cosmetics category. Our customers crave more, which is why we recently launched our limited edition Mega Power Grip Primer, containing 50 times the amount of product as the original Power Grip. Mega went viral, selling out in 3 minutes on TikTok Shop, where it launched exclusively. Our latest e.l.f. Skin campaign highlights our Bright Icon Vitamin C + E + Ferulic Serum, and its incredible value at $17 compared to a prestige item at $185. Proof of our ability to make the best of beauty accessible and expand the category.

As one example, paragraph primary is the number one SKU across the entire U S cosmetics category.

Our customers Crave more which is why we recently launched our limited edition Mega Power group primer containing 50 times amount of product as original power grid.

Mega went viral selling out in three minutes on tip top shop, where it launched exclusively.

Tarang Amin: Mega went viral, selling out in 3 minutes on TikTok Shop, where it launched exclusively. Our latest e.l.f. Skin campaign highlights our Bright Icon Vitamin C + E + Ferulic Serum, and its incredible value at $17 compared to a prestige item at $185. Proof of our ability to make the best of beauty accessible and expand the category.

Our latest self skin campaign highlights our bright icon vitamin C E for like serum and has incredible value at $17 compared to a prestige item at $185 proof.

Proof of our ability to make the best of beauty accessible and expand the category unlocks a new world just Dennis.

[Company Representative] (e.l.f. Beauty): Unlock a new world of benefits with high-yield radiance, three times the double take, and unprecedented access. What's it, e.l.f.? I'll take all of this.

[Video Narrator 1]: Unlock a new world of benefits with high-yield radiance, three times the double take, and unprecedented access. What's it, e.l.f.? I'll take all of this. Cash or card? Face card. Introducing e.l.f. Skin Vitamin C, E, and Ferulic Serum. Effective 15% Vitamin C formula for unstoppable brightness.

With high yield rating.

Three times the Diablo Canyon.

And unprecedented.

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I'll take all of the cash economy.

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[Company Representative] (e.l.f. Beauty): Cash or card?

Introducing our skin vitamin D E and for <unk>, 15% vitamin C formula for unstoppable brightened.

[Company Representative] (e.l.f. Beauty): Face card. Introducing e.l.f. Skin Vitamin C, E, and Ferulic Serum. Effective 15% Vitamin C formula for unstoppable brightness.

Early fall by assuming the pay for that I just play for them, that's not what I said.

[Video Narrator 2]: Lethal. You still need to pay for this.

[Company Representative] (e.l.f. Beauty): Lethal. You still need to pay for this.

[Company Representative] (e.l.f. Beauty): I did pay for this.

[Video Narrator 1]: I did pay for this.

[Company Representative] (e.l.f. Beauty): No, that's not what I said. Security.

[Video Narrator 2]: No, that's not what I said. Security.

Your machine is Rob again.

They are brand new.

[Company Representative] (e.l.f. Beauty): Your machine is broken.

[Video Narrator 1]: Your machine is broken.

[Company Representative] (e.l.f. Beauty): They're brand-new.

[Video Narrator 2]: They're brand-new.

And my other good times.

[Company Representative] (e.l.f. Beauty): Wait, get my good side. My other good side.

[Video Narrator 1]: Wait, get my good side. My other good side.

Okay Perfect Carson train this lighting as criminal let's do it again applying now for our faith card never designed in at least journey.

[Company Representative] (e.l.f. Beauty): Low key, her face card's insane.

[Video Narrator 2]: Low key, her face card's insane.

[Company Representative] (e.l.f. Beauty): This lighting is criminal. Let's do it again.

[Video Narrator 1]: This lighting is criminal. Let's do it again. Apply now for a face card that never declines. Can you email these to me?

[Company Representative] (e.l.f. Beauty): Apply now for a face card that never declines.

Our value proposition continues to resonate with our consumers.

[Company Representative] (e.l.f. Beauty): Can you email these to me?

Tarang Amin: Our value proposition continues to resonate with our consumers. Our $1 global portfolio-wide price increase went into effect on 1 August to help mitigate some of the increased costs we're seeing from higher tariffs. Even after this increase, 75% of our portfolio sits at a phenomenal value of $10 or less. For context, the average price for e.l.f. Cosmetics is $7.50 today, as compared to approximately $9.50 for legacy mass cosmetics brands and nearly $30 for prestige brands. While it's still relatively early since our price increase went into effect, we're pleased that our consumption continues to outperform category trends. The strength of our productivity and category-leading results continue to earn e.l.f. additional space with our global retailers.

Our $1 global portfolio wide price increase went into effect on August 1st to help mitigate some of the increased costs, we're seeing from higher tariffs.

Even after this increase 75% of our portfolio sits at a phenomenal value of $10 or less.

For context, the average price for Alf cosmetics is $7 50 today as compared to approximately $9 53 legacy mass cosmetics brands and nearly $30 for prestige brands.

Well, it's still relatively early since our price increase went into effect. We're pleased that our consumption continues to outperform category trends.

Tarang Amin: While it's still relatively early since our price increase went into effect, we're pleased that our consumption continues to outperform category trends. The strength of our productivity and category-leading results continue to earn e.l.f. additional space with our global retailers. In Target, our longest-standing national retailer, we increased our footprint earlier this year to 20 linear feet, up from 13 feet previously. In Walmart, we increased our space last year to 12 feet from 8 feet previously.

The strength of our productivity and category, leading results continue to earn additional space with our global retailers.

In target our longest standing national retailer, we increased our footprint earlier this year to 20 linear feet up from 13 feet previously.

Tarang Amin: In Target, our longest-standing national retailer, we increased our footprint earlier this year to 20 linear feet, up from 13 feet previously. In Walmart, we increased our space last year to 12 feet from 8 feet previously. We're pleased to report that in spring 2026, we'll be increasing our space with Ulta Beauty beyond the 12 feet of space we have today. Looking outside the US, we're excited for the expansion we have planned this fall. e.l.f. will be launching with Rossmann in Poland and with Sephora in the 6 countries in the Gulf Cooperation Council, our second launch with Sephora following our success in Mexico. We're also pleased to announce we'll be expanding our reach in Germany in spring 2026, launching e.l.f. with dm, building upon the successful launch we had with Rossmann last year.

In Walmart, we increased our space last year to 12 feet from eight feet previously.

We're pleased to report that in spring 2026, we'll be increasing our spaces Ulta beauty beyond the 12 feet of space we have today.

Tarang Amin: We're pleased to report that in spring 2026, we'll be increasing our space with Ulta Beauty beyond the 12 feet of space we have today. Looking outside the US, we're excited for the expansion we have planned this fall. e.l.f. will be launching with Rossmann in Poland and with Sephora in the 6 countries in the Gulf Cooperation Council, our second launch with Sephora following our success in Mexico. We're also pleased to announce we'll be expanding our reach in Germany in spring 2026, launching e.l.f. with dm, building upon the successful launch we had with Rossmann last year.

Looking outside the U S. We're excited for the expansion we have planned this fall.

Alphabet, launching with ROSSMANN in Poland, and with a four in the six countries in the Gulf Cooperation Council, our second launch with Sephora following our success in Mexico.

We're also pleased to announce we will be expanding our region, Germany in spring 2026, launching elf with D. M building upon the successful launch we have with ROSSMANN last year.

Next turning to wrote the breakthrough beauty Brown founded by Hayley Road Beaver.

Tarang Amin: Next, turning to Rhode, the breakthrough beauty brand founded by Hailey Rhode Bieber. I've been in the consumer space 34 years and continue to be blown away by what Hailey and her team are building. In just under 3 years since its founding, Rhode has seen exceptional growth, achieving $212 million of net sales DTC only with just 10 products. In September, we launched Rhode with Sephora, the world's leading global beauty retailer. The launch is off to a phenomenal start. In fact, Rhode had the biggest launch in Sephora North America's history, exceeding the previous record by two and a half times. To celebrate the launch, we had the opportunity to ring the opening bell at the New York Stock Exchange, bringing together the trailblazing female founders that are part of the e.l.f. Beauty family.

I've been in the consumer space 34 years and continue to be blown away by what Haley and her team are building.

In just under three years since its founding road has seen exceptional growth achieving $212 million of net sales DTC only with just 10 products.

In September we launched road with Sephora, the world's leading global beauty retailer.

The launch is off to a phenomenal start.

In fact road had the biggest launch into four north America's history exceeding the previous record by two and a half times.

To celebrate the launch we had the opportunity to ring the opening bell at the New York Stock Exchange.

Tarang Amin: To celebrate the launch, we had the opportunity to ring the opening bell at the New York Stock Exchange, bringing together the trailblazing female founders that are part of the e.l.f. Beauty family. In terms of what's next, we're seeing significant pent-up global appetite for Rhode. International drives nearly 20% of Rhode's DTC sales, while 74% of the brand's social followers are from outside the US. We're excited to launch Rhode in Sephora UK this month and further its global reach. Turning to Naturium, a disruptive brand focused on ingredient-led, biocompatible skincare.

Bringing together the Trailblazing female founders that are part of the F beauty family.

In terms of Whats next we're seeing significant pent up global appetite for road.

Tarang Amin: In terms of what's next, we're seeing significant pent-up global appetite for Rhode. International drives nearly 20% of Rhode's DTC sales, while 74% of the brand's social followers are from outside the US. We're excited to launch Rhode in Sephora UK this month and further its global reach. Turning to Naturium, a disruptive brand focused on ingredient-led, biocompatible skincare. This quarter, we ran Naturium's first ever awareness campaign, shaped by the voices of Naturium's loyal community, who share how its products help them love their skin. The campaign reflects the brand's unwavering commitment to delivering the science of consistent skincare to everyone, everywhere, every day.

International drives nearly 20% of roads DTC sales was 74% of the brand social followers are from outside the U S.

We're excited to launch road into four U K this month and further its global reach.

Turning to notorious a disruptive brand focused on ingredient led biocompatible skincare.

This quarter, we ran the trains first ever awareness campaign shaped by the voices of the times loyal community.

Tarang Amin: This quarter, we ran Naturium's first ever awareness campaign, shaped by the voices of Naturium's loyal community, who share how its products help them love their skin. The campaign reflects the brand's unwavering commitment to delivering the science of consistent skincare to everyone, everywhere, every day.

Who share how its products helped them above their skin.

The campaign reflects the brand's unwavering commitment to delivering the science of consistent skincare to everyone everywhere every day.

I can tell I am we believe consistency is the key to continue life. That's why we created Biocompatible skincare for everyone everywhere every day.

[Company Representative] (e.l.f. Beauty): At Naturium, we believe consistency is the key to skin you love. That's why we created biocompatible skincare for everyone, everywhere, every day. Our clinically effective formulas work with your skin's biology from head to toe. An experience so luxurious you'll want to use Naturium every day, and you can, because Naturium is biocompatible skincare made for everyone, everywhere, every day.

[Video Narrator 1]: At Naturium, we believe consistency is the key to skin you love. That's why we created biocompatible skincare for everyone, everywhere, every day. Our clinically effective formulas work with your skin's biology from head to toe. An experience so luxurious you'll want to use Naturium every day, and you can, because Naturium is biocompatible skincare made for everyone, everywhere, every day.

Clinically effective formula has worked for the skin biology from head to toe.

Tom.

So luxurious they'll want to use it every day.

Thank you.

He doesn't have a viable category skincare need for everyone everywhere every day.

As we look ahead I am proud that we continue to lead with purpose as we strive to create a different kind of beauty company.

Tarang Amin: As we look ahead, I'm proud that we continue to lead with purpose as we strive to create a different kind of beauty company, one that is purpose-led and results-driven. Our newly released fourth annual impact report demonstrates how we make the world a better place for every eye, lip, and face.

One that is purpose led and results driven.

Our newly released fourth annual impact report demonstrates how we make the world a better place for every eye lip and face.

Okay.

Hi.

Given given about for women on the field and in the boardroom LGBT QA community women's sports empowering legendary females.

[Company Representative] (e.l.f. Beauty): I give an about the women on the field and in the boardroom. LGBTQI community. Women's sports. Empowering legendary females. I give an about women's rights. Putting girls in the driver's seat. While the power of wands. Expressing myself about cruelty-free for every shmoop. Brands that actually care. The factory workers that are making our products. I don't give an about haters. What do you give an e.l.f. about? What do you give an e.l.f. about? What do you give an e.l.f. about? Give an e.l.f.

[Video Narrator 1]: I give an about the women on the field and in the boardroom. LGBTQI community. Women's sports. Empowering legendary females. I give an about women's rights. Putting girls in the driver's seat. While the power of wands. Expressing myself about cruelty-free for every shmoop. Brands that actually care. The factory workers that are making our products. I don't give an about haters. What do you give an e.l.f. about? What do you give an e.l.f. about? What do you give an e.l.f. about? Give an e.l.f.

How about women's rights sitting down in the driver's seat about the power of when expressing myself about cruelty free for every small brands that actually care of factory workers.

That are making our products.

<unk> given us about hater Ross what do you <unk> what have you given out about what are you giving out.

Yes.

Okay.

Given out.

In summary, we're excited by the momentum we're seeing across our brand portfolio and remain confident in our ability to continue to gain share and deliver best in class growth in beauty.

Tarang Amin: In summary, we're excited by the momentum we're seeing across our brand portfolio and remain confident in our ability to continue to gain share and deliver best-in-class growth in beauty. I'll now turn the call over to Mandy to talk more about our Q2 results and our outlook for fiscal 2026.

I'll now turn the call over to Mandy to talk more about our second quarter results and our outlook for fiscal 'twenty six.

Thank you to rang Q.

Q2, net sales of $344 million grew 14% year over year on top of the 40% growth in Q2 of last year.

Mandy Fields: Thank you, Tarang. Q2 net sales of $344 million grew 14% year-over-year on top of the 40% growth in Q2 of last year. The acquisition of Rhode contributed $52 million or approximately 17 percentage points to our Q2 results. Looking to our organic sales trends, our consumption outpaced category trends by over three times, leading to 140 basis points of market share gains in the quarter. As Tarang mentioned, our Q2 shipments were below consumption, primarily driven by our decision to stop shipments on orders not reflecting our August first price increase. Pricing and product mix added approximately 21 points to net sales growth, partially offset by a 6 percentage point impact from lower unit volumes.

The acquisition of road contributed $52 million or approximately 17 percentage points to our Q2 results looking to our organic sales trends our consumption outpaced category trends by over three times, leading to a 140 basis points of market share gains in the quarter.

As Ray mentioned, our Q2 shipments were below consumption, primarily driven by our decision to stop shipments on orders not reflecting our August 1st price increase.

Pricing and product mix added approximately 21 points to net sales growth, partially offset by a six percentage point impact from lower unit volumes.

Mandy Fields: Pricing and product mix added approximately 21 points to net sales growth, partially offset by a 6 percentage point impact from lower unit volumes. Looking to our geographic regions, our net sales in the US grew 18% year-over-year in Q2, while international net sales grew 2%. As a reminder, this quarter we lapped our launch into Rossmann, Germany in the year ago period, which marked our largest international launch to date. We are pleased with our continued portfolio and geographic expansion. We're in the early days of the international opportunity we see.

Looking to our geographic regions, our net sales in the U S grew 18% year over year in Q2.

Mandy Fields: Looking to our geographic regions, our net sales in the US grew 18% year-over-year in Q2, while international net sales grew 2%. As a reminder, this quarter we lapped our launch into Rossmann, Germany in the year ago period, which marked our largest international launch to date. We are pleased with our continued portfolio and geographic expansion. We're in the early days of the international opportunity we see. For context, international drives approximately 20% of our net sales as compared to legacy peers having over 70% of their sales outside of the US. Q2 gross margin of 69% was down approximately 165 basis points compared to prior year. The year-over-year decline was largely driven by incremental tariff costs. This was partially offset by gross margin benefits from our price increase and mix.

International net sales grew 2%.

As a reminder, this quarter, we lapped our launch into rosman, Germany in the year ago period, which marked our largest international launch to date.

We are pleased with our continued portfolio and geographic expansion. We're in the early days of the international opportunity we see for.

For context international drives approximately 20% of our net sales as compared to legacy peers, having over 70% of their sales outside of the U S.

Mandy Fields: For context, international drives approximately 20% of our net sales as compared to legacy peers having over 70% of their sales outside of the US. Q2 gross margin of 69% was down approximately 165 basis points compared to prior year. The year-over-year decline was largely driven by incremental tariff costs. This was partially offset by gross margin benefits from our price increase and mix. On an adjusted basis, SG&A as a percentage of sales was 56% in Q2 as compared to 53% in Q2 last year, primarily driven by ongoing investments in our team and infrastructure.

Q2, gross margin of 69% was down approximately 165 basis points compared to prior year.

The year over year decline was largely driven by incremental tariff costs. This was partially offset by gross margin benefits from our price increase and mix.

On an adjusted basis SG&A as a percentage of sales was 56% in Q2 as compared to 53% in Q2 last year, primarily driven by ongoing investments in our team and infrastructure.

Mandy Fields: On an adjusted basis, SG&A as a percentage of sales was 56% in Q2 as compared to 53% in Q2 last year, primarily driven by ongoing investments in our team and infrastructure. Marketing and digital investment for the quarter was 23% of net sales as compared to 24% in Q2 last year. Q2 adjusted EBITDA was $66 million, down 4% versus last year. Adjusted net income was $41 million or $0.68 per diluted share, compared to $45 million or $0.77 per diluted share a year ago. Moving to the balance sheet and cash flow. Our balance sheet remains strong, and we believe positions us well to execute our long-term growth plans. We ended the quarter with $194 million in cash on hand compared to a cash balance of $97 million a year ago.

Marketing and digital investment for the quarter was 23% of net sales as compared to 24% in Q2 last year.

Mandy Fields: Marketing and digital investment for the quarter was 23% of net sales as compared to 24% in Q2 last year. Q2 adjusted EBITDA was $66 million, down 4% versus last year. Adjusted net income was $41 million or $0.68 per diluted share, compared to $45 million or $0.77 per diluted share a year ago. Moving to the balance sheet and cash flow. Our balance sheet remains strong, and we believe positions us well to execute our long-term growth plans. We ended the quarter with $194 million in cash on hand compared to a cash balance of $97 million a year ago.

Q2, adjusted EBITDA was $66 million down 4% versus last year.

Adjusted net income was $41 million or <unk> 68 cents per diluted share compared to $45 million or 77 cents per diluted share a year ago.

Moving to the balance sheet and cash flow.

Our balance sheet remains strong and we believe positioned us well to execute our long term growth plans we.

We ended the quarter with $194 million in cash on hand, compared to a cash balance of $97 million a year ago.

Our liquidity position remained strong with less than two times leverage after our acquisition of road.

Mandy Fields: Our liquidity position remains strong with less than 2 times leverage after our acquisition of Rhode. We expect our cash priorities for the year to remain on investing behind our growth initiatives and supporting strategic extensions. The specific initiatives we're focused on this year include investing in our people and infrastructure, our ERP transition to SAP, and our global expansion. I'm pleased that our transition to SAP has been successful since our go-live in July, with Q2 marking our first full quarter close on the new system. Our smooth go-live is a testament to the exceptional talent and dedication of our e.l.f. Beauty team and partners. Now let's turn to fiscal 26. As we spoke about last quarter, we plan to provide a full fiscal 26 outlook once we had greater clarity on tariffs. To set the foundation, about 75% of our global production today comes from China.

We expect our cash priorities for the year to remain on investing behind our growth initiatives and supporting strategic extensions.

The specific initiatives were focused on this year include investing in our people and infrastructure, our ERP transition to S E T and our global expansion.

I'm pleased that our transition to S. E. P has been successful since our go live in July with Q2, marking our first full quarter close on the new system or.

Our smooth go live is a testament to the exceptional talent and dedication of our health beauty team and partners.

Mandy Fields: Our smooth go-live is a testament to the exceptional talent and dedication of our e.l.f. Beauty team and partners. Now let's turn to fiscal 26. As we spoke about last quarter, we plan to provide a full fiscal 26 outlook once we had greater clarity on tariffs. To set the foundation, about 75% of our global production today comes from China. Between 9 April and 13 May, we were subject to tariffs at the 170% level. From 14 May through the end of October, product imports to the US were subject to tariffs at the 55% level.

Now, let's turn to fiscal 'twenty six.

As we spoke about last quarter, we plan to provide a full fiscal 'twenty six outlook once we have greater clarity on tariffs.

Set the foundation about 75% of our global production today comes from China.

Between April 9th and May 13th we were subject to tariffs at the 170% level.

Mandy Fields: Between 9 April and 13 May, we were subject to tariffs at the 170% level. From 14 May through the end of October, product imports to the US were subject to tariffs at the 55% level. As of November, we are now subject to a lower tariff at the 45% level, given the recent reduction announced by the administration. While tariff rates remain volatile, we believe the lead time of our supply chain gives us greater visibility into our costs for the second half of the year. Our outlook assumes that the 45% tariff rate stays in place for the remainder of our fiscal year. For context, we estimate every 10 percentage points of incremental tariffs results in a $17 million gross impact to our cost of goods sold on an annualized basis before any mitigating actions.

For may 14th through the end of October product imports to the U S were subject to tariffs at the 55% level.

As of November we are now subject to a lower tariff at the 45% level given the recent reduction announced by the administration.

Mandy Fields: As of November, we are now subject to a lower tariff at the 45% level, given the recent reduction announced by the administration. While tariff rates remain volatile, we believe the lead time of our supply chain gives us greater visibility into our costs for the second half of the year. Our outlook assumes that the 45% tariff rate stays in place for the remainder of our fiscal year. For context, we estimate every 10 percentage points of incremental tariffs results in a $17 million gross impact to our cost of goods sold on an annualized basis before any mitigating actions.

Voltaire if rates remain volatile we believe the lead time of our supply chain gives us greater visibility into our costs for the second half of the year.

Our outlook assumes that the 45% tariff rate stays in place for the remainder of our fiscal year.

For context, we estimate every 10 percentage points of incremental tariffs results in a 17 million dollar growth impact to our cost of goods sold on an annualized basis before any mitigating actions.

For the full year, we expect net sales growth of approximately 18% to 20% adjusted.

Mandy Fields: For the full year, we expect net sales growth of approximately 18% to 20%, adjusted EBITDA between $302 and $306 million, adjusted net income between $165 to $168 million, and adjusted EPS of $2.80 to $2.85 per diluted share. We expect our fiscal 2026 adjusted tax rate to be approximately 23% and a fully diluted average share count of approximately 59 million shares. Let me provide you with additional color on our planning assumptions for fiscal 2026. Starting with the top line. For the full year, we expect net sales growth of 18% to 20% year-over-year. Within that, we expect organic net sales excluding Rhode to be up approximately 3% to 4% year-over-year.

Adjusted EBITDA between 302 and $306 million.

Adjusted net income between $165 million to $168 million.

And adjusted EPS of $2 80 to $2.85 per diluted share.

We expect our fiscal 'twenty six adjusted tax rate to be approximately 23% and our fully diluted average share count of approximately 59 million shares.

Let me provide you with additional color on our planning assumptions for fiscal 'twenty six.

Starting with the topline for.

For the full year, we expect net sales growth of 18% to 20% year over year.

Within that we expect organic net sales excluding road to be up approximately 3% to 4% year over year.

Mandy Fields: Within that, we expect organic net sales excluding Rhode to be up approximately 3% to 4% year-over-year. We expect Rhode to contribute about $200 million in net sales over the 8 months since our 5 August closing date. Looking to the second half, our guidance implies net sales growth of 24% to 27% year-over-year. We expect Rhode to contribute 22 percentage points to net sales growth in the second half. On an organic basis, this implies 2% to 5% net sales growth.

On top of that we expect road to contribute about $200 million in net sales over the eight months since our August at closing date.

Mandy Fields: We expect Rhode to contribute about $200 million in net sales over the 8 months since our 5 August closing date. Looking to the second half, our guidance implies net sales growth of 24% to 27% year-over-year. We expect Rhode to contribute 22 percentage points to net sales growth in the second half. On an organic basis, this implies 2% to 5% net sales growth. Tarang Amin discussed, we are pleased by the ongoing strong consumption rates we have seen in fiscal 2026 to date and expect to continue to outperform category trends into the second half. We expect shipments to be lower than consumption as we cycle expanded distribution in Dollar General and the over 50% space expansion in Target that we had in the second half of last year. Turning to adjusted EBITDA.

Looking to the second half our guidance implies net sales growth of 24% to 27% year over year, We expect road to contribute 22 percentage points to net sales growth in the second half on an organic basis. This implies 2% to 5% net sales growth as terrain discussed we are pleased by.

The ongoing strong consumption rates, we have seen in fiscal 'twenty six to date and expect to continue to outperform category trends into the second half.

Mandy Fields: Tarang Amin discussed, we are pleased by the ongoing strong consumption rates we have seen in fiscal 2026 to date and expect to continue to outperform category trends into the second half. We expect shipments to be lower than consumption as we cycle expanded distribution in Dollar General and the over 50% space expansion in Target that we had in the second half of last year. Turning to adjusted EBITDA. For the full year, we expect $302 to $306 million in adjusted EBITDA, up 2% to 3% year-over-year.

We expect shipments to be lower than consumption as we cycle expanded distribution and dollar general and the over 50% space expansion and target that we had in the second half of last year.

Turning to adjusted EBITDA for.

For the full year, we expect 300 in $2 million to $306 million and adjusted EBITDA.

Mandy Fields: For the full year, we expect $302 to $306 million in adjusted EBITDA, up 2% to 3% year-over-year. This implies adjusted EBITDA margins of approximately 17% in the second half as compared to 22% in the first half. There are two key factors impacting second half adjusted EBITDA margins. First, marketing. We are targeting marketing and digital spend in the 24% to 26% range for the full year. That implies marketing spend of approximately 27% to 29% of net sales in the second half, up about 600 basis points on the top end relative to the 23% of net sales we spent in the first half. We expect this to be partially offset by gross margin improvements.

2% to 3% year over year.

This implies adjusted EBITDA margins of approximately 17% in the second half as compared to 22% in the first half.

Mandy Fields: This implies adjusted EBITDA margins of approximately 17% in the second half as compared to 22% in the first half. There are two key factors impacting second half adjusted EBITDA margins. First, marketing. We are targeting marketing and digital spend in the 24% to 26% range for the full year. That implies marketing spend of approximately 27% to 29% of net sales in the second half, up about 600 basis points on the top end relative to the 23% of net sales we spent in the first half. We expect this to be partially offset by gross margin improvements.

There are two key factors impacting second half adjusted EBITDA margins.

First marketing.

We are targeting marketing and digital spend and the 24% to 26% range for the full year.

That implies marketing spend of approximately 27% to 29% of net sales in the second half up about 600 basis points on the top end relative to the 23% of net sales we spent in the first half.

We expect this to be partially offset by gross margin improvements.

We expect our gross margin in the second half to be approximately 71%.

Mandy Fields: We expect our gross margin in the second half to be approximately 71%, up about 200 basis points sequentially relative to the first half, with anticipated benefits from price increases and mix of business given our acquisition of Rhode. In summary, we're pleased to have delivered another quarter of industry-leading sales and market share growth. We believe we have a winning strategy and are in the early innings of unlocking the full potential we see for our growing portfolio of disruptive brands. With that, operator, you may now open the call to questions.

About 200 basis points sequentially relative to the first half with anticipated benefits from price increases and mix of business given our acquisition of road.

In summary, we're pleased to have delivered another quarter of industry, leading sales and market share growth.

We believe we have a winning strategy and are in the early innings I'm unlocking the full potential we see for our growing portfolio of disruptive brands.

With that operator, you may now open the call to questions.

Thank you we will now begin the question and answer session.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, we ask that you please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to remove yourself from queue, please press star then two. We do ask that you please limit yourself to one question. At this time, we'll pause for just a moment to assemble our roster. Today's first question comes from Dara Mohsenian with Morgan Stanley. Please go ahead.

To ask a question you can reverse star then one on your telephone keypad.

If you're using a speaker phone we ask you. Please pickup your handset before pressing the keys.

If at any time for the question has been addressed and you would like to remove yourself from Hugh Please press Star then two.

We do ask you please limit yourself to one question.

At this time, we'll pause for just a moment to assemble our roster.

And today's first question comes from Durham Museum with Morgan Stanley. Please go ahead.

Hey, guys.

Hey, good afternoon.

Mandy Fields: Hey, guys.

Dara Mohsenian: Hey, guys.

I just wanted to delve a bit more into the corporate topline guidance for the year and the downside in the quarter ex road. When you think about the base. Our heritage business. Just can you give us more of a sense for how much of a drag shipments was versus underlying consumption.

Operator: Hey, good afternoon.

Tarang Amin: Hey, good afternoon.

Mandy Fields: I just want to delve a bit more into the corporate top-line guidance for the year and the downside in the quarter ex Rhode when you think about the base e.l.f. Heritage business. Just can you give us more of a sense for how much of a drag shipments was versus underlying consumption trends in fiscal Q2 around the pricing kerfuffle? A similar question for the back half, are you making up any of that gap from the pricing issue as you start to ship again? maybe what's the total full year impact?

Dara Mohsenian: I just want to delve a bit more into the corporate top-line guidance for the year and the downside in the quarter ex Rhode when you think about the base e.l.f. Heritage business. Just can you give us more of a sense for how much of a drag shipments was versus underlying consumption trends in fiscal Q2 around the pricing kerfuffle? A similar question for the back half, are you making up any of that gap from the pricing issue as you start to ship again? maybe what's the total full year impact?

Trends in fiscal Q2 around the pricing kerfuffle.

A similar question for the back half are you, making up any of that gap from the pricing issue as you start to ship again.

Maybe what's the total full year impact.

That's another way of asking it more simply is what are you expecting for underlying U S consumption trends.

[Analyst] (Morgan Stanley): Perhaps another way of asking it more simply is what are you expecting for underlying US consumption trends? Then also, Tarang, just how did you resolve the issue around pricing with your retailers? Did it change the economics of the relationship at all going forward? Was it more just a temporary issue that you moved past? Are there any issues with out-of-stocks that may impact forward consumption trends just as we think about the go-forward consumption? Thanks.

Dara Mohsenian: Perhaps another way of asking it more simply is what are you expecting for underlying US consumption trends? Then also, Tarang, just how did you resolve the issue around pricing with your retailers? Did it change the economics of the relationship at all going forward? Was it more just a temporary issue that you moved past? Are there any issues with out-of-stocks that may impact forward consumption trends just as we think about the go-forward consumption? Thanks.

And then also trend just how did you resolve the issue around pricing with your retailers did it change the economics of the relationship at all going forward or is it more just a temporary issue that you move past.

And are there any issues with out of stocks that may impact forward consumption trends just as we think about the go forward consumption.

Yeah.

Hi, there I'm going to start off by answering a question.

Mandy Fields: Hi, Dara. I'm gonna start off by answering the question, I'll start with Q2. As we said, we're very pleased with the consumption that we saw in Q2, you know, outperforming the category. Category grew around 2%. e.l.f. Cosmetics grew around 7%, so almost over 3 times what we saw from the category performance. When we talk about the pricing impact, you know, that is the primary driver of the disconnect between consumption and the shipments that we delivered in the quarter. I would say, you know, it's never a one-to-one consumption to shipments, but we know that over time, consumption and shipments do net out. To answer your second question on, are we gonna pick up any of that as we go into the second half? Yes.

Start with Q2.

As we said, we're very pleased with the consumption that we saw in Q2 outperforming the category category grew around 2% L brand grew around 7% so almost over three times, what we saw on the category performance.

When we talk about the pricing impact.

That that is the primary driver of the disconnect between consumption and the shipments that we delivered in the quarter.

And so I would say you know it's never a one to one consumption to shipment, but we know that over time consumption and shipments do net out and so to answer your second question on <unk>.

Mandy Fields: I would say, you know, it's never a one-to-one consumption to shipments, but we know that over time, consumption and shipments do net out. To answer your second question on, are we gonna pick up any of that as we go into the second half? Yes. I think it's fair to assume that we're gonna pick up some of that, as we head into Q3. Like I said, it's not gonna be a 1 for 1, you know, exact on the quarter, but over time, we do expect consumption and shipments will net out.

Are we going to pick up any of that as we go into the second half Yeah. I think it's fair to assume that we're going to pick up some of that and as we head into Q3.

Mandy Fields: I think it's fair to assume that we're gonna pick up some of that, as we head into Q3. Like I said, it's not gonna be a 1 for 1, you know, exact on the quarter, but over time, we do expect consumption and shipments will net out. To answer your question on underlying growth on the second half, as we talked on the call, you know, on an organic basis, we're outlooking 2% to 5% growth on the top line. That again is led by strong consumption. You know, our consumption is up 10% on a fiscal year-to-date basis and has, it's even strengthened as we've gotten into this quarter.

But like I said, it's not going to be a one for one.

No exact on the quarter, but overtime, we do expect consumption and shipment will net out.

And also to answer your question on underlying growth on the second half.

Mandy Fields: To answer your question on underlying growth on the second half, as we talked on the call, you know, on an organic basis, we're outlooking 2% to 5% growth on the top line. That again is led by strong consumption. You know, our consumption is up 10% on a fiscal year-to-date basis and has, it's even strengthened as we've gotten into this quarter.

We talked on the call you know on an organic basis, we're out looking 2% to 5% growth on the top line.

That again is.

Led by strong consumption, our consumption is up 10% on a fiscal year to date basis and has even strengthened as we've gotten into this quarter and so again pleased with what we're seeing from a consumption standpoint, but what we have in the second half is cycling space expansion at dollar about 11000 doors in the base.

Mandy Fields: Again, pleased with what we're seeing from a consumption standpoint, but what we have in the second half is cycling space expansion at Dollar, about 11,000 doors in the base, as well as our 50% space expansion in Target. We are cycling that pipeline. That's gonna have an impact there from a shipment standpoint, but feeling very good about the consumer strength that we're seeing with that consumption continuing to be strong.

As well as our 50% base expansion and targets. So we are cycling that pipeline, that's going to have an impact there from a shipment standpoint, but feeling very good about the consumer strength that we're seeing with that consumption continuing to be strong.

Hey, Dara on your second question on pricing.

Tarang Amin: Hey, Dara, on your second question on pricing, let me step back a little bit and talk a little bit about our philosophy on pricing, which is different than many of our competitors. We believe in an everyday low price that's consistent across retailers. The way we've done that is we basically have a same price everywhere, that same, kind of, low price every day. The other thing that's different, and that contrasts with many of our competitors who tend to price higher and then discount or run promotions, we believe that approach has been really good for our consumers in terms of knowing that they can buy e.l.f. everyday low price.

Let me step back a little bit and talk with you about our philosophy on pricing, which is different than many of our competitors. We believe in an everyday low price that's consistent across retailers and so the way. We've done that is we have we basically have a same price everywhere that same kind of low price every day.

The other thing thats different and that contrasts with many of our competitors who tend to price higher and then discount run promotions. We believe that approach has been really good for our consumers in terms of knowing that they can buy else everyday low price. The other area that we are different is unlike many of our competitors have large trade budgets, we don't offer trade funds for <unk>.

Tarang Amin: The other thing that's different, and that contrasts with many of our competitors who tend to price higher and then discount or run promotions, we believe that approach has been really good for our consumers in terms of knowing that they can buy e.l.f. everyday low price. The other area that we're different is unlike many of our competitors who have large trade budgets, we don't offer trade funds for one retailer to embarrass another one in terms of a sale and lower pricing. That's our overall approach. In the quarter, what we had is our pricing went into effect 1 August.

Tarang Amin: The other area that we're different is unlike many of our competitors who have large trade budgets, we don't offer trade funds for one retailer to embarrass another one in terms of a sale and lower pricing. That's our overall approach. In the quarter, what we had is our pricing went into effect 1 August. We had a few retailers that were slow to reflect that new pricing. As soon as we don't see the right price on the PO, we don't fill that order. The way we resolve that is it naturally resolves. Retailers want to have e.l.f., and they wanna have it at the right price. We're now, as I said, resolved it. We're shipping normally, and it's a way of us keeping price sanctity in the market.

One retailer to embarrass another one in terms of sale and lower pricing. So that's our overall approach.

In the quarter, what we had as our pricing went into effect August 1st we had a few retailers are slow to reflect that new pricing as soon as we don't see the right price on the Po, we don't feel that order and the way we resolve that is it naturally results retailers wanted to have Alf and they want to have it at the right price and so we're now as I said.

Tarang Amin: We had a few retailers that were slow to reflect that new pricing. As soon as we don't see the right price on the PO, we don't fill that order. The way we resolve that is it naturally resolves. Retailers want to have e.l.f., and they wanna have it at the right price. We're now, as I said, resolved it. We're shipping normally, and it's a way of us keeping price sanctity in the market.

Resolved it shipping normally and it's a way of us keeping price sanctity in the market.

Oh.

Thank you.

It's also good that comes from Olivia Tong of Raymond James. Please go ahead.

Operator: Thank you. Our next question today comes from Olivia Tong at Raymond James. Please go ahead.

Great. Thanks.

You touched a little bit on this earlier, but what where did you exit the quarter and then can you help us understand sort of where the deceleration was the highest it looks like it was both in the U S and international markets, Obviously, you price them both.

Olivia Tong: Great. Thanks. You touched a little bit on this earlier, but where did you exit the quarter? Can you help us understand, sort of, where the deceleration was the highest? It looks like it was both in the US and international markets. Obviously, you priced in both. I know you just said you don't expect a one-for-one catch-up, but I'm surprised if it's, if it's just a disagreement towards, you know, when pricing first went into place and things are back to normal levels now, why you wouldn't expect more of a catch-up, you know, in a, in a more rapid manner. If you could, you know, help explain the discrepancies there, that would be great. Thank you.

I know you just said you don't expect a one for one catch up but I am surprised if it's if it's just a disagreement towards when pricing first went into place and things are back to normal levels. Now why you wouldn't expect more of a catch up.

Olivia Tong: I know you just said you don't expect a one-for-one catch-up, but I'm surprised if it's, if it's just a disagreement towards, you know, when pricing first went into place and things are back to normal levels now, why you wouldn't expect more of a catch-up, you know, in a, in a more rapid manner. If you could, you know, help explain the discrepancies there, that would be great. Thank you.

And in a more rapid manner. So if you could help.

Help explain.

The discrepancies there that would be great. Thank you.

So from a consumption standpoint, as we talk to Olivia we had about a 7% consumption rate in Q2.

Mandy Fields: From a consumption standpoint, as we talked, Olivia, we had about a 7% consumption rate in Q2. As we've gotten into Q3, we have seen that be a bit stronger, so feeling great, again, from a consumption standpoint. In the quarter, from a US versus international growth rate, we saw an 18% growth in the US and a 2% growth rate in the international markets. Now, as a reminder, the 2% on international, we are lapping or were lapping the launch into Rossmann Germany, and that was our largest international launch that we've had to date. That was impacting that international growth number as we cycled through that. To answer your last question on the catch-up, you know, like I said, shipments and consumption will net themselves out over time.

As we've gotten into Q3, we have seen that be a bit stronger so feeling great again from a consumption standpoint in the quarter from a U S versus international growth rate, we saw 18% growth in the U S and a 2% growth rate in the international markets now as a reminder, the 2%.

On international we are lapping or we're lapping the launch into Roffman, Germany and that was our largest international launch that we've had to date and so that was impacting that international growth number as we cycled through that.

Mandy Fields: That was impacting that international growth number as we cycled through that. To answer your last question on the catch-up, you know, like I said, shipments and consumption will net themselves out over time. It, you know, based on order patterns or maybe the consumer, you know, has, kind of, moved on from that order, orders are resubmitted at different levels. It's not gonna be exactly a one-to-one catch-up on those shipments into Q3.

The answer your last question on the catch up.

And like I said shipments and consumption will net themselves out over time, but.

But it.

Based on order patterns or maybe the consumer has kind of moved on from that order in order to resubmit. It at different levels, it's not going to be exactly one to one catch up on those shipments into Q3.

Mandy Fields: It, you know, based on order patterns or maybe the consumer, you know, has, kind of, moved on from that order, orders are resubmitted at different levels. It's not gonna be exactly a one-to-one catch-up on those shipments into Q3.

Got it so just to clarify you didn't see any of this consumption.

Olivia Tong: Got it. Just to clarify, you didn't see any of this consumption mismatch in your view in international markets with respect to pricing. It was primarily the tough comp associated with the launch into Rossmann in Germany.

Mismatch in your view and.

In international markets with respect to pricing it was primarily the tough comp associated with the launch of <unk> in Germany.

I would say that was the primary driver of the international performance.

Mandy Fields: That's right. I would say that was the primary driver of the international performance.

Got it understood.

My second question is really around you know your view on.

Olivia Tong: Got it. Understood. My second question is really around, you know, your view on tariffs and how much of the inventory that was at the peak has now flown through, whether all of it has flown through or there's some that continues to impact you in the second half. Then on marketing, I guess why the need to increase it as much as you are planning in the second half? Are there initiatives in place that you want to support? Is it primarily behind Rhode? Just trying to understand that 300 basis point increase in marketing and what's driving that.

On on tariffs and how much of the inventory.

<unk> was up a piece has now flown through whether all of it as long as there are there some that that continues to.

To impact you in the second half and then on marketing it.

I guess why why they need to to increase it as much as you are planning in the second half are there initiatives in place that you want to support is it primarily behind rose just trying to understand a grander basis point increase in and marketing and what's driving that.

Alright, So then on tariffs so.

Mandy Fields: Yes. All right. On tariffs. let's see here. Tariffs, as we talked on the call, a little bit of good news on tariffs, with the administration calling out that, tariffs were reduced by about 10 points, to 45%. We were pleased to hear that news. I will tell you that, all in, on an average basis, China tariffs impact to us this year is about a 60% tariff that we face, versus a 25% tariff last year. We have about 3,500 basis points of tariff headwind that we're dealing with this year. I would say from a growth margin cadence standpoint, you are starting to see that growth margin improve as we head into the back half.

Lets see here with tariffs as we talked on the call a little bit of good news on tariffs with the administration, calling out that tariffs were reduced by about 10 point at pinpoint.

45%. So we were pleased to hear that news I will tell you that.

All in on an average basis, China tariffs impact to us. This year. It was about a 60% tariff that we face so versus the 25% tariffs last year. So we have about 3500 basis points of tariff headwind that we're dealing with this year I would say from a gross margin cadence standpoint.

You are starting to see that gross margin improve as we head into the back half.

Our prepared remarks, we talked about seeing a 71% gross margin in the second half that's relatively flat to where we were last year from a gross margin standpoint.

Mandy Fields: In our prepared remarks, we talked about seeing a 71% gross margin in the second half. That's relatively flat to where we were last year from a gross margin standpoint. On the year, if you play that through, gross margin's looking to be about down 100 basis points on the year. Again, most of that in the first half, where we were down 200 basis points. I think we have done a great job of shoring up gross margin as we've gotten into the second half of the year, again, with the pricing piece, with Rhode coming into the mix, feeling good about our gross margin position, given the headwinds that we faced from a tariff standpoint. On marketing really is a timing shift.

And on the year, if you play that through gross margins looking to be about down 100 basis points on the year again most of that in the first half where we were down 200 basis point, though I think we have done a great job of.

Mandy Fields: I think we have done a great job of shoring up gross margin as we've gotten into the second half of the year, again, with the pricing piece, with Rhode coming into the mix, feeling good about our gross margin position, given the headwinds that we faced from a tariff standpoint. On marketing really is a timing shift.

Shoring up gross margin as we've gotten into the second half of the year again with the pricing piece with ROE coming into the mix feeling good about our gross margin position given the headwinds that we faced from a tariff standpoint, and then our marketing marketing really is a timing shift. So if you look at what we spent in Q.

Two we spent about 23% of our net sales behind marketing and digital as we've talked all year, we want to be in that 24% to 26% range. We did have some campaigns shifting out into Q3, and Q4 and so that I would say, it's just more of a timing thing no difference and where we had been targeting marketing for this year in that 24 hours.

Mandy Fields: If you look at what we spent in Q2, we spent about 23% of our net sales behind marketing and digital. As we've talked all year, we wanna be in that 24% to 26% range. We did have some campaigns shifting out into Q3 and to Q4, that, I would say, is just more of a timing thing. No difference in where we have been targeting marketing for this year in that 24% to 26% range.

26% right.

Thank you and our next question who comes from Andrea <unk> with JP Morgan. Please go ahead.

Operator: Thank you. Our next question today comes from Andrea Teixeira with JP Morgan. Please go ahead.

Thank you I just wanted to follow up on.

Andrea Teixeira: Thank you. I just wanna follow up on the consumption number you gave us for year to date. You said 10% year to date, which is supported. In the last, since you implemented the price increase, can you comment on since August, I believe it went through, how much was that? Related to the performance that you had in Rhode, quarter to date, I think was like $57 million. Just curious with the shipment and consumption dynamics there. Understandably, you have the $200 million for the eight months, but just to understand how we should be thinking in terms of the timing of the shipments.

On the consumption number you gave us for year to date. So you saw a 10% year to date, which is supportive.

But then in the last.

Since you implemented the price increase can you comment on since August I believe of what went through.

How much was that and then related to the performance that you had the road.

Quarter to date, I think was the 57 million.

Just curious with the shipment and consumption dynamics there.

Understandably, you'll have the 200 million for it.

The eight months, but just to understand how we should be thinking in terms of the timing of the shipments.

Sephora.

Andrea Teixeira: Sephora, initial shipments were not part of your $200 million, but just as we think about the potential for consumption in Rhode itself. If you can give us the Rhode consumption number, relative to the 212 that they had, prior to, prior to the deal. Thank you.

Initial shipments or are not part of your 200 million, but just as we think about.

The potential for consumption and road itself. So if you can give us the roads consumption number.

Relative to the 212 that they had prior to.

Prior to the deal.

Thank you.

Hi, Andrea So first to answer your question on consumption.

Mandy Fields: Hi, Andrea. First, to answer your question on consumption, even post the price increase on August first, we've still seen consumption hold strong, which is very encouraging to us. As I said, we've even seen it a little bit better as we've gone into Q3. We feel great about the core business consumption. From a Rhode standpoint, we said $200 million is gonna be the contribution on the year post-acquisition, but on an annualized basis, Rhode is expected to be $300 million in net sales. That's a 40% growth on a year-over-year basis. What you're picking up there, Andrea, is, you know, the $200 million, like I said, is post-acquisition, but then you're also picking up the $40 million from Q1 that was disclosed in the pro formas.

Even post the price increase on August one we are still seeing consumption holds strong which is very encouraging to us and as I said, we've even seen it a little bit better as we've gone into Q3. So we feel great about the core business consumption from a road standpoint.

That $200 million is going to be the contribution on the year post acquisition, but on an annualized basis road is expected to be $300 million and net sale, that's a 40% growth on a year over year basis, and what you are picking up there Andrea as you know the $200 million like I said is post acquisition, but then.

Mandy Fields: What you're picking up there, Andrea, is, you know, the $200 million, like I said, is post-acquisition, but then you're also picking up the $40 million from Q1 that was disclosed in the pro formas. The delta there, about $57 million, is related to net sales or shipments that went out prior to us acquiring Rhode in Q2. You'll see in our Q that's filed tomorrow, you'll actually see on a pro forma basis what Q2 would have looked like all in with Rhode for a full quarter along with e.l.f.'s results. You'll see that Rhode was about $110 million in Q2 from a net sales standpoint.

You're also picking up the $40 million from Q1 that was disclosed in the pro forma and then the Delta there about 57 million is related to.

Mandy Fields: The delta there, about $57 million, is related to net sales or shipments that went out prior to us acquiring Rhode in Q2. You'll see in our Q that's filed tomorrow, you'll actually see on a pro forma basis what Q2 would have looked like all in with Rhode for a full quarter along with e.l.f.'s results. You'll see that Rhode was about $110 million in Q2 from a net sales standpoint.

Net sales or shipments that went out.

Fire to us acquiring road in Q2, so you'll see.

And our Q, that's filed tomorrow, you'll actually see on a pro forma basis, what Q2 would have looked like all in with road for a full quarter along with <unk> results Youll see that road was about $110 million in Q2.

From a net sales standpoint.

Sorry, just to understand the $110 million would be the difference as you sound like the 57 plus the actual consumption.

Andrea Teixeira: Sorry, just to understand, the $110 million would be the difference, as you said, like the 57 plus the actual consumption?

No so the $57 million.

Mandy Fields: No. The $57 million would just be their net sales prior to acquisition in Q2. That's gonna be a mix of D2C consumption plus shipments to Sephora. Those initial shipments to Sephora.

Just be there net sales prior to acquisition in Q2, so that's going to be a mix of.

D to C consumption plus shipments to sephora.

That is.

Before.

Okay, and then going just just to clarify where you just said like August and Wendy's Super helpful. When you said, okay picked up even towards the third quarter. So what was the consumption in August and September and how we should be thinking relative to the 10% is that.

Andrea Teixeira: Okay. Going just to clarify what you just said, like August, and Mandy, it's super helpful when you said, okay, it picked up even towards Q3. What was the consumption in August and September, and how we should be thinking relative to the 10%? Is that similar to 10% in August, or that took a little bit of a... Because the price increase on itself-

Similar to the 10% in August or that took a little bit of because the price increase on itself. A one dollar over 750 is a pretty large number.

Anna Lazo-Gillard: $1 over $750 is a pretty large number. I was hoping to see what the volume decline was.

I was hoping to see what the volume decline was.

If you are not saying consumption accelerated even more than the 10.

Mandy Fields: Yeah.

Anna Lazo-Gillard: If you're not seeing consumption accelerated even more than the 10%.

Andrea Teixeira: If you're not seeing consumption accelerated even more than the 10%.

Yeah, So and the August and September timeframe again.

Mandy Fields: Yeah. In the August and September timeframe, again, as Tarang mentioned, it took some time for retailers to roll that pricing out. You're right. On a dollar increase is about 15, 16% growth from an AUR standpoint. That's why I'm saying as we've gotten into Q3, we have seen that consumption be a bit stronger than that 10%. We're pleased that our consumption is actually holding up, given that we took a broad price increase, a dollar across the entire portfolio. We have not done that before, are pleased that our consumption rates continue to hang in there.

<unk> mentioned it took some time for retailers to roll that pricing out and so you're right on a on a dollar increase was about 15% 16% growth from an AUR standpoint.

And that's why I'm, saying as we've gotten into Q3, we have seen that consumption be a bit stronger than that 10% and so we're pleased with that our consumption is actually holding up given that we took a broad price increase the dollar across the entire portfolio. We have not done that before and are pleased that our consumption rates continue.

Hanging in there.

Thank you and our next question today comes from Ashley Hogan with Jeffrey Jefferies. Please go ahead.

Operator: Thank you. Our next question today comes from Ashley Helgans with Jefferies. Please go ahead.

Hi, Thanks for taking our question this is sidney on for Ashley.

[Analyst] (Jefferies): Hi, thanks for taking our question. This is Sydney on for Ashley. First, just starting with the guide, can you just share a little bit more about your expectations for the category that are informing that kind of core brand growth expectation? When we think about Rhode, I would love to hear a little bit more about how you sort of are thinking about the balance between wholesale versus DTC. It looks like with the birthday launch, you're still doing some drops that are exclusive to brand.com, would love to know kind of how you're thinking about that mix between the two channels long term. Thank you.

First just starting with the Guy can you just share a little bit more about your expectations for the category that are that are informing that kind of core brand growth expectation.

And then when we think about road.

Love to hear a little bit more about how you sort of are thinking about the balance between wholesale versus DTC. It looks like with the birthday launch you're still doing some.

Drops that are exclusive to brand dot com, but would love to know kind of how youre thinking about that mix between the two channels long term. Thank you.

Yes.

Hi, Sidney this is touring so on our expectations for the category. We're pleased with what we're seeing in the category in the quarter, where we saw the category up 2%, which is pretty consistent with the level that we've had for the last decade, so pretty much assuming similar rates of category growth for the balance of the year and then in terms of road our strategy as a <unk>.

Tarang Amin: Hi, Sydney, this is Tarang. On our expectations for the category, we're pleased with what we're seeing on the category. In the quarter we saw the category up 2%, which is pretty consistent with the level that we've had for the last decade. We're pretty much assuming similar rates of category growth for the balance of the year. In terms of Rhode, our strategy is a strong focus both on our Sephora launch, both in store as well as online, and our own DTC business. The specific strategy on DTC is having some of these exclusive windows of for our DTC site. We see it makes a real big difference in terms of the impact we see on sales. We expect strength in both wholesale as well as DTC.

<unk> focused both on our Sephora launch both in store as well as online and our own DTC business and the specific strategy on DTC is having some of these exclusive windows.

For our DTC site, we see it makes it a real big difference in terms of the impact we see on sales. So we expect strength in both wholesale as well as DTC and again the brand is off to a phenomenal launch at four tuc strength of DTC.

Tarang Amin: We see it makes a real big difference in terms of the impact we see on sales. We expect strength in both wholesale as well as DTC. Again, the brand is off to a phenomenal launch at Sephora, continue to see strength at DTC, and are excited next week to introduce Rhode into Sephora UK. There's already a lot of excitement built up for that.

Tarang Amin: Again, the brand is off to a phenomenal launch at Sephora, continue to see strength at DTC, and are excited next week to introduce Rhode into Sephora UK. There's already a lot of excitement built up for that.

Excited next week to introduce.

Erode into Sephora U K, there's already a lot of excitement buildup for that.

Thank you.

Questions Erosions from animals.

Operator: Thank you. Our next question today comes from Anna Lazo-Gillard with Bank of America. Please go ahead.

Operator: Thank you. Our next question today comes from Anna Lizzul with Bank of America. Please go ahead.

Bank of America. Please go ahead.

Hi, good afternoon. Thanks, so much for the question I wanted to go back to the question on the EBITDA Guide.

Anna Lazo-Gillard: Hi, good afternoon. Thanks so much for the question. I wanted to go back to the question on the EBITDA guide. It looks like in fiscal Q2 margins, you know, were slightly better than expected on both gross margin and EBITDA, you know, the guide, as you mentioned, much lower due to the higher marketing spend. I understand there is timing shift, I think the expectation was that you would be getting some leverage on this line item in the future. Should we be expecting this high rate of marketing spend, excluding the timing shift, moving forward? Also, how are you allocating the spend between your brands now, especially with Rhode and the further expansion internationally? Thank you.

Anna Lizzul: Hi, good afternoon. Thanks so much for the question. I wanted to go back to the question on the EBITDA guide. It looks like in fiscal Q2 margins, you know, were slightly better than expected on both gross margin and EBITDA, you know, the guide, as you mentioned, much lower due to the higher marketing spend. I understand there is timing shift, I think the expectation was that you would be getting some leverage on this line item in the future.

It looks like in fiscal Q2 margins were slightly better than expected on both gross margin and EBITDA, but the guide as you mentioned much lower due to the higher marketing spend.

Understand there is timing shift, but I think the expectation was that you would be getting some leverage on this line item in the future should we be expecting this high rate of marketing spend excluding the timing shift of moving forward and then also how are you allocating to spend between your brands now, especially with road and the further expansion internationally. Thank you.

Anna Lizzul: Should we be expecting this high rate of marketing spend, excluding the timing shift, moving forward? Also, how are you allocating the spend between your brands now, especially with Rhode and the further expansion internationally? Thank you.

Hi, Anna Great to hear from you.

Mandy Fields: Hi, Anna. Great to hear from you. On EBITDA for the year, as we look at that, we are outlooking 2% to 3% growth on adjusted EBITDA for the full year. From a EBITDA margin standpoint, it's somewhere in the 19% range, so maybe 300 basis points lower than where we were last year. To your point on the marketing, you know, 24% to 26% on marketing is what we had outlooked last year, and is consistent with where we are this year. We've actually not taken that rate up. It's consistent on a year-over-year basis. Just for the second half, you're gonna see that be a little bit more outside, just given the timing of that spend.

So on EBITDA for the year.

As we look at that.

Our outlook in 2% to 3% growth on adjusted EBITDA for the full year.

EBITDA margin standpoint, it's somewhere in the 19% range, So maybe 300 basis points lower than where we were last year.

And to your point on the marketing you're down 20% to 26% and marketing is what we had outlook last year and it's consistent with where we are this year. So we've actually not taken that rate is consistent on a year over year basis.

And just for the second half youre going to see that be a little bit more outside just given the timing of that spend.

Mandy Fields: Just for the second half, you're gonna see that be a little bit more outside, just given the timing of that spend. I would say on the, on the GNA side, on the non-marketing SG&A side, I do think that over time we can get back to leverage there as well. you know, we are continuing to be in growth mode. We're continuing to invest in our team and infrastructure.

I would say on that on that G&A side on the non marketing SG&A side I do think that over time, we can get back to leverage there as well.

Mandy Fields: I would say on the, on the GNA side, on the non-marketing SG&A side, I do think that over time we can get back to leverage there as well. you know, we are continuing to be in growth mode. We're continuing to invest in our team and infrastructure. When I say team and infrastructure, that really means making sure that we have the right resources here in the US and internationally to support the growth that we expect to see. also making sure that we're showing up in the right way from a visual merchandising standpoint as we expand our distribution footprint, investing behind that as well. That's really what's driving some of that non-marketing SG&A this year as well.

We are continuing to be in growth mode, we're continuing to invest in our team and infrastructure and when I say team and infrastructure that really means making sure that we have the right resources here in the U S and internationally to support the growth that we expect to see and then also making sure that we're showing up in the right way from a visual merchandising standpoint as we are.

Mandy Fields: When I say team and infrastructure, that really means making sure that we have the right resources here in the US and internationally to support the growth that we expect to see. also making sure that we're showing up in the right way from a visual merchandising standpoint as we expand our distribution footprint, investing behind that as well. That's really what's driving some of that non-marketing SG&A this year as well.

Expand our distribution footprint investing behind that as well and so that's really what's driving some of that non marketing SG&A this year as well and so.

Overall again, given the tariff headwind that we're facing up at 3500 basis point tariff headwind. This year feel like we're netting out in a pretty good spot from an EBITDA standpoint, showing growth on a year over year basis.

Mandy Fields: Overall, again, given the tariff headwind that we're facing of a 3,500 basis point tariff headwind this year, I feel like we're netting out in a pretty good spot from an EBITDA standpoint, showing growth on a year-over-year basis.

Okay, great. Thanks, Mandy and if I could add on a follow up in terms of pricing.

Anna Lazo-Gillard: Okay, great. Thanks, Mandy. If I could add on a follow-up. In terms of pricing, we've been hearing from some retailers, you know, maybe they were disappointed that e.l.f. Beauty actually led the pack with pricing recently, and that others have followed in the space. How do you think about your value proposition here, and just the fact that maybe others have attempted to follow on the pricing side? Thank you.

Anna Lizzul: Okay, great. Thanks, Mandy. If I could add on a follow-up. In terms of pricing, we've been hearing from some retailers, you know, maybe they were disappointed that e.l.f. Beauty actually led the pack with pricing recently, and that others have followed in the space. How do you think about your value proposition here, and just the fact that maybe others have attempted to follow on the pricing side? Thank you.

We've been hearing from some retailers that maybe they were disappointed that <unk> actually led the pack with pricing recently and others have followed in the space and how do you think about your value proposition here.

And just the fact that maybe others have have attempted to follow on the pricing side. Thank you.

So high I know this is a triangle will take that one I would say on the pricing front. We've always led pricing, we've only taken three price increases and our history and in each case, it's only been because of external factors. Our preferred approach for margin progression is innovation mix and that's how we've successfully grown our margins overall.

Tarang Amin: Hi, Anna, this is Tarang, I'll take that one. I would say on the pricing front, we've always led pricing. We've only taken three price increases in our history, and in each case it's only been because of external factors. Our preferred approach for margin progression is innovation mix, and that's how we've successfully grown our margins over time. On pricing, we expected to be first 'cause we've always been first, and then over time people will follow. We haven't seen as much-

Time.

So on pricing, we expected to be first because we've always been first and then over time people will follow we haven't seen as much as many follow yet, but we have heard from many of our retailers that others planned too. So we feel confident in our overall value proposition I mean, our average unit retails as we set after pricing $7 50.

Mandy Fields: As many follow yet, we have heard from many of our retailers that others plan to. We feel confident in our overall value proposition. I mean, our average unit retails, as we said, after pricing $7.50 compared to $9.50 before pricing for the legacy mass players and around $30 for prestige. Even after the pricing, 75% of our portfolio is still $10 or less. We feel that value proposition is strong and will just get stronger as others follow the pricing.

Tarang Amin: As many follow yet, we have heard from many of our retailers that others plan to. We feel confident in our overall value proposition. I mean, our average unit retails, as we said, after pricing $7.50 compared to $9.50 before pricing for the legacy mass players and around $30 for prestige. Even after the pricing, 75% of our portfolio is still $10 or less. We feel that value proposition is strong and will just get stronger as others follow the pricing.

Compared to $9 50 before pricing for the legacy mass players sent around $30 for prestige, even after the pricing 75% of our portfolio is still $10 or less so we feel that value proposition is strong and we will just get stronger as others follow the pricing.

Thank you and our next question comes from Peter Grom of UBS. Please go ahead.

Operator: Thank you. Our next question comes from Peter Grom at UBS. Please go ahead.

Great. Thanks, good afternoon, everyone.

A couple of questions maybe just.

[Company Representative] (e.l.f. Beauty): Great. Thanks. Good afternoon, everyone. A couple questions. Maybe just, I'm kind of curious to follow up on the EBITDA and EPS guidance a little bit. I think we and probably a few others are just, you know, trying to understand why there's not a better or bigger benefit from Rhode, especially just given in the pro forma financials you outlined that would suggest that there was some solid accretion. Just kind of what are you assuming in terms of the EBITDA or EPS benefit as it relates to Rhode in this guidance?

Peter Grom: Great. Thanks. Good afternoon, everyone. A couple questions. Maybe just, I'm kind of curious to follow up on the EBITDA and EPS guidance a little bit. I think we and probably a few others are just, you know, trying to understand why there's not a better or bigger benefit from Rhode, especially just given in the pro forma financials you outlined that would suggest that there was some solid accretion. Just kind of what are you assuming in terms of the EBITDA or EPS benefit as it relates to Rhode in this guidance?

Kind of curious maybe to follow up on the EBITDA and EPS guidance a little bit.

We and probably a few others are just trying to.

Dan why there's not a better a bigger benefit from road, especially just given the pro forma financials that would suggest that there were some solid accretion. So just kind of what are you assuming in terms of the EBITDA or EPS benefits as it relates to road in this guidance.

Hi, Peter So we still expect ROE to be accretive from an adjusted EBITDA margin standpoint.

Mandy Fields: Hi, Peter. We still expect Rhode to be accretive from an adjusted EBITDA margin standpoint. To your point, they have had some incredible margins, but there are areas that we want to invest behind. Team is one of those, and we want to continue to build out that team, and also in marketing. That's another key area where we see an opportunity to invest behind Rhode. Overall, very pleased with what Rhode is contributing to this year. As a reminder, this is our first time issuing guidance this year. This is our first view into how we see things playing out.

To your point they have had some incredible margins, but there are areas that we want to invest behind.

<unk> is one of those that we want to continue to build out that team and also in marketing. That's another key area, where we see an opportunity to invest behind road and so.

Overall very pleased with what <unk> is contributing to this year.

And as a reminder, this is this is our first time issuing guidance. This year. So this is our first view into how we see things playing out.

And again with the tariff headwinds that we face overcoming those and actually looking at having a flat in gross margin as we go into the second half.

Mandy Fields: With the tariff headwinds that we face, overcoming those and actually looking at having a flat growth margin as we go into the second half, balancing that with continuing to invest behind the growth opportunities that we see, $302 to 306 million in adjusted EBITDA, we feel is a solid place to be.

And then balancing that with continuing to invest behind the growth opportunities that we see a $302 million to $306 million and adjusted EBITDA. We feel is a solid place to be.

Great. Thanks for that and then I guess just.

[Company Representative] (e.l.f. Beauty): Great. Thanks for that, Mandy. I guess just a question on international. I think you mentioned, I forget whose question it was, but I think you mentioned it was up 2% in the quarter. What's the underlying consumption growth, you know, outside of the US? I know there's the sell-in dynamic, but how should we be thinking about the right underlying growth rate for international, you know, ex this shipment dynamic from here?

Peter Grom: Great. Thanks for that, Mandy. I guess just a question on international. I think you mentioned, I forget whose question it was, but I think you mentioned it was up 2% in the quarter. What's the underlying consumption growth, you know, outside of the US? I know there's the sell-in dynamic, but how should we be thinking about the right underlying growth rate for international, you know, ex this shipment dynamic from here?

A question on international.

I think you mentioned I forget his question I wasn't I think you mentioned it was up 2%.

In the quarter, so whats the underlying consumption growth.

Outside of the U S. I know, there's the selling dynamic, but how should we be thinking about the right underlying growth rate for international access shipment dynamic from here.

Yes, So international is going to continue to be a growth opportunity for us as we think about U S and international and even on an underlying basis on the organic business, we expect to see growth out of both the U S and international on the year.

Mandy Fields: International is going to continue to be a growth opportunity for us as we think about US and international, and even on an underlying basis on the organic business, we expect to see growth out of both the US and international on the year. We will have these moments from quarter to quarter where you're cycling a space expansion or something like that, the opportunities remain. I mean, we've talked about a number of international launches that still are in our plan for this year, whether it be Rossmann Poland or Sephora in the GCC countries. We talked about Sephora Australia for Naturium. I mean, there's a number of dm in Germany, we'll be going into later this year.

And so we will have these moments from quarter to quarter, where youre cycling a space expansion or something like that but the opportunities remain I mean, we've talked about a number of international launches that's still or are in our plan for this year, whether it be rosman polenta or sephora in the GCC countries, we talked about to pour in.

Failure furniture, I am I mean, theres, a number of <unk> and Germany will be going into later this year just the number of opportunities still remain on the international front and so we expect growth.

Mandy Fields: We talked about Sephora Australia for Naturium. I mean, there's a number of dm in Germany, we'll be going into later this year. Just a number of opportunities still remain on the international front. We expect growth there as well this year.

Mandy Fields: Just a number of opportunities still remain on the international front. We expect growth there as well this year.

As well this year.

Thank you and our next question today comes from Bonnie Herzog with Goldman Sachs. Please go ahead.

Operator: Thank you. Our next question today comes from Bonnie Herzog at Goldman Sachs. Please go ahead.

Thank you hi, everyone.

I'm, hoping for a little more color on your expectations for the slow organic growth in your business. This year ex road you Didnt provide guidance earlier, so I guess I'm curious if your outlook for topline moved lower since the beginning of the year on your core business and if so why I mean, maybe could you guys touch on some of the key innovation.

Bonnie Herzog: Thank you. Hi, everyone. I guess I'm hoping for a little more color on your expectations for the slow organic growth in your business this year, ex Rhode. You didn't provide guidance earlier. I guess I'm curious if your outlook for top line moved lower since the beginning of the year on your core business, and if so, why? I mean, maybe could you guys touch on, you know, some of the key innovations that you have this year and whether they've, I don't know, maybe fell below your expectations. I guess it does sound like consumers have absorbed your pricing. You know, are elasticities coming in maybe in line with your expectations or better? I guess ultimately I'm struggling with the expected slowdown on your core business, even considering, you know, lapping the strong space gains that you called out from last year.

That you have this year and whether they've I don't know maybe fell below your expectations and then I guess it does sound like consumers have absorbed your pricing. So our elasticity is coming in maybe in line with your expectations or better I guess ultimately I'm struggling with the expected slowdown on your core business, even considering lapping that.

Bonnie Herzog: You know, are elasticities coming in maybe in line with your expectations or better? I guess ultimately I'm struggling with the expected slowdown on your core business, even considering, you know, lapping the strong space gains that you called out from last year. Any color would be helpful. Thank you.

Long space gains that you called out for last year any color would be helpful. Thank you.

Bonnie Herzog: Any color would be helpful. Thank you.

So hi, Bonnie great to hear from you.

Mandy Fields: Hi, Bonnie. Great to hear from you. I would say, I would start with consumption. You know, on a year-to-date basis, our consumption is still quite strong, at 10%, on a year-over-year basis, and even stronger as we start Q3. We're feeling great about the consumer and how they're engaging with e.l.f., and they continue to choose e.l.f. From an innovation standpoint, our fall innovation is strong, growing faster than last year's fall innovation. That's something that we didn't see in spring. As we've talked about, our spring innovation was behind last year, given that we were cycling the exceptional launch of our lip oils. As we've come into the fall, we actually have seen fall outperform fall of the prior year. That's also a good signal.

I would say I would start with consumption.

On a year to date basis, our consumption is still quite strong 10% on a year over year basis.

And and even stronger as we start.

Q3, so we're feeling great about the consumer and how they are engaging with Alf and they continue to choose.

From an innovation standpoint, our call innovation is strong growing faster than last year's ball innovation, that's something that we didn't see in spring as we've talked about our spring innovation was behind last year, given that we were cycling the exceptional launch of our live oils and so as we've come into the fall, we actually have seen fall outperform fall of the prior.

Mandy Fields: As we've come into the fall, we actually have seen fall outperform fall of the prior year. That's also a good signal. On the whole of it, the main driver of why you're not seeing our second half outlook match up to that strong consumption we're seeing is because we're cycling that space expansion. Again, it's 11,000 doors in Dollar General and a 50% expansion, pipe expansion related to Target. That's really the primary driver of that disconnect between the consumption and the shipments outlook that we've given.

So that's also a good signal.

On the whole of it the main driver of why Youre not seeing them.

Mandy Fields: On the whole of it, the main driver of why you're not seeing our second half outlook match up to that strong consumption we're seeing is because we're cycling that space expansion. Again, it's 11,000 doors in Dollar General and a 50% expansion, pipe expansion related to Target. That's really the primary driver of that disconnect between the consumption and the shipments outlook that we've given.

Our second half outlook match up to that shrunk consumption. We are seeing is because we are cycling that space expansion.

Again, as 11000 doors and dollar general and a 50% expansion type expansion related to target. That's really the primary driver of that disconnect between consumption and shipments outlook that we've given.

Okay. Thank you for that just maybe a quick follow up so should I assume for the full year.

Bonnie Herzog: Okay, thank you for that. Just maybe a quick follow-up. Should I assume for the full year, you know, on core business, your consumption and shipments should essentially even out? Or do you expect, I don't know, consumption to remain stronger than shipments for the full year? Just trying to think through that.

On core business your consumption and shipments should essentially.

Even out or do you expect I dunno consumption remained stronger than shipments for the full year, just trying to think through that.

So for full year 2006, we've outlook, so a 3% to 4% organic growth on the business, which is below the consumption rates that we're seeing right now.

Mandy Fields: Yeah. For full year 2026, we've outlooked a 3% to 4% organic growth on the business, which is below the consumption rates that we're seeing right now. Again, it goes back to the cycling that space expansion in the base over time. It, you know, it may take a couple quarters to get there, but over time, shipments and consumption do net themselves out. Yes, that would be our expansion that over time we do see those numbers kind of marry up a little bit better.

It goes back to.

That.

Cycling that space expansion and the base overtime. So it may take a couple of quarters to get there, but over time shipments and consumption due net themselves out and so yeah.

Yes that would be our expansion that over time, we do see those numbers kind of marry up a little bit better.

Thank you I have a question political from Susan Anderson with Canaccord Genuity. Please go ahead.

Tarang Amin: Thank you. Our next question today comes from Susan Anderson at Canaccord Genuity. Please go ahead.

Operator: Thank you. Our next question today comes from Susan Anderson at Canaccord Genuity. Please go ahead.

Hi, good evening, Thanks for taking my question.

Susan Anderson: Hi, good evening. Thanks for taking my question. I guess maybe just touch on Naturium a little bit and how we should think about or how you're thinking about the growth of the brand going forward. I think the consumption data has slowed a bit recently in the US, so just, you know, trying to think about the cadence of new product rollouts there as well, and then also new space for the brand, including internationally. Not sure if you can give any color on Rhode and how you're thinking about kind of the longer term margins for the brand, especially as you know, increase marketing spend for the brand. Thanks.

Maybe just touch on nature am a little bit and how we should think about or how youre thinking about the growth of the brand going forward I think the consumption data has slowed a bit recently in the U S. So just.

Trying to think about the cadence of new product Rollouts, there as well and then also new space for the brand including internationally.

Susan Anderson: and then also new space for the brand, including internationally. Not sure if you can give any color on Rhode and how you're thinking about kind of the longer term margins for the brand, especially as you know, increase marketing spend for the brand. Thanks.

And then not sure if you can give any color on rote and how youre thinking about kind of the longer term margins for the brand, especially as you.

Increased marketing spend for the brand.

Thanks.

Yes.

Yeah.

Hi, Susan this is strength, we feel great about mature, we're seeing great momentum monitory them, we actually have seen a pickup in the growth rates auditorium.

Mandy Fields: Hi, Susan, this is Tarang. We feel great about Naturium. We're seeing great momentum on Naturium. We actually have seen a pickup in the growth rates on Naturium, both as we've taken a look at our target rates, but also our Ulta Beauty and how strong Naturium is there. We mentioned the great launch we just had with Sephora in Australia and to pick up a space in Boots. Overall, we're seeing really good momentum for Naturium, continues to build, and we're pleased, particularly as we put that awareness campaign on. We saw really good consumer response to that. On the Rhode margins, we haven't given an a longer term outlook on the margins other than to say, you know, we expect those to be accretive to our EBITDA margins as we go through.

Tarang Amin: Hi, Susan, this is Tarang. We feel great about Naturium. We're seeing great momentum on Naturium. We actually have seen a pickup in the growth rates on Naturium, both as we've taken a look at our target rates, but also our Ulta Beauty and how strong Naturium is there. We mentioned the great launch we just had with Sephora in Australia and to pick up a space in Boots. Overall, we're seeing really good momentum for Naturium, continues to build, and we're pleased, particularly as we put that awareness campaign on. We saw really good consumer response to that.

As we've taken a look at our target rates, but also our ulta.

Beauty and how strong a Tory Miss there you mentioned the great launch, we just had with Sephora in Australia to pick up a space in boots, and so overall, we're seeing really good momentum.

<unk> continues to build.

We're pleased particularly as we put the awareness campaign on we saw really good consumer response to that.

And then on the on the road margins, we haven't given in our longer term outlook on the margins other than to say.

Mandy Fields: On the Rhode margins, we haven't given an a longer term outlook on the margins other than to say, you know, we expect those to be accretive to our EBITDA margins as we go through. Rhode is a beautiful business, very strong margins. We will invest behind the brand, as I mentioned earlier, but still expect those margins to be accretive.

We expect those to be accretive to our EBITDA margin as we go through road as a beautiful business very strong margins.

Mandy Fields: Rhode is a beautiful business, very strong margins. We will invest behind the brand, as I mentioned earlier, but still expect those margins to be accretive.

We'll invest behind the brand as I mentioned earlier, but still expect those margins to be accretive.

Okay.

Okay, great. Thank you.

Susan Anderson: Okay, great. Thank you.

Thank you and our next question from Oliver Chen Cowen. Please go ahead.

Tarang Amin: Thank you. Our next question today is from Oliver Chen at TD Cowen. Please go ahead.

Operator: Thank you. Our next question today is from Oliver Chen at TD Cowen. Please go ahead.

Hi, Thank you on the organic growth for the second half the 2% to 5% is the assumption that our pricings are double digit benefit and then volume offsets to the negative given the tough compares.

Oliver Chen: Hi. Thank you. On the organic growth for the second half to 2% to 5%, is the assumption that pricing is a double-digit benefit, and then volume is offsets that to the negative given the tough compares? Secondly, on Rhode, would love your view of the inventory levels currently at Sephora. I know it's been very successful. How have inventory levels in terms of product availability been? As you look forward, there's a limited number of SKUs and tons of opportunity. What's on your roadmap for that? As well as our assumption is that it's Sephora for 3 years plus. Any thoughts or guidance there in terms of what you see happening with the footprint? Thanks.

And then secondly on road would love your view of the inventory levels currently.

Before I know, it's been very successful so I'll have him.

Inventory levels in terms of product availability band and then as you look forward, there's a limited number of skus and tons of opportunity what's on your roadmap for that as well.

Oliver Chen: How have inventory levels in terms of product availability been? As you look forward, there's a limited number of SKUs and tons of opportunity. What's on your roadmap for that? As well as our assumption is that it's Sephora for 3 years plus. Any thoughts or guidance there in terms of what you see happening with the footprint? Thanks.

Our assumption is that its the flu.

For for three years, plus I mean, any thoughts or guidance there in terms of what you see happening with the footprint. Thanks.

Yeah, Hi, Oliver So I'll answer the first question on our organic growth in the second half of the 2% to 5%, yes, youre thinking about it the right way pricing will be a benefit.

Mandy Fields: Yeah. Hi, Oliver. I'll answer the first question. On our organic growth in the second half of the 2% to 5%, yes, you're thinking about it the right way. Pricing will be a benefit. Volume, we are expecting to be lower than last year. Again, cycling those shipments, which would have been higher volume.

Then volume, but we are expecting to be lower than last year again cycling those shipments, which would've been higher volume.

Yeah.

And Oliver on your second question regarding road inventory.

Tarang Amin: Oliver, on your second question regarding Rhode inventory, I'm extremely pleased with the work the team has done to be able to keep up with the exceptional consumer demand we've seen. Our operations team has done a terrific job of making sure Sephora has enough inventory. The biggest challenge is getting that inventory on the shelf. Similar to what we've done with e.l.f. in the past, we're partnering very closely with Sephora to make sure that they're replenishing those shelves more frequently, just given the unprecedented demand that they've seen themselves. We feel really good about where we stand in terms of our ability to support the business and the demand that we see, and we'll continue to work on that. Thank you. Our next question today comes from Steve Powers at Deutsche Bank. Please go ahead.

Streaming pleased with the work the team has done to be able to keep up with the exceptional consumer demand. We've seen our operations team has done a terrific job of making sure. It's for housing enough inventory. The biggest challenge is getting that inventory on the shelf and so similar to what we've done with elephant in the past, we're partnering very closely with sephora to make sure that the replenishing those shelves.

Tarang Amin: Similar to what we've done with e.l.f. in the past, we're partnering very closely with Sephora to make sure that they're replenishing those shelves more frequently, just given the unprecedented demand that they've seen themselves. We feel really good about where we stand in terms of our ability to support the business and the demand that we see, and we'll continue to work on that.

More frequently just given the unprecedented demand that they've seen themselves and so we feel really good about where we stand in terms of our ability to support the business and the demand that we see and we will continue to work on that.

Thank you and our next question today comes from Steve Powers of Deutsche Bank. Please go ahead.

Operator: Thank you. Our next question today comes from Steve Powers at Deutsche Bank. Please go ahead.

Great. Thank you very much.

Steve Powers: Great. Thank you very much. Couple of cleanups and then a question. First cleanup is just, I think the 2% international growth would have included a little bit of Rhode. Just curious if you could call out the magnitude of that, number one. Number two, Mandy, there's been a lot of questions on the back half shipment headwinds from the space expansions that you're lapping last year. Maybe just if you could zero in on the magnitude of that and if there's any differential, Q3 versus Q4 that would be helpful. The question I had was around Rhode.

Couple of clean ups and then another question so.

First clean up is just I think the 2% international growth would have included a little bit of road. Just curious if you could call. It the magnitude of that number one and number two many theres been a lot of questions on the on the back half shipment headwinds from the space expansions that you're lapping last year, maybe just if you could.

Zero in on the magnitude of that and if there's any differential in <unk> versus <unk> that would be helpful. And then the question I had was around road you talked about the structure of the P&L the accretion, but I'm curious on the on the gross margin line as the business moves from DTC to hybrid DTC.

Steve Powers: You talked about the structure of the P&L and the accretion, but I'm curious on the gross margin line as that business moves from DTC to a hybrid DTC, and, you know, wholesale revenue base, what impact does that have on the gross margin relative to the historicals that we've all seen? Thank you.

And.

Wholesale revenue base.

What impact does that have on the on the gross margin relative to the historical that we've all seen thank.

Thank you.

Okay, Hi, Steve Alright, so the 2% growth that we saw in international that would have included some road volume as well we've talked about road, having about a 20%.

Mandy Fields: Hi, Steve. All right. The 2% growth that we saw in international, that would have included some Rhode volume as well. We've talked about Rhode having about a 20% international sales outside of the US, that would have been included in that 2% growth for Q2. On the shipment headwinds, like I've said, here, the 2% to 5% that we're out looking on net sales versus the consumption rates that we're seeing today, the primary disconnect between those consumption rates and the shipments that we're calling out, the net sales outlook we're calling out, is cycling that volume. I would say that's the primary contributor there.

International sales outside of the U S and so that.

That would have been included in that 2% growth for Q2.

Shipment headwinds like I've said.

The 2% to 5% that were out looking on net sales versus the consumption rates that we're seeing today. The primary disconnect between those consumption rates and shipments that were calling out the net sales outlook. We're calling out is cycling that volume I would say that's the primary contributor.

There and then on the road P&L.

Mandy Fields: On the Rhode P&L, from a gross margin standpoint, yes, we expect to see the gross margin, you know, come down as they transition more into a wholesale mix. Still the gross margin is accretive. It's accretive in our outlook as we stand today, as it's already baked in, still accretive to where e.l.f is positioned today.

On a gross margin standpoint, yet we expect to see the gross margin.

Come down as they transition more into a wholesale mix, but still the gross margin is accretive as accretive and our outlook as we stand today as it's already baked in still accretive to where else is positioned today.

Thank you and our next <unk>.

So it comes from Rupert <unk> with Oppenheimer. Please go ahead.

Operator: Thank you. Our next question today comes from Rupesh Parikh with Oppenheimer. Please go ahead.

Good afternoon, and thanks for taking my questions. So I guess just going to go back to adjusted EBITDA margins. Your guide implies around 19, 5%. This year is there a way to think about what the steady state margins.

Rupesh Parikh: Good afternoon, thanks for taking my questions. I guess just going back to adjusted EBITDA margins, your guide implies around 19.5% this year. Is there a way to think about like the steady state margins, you know, I guess, going forward beyond this year, you know, to understand some of the temporary headwinds, because you guys were in that, you know, 22% plus range prior to this fiscal year? Thank you.

Going forward beyond this year.

I understand some of the temporary headwinds that you guys were in a 22% plus range prior to this fiscal year. Thank you.

Hi, refresh so we you know where.

This is just our first quarter getting back to issuing guidance.

Mandy Fields: Hi, Rupesh. We, you know, this is just our Q1 getting back to issuing guidance. We don't have a longer-term algorithm out there of what to expect on EBITDA margins. What I can tell you is that we have had a track record of improving those margins over time. I talked a little bit earlier about leverage and our non-marketing SG&A over time. We're getting our gross margins back to a better place as we go in to the second half and pricing kicks in. We have the 45% tariff in place now, versus, you know, as we get into next year, the average 60% that we'll be cycling through.

And so that we don't have a longer term algorithm out there of what to expect on EBITDA margins, but what I can tell you that we have had a track record of improving those margins over time.

And talk a little bit earlier about leverage in our non marketing SG&A over time, we're getting our gross margins back to a better place as we go in to the second half and pricing kicks in we had the 45% tariff in place now versus you know as we get into next year.

Mandy Fields: We have the 45% tariff in place now, versus, you know, as we get into next year, the average 60% that we'll be cycling through. There's some things that are working in our favor as we look out longer term that would enable us to improve those EBITDA margins over time.

Average, 60% that we'll be cycling through so theres. Some theres some things that are working in our favor as we look out longer term that would enable us to improve those EBITDA margins over time.

Mandy Fields: There's some things that are working in our favor as we look out longer term that would enable us to improve those EBITDA margins over time.

Great and then my follow up question just on road.

Rupesh Parikh: Great. Then my follow-up question, just on Rhode, you know, you know, strong initial guide. Just curious how that— I think you mentioned 40% pro forma growth for this year. How does that compare versus your initial expectations for the deal?

Strong initial guide just curious how that I think I think you mentioned, 40% pro forma growth, but is there how that compared versus.

Initial expectations for the deal.

We're very pleased with the performance that we're seeing out of road I mean, <unk> talked about it earlier, but two and a half times better than any launch the fourth had in North America I mean, it is really.

Mandy Fields: We're very pleased with the performance that we're seeing out of Rhode. I mean, Tarang talked about it earlier. It's two and a half times better than any launch Sephora's had in North America. I mean, it is really a fantastic brand. We're so happy to have them as part of the e.l.f. family, and look forward to continuing to drive that growth on the road ahead.

A fantastic brand, we're so happy to have them as part of the <unk> family.

We look forward to continuing to drive that growth on the road ahead.

Yeah.

Thank you.

Operator: Thank you. That concludes our question and answer session. I'd like to turn the conference back over to e.l.f. Beauty's current CEO, Tarang Amin, for any closing remarks.

Who has a question and answer session I would like to turn the conference back over to <unk>, a year or two I mean for any closing remarks.

Well, thank you for joining us today I am so proud of our incredible team at health beauty for delivering another quarter of industry, leading results I'm also thrilled to officially welcome ROE to the LCD family. We look forward to seeing some of you at our upcoming Investor meetings and speaking with you in February when we will discuss our third quarter results. Thank you and be well.

Tarang Amin: Well, thank you for joining us today. I'm so proud of our incredible team at e.l.f. Beauty for delivering another quarter of industry-leading results. I'm also thrilled to officially welcome Rhode to the e.l.f. Beauty family. We look forward to seeing some of you at our upcoming investor meetings and speaking with you in February when we'll discuss our Q3 results. Thank you and be well.

Thank you that's inclusive of this conference call you may now disconnect your lines and have a wonderful day.

Operator: Thank you. That concludes today's conference call. You may now disconnect your lines and have a wonderful day.

Q2 2026 elf Beauty Inc Earnings Call

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