e.l.f. Beauty has reported a 51% increase in net sales for the second quarter of fiscal 2027, bringing quarterly revenue to $520.8 million. The result gives the company another strong quarter and comes as its portfolio expands across international markets, including the growing retail presence of Rhode.

The latest figures point to more than a good sales period for the California-based beauty company. Its affordable cosmetics business continues to grow, while Rhode gives the group a stronger position in the premium skincare market. The challenge now is to turn that wider reach into sustainable growth without allowing marketing and operating costs to rise too quickly.

What Drove the 51% Sales Increase?

e.l.f. Beauty recorded net sales of $520.8 million in the quarter ended September 30, 2026. That compares with $343.9 million in the same quarter a year earlier. The increase was supported by growth across retail and e-commerce channels, as well as sales in both the United States and international markets.

The scale of the increase is easier to understand when compared with the previous year’s quarterly figure. The chart below shows the change in reported net sales.

The company’s growth was broad-based. US net sales increased 25%, while international net sales rose 165%, according to Reuters. The difference matters: international markets are becoming a larger part of the company’s growth story, even though the US remains an important part of its business.

Why Rhode Matters to e.l.f. Beauty

Rhode has become an important part of e.l.f. Beauty’s strategy since the company acquired the skincare brand founded by Hailey Bieber. The brand operates in a different price segment from e.l.f. Cosmetics, which is widely associated with accessible makeup and skincare products.

That difference gives e.l.f. access to shoppers with different budgets and shopping habits. Its established cosmetics business can appeal to customers looking for affordable everyday products, while Rhode gives the group a route into prestige skincare and premium retail.

The two brands also have different routes to market. e.l.f. has a broad retail and online presence, while Rhode has built attention through a distinct product identity, social media visibility and selective retail expansion. Together, they give the parent company a wider presence across the beauty market.

It is important, though, to separate the company’s overall result from the performance of one brand. e.l.f. reported 51% total net sales growth, but that figure should not be interpreted as Rhode’s individual contribution. The company has not attributed the entire increase to Rhode.

Rhode’s International Expansion Is Becoming Harder to Ignore

One of the most notable developments is Rhode’s expansion in Europe. In September 2026, the brand launched in 19 European markets through Sephora. The launch gave Rhode access to a much wider retail network and brought the brand in front of shoppers who may not have previously purchased directly from its online store.

The European launch also matters because Rhode already has an international audience online. Reuters reported that around 75% of Rhode’s social media following is outside the United States. That does not automatically translate into sales, but it suggests that the brand has an audience beyond its home market.

Retail distribution can help convert that awareness into purchases. Customers can discover products in stores, test textures and shades where available, and buy through a familiar retailer. For a skincare brand building recognition in new countries, that physical presence can make a difference.

The opportunity comes with a practical test. Rhode will need to maintain demand after the initial excitement around a major launch. Repeat purchases, product availability and customer loyalty will matter more over time than launch-day attention alone.

A Closer Look at the Financial Results

Revenue growth is the headline, but the company’s profitability measures help explain how the quarter performed beyond sales.

Note: Adjusted EBITDA and adjusted net income are non-GAAP measures. They are calculated using company-defined adjustments and should be read alongside GAAP results.

Gross margin reached 71%, an improvement of around 160 basis points from the prior-year quarter. In simple terms, the company retained a larger share of sales after accounting for the cost of goods sold. That is a useful sign, particularly for a business managing a growing international operation and a portfolio with different price points.

Adjusted EBITDA increased 86% to $123.4 million. The measure gives investors another way to assess operating performance before interest, taxes, depreciation, amortisation and certain adjustments. It is not the same as cash flow or net income, so it should not be treated as a complete measure of financial health.

Growth Comes With Higher Costs

The quarter also shows why fast sales growth needs to be considered alongside expenses. e.l.f. Beauty’s selling, general and administrative expenses increased by $69 million to $300.1 million. The company linked the increase to areas including marketing, merchandising, distribution, employee compensation and benefits, and depreciation and amortisation.

Marketing is particularly relevant to a business expanding its brands and entering new markets. Campaigns can help attract new customers and support product launches, but they also require spending. If sales continue to rise, the company will need to show that those investments are producing lasting customer demand.

Reuters also reported that e.l.f. used $52 million in tariff refunds to support marketing and price reductions across around 10% of its products. The company’s finance chief indicated that the additional marketing benefit from those refunds is unlikely to continue at the same level next fiscal year because the refunds were a one-time benefit.

e.l.f. Raises Its Fiscal 2027 Sales Outlook

Following the strong first half of the financial year, e.l.f. raised its fiscal 2027 net sales growth outlook to 22%–24%. Its previous forecast had been 18%–20%.

The company now expects full-year net sales of approximately $2.003 billion to $2.029 billion. It also expects adjusted EBITDA of $421 million to $427 million and adjusted net income of $231 million to $233 million.

Raising guidance suggests that management expects the stronger performance to continue beyond one quarter. Still, a forecast is not a guarantee. Consumer spending, competition, marketing efficiency and the pace of international expansion can all affect the final result.

What the Results Mean for Beauty Shoppers

For customers, the financial results do not mean that every e.l.f. product will suddenly become more expensive or that the company will change its approach to affordable beauty. The group still has a large cosmetics business aimed at shoppers looking for accessible prices.

Rhode’s expansion gives customers in more markets access to the brand through established retail channels. It may also make the wider e.l.f. portfolio more visible to shoppers who follow skincare trends and premium beauty launches.

The most interesting development is the range of customers the company can now reach. Someone looking for an affordable makeup product and someone interested in premium skincare may encounter brands owned by the same parent company. That wider reach is part of what makes the group’s strategy worth watching.

The Bigger Picture for e.l.f. Beauty

e.l.f. Beauty’s latest results suggest that the company is building a business with a broader position in the beauty market. Its affordable cosmetics roots remain important, while Rhode gives it a stronger presence in prestige skincare and international retail.

The 51% sales increase is a strong quarterly result, and the higher full-year outlook indicates that management sees room for further growth. But the next stage will depend on more than headline sales. The company will need to manage higher operating costs, maintain customer demand and make its international expansion work over the longer term.

For now, e.l.f. has momentum. Whether it can turn that momentum into consistent, profitable growth is the bigger story to follow.