e.l.f. Beauty Stock Surges After Impressive Q2 Earnings and Revenue Beat

e.l.f. Beauty, Inc. (NYSE: ELF) saw its stock soar in after-hours trading on Wednesday following the release of its strong second-quarter fiscal 2025 results. The company reported quarterly earnings of 77 cents per share, significantly beating the analyst consensus estimate of 42 cents per share.

The quarterly revenue also exceeded expectations, coming in at $301.1 million compared to the anticipated $285.76 million. This represents a 40% increase in sales from the same period last year, with $215.5 million in sales reported during Q2 of the previous fiscal year.

e.l.f. Beauty’s gross margin increased by approximately 40 basis points to 71%, driven by cost savings, favorable foreign exchange impacts, and price increases in international markets. However, this was partially offset by higher transportation costs and changes in product mix.

CEO Tarang Amin highlighted the company’s consistent growth, noting that this marks the 23rd consecutive quarter of both net sales growth and market share gains. e.l.f. Beauty achieved a 195 basis points gain in U.S. market share and a 91% increase in international sales during the quarter.

The company has raised its fiscal year 2025 net sales outlook to a range of $1.315 billion to $1.335 billion and adjusted its earnings guidance to between $3.47 and $3.53 per share. This upward revision reflects the company’s strong performance and optimistic outlook for the remainder of the fiscal year.

In response to the positive earnings report, e.l.f. Beauty shares rose nearly 20% in after-hours trading, reflecting investor confidence in the company’s continued growth and market dominance, particularly among younger generations such as Gen Z, Gen Alpha, and millennials.