e.l.f. Beauty closes $897M rhode acquisition, pays $58M in tariffs, sees profit drop 77%

Filed May 21, 2026 · Period ending March 31, 2026 · Compared to 10-K May 29, 2025 · ~2 min read

Key Changes

• high

  Completed rhode acquisition for $897.5M in August 2025; brand contributed $293.5M to net sales but triggered $57.6M earnout fair value adjustment. Funded with $600M term loan, increasing interest expense 156% to $35.3M.

  MD&A: rhode Acquisition verify on EDGAR →
• high

  Paid $58.5M in IEEPA tariffs during FY2026; Supreme Court ruled tariffs unlawful in February 2026, making payments potentially refundable. New 10% global tariff imposed under Section 122, though also ruled unlawful (injunction limited to named plaintiffs).

  MD&A: Tariffs verify on EDGAR →
• high

  Net income fell 77% to $26.3M (from $112.1M) despite 25% revenue growth. Gross margin compressed 50 bps to 70.7% due to tariffs; SG&A rose 400 bps to 63% of sales on marketing, headcount, and acquisition costs.

  MD&A: Profitability verify on EDGAR →