e.l.f Beauty, Inc. (ELF) Crushes Q1 2027 Estimates as Rhode Fuels a Major Growth Acceleration

e.l.f Beauty, Inc. (ELF) surpassed expectations for Q1 2027, as Rhode contributed to a significant surge in growth. Options volume on August 5 was 1.2x normal levels, with more calls than puts. Implied volatility suggested a potential post-earnings price swing of around 11.8%, or $10.53 per share. Net sales increased 36% year-over-year to $479.4 million, thanks to strong performance across various channels.

Gross margin expanded by nearly 1,400 basis points to 83%, aided by IEEPA tariff refund benefits and favorable pricing. GAAP net income reached $66.6 million ($1.12 per diluted share), with adjusted net income at $104.6 million ($1.75 per diluted share). Adjusted EBITDA grew 93% to $168.2 million (35% of net sales). The strong performance was credited to Rhode, leading management to raise its fiscal 2027 outlook to 18%–20% year-over-year net sales growth.

Analysts raised their price target to $110, citing impressive revenue upside. ELF remains financially flexible to invest in marketing, DTC, acquisitions, and share buybacks. However, high valuation multiples and reinvestment costs may keep shares volatile. Insiders own 39% of shares in Q1 2026, with Walleye Capital holding a put position.