In Q3 2025, elf Beauty delivered another period of category-leading growth with a 31% year-over-year increase in net sales to $355.32 million and adjusted EBITDA of $69.1 million. The company expanded US market share by 220 basis points and extended its 24-quarter streak of net sales growth and market-share gains. Growth was broad-based across digital, color cosmetics, skincare, and international segments, with international net sales up 66% and contributing 20% of total net sales in the quarter. Management remains confident in long-term expansion, anchored by strong brand equity, a proprietary innovation engine, a disruptive marketing model, and an asset-light supply chain. However, management also highlighted softer consumer demand in January, softer momentum for several spring launches, and updated the Q4 outlook to a softer trajectory, resulting in a 27-28% full-year net sales growth guide for fiscal 2025 (down from 28-30% previously) and a Q4 net sales range of -1% to +2%. The company expects gross margin to improve ~40 bps YoY in fiscal 2025, with marketing/digital investment targeted at 24-26% of net sales; adjusted EBITDA for the year is guided to $289-293 million. The combination of white-space opportunities in color cosmetics, skincare (notably Naturium and e.l.f. Skin), and international expansion, coupled with a disciplined cost structure and SAP ERP transition, supports a constructive longer-term investment thesis, even as near-term execution faces macro-driven headwinds.