Elf Beauty reported a resilient start to fiscal 2026 with net sales of approximately $353.7 million, up 9% year over year, marking the 26th consecutive quarter of net sales growth and market-share gains. EBITDA rose 12% to roughly $66.9 million, yielding an EBITDA margin of about 18.9%, while the company expanded its leadership in color cosmetics and continued to gain share across major channels. Management highlighted a strategic path to more than double the business over the coming years driven by white space in color cosmetics, skincare, and international markets, reinforced by the Rhode acquisition which closed just after quarter-end and is positioned to accelerate growth through expanded distribution (notably Sephora) and heightened brand awareness. Near-term headwinds include tariff-driven gross-margin pressure, a shift in marketing expense timing, and the absence of Rhode-related top-line benefits from Sephora sell-in in Q2. Elf expects first-half adjusted EBITDA margins to remain around 20% in an environment with higher tariff costs and the Rhode consolidation. The mix impact of tariffs and the SAP ERP transition are key non-operating variables to monitor, alongside Rhode’s accretion trajectory and international rollout.