e.l.f. Beauty Inc., a leading cosmetics brand based in Oakland, California, reported mixed financial results for its third quarter of 2025, with share prices dropping significantly following an adjusted outlook. The company revealed an earnings per share (EPS) of 20 cents, which topped analysts’ expectations of 19 cents, but revenue growth fell short of market predictions. Revenue for the quarter reached $114 million, marking a 9% increase year-over-year, although it slightly missed analyst estimates of $116 million. e.l.f. Beauty attributed the lower-than-expected revenue to a weakening retail environment and competitive pressures in the cosmetics market. CEO Tarang Amin noted, ‘While we continue to see strength in our core categories, we’re adapting to current market conditions and consumer behaviors which are shifting.’ Following the company’s disappointing earnings forecast, e.l.f. Beauty’s stock tumbled by as much as 20% in after-hours trading. The company adjusted its full-year revenue guidance to between $440 million and $445 million, down from previous estimates of $460 million. Analysts had anticipated revenue of $457 million for the year. e.l.f. Beauty’s performance has also been impacted by concerns regarding inflation and changing shopping habits, with more consumers turning to discount retailers. Despite the downturn, Amin expressed confidence in the brand’s long-term strategy, stating, ‘We remain focused on our mission to make beauty accessible for all, and we are committed to innovating and strengthening our brand in this evolving landscape.’ This stock decline highlights the ongoing volatility in the beauty sector as companies navigate post-pandemic consumer behavior.
