e.l.f. Beauty, Inc.

Thank you for joining us today to discuss Elf Beauty's first quarter fiscal 26 results. I'm Casey Katton, Vice President of Corporate Development and Investor Relations. With me today are Tarang Amin, Chairman and Chief Executive Officer, and Mandy Fields, Senior Vice President and Chief Financial Officer. We encourage you to tune into our webcast presentation for the best viewing experience, which you can access on our website at investor.elfbeauty.com. Since many of our remarks today contain forward-looking statements, please refer to our earnings release and reports filed with the SEC, where you'll find factors that could cause actual results to differ materially from these forward-looking statements. In addition, the company's presentation today includes information presented on a non-GAAP basis. Our earnings release contains reconciliations of the differences between the non-GAAP presentation and the most directly comparable GAAP measure. With that, let me turn the webcast over to Terang.

Thank you, Casey, and good afternoon, everyone. Today, we'll discuss our first quarter results and our approach to fiscal 2026. I'm proud of our incredible Elf Beauty team for delivering another quarter of industry-leading results. In Q1, we grew net sales 9% on top of 50% growth in Q1 of last year, delivered adjusted EBITDA of $87 million, up 12%, and gained 210 basis points of market share. Q1 marked our 26th consecutive quarter of both net sales growth and market share gains. e.l.f. is the only brand of the nearly 1,000 cosmetics brands tracked by Nielsen to gain share for 26 consecutive quarters. As we look ahead, we see the potential to more than double our business over the coming years given the significant white space we see in color cosmetics, skin care, and international. We believe the acquisition of RODE, which closed yesterday, enhances our position as a leading player in accessible beauty. Let me update you on our progress in Q1. First, in color cosmetics. Nationally, e.l.f. is the number one unit share brand with approximately 15% share, and the number two dollar share brand with approximately 13% share. more than double where we were just three years ago. The combination of our value proposition, powerhouse innovation, and disruptive marketing engine continue to fuel our market share gains. Looking to our value proposition, the average price point for e.l.f. Cosmetics is about $6.50 today, as compared to nearly $9.50 for legacy mass cosmetics brands and over $20 for prestige brands. As we spoke about last quarter, to help mitigate the impact from tariffs, we took a dollar increase on our entire product assortment, effective August 1st. This is only the third price increase we've taken in our 21-year history. With 75% of Elf's product portfolio remaining under $10 post-increase, our community continues to praise our commitment of making the best of beauty accessible to every eye, lip, and face. In Target, our longest-standing national retail customer, we're the number one cosmetics brand with approximately 21% share, growing by 190 basis points in Q1. We're making great progress on replicating our success at Target with other key retailers. We posted triple-digit share gains with all of our major track channel retail partners in Q1. We're also finding success with newer retailers like Dollar General. Dollar General has a stated strategy of serving the underserved, with 80% of stores serving rural markets. Their partnership has been a win-win. e.l.f. is attracting new buyers into the channel with 60% of e.l.f. purchases at Dollar General coming from shoppers who never bought cosmetics at Dollar. And 53% of these shoppers are new to the e.l.f. brand. We're excited to expand our footprint to additional Dollar General stores this fall. Looking to innovation, we have a unique ability to deliver a steady stream of holy grails, taking inspiration from our community and the best products in prestige and bringing them to market in extraordinary value. As consumers continue to seek multi-benefit products and skin-forward cosmetics, we're answering the call with our Halo Glow Skin Tint Mineral SPF 50, priced at an incredible value of $18, compared to prestige items at $48 or more.

Elf just dropped an $18 skin tint. Let's see if this is worth $18. This is stunning. My skin looks like literal glass, like perfection. There's also like not a pore in sight. It like blurred my texture while making my skin super radiant. You know what my reaction to this is? I am shocked that this is e.l.f. This is giving like luxury foundation. This reminds me of the $290 La Prairie foundation. I do not say this lightly. This is Elf's best product to date. Hands down.