e.l.f. Beauty, Inc.

Thank you for joining us today to discuss Elf Beauty's third quarter fiscal 26 results. I'm Casey Tatton, 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 will discuss our third quarter results and our raised outlook for fiscal 2026. I am proud of our incredible Elf Beauty team for another quarter of consistent category-leading growth. In Q3, we grew net sales 38%. and adjusted EBITDA 79%. Q3 marked our 28th consecutive quarter of net sales growth, putting Elf Beauty in a rarefied group of high-growth companies. We're one of only six public consumer companies out of 546 that has grown for 28 straight quarters and average at least 20% sales growth per quarter. We're excited by the consumer engagement we're seeing across the beauty category and especially the momentum of our brands. On a consumption basis, our namesake e.l.f. Cosmetics brand grew 8% in the U.S. this quarter, two times the category. We increased our market share by 130 basis points, the largest share gain among over 700 cosmetics brands tracked by Nielsen. Elf's skin consumption grew 16% in the U.S. this quarter, also outperforming the category two times. Noturium, our clinically effective biocompatible skincare brand, which we acquired two years ago, continues to drive strong growth. Rode, the high-growth beauty brand founded by Hailey Bieber, which was acquired in August, delivered an outstanding quarter, achieving the number one brand ranking in Sephora North America and executing another record-breaking launch with Sephora in the UK. The strength of our brands is evident when viewed in the context of the overall beauty market. While beauty has comparatively low barriers of entry, very few brands have been able to scale. Of the nearly 1,800 cosmetics and skincare brands tracked by Nielsen, only 14 have surpassed $200 million in annual retail sales. We have four of these 14 brands. The combination of our value proposition, powerhouse innovation, and disruptive marketing engine continue to fuel our results and our outperformance relative to the category. Let me take a moment to discuss a few of the milestones we achieved in Q3. Starting with our value proposition, we believe in democratizing access to the best of beauty. Each of our brands offers accessible price points relative to the competitive set. For context, the average price for e.l.f. Cosmetics is $7.50 today, as compared to approximately $9.50 for Legacy Mask Cosmetics brands, and nearly $30 for Prestige brands. 75% of e.l.f.' 's brand product portfolio sits at a phenomenal value of $10 or less. While there are other brands with low price points, our real advantage is our ability to also deliver exceptional quality. Our quality scores have gone up every year over the past 10 years. Consumers love Elf for delivering an incredible price point and quality that is often better than prestige. Looking to Innovations We have a unique community-led approach to innovation across our brands, focused on democratizing access to the best of beauty through our premium quality products at extraordinary prices. Our namesake ELF brand held four of the top 10 new products in all of mass cosmetics in 2025, on top of holding six of the top 10 new products in 2024. The consistency of our winning innovation is supporting our share gains across segments. We've more than doubled e.l.f. Cosmetics market share over the last five years and see significant opportunity ahead. As compared to the 22% share we have in face makeup, we have a 13% share in lip and a 9% share in eye. We have significant white space in these large segments and believe we have the innovation engine to conquest them. Spring 2026 is an exciting time for innovation. Building on the success of Elf's Glow Reviver Lip Oil in 2024 and Melting Lip Balm in 2025, we recently launched our Glow Reviver Slipstick at a $10 price point compared to a prestige item at $48.

This is what I'm talking about, Elf. Immediately, yes. This one is called Love Flick. Go ahead. Oh.