Cluenexe.l.f. Beauty ELF
e.l.f. Beauty scores good on business quality (6.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What e.l.f. Beauty does
e.l.f. Beauty sells cosmetics and skin-care products primarily through mass-market retailers and digital channels, targeting value-conscious consumers. The company is driving expansion into European retail markets to capture international demand.
- What it does best
e.l.f. delivers elite gross margins of 74.4%, outperforming peers like KVUE at 58.6% and BRBR at 28.6%. This pricing power stems from rapid supply-chain velocity and trend-focused digital marketing that avoids heavy traditional ad spending.
- The main risk
Geographic expansion into Europe increases exposure to international distribution hurdles and foreign operating costs, which could pressure the company's operating margin of 7.2% if store scaling lags expectations.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin rests at 7.2% while FCF margin hits strong levels, supported by a 74.4% gross margin. Profitability remains mixed as high selling and scaling expenses weigh on operating income.
The brand relies on digital community engagement to lock in younger consumers, achieving a gross margin in the sector's 98th percentile. Low switching costs in cosmetics limit long-term defensibility.
Revenue surged to $1.76B with a 24.5% growth rate, ranking in the 94th percentile of its sector. This engine is accelerating compared to historical periods like 2024.
Total debt stands at $839M against $290M in cash, resulting in a net debt position of $549M. Free cash flow has grown to $280M, marking a softer capital structure overall.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $96K outside pre-planned sales.
Our sealed record on ELF
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
e.l.f. Beauty scores good on the Cluenex quality check (6.2 of 10), measured against its own industry. Profitability is weak, moat fair, growth fast and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 sold $96K outside pre-planned sales.
Nov 4, 2026.
See ELF today
- Today's verdict on ELF, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “e.l.f. Beauty (ELF)”, https://cluenex.com/stocks/elf/, data as of Oct 10, 2026.