• Earlier in 2026, e.l.f. Beauty completed its acquisition of Rhode and accelerated the brand’s international rollout across Sephora and online channels, while also launching new hair care products in retailers like Target and via TikTok Shop.
• By expanding Rhode globally and entering hair care, e.l.f. Beauty is reshaping its portfolio beyond core cosmetics and skincare, aiming to reach more consumers across geographies, categories, and digital platforms.
• We’ll now examine how Rhode’s accelerated international expansion and entry into hair care products could influence e.l.f. Beauty’s broader investment narrative.

Find 49 companies with promising cash flow potential yet trading below their fair value.

e.l.f. Beauty Investment Narrative Recap

To own e.l.f. Beauty, you need to believe the company can turn brand momentum and innovation into profitable, more diversified growth. The Rhode acquisition and push into hair care reinforce the key near term catalyst of broader category and geographic reach, but they also sharpen the biggest current risk: elevated marketing and SG&A spending that may not convert to earnings quickly, especially given recent margin pressure and reliance on a China-centric supply chain.

The recent launch of e.l.f. Hair across six products is especially relevant here, because it extends the brand into a new category just as Rhode is scaling globally. Together, Rhode’s Sephora rollout and the hair line’s distribution through Target and TikTok Shop concentrate the growth story around international and omnichannel expansion, which could be powerful catalysts if they attract new consumers without materially inflating costs or diluting focus.

Yet behind the Rhode buzz and hair care launch, there is a risk investors should be aware of around...

e.l.f. Beauty's narrative projects $2.1 billion revenue and $156.2 million earnings by 2029. This requires 9.2% yearly revenue growth and about a $129.9 million earnings increase from $26.3 million today.

Uncover how e.l.f. Beauty's forecasts yield a $72.40 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were already assuming e.l.f. could reach about US$2.3 billion in revenue and US$173.8 million in earnings, which is a much rosier path than consensus and leans heavily on uninterrupted global expansion and smooth Rhode integration, even though this latest news could ultimately shift both the upside case and the concerns around execution risk.

Explore 5 other fair value estimates on e.l.f. Beauty - why the stock might be worth as much as 22% more than the current price!

Reach Your Own Conclusion

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your e.l.f. Beauty research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.
• Our free e.l.f. Beauty research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate e.l.f. Beauty's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.