Key Takeaways:E.l.f. Beauty extends a 27-quarter growth streak despite tariffs and margin pressure.Rhode acquisition fuels Q2 gains as core growth moderates.Multibrand strategy drives reach across mass, skincare, and prestige segments.E.l.f Beauty’s second-quarter fiscal 2026 results underscore the balancing act of a company in full expansion mode, managing margin pressure and acquisition integration, all while extending an outstanding 27-quarter streak of net sales growth.For the three months ended September 30, 2025, e.l.f Beauty reported net sales of $343.9 million, a 14% year-over-year increase, driven by continued strength in US retail and e-commerce as well as its growing skincare portfolio. Adjusted earnings per share rose to $0.68, exceeding expectations, though adjusted EBITDA declined 4% to $66.2 million as tariffs and integration costs weighed on profitability. Gross margin decreased 165 basis points to 69%, while SG&A climbed to 67% of net sales, reflecting higher marketing and distribution spending.“We’ve delivered 27 consecutive quarters of growth—one of only six public companies to achieve that,” said Chairman and CEO Tarang Amin during the Q2 FY26 earnings call. “Even as we navigate tariffs and pricing transitions, our brands continue to outperform their categories.”Core Business Slows, Acquisitions Cushion GrowthExcluding the newly acquired rhode, organic net sales fell approximately 3%. Management attributed the decline to shipment timing rather than consumer demand.