e.l.f. Beauty posts mixed Q4 with strong margins but slow growth and rising costs

e.l.f. Beauty reported a mixed Q4 with a double beat on earnings but only 1% organic growth and increased SG&A expenses. The company achieved a strong gross margin of 73%, showing good pricing power, but marketing and SG&A costs rose to 66% of sales, pressuring profitability. Despite these challenges, e.l.f. expects its adjusted EBITDA margin to remain stable around 20.7% in FY 2027, with mid single-digit organic growth. The analyst maintains a cautious buy rating, emphasizing the importance of sustainable growth and margin improvement for long-term gains.