ELFe.l.f. Beauty, Inc.
Perfumes, Cosmetics & Other Toilet Preparations
- Revenue
- $1.6B
- 25% YoY
- Operating margin
- 4.5%
- 63% YoY
- EBITDA
- $153M
- 24% YoY
- Market cap
- $6.6B
- Employees
- 849
- $2M revenue each
- Net debt / EBITDA
- 3.0×
- $458M net debt
- AI in 10-K
- 9.5
- mentions per 10K words
Takeover score 2 of 13
Fixable underperformance 1 of 7
- TSR below peersNo1 of 5 years3+ of last 5 years
- High CEO pay despite TSRNo$8M medianMedian CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashNo807% of net incomeCash flow under 80% of net income
- Dilutive SBCNo5% of revenueOver 10% of revenue
- Payouts exceed cash flowNo24% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyNo35% of assetsOver 40% of assets
- Shareholder dissentYes77% lowest supportAny vote under 80% support
Buyer economics 0 of 4
- Low revenue per employeeNo$2M · 90th pctBottom quartile of its SIC industry
- Quiet on AINo9.5 per 10K words · 92nd pctBottom quartile of AI mentions in 10-Ks
- Net cashNo3.0× EBITDA net debtMore cash than debt, positive EBITDA
- Buyout-sizedNo$6.6B market capMarket cap $500M–$5B
Catalysts 1 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingYes−$34M netNet sales over $10M in 12 months
Financials
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | YoY |
|---|---|---|---|---|---|---|
| Revenue | $392M | $579M | $1.0B | $1.3B | $1.6B | 25% |
| Operating income | $30M | $68M | $150M | $158M | $74M | 53% |
| Net income | $22M | $62M | $128M | $112M | $26M | 77% |
| Operating cash flow | $20M | $102M | $71M | $134M | $213M | 59% |
| Capex | $5M | $2M | $9M | $19M | $22M | 21% |
| Stock-based comp | $20M | $29M | $41M | $72M | $87M | 21% |
| Buybacks | $0 | $0 | $0 | $67M | $50M | 25% |
Deal filings
None.
13D filers
| Filed | Filer | Form | Stake | Intent |
|---|---|---|---|---|
| Oct 27, 2020 | Marathon Partners Equity Management, LLC | SC 13D/A | 2.9% | Passive |
| Jul 6, 2020 | Marathon Partners Equity Management, LLC | SC 13D/A | 8.4% | Active |
| Jun 1, 2020 | Marathon Partners Equity Management, LLC | SC 13D/A | 8.3% | Active |
| May 4, 2020 | Marathon Partners Equity Management, LLC | SC 13D | 2.5% | Active |
| Feb 18, 2020 | Marathon Partners Equity Management, LLC | SC 13D/A | 2.8% | Passive |
| Feb 10, 2020 | Marathon Partners Equity Management, LLC | SC 13D/A | 7.1% | Active |
| Dec 3, 2019 | Marathon Partners Equity Management, LLC | SC 13D/A | 7.8% | Active |
| Nov 12, 2019 | Marathon Partners Equity Management, LLC | SC 13D/A | 8.0% | Active |
| May 17, 2019 | Marathon Partners Equity Management, LLC | SC 13D/A | 15.1% | Active |
| Apr 17, 2019 | Marathon Partners Equity Management, LLC | SC 13D/A | 8.9% | Active |
Insider trading
- Open-market buys, 12 mo
- $465K · 1
- Open-market sells, 12 mo
- $34M · 45
- Net
- −$34M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2026 | $9M | $7M | 226 | 136 |
| FY2025 | $9M | −$44M | 234 | 121 |
| FY2024 | $8M | $74M | 731 | 114 |
| FY2023 | $6M | $42M | 307 | 88 |
| FY2022 | $5M | $5M | 96 | 110 |