Rhode Is Fueling e.l.f.'s Latest Surge. Is It Time to Jump In?

The company still has several other growth levers to pull to keep its momentum going.

E.l.f. Beauty (NYSE: ELF) shares surged after the cosmetics and skin care company reported strong fiscal first-quarter results and lifted its full-year outlook. The growth was led by a better-than-expected performance from its Rhode brand, which e.l.f. acquired in August of 2025.

The stock is up more than 20% on the year, but it's still down about 16% over the past year.

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Let's take a closer look at e.l.f's results and prospects and why I think the stock's momentum can continue.

Rhode once again was a standout for e.l.f. in the quarter, contributing $160 million in sales. This included the brand scoring a record $27 million in sales from its website in a single day following the launch of new summer products. The company thinks Rhode could reach $1 billion in yearly sales faster than any beauty brand ever has.

The company is seeing record demand for Rhode products, helped by expanded product assortment, a launch at LVMH Moet Hennessy Louis Vuitton 's Sephora stores, and overseas expansion. Rhode is currently in only 20% of Sephora stores globally and will be entering 19 new European markets this fall.

Organic growth, excluding its acquisition of Rhode, was down in the high single digits. The company said this stemmed from the lapping of the launch of its popular e.l.f. Glo reviver melting lip balms and the fact that it shipped products out earlier a year ago ahead of switching enterprise resource software systems, which manage internal operations such as finance and supply chain. The company also tested e.l.f. brand pricing in the quarter, determining that about 10% of its products could benefit from lower prices but that the vast majority were priced correctly.