e.l.f. Beauty Draws $4.8 Million Buy Even as Shares Sit Nearly 25% Below Last Year

On January 20, Wisconsin-based Jacobson & Schmitt Advisors disclosed a fourth-quarter purchase of 48,504 e.l.f. Beauty (NYSE:ELF) shares, an estimated $4.77 million trade based on quarterly average pricing.

What happened

According to a filing with the Securities and Exchange Commission dated January 20, Jacobson & Schmitt Advisors purchased an additional 48,504 shares of e.l.f. Beauty during the fourth quarter. The estimated value of the trade was $4.77 million based on the average closing price over the quarter. However, the position’s value at quarter-end decreased by $4.24 million, reflecting both the fund’s trading activity and share price movements.

What else to know

The fund increased its stake in e.l.f. Beauty, which now accounts for 2.42% of its 13F AUM.

Top holdings after the filing:

• NASDAQ: IUSB: $36.26 million (6.1% of AUM)
• NYSE: APH: $33.36 million (5.6% of AUM)
• NASDAQ: AMZN: $29.88 million (5.0% of AUM)
• NASDAQ: FSV: $22.55 million (3.8% of AUM)
• NASDAQ: MBB: $21.81 million (3.7% of AUM)

As of January 20, shares of e.l.f. Beauty were priced at $89.04, down 24.9% over the previous year and far underperforming the S&P 500 by 43.21 percentage points.

Company overview

Company snapshot

• e.l.f. Beauty offers a portfolio of cosmetics and skin care products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare brands, covering eye, lip, face, and skin care categories.
• The company generates revenue through both wholesale distribution to national and international retailers and direct-to-consumer channels, including e-commerce platforms and international distributors.
• It operates globally with a primary focus on the U.S. market and expansion into international regions through retail and online channels.

e.l.f. Beauty, Inc. is a leading player in the affordable cosmetics and skin care segment, with a scalable business model that leverages both retail partnerships and a robust direct-to-consumer presence. Its differentiated strategy centers on accessible price points, rapid innovation, and digital engagement, positioning it competitively within the global beauty industry.

What this transaction means for investors

e.l.f. Beauty has underperformed the broader market over the past year, yet the underlying business has continued to grow in ways that long-term investors might care about. In its most recent quarterly release, the company delivered its 27th consecutive quarter of net sales growth, with revenue rising 14% year over year to $343.9 million, driven by gains across both retail and e-commerce channels. Market share expanded again, and management reiterated an 18% to 20% sales growth outlook for fiscal 2026.

Margins remain under pressure from tariffs and higher operating costs, and adjusted EBITDA dipped modestly year over year. But e.l.f. continues to reinvest aggressively in marketing, innovation, and distribution, prioritizing share gains over near-term profitability. Cash on hand nearly doubled year over year, giving the company flexibility even as debt levels increased following recent strategic moves.

Meanwhile, within the fund’s portfolio, this position sits alongside diversified exposures rather than replacing core holdings, suggesting it is an incremental bet on a brand with durable momentum rather than a wholesale shift in strategy. Ultimately, for patient investors, the disconnect between operating performance and share price may be the more interesting signal than the recent drawdown itself.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Amphenol, and e.l.f. Beauty. The Motley Fool recommends FirstService. The Motley Fool has a disclosure policy.