elf Stock Plummets 20% on Disappointing Earnings Report

elf Stock Plunges 20% After Disappointing Earnings Report

November 6, 2025

Today’s top news articles about elf stock have been buzzing with the latest updates on the company’s performance in the market. The cosmetics company, elf, recently reported its Q2 earnings, which led to a significant drop in its stock price by over 20%. This news has investors and analysts alike reevaluating their expectations for the company’s future prospects.

Key Highlights:

According to reports from explainit.site, elf’s Q2 net sales fell short of expectations, causing the stock to plummet in after-hours trading. Analysts at Cowen have lowered their price target for elf stock to $110 from $145, while maintaining a Buy rating on the stock.

Despite the disappointing earnings report, there is some optimism in the retail sector, with analysts noting strong sales growth for elf amid tariff challenges. The company’s net sales for Q2 were reported at $344 million, up 14% year over year, with adjusted EBITDA reaching $66 million.

UBS also revised its price target for elf stock, lowering it to $105 from $150 due to a weak outlook. The company’s guidance for fiscal 2026 fell short of expectations, leading to a 29% plunge in the stock price.

Implications and Analysis:

The market reaction to elf’s earnings report reflects concerns about the company’s ability to meet revenue targets and navigate challenges such as tariffs. The stock price drop of 20% highlights the impact of disappointing financial performance on investor sentiment.

Investors and analysts will be closely monitoring elf’s future actions, including capital structure decisions and strategic initiatives, to gauge the company’s ability to recover from this setback. The lower price targets from Cowen and UBS suggest that there is uncertainty surrounding elf’s potential for growth in the near term.

Overall, the latest developments in elf stock serve as a reminder of the volatility in the market and the importance of thorough analysis and due diligence when making investment decisions.