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E.l.f. Beauty delivered a strong third-quarter performance on Wednesday, beating Wall Street expectations and raising its full-year guidance, fueled in large part by its recent acquisition of celebrity-backed skin-care company Rhode.

The company reported net sales of $489.5 million for the quarter, a 38% increase from $355 million a year earlier, exceeding analyst expectations of $460 million. Adjusted earnings per share came in at $1.24, nearly doubling the projected 72 cents. Adjusted net income climbed to $74.5 million, up from $43 million in the same period last year.

A key contributor to this growth was Rhode, acquired in a roughly $1 billion deal earlier this year. Rhode added $128 million to E.l.f.’s third-quarter sales, and the company now projects the brand will contribute up to $265 million in net sales for the fiscal year, surpassing its previous estimate by $65 million.

“Our Q3 results, which included 130 basis points of market share gains for our namesake e.l.f. Cosmetics brand and a record-breaking launch of Rhode in Sephora in the U.K., are a continuation of consistent, category-leading growth we’ve delivered over the past 28 quarters,” said CEO Tarang Amin. “Our value proposition, powerhouse innovation, and disruptive marketing engine continue to fuel our brands.”

The company also raised its full-year revenue guidance, increasing expectations by $42 million to $50 million. E.l.f.’s global expansion, strong e-commerce performance, and continued retailer momentum underscore its position as a growing player in the value-focused beauty segment.

Investors initially responded with enthusiasm, sending E.l.f. shares up as much as 15% in after-hours trading, reflecting confidence in the company’s strategy and the immediate impact of the Rhode acquisition.

The robust results highlight E.l.f.’s ability to integrate new brands successfully while maintaining strong growth across its existing portfolio, positioning the company for sustained expansion in both the U.S. and international markets.

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