Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In e.l.f. Beauty To Contact Him Directly To Discuss Their Options

If you suffered losses exceeding $50,000 in e.l.f. Beauty between May 25, 2023 and February 6, 2025 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against e.l.f. Beauty, Inc. (“e.l.f. Beauty” or the “Company”) (NYSE: ELF) and reminds investors of the May 5, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) contrary to its representations to investors, the Company was experiencing rising inventory levels as a consequence of flagging sales; (2) Elf falsely attributed the rising inventory levels to, among other things, changes in its sourcing practices; (3) to maintain investor confidence, Elf reported inflated revenue, profits, and inventory over several quarters; (4) accordingly. the Company’s business and/or financial prospects were overstated; (5) all of the foregoing, once revealed, would likely have a material negative impact on the Company; and (6) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On November 20, 2024, Muddy Waters Research (“Muddy Waters”) published a report entitled “e.l.f. Beauty, Inc. A Revenue and Inventory Mystery” (the “Muddy Waters Report”), alleging that Elf had “materially overstated revenue over the past three quarters,” and that in “Q2 FY24, ELF management realized its growth narrative was in trouble as its inventory built. It appears that ELF then began reporting inflated revenue and profits. Its reported inventory also appears materially inflated as a result - i.e., to account for cash that has not really come in.” Further, Muddy Waters accused the Company of concealing its inventory challenges from investors by falsely attributing its rising inventory levels to supposed changes in its sourcing practices rather than the true cause—insufficient sales.

After the Class Period ended, on February 6, 2025, Elf released its fiscal Q3 2024 results and provided its fiscal 2025 outlook. Specifically, Elf revealed that it expected full-year fiscal 2025 net sales growth to be 27%-28%, down from the previous guidance of 28-30%, and also revised its adjusted EBITDA guidance to $289-293 million, down from $304-308 million, resulting in part from the updated sales outlook and a $7 million foreign currency loss. Further, the Company stated that it anticipated net sales growth was lowered to -1% to +2%, with management explaining that this reflected prudence amid softer consumption trends, challenging category conditions, and slower-than-expected new product performance.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding e.l.f. Beauty’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the e.l.f. Beauty class action, go to www.faruqilaw.com/ELF or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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Faruqi & Faruqi reminds investors of the May 5, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.