Did e.l.f. Beauty's (ELF) New Roblox Glow Up! Experience Just Shift Its Investment Narrative?

• Earlier this month, e.l.f. Beauty launched Glow Up!, an immersive Roblox makeup experience for players 13+ that features a layered, high-fidelity virtual makeup system, community “livestream” challenges, and inclusive characters championing women in sports, business, music, and gaming.
• The launch extends e.l.f.’s broader Roblox ecosystem, alongside e.l.f. UP! and Fortune Island, using gaming, entrepreneurship, and financial literacy experiences to deepen engagement with Gen Z and Gen Alpha around self-expression and empowerment.
• Next, we’ll examine how this Glow Up! expansion into Roblox, with its advanced avatar-based makeup system, may influence e.l.f. Beauty’s investment narrative.

AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

e.l.f. Beauty Investment Narrative Recap

To own e.l.f. Beauty, you need to believe its brand can keep converting cultural relevance with Gen Z and Gen Alpha into profitable growth, despite rising costs and intense competition. The Glow Up! Roblox launch reinforces its digital and community strengths, but does not materially change the near term focus on defending margins under tariff pressure or the key risk from elevated marketing and SG&A spending outpacing earnings.

The most relevant recent announcement is Glow Up! itself, which builds on e.l.f.’s broader Roblox presence alongside e.l.f. UP! and Fortune Island. Together, these experiences support the core catalyst that many investors are watching: the company’s ability to use digital engagement and social platforms to drive efficient customer acquisition and sustain revenue growth while it invests heavily in brand and technology.

Yet while the Roblox expansion may excite fans, investors should also be aware that...

Read the full narrative on e.l.f. Beauty (it's free!)

e.l.f. Beauty's narrative projects $2.3 billion revenue and $294.5 million earnings by 2028. This requires 19.1% yearly revenue growth and about a $196.7 million earnings increase from $97.8 million today.

Uncover how e.l.f. Beauty's forecasts yield a $121.71 fair value, a 51% upside to its current price.

Exploring Other Perspectives

Seventeen fair value estimates from the Simply Wall St Community range widely, from about US$15 to US$154 per share, showing how far apart individual views can be. Against that backdrop, the key risk that elevated marketing and SG&A spending may not translate into matching earnings growth could shape how you weigh these very different expectations for the business over time.

Explore 17 other fair value estimates on e.l.f. Beauty - why the stock might be worth less than half the current price!

Build Your Own e.l.f. Beauty Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your e.l.f. Beauty research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free e.l.f. Beauty research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate e.l.f. Beauty's overall financial health at a glance.

Searching For A Fresh Perspective?

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Explore 28 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com