E.l.f. Cosmetics has become the center of beauty industry attention. What started as a $1 cosmetics brand in 2004 is now the third-largest mass cosmetics brand in the United States. Founded by Joseph Shamah and Scott Vincent Borba, e.l.f. began with a straightforward mission: make quality makeup affordable for everyone.
This once small company has grown into a beauty powerhouse. As of August 2023, e.l.f. captured 9.5% of the U.S. mass cosmetics market, sitting just behind L’Oréal and Maybelline. The numbers tell an impressive story – e.l.f. Beauty reported a 77% year-over-year increase in net sales, hitting $1.02 billion for the fiscal year ending March 31, 2024. Even more remarkable is their 23 consecutive quarters of growth, maintaining a gross margin of about 71% for fiscal year 2024.
If you’re wondering who’s behind e.l.f. cosmetics and how they’ve managed this incredible growth streak, you’re in the right place. I’ll walk you through the complete ownership journey of e.l.f. Cosmetics – from its humble beginnings selling $1 lipstick to its current status as a publicly traded company with a growing brand portfolio, including their recent $355 million acquisition of Naturium in October 2023.
Who owns e.l.f. Cosmetics in 2025?
e.l.f. Cosmetics sits under the umbrella of e.l.f. Beauty, Inc., a multi-brand beauty company based in Oakland, California. The ownership structure includes a mix of institutional investors, company insiders, and public shareholders who all have stakes in this fast-growing beauty powerhouse.
e.l.f. Beauty, Inc. as the parent company
e.l.f. Beauty serves as the parent company and complete owner of the e.l.f. Cosmetics brand. Founded back in 2004 by Joseph Shamah and Scott Vincent Borba, the company has grown into a major player in the beauty industry. Beyond just e.l.f. Cosmetics, the parent company now manages a diverse brand portfolio, focusing on accessible, clean, vegan, and cruelty-free products.
The company’s family of brands has expanded significantly and now includes e.l.f. Cosmetics, e.l.f. SKIN, Well People, Naturium, and Keys Soulcare. Their most notable move was completing the acquisition of Naturium for $355 million in October 2023, showing the company’s commitment to strategic growth.
When it comes to financial performance, e.l.f. Beauty’s numbers speak for themselves. The company reported revenue of $1.02 billion in 2024, with operating income of $150 million and net income of $128 million. They now hold total assets of $1.13 billion and total equity of $643 million as of 2024.
Publicly traded on NYSE under ticker ELF
Since going public, e.l.f. Beauty has been trading on the New York Stock Exchange under the ticker symbol “ELF.” The company was previously known as J.A. Cosmetics Holdings, Inc., but changed its name to e.l.f. Beauty, Inc. in April 2016, just before their initial public offering.
Currently, e.l.f. Beauty has a market capitalization of about $4.47 billion with 56.40 million shares outstanding. Despite facing some market volatility recently, the company continues to focus on e-commerce, national retail partnerships, and international business channels.
Breakdown of institutional, insider, and public shareholders
Looking at who actually owns e.l.f. Beauty reveals an interesting mix of institutional and insider stakeholders:
- Institutional Ownership: Institutions hold about 74.65% of e.l.f. Beauty shares.
- The major institutional investors include:
- Baillie Gifford & Co (14.08%, 7.94 million shares)
- BlackRock Inc. (9.55%, 5.38 million shares)
- Vanguard Group Inc. (9.51%, 5.36 million shares)
- JPMorgan Chase & Co. (4.95%, 2.79 million shares)
- Champlain Investment Partners (4.73%, 2.67 million shares)
- Insider Ownership: Company insiders maintain significant holdings, controlling about 25.35% of shares. CEO Tarang Amin is the top insider shareholder with 1,183,400 shares, followed by Head of Sales & Marketing Kory Marchisotto (131,977 shares), and General Counsel Scott Milsten (111,870 shares).
While e.l.f. Beauty is publicly traded, allowing anyone to buy shares on the open market, most ownership remains with major institutional investors and company insiders who guide the brand’s strategic direction. This ownership structure has helped drive the company’s impressive growth and ambitious acquisition strategy.
The founding story of e.l.f. Cosmetics
Two ambitious entrepreneurs met by chance and changed the beauty world forever.
Who founded e.l.f. Cosmetics?
Joseph Shamah and Scott Vincent Borba launched e.l.f. Cosmetics in June 2004, creating what would grow into one of America’s favorite beauty brands. Their paths crossed unexpectedly at a party in 2002. Shamah was just 23, a business student at New York University. Borba, 31, brought experience from the Los Angeles beauty scene, having already helped launch successful brands like Hard Candy cosmetics.
The inspiration came from different angles. Some stories suggest Joey Shamah had his lightbulb moment when his wife came home with five makeup products that cost a shocking $200. Joey immediately spotted a gap in the market. Borba tells it differently – he noticed women driving luxury cars but buying bargain makeup at 99-cent stores in Los Angeles.
Their shared passion for affordable, quality cosmetics sparked quick action. Within months of meeting, they had a business plan ready to go. Joey teamed up with his father Alan Shamah, who helped provide business expertise for the launch.
The original vision: affordable beauty for all
From day one, e.l.f. (standing for Eyes, Lips, Face) embraced a simple mission: “to make the best of beauty accessible to every eye, lip and face.” This wasn’t just about cheaper makeup – it was about bringing high-quality beauty products to everyone.
“Our mission has always been to make the best of beauty accessible to every eye, lip and face,” explains Laurie Lam, e.l.f.’s chief brand officer. “We are democratizing something that is normally out of reach.”
The word ‘every’ matters here. As Lam points out, “It means we’re a brand that serves everyone. No matter how you look, what you think, what you feel, what your gender is, we’re going to serve you.” This inclusive approach would become a defining feature of e.l.f.’s identity.
Early product strategy and pricing
e.l.f. shook up the beauty industry with a bold move – selling $1 lipstick online in 2004. The brand started small with just 13 makeup products, but that was enough to disrupt the traditional beauty market.
The company quickly carved out its space as one of the first online beauty retailers, adding innovations like product ratings and reviews. Despite a no-refund policy and extra shipping costs, customers couldn’t get enough – e.l.f. generated $1.5 million in its first year and eventually handled around 18,000 orders every day.
What made e.l.f. stand out was a powerful three-part approach:
- Price accessibility: Most items cost around $1, making them affordable for practically everyone
- Quality formulations: Products performed far better than their price suggested
- Values-driven approach: From the start, the company committed to being cruelty-free
This strategy helped e.l.f. attract an incredibly diverse customer base, from teenagers to women in their 40s and 50s. The company quickly grew beyond its initial 13 products, eventually offering more than 300 items across makeup, skincare, and beauty tools.
Throughout its growth, e.l.f. stayed committed to affordable pricing. Though the average price has inched up to around $6 (£4.60), the company has raised prices only twice since 2004, showing remarkable transparency by announcing these changes through social media.
The e.l.f. Cosmetics founding story shows what happens when entrepreneurial vision meets market opportunity and consumer-focused values – the perfect recipe for the beauty powerhouse that e.l.f. Beauty, Inc. has become today.
From startup to public company: Key milestones
e.l.f.’s journey from online startup to beauty giant didn’t happen overnight. Let’s look at the key turning points that shaped who owns the brand today.
Initial growth and retail partnerships
After launching online in 2004, e.l.f. quickly found its audience. The brand earned $1.5 million in its first year, proving people wanted affordable quality makeup.
Target was the first major retailer to notice e.l.f.’s potential around 2007-2008. They recognized not just the products but e.l.f.’s e-commerce expertise, bringing the $1 cosmetics to mass retail shelves nationwide.
While building retail partnerships, e.l.f. was also growing something equally valuable – an online community. By 2011, over 2 million members had joined their digital space, well before most beauty brands understood the power of online engagement.
As more retailers like Ulta brought e.l.f. into their stores, revenue climbed to approximately $100 million by 2014. The brand was ready for its next chapter.
TPG Growth investment and leadership change
February 2014 marked a pivotal moment when private equity firm TPG Growth purchased a majority stake in e.l.f. Cosmetics. Though the exact figures weren’t made public, industry reports valued the deal between $200-300 million.
At this point, e.l.f.’s annual sales had reached about $150 million according to industry sources. The acquisition bought out both the founders and previous investor TSG Consumer Partners LLC.
TPG Growth immediately brought in consumer products veteran Tarang Amin as President, Chief Executive Officer and Director. Amin, who was 48 at the time, carried over 20 years of experience, including leadership roles at Schiff Nutrition and Procter & Gamble. Joey Shamah stepped down as CEO but stayed invested in the company as a significant shareholder and director.
IPO in 2016 and transition to public ownership
Instead of finding another buyer as initially planned, e.l.f. Beauty prepared for an initial public offering under Amin’s leadership. On September 22, 2016, the company officially went public, offering 8.3 million shares at $17 each on the New York Stock Exchange under the ticker symbol “ELF”.
The market response exceeded expectations. The IPO raised about $141-142 million, beating the initial price range projection of $14-$16 per share. On the first day of trading, e.l.f.’s stock opened at $24 – a 41% jump from the IPO price – and eventually soared approximately 55%.
This successful market debut shifted ownership from TPG to a mix of institutional and individual investors. The company was valued at approximately $1.1 billion, creating the foundation for the ownership structure we see today.
Inside e.l.f. Beauty, Inc.: The parent company
e.l.f. Beauty, Inc. stands as the driving force behind the e.l.f. Cosmetics brand you know and love. What began as a single-brand company has expanded into a multi-brand beauty powerhouse with a crystal-clear mission. The evolution from affordable cosmetics provider to beauty conglomerate hasn’t happened by accident – it’s been a strategic journey years in the making.
What company owns e.l.f. Cosmetics now?
e.l.f. Cosmetics operates entirely under e.l.f. Beauty, Inc., which celebrates its 20th anniversary in 2024. The parent company has built its reputation by breaking beauty industry norms through positivity, inclusivity, and making quality products accessible to everyone.
At its core, e.l.f. Beauty remains deeply committed to clean, vegan, cruelty-free beauty with exceptional quality-to-price ratios – a philosophy that has fueled its remarkable success. The company’s support of PETA’s no-fur campaign further highlights its ethical stance in the beauty world.
Other brands under e.l.f. Beauty: Keys Soulcare, Well People, Naturium
e.l.f. Beauty has strategically grown its brand family beyond its flagship:
Well People: Acquired in 2020 for $27 million, this clean beauty pioneer founded in 2008 delivers plant-powered, dermatologist-developed products meeting EWG standards.
Keys Soulcare: Launched in 2020 alongside Alicia Keys, this lifestyle beauty brand takes a holistic approach to beauty. Keys receives cash and stock-based royalties from e.l.f. Beauty, increasing her ownership as the brand grows.
Naturium: The newest addition, purchased in 2023 for $355 million in cash and stock, focuses on high-performance skincare that delivers clinical results at accessible prices.
Recent acquisitions and their impact
The Naturium acquisition particularly transformed e.l.f. Beauty’s market position, doubling its skincare presence to approximately 18% of retail sales. Naturium has shown extraordinary growth with an 80% CAGR over two years before being acquired.
Surprisingly, Naturium appeals to a unique demographic – about 40% male customers – which nicely complements e.l.f.’s existing customer base. With projected annual sales of $90 million, Naturium contributed approximately $48 million to e.l.f. Beauty’s fiscal 2024 revenue, helping push the company past the $1 billion sales milestone.
Who Makes e.l.f. Cosmetics and How It Operates
Unlike many beauty brands, e.l.f. doesn’t make its own products. All manufacturing happens through third-party suppliers, primarily in China. This approach is key to how they deliver quality products at prices everyone can afford.
Manufacturing and Supply Chain Model
e.l.f. Beauty builds strategic partnerships rather than owning factories. In 2022, they became the first beauty company to have a third-party facility achieve Fair Trade Certified™ status. Today, more than 85% of e.l.f.’s products come from Fair Trade Certified™ facilities.
These certifications aren’t easy to get. Facilities must pass tough audits and meet over 100 compliance standards covering social responsibility, environmental practices, worker empowerment, and economic development. e.l.f. also pays a premium on every product that goes directly to factory workers to improve their communities.
For supplier management, e.l.f. uses the EcoVadis certification program. As of FY 2024, 45 suppliers have completed assessments, covering 95% of direct spending on finished goods and packaging. These suppliers scored about 19% higher than the overall EcoVadis average across 100,000 global suppliers.
Digital-First Marketing and Influencer Strategy
e.l.f.’s marketing approach breaks the traditional beauty playbook. The company puts 24% to 26% of net sales into marketing and digital investment, helping double unaided brand awareness among U.S. consumers since 2020 to 26%.
Their social media presence stands out for being ahead of trends:
- First beauty brand to go big on TikTok with viral campaigns like “Eyes Lips Face”
- Early adopter on gaming platforms like Roblox and Twitch to connect with Gen Z
- Super Bowl advertising presence, including a 2023 spot featuring Jennifer Coolidge
Their Beauty Squad loyalty program, launched in 2018, has grown to over 4.5 million members, creating a community that provides feedback and creates content.
Retail and E-commerce Distribution
e.l.f. balances brick-and-mortar with online sales. In 2023, retailers accounted for 84% of sales while direct-to-consumer channels made up 16%. After closing their physical stores in 2019, they focused entirely on digital customer experience, contributing to 19 straight quarters of growth.
Globally, e.l.f. has expanded to 14 countries with additional distribution through eShopWorld. In Q1 of fiscal 2025, markets outside the U.S. represented 16% of total sales and grew 91% year-over-year. Recent expansion includes 1,600 ROSSMANN locations in Germany, dozens of Sephora Mexico spots, and partnerships with Boots and Superdrug in the UK.
Conclusion
e.l.f. Beauty, Inc. stands as the owner behind this remarkable brand. The journey from $1 lipstick startup to multi-billion-dollar beauty powerhouse tells one of the most impressive success stories in the beauty industry, all while staying true to its original mission of making quality beauty accessible to everyone.
What began with just 13 products in 2004 has expanded into a diverse portfolio including Well People, Keys Soulcare, and most recently, Naturium. This strategic growth has positioned e.l.f. Beauty as the third-largest mass cosmetics brand in the United States, capturing 9.5% of the market by 2023.
Perhaps most impressive is how e.l.f. Beauty has achieved 23 consecutive quarters of growth while maintaining its founding principles. The company has raised prices just twice since its inception – a clear demonstration of their commitment to value. Their focus on clean, vegan, and cruelty-free products produced in Fair Trade Certified facilities shows how e.l.f. balances commercial success with ethical practices.
The ownership structure has evolved significantly – from founders Joseph Shamah and Scott Vincent Borba to TPG Growth and finally to public shareholders – yet the brand’s core identity remains intact. Under CEO Tarang Amin’s leadership since 2014, e.l.f. Beauty continues to disrupt the beauty industry through digital innovation, strategic acquisitions, and global expansion into 14 countries.
Looking at e.l.f.’s extraordinary rise from selling $1 products online to generating more than $1 billion in annual revenue, one thing is clear – this once-underdog brand has changed how consumers experience beauty without sacrificing quality or values. The e.l.f. story proves that accessibility and excellence can go hand in hand.
FAQs
Q1. Who currently owns e.l.f. Cosmetics?
e.l.f. Cosmetics is owned by e.l.f. Beauty, Inc., a publicly traded company listed on the New York Stock Exchange under the ticker symbol “ELF”. The ownership is distributed among institutional investors, company insiders, and public shareholders.
Q2. Why are e.l.f. Cosmetics products so affordable?
e.l.f. Cosmetics maintains affordable prices by minimizing packaging, optimizing their supply chain, and maintaining lower profit margins compared to other beauty brands. Their business model focuses on providing high-quality products at accessible prices without compromising on quality.
Q3. Where are e.l.f. Cosmetics products manufactured?
e.l.f. Cosmetics products are primarily manufactured by third-party suppliers in China. The company has partnerships with suppliers that have achieved Fair Trade Certified™ status, ensuring ethical production practices.
Q4. How has e.l.f. Cosmetics grown since its founding?
Since its founding in 2004, e.l.f. Cosmetics has grown from a $1 lipstick startup to a multi-billion dollar beauty company. It has expanded its product range, gone public, acquired other brands like Well People and Naturium, and become the third-largest mass cosmetics brand in the United States.
Q5. What makes e.l.f. Cosmetics different from other beauty brands?
e.l.f. Cosmetics stands out for its commitment to affordable, high-quality products that are clean, vegan, and cruelty-free. The brand also employs a digital-first marketing strategy, engages actively with its community, and maintains a strong presence on social media platforms like TikTok and gaming platforms to reach younger audiences.