e.l.f. Beauty, Inc.ELF

e.l.f. Beauty, Inc. Fair Value Disclosure

10-KFiled May 21, 20262 min read
Fair value of financial instruments
The fair value of financial instruments are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is measured using inputs from the three levels of the fair value hierarchy, which are described as follows:
Level 1—Quoted prices in active markets for identical assets or liabilities
Level 2—Quoted prices for similar assets and liabilities in active markets or inputs that are observable
Level 3—Inputs that are unobservable (for example, cash flow modeling inputs based on management’s assumptions)
The assets’ or liabilities’ fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of March 31, 2026 (in thousands):
  Fair value measurements using
 Fair valueLevel 1Level 2Level 3
Financial liabilities:    
Long-term debt, including current portion (1)
$841,676 $— $841,676 $— 
Contingent consideration, including current portion (2)
64,749 — — 64,749 
Total financial liabilities$906,425 $— $841,676 $64,749 
__________________________
(1) Of this amount, $30.0 million is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms.
(2) Of this amount $26.2 million is classified as current.
The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of March 31, 2025 (in thousands):
  Fair value measurements using
 Fair valueLevel 1Level 2Level 3
Financial liabilities:   
Long-term debt (1)
$256,676 $— $256,676 $— 
Total financial liabilities$256,676 $— $256,676 $— 
__________________________
(1) The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms.
The Company did not transfer any assets measured at fair value on a recurring basis to or from Level 1 or Level 2 for any of the periods presented.

Historical Timeline

Fiscal YearFiled
2026May 21, 2026Showing above
2025May 29, 2025
2024May 23, 2024
2023May 25, 2023
2022May 26, 2022
2021May 27, 2021
2020May 28, 2020
2018Feb 28, 2019
2017Mar 1, 2018
2016Mar 15, 2017

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance