ELF

e.l.f. Beauty, Inc.

HALAL — SCREEN DOES NOT PASSstock

Is ELF Halal?

Beauty and skincare products with a generally permissible core activity, but the current total-assets debt screen fails.

What You Should Know

e.l.f. Beauty sells cosmetics and skincare under e.l.f., rhode, Naturium and Well People. Its March 2026 debt-to-assets ratio is 35.16%, above the examined 33%–33.333% limits; product-level revenue classification is not disclosed.

⚠️ Concerns

  • Gross debt is above examined total-assets limits
  • Ingredients and advertising context may require individual review
  • rhode acquisition changed the brand mix and increased leverage

Current quantitative Sharia screen

Based on 10-K figures for the period ended 2026-03-31; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
35.16%Above limit
Below 33.333% under FTSE Yasaar

841.676 / 2,394.158

Cash + interest-bearing securities / assets
12.10%Within limit
Below 33.333% under FTSE Yasaar

289.685 / 2,394.158

Receivables + cash / assets
19.39%Within limit
Below 50% under FTSE Yasaar

464.329 / 2,394.158

Non-compliant income / revenue
0.42%Within limit
No more than 5% under FTSE Yasaar

6.93 / 1,636.472

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Interest-bearing debt is 35.16% of total assets, above the examined 33.333% limit. Liquidity is 12.10%, receivables plus cash are 19.39% and disclosed interest income is 0.42%; the debt result drives the financial failure.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Interest-bearing debt is 35.16% of total assets, above the examined 33.33% limit. Liquidity and receivables-plus-cash are below the examined total-assets limits, but the debt result fails the financial screen.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Interest-bearing debt is 35.16% of total assets, above the examined 33% limit. Identifiable liquidity is 12.10%, below the examined Malaysia limit. This is a calculation against SAC ratios, not an official SAC classification of a U.S.-listed security.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A properly licensed and reproducible historical market-cap series is not stored.

Business-activity disclosure

e.l.f. Beauty is a multi-brand beauty company selling cosmetics and skin-care products under e.l.f. Cosmetics, e.l.f. SKIN, rhode, Naturium and Well People. Cosmetics and personal-care products are generally permissible, subject to ingredient, use-context and marketing questions.

Limitation: The Form 10-K reports consolidated beauty-product sales and brand names but does not allocate revenue by ingredient, product use, advertising depiction or other category that would produce a reproducible prohibited-revenue numerator.

Purification

The filing discloses 6.930 of interest income, or approximately 0.42% of annual net sales, but this record does not prescribe a fixed purification amount because scholarly treatment of the income line and the unavailable product-level business numerator is not universal.

Inputs, assumptions and primary sources
  • Interest-bearing debt uses total gross debt of 841.676, consisting of the 256.676 revolving line and 585.000 term loan reported at March 31, 2026; the 2.328 debt-issuance-cost deduction is not used to understate the debt input.
  • Cash and cash equivalents use 289.685. The filing describes cash and money-market funds but does not report a separate marketable-securities balance, so interest-bearing securities are set to zero rather than inferred.
  • Receivables use the reported net accounts-receivable balance of 174.644. The filing separately describes sales-adjustment reserves and trade receivables but does not provide a different screen-specific subtotal.
  • Annual revenue uses net sales of 1,636.472 for the fiscal year ended March 31, 2026.
  • The filing separately reports 6.930 of interest income within the interest-expense note; this is 0.42% of annual net sales. No fixed purification amount is prescribed from that line alone.
  • The filing describes five beauty brands and broad product categories but does not provide a reproducible prohibited-revenue numerator by ingredient, product use or marketing context.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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