02:47 PM EDT, 10/21/2025 (MT Newswires) -- E.l.f. Beauty (ELF) may see slower sales growth for its beauty brand rhode, which it reached a deal to acquire in May, after the company's latest financial disclosures showed a slowdown in quarterly revenue for rhode, Oppenheimer said in a report Monday.

The company said in a filing on Friday that rhode generated about $40 million in fiscal Q1 net sales ended June 30 compared with $212 million for 12-month sales ended March 31. Oppenheimer analysts said they now expect "materially less upside to Street sales forecasts" for E.l.f. Beauty's upcoming Q2 report.

Oppenheimer said that while its store checks pointed to a successful Sephora launch in September, online reviews for several top-selling rhode products were weaker than expected, prompting the firm to adopt more conservative top-line growth assumptions.

Oppenheimer maintained a perform rating on the stock.

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