NOTE TO EDITORS: The Following is an Investment Opinion Issued by Spruce Point Capital Management

Questions Why e.l.f. Beauty Partnered With Movers+Shakers, an Advertising Agency Co-Founded by Former Members of the NXIVM Cult

Finds Evidence to Suggest That Movers+Shakers Has Messaging, Branding and Continued Connections to the Teachings of Imprisoned Cult Leader Keith Raniere and His Loyalists

Provides Evidence That e.l.f. Beauty Has Used Marketing Messages Similar to Those Frequently Used Within the NXIVM Cult

Questions Whether e.l.f. Beauty’s Core Values Align With Retail Partners Such as Walmart, Target, and Ulta Beauty

Sees 45% to 65% Long-Term Downside Risk to e.l.f. Beauty’s Share Price and Urges Investors to Visit www.SprucePointCap.com and Follow @SprucePointCap on X (Formerly Twitter) for the Latest on $ELF

Spruce Point Capital Management, LLC (“Spruce Point” or “we” or “us”), a New York-based investment management firm that focuses on forensic research and short-selling, today issued a detailed report entitled “The Ugly Elf” that outlines why we believe shares of e.l.f. Beauty, Inc. (NYSE: ELF) ("e.l.f." or the "Company") face up to 45% to 65% long-term downside risk, or $34.35 – $54.00 per share. Download or view the report by visiting www.SprucePointCap.com and follow us on Twitter @SprucePointCap for additional information and exclusive updates.

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Statement By Spruce Point Capital Management’s Founder and CIO Ben Axler:

“Spruce Point has grave concerns about e.l.f. Beauty. We believe there are several material risk factors that have been lurking under the radar undetected by the Company’s investors, customers, employees and retail partners until now. The most concerning relates to, in our view, an extreme lapse in ethical judgment surrounding its vendor partnerships.

Over the last several years, e.l.f. leveraged the power of viral TikTok and digital marketing campaigns to become one of the most richly valued stocks in the cosmetics and beauty industry. However, we were shocked to learn that e.l.f. achieved this growth by establishing a close business relationship with Movers+Shakers, an advertising agency whose founders were previously members of the NXIVM cult. Although the founders were not charged with any wrongdoing, we find concerning evidence to suggest that Movers+Shakers and/or its founders may have continued sympathy and/or affiliation with the teachings of NXIVM and former members who continue to support both NXIVM cult leader Keith Raniere and the cult’s tenets.

As a brand built upon a set of core values that include ‘lead with honesty and integrity’ and ‘treat each other with respect’ – it is appalling to us that e.l.f. has decided to stake its reputation on a messaging and marketing strategy developed by former members of a cult notorious for its mistreatment of women. e.l.f’s lapse of judgment is even more shocking given that we estimate more than 80% of its end customers, 79% of its employees, and 67% of its board members are women.

We call on e.l.f’s Board to conduct a complete investigation into our findings and urge e.l.f’s major retail partners such as Target, Walmart and Ulta Beauty to evaluate the Company’s alignment with their corporate values as well as the policies dictated in their supplier codes of conduct.”

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Please note that the items summarized in this press release are expanded upon and supported with data, public filings and records, and images in Spruce Point’s full report. As a reminder, our full report, along with its investment disclaimers, can be downloaded and viewed at www.SprucePointCap.com.

As disclosed, Spruce Point has a short position in e.l.f. Beauty, Inc. and owns derivative securities that stand to net benefit if its share price falls.

About Spruce Point

Spruce Point Capital Management, LLC is a forensic fundamentally-oriented investment manager that focuses on short-selling, value and special situation investment opportunities. Spruce Point Capital Management, LLC is a member of the Financial Industry Regulatory Authority, CRD number 288248.

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