Key Takeaways:
- e.l.f. is acquiring rhode in a $1 billion deal, including $800 million at closing and up to $200 million tied to performance over three years.
- Rhode hit $212M in net sales, doubling its consumer base in a year.
- e.l.f. expands into prestige beauty, with Bieber's skincare brand heading to Sephora in North America and the U.K.
Hailey Bieber just turned her skincare startup into a billion-dollar beauty power play.
e.l.f. Beauty has announced its $1 billion acquisition of Bieber’s skincare line, rhode.
The deal consists of a mix of cash and stock totaling $800 million, with an additional $200 million reserved as a potential payout based on the brand’s future growth over three years.
e.l.f. said it plans to finalize the acquisition in the second quarter of fiscal 2026, pending standard regulatory review.
Hailey Beiber's beauty and skincare brand Rhode was just acquired for $1 billion by Elf Beauty. It went from from zero to $212 million in net sales in less than three years, direct-to-consumer only, with just 10 products including blush, lip tint and glazing milk. pic.twitter.com/3q5BA3cMua
— Esther Crawford ✨ (@esthercrawford) May 28, 2025
e.l.f. Beauty CEO Tarang Amin emphasized how well rhode aligns with the company’s growth strategy and brand values.
“e.l.f. Beauty found a like-minded disruptor in Rhode," Amin said in a press release.
“We are excited by Rhode’s ability to break beauty barriers, fully aligning with e.l.f. Beauty’s vision to create a different kind of company.
Rhode is a beautiful brand that we believe is ready for rocketship growth."
Launched in 2022, Rhode has built strong momentum through its direct-to-consumer business model and a minimalistic approach to skincare.
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Over the past twelve months, the company brought in $212 million in revenue.
Rhode also led the skincare category in Earned Media Value for 2024, driven by a 367% rise from the previous year.
Its Instagram account alone has 3.2 million followers. Although it's only a fraction of Bieber's 55 million, it shows how fast its beauty community has expanded.
This rapid growth suggests effective demand generation through strategic influencer marketing and community-building on top of celebrity association.
Rhode products are currently sold online, with plans to debut in Sephora stores across North America and the U.K. before the end of the year.
Premium Meets Mass Appeal
This acquisition marks a clear entry into the prestige skincare market for e.l.f., a company traditionally known for its affordable, trend-driven makeup products.
The move follows the brand's 2023 purchase of Naturium and reflects a consistent strategy to diversify its skincare lineup.
According to Amin's LinkedIn post, e.l.f. Beauty grew net sales by 28% in fiscal 2025.
The company also marked its 25th consecutive quarter of revenue and market share growth, ranking within six high-growth firms out of 546 public consumer companies.
Rhode will now add to this momentum with its strong brand identity, global potential, and cultural appeal.
Bieber will remain at the helm of rhode’s creative and product development efforts.
She takes on an expanded role as Chief Creative Officer and Head of Innovation, guiding future product strategy and branding.
In addition, she will support broader business planning across the combined brands.
Meanwhile, co-founders Michael D. Ratner and Lauren Ratner, together with CEO Nick Vlahos, will continue to oversee operations.
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Rhode’s operations will remain anchored in Los Angeles.
The brand’s independent spirit, lean structure, and digital-savvy approach will be key to its integration into e.l.f.’s growing portfolio.
This comes at a time when demand for trusted skincare is helping e.l.f. connect more deeply with younger, trend-driven buyers.
In a similar move, the brand’s latest campaign features Rebecca Black and a talking pony as it explores unconventional storytelling in beauty advertising.
