E.l.f. Beauty has acquired Hailey Bieber’s Rhode in a $1 billion deal. Since its founding in 2022, Rhode has emerged as a leader in the crowded celebrity beauty landscape with on-trend milky serums and viral lip glosses and phone cases. E.l.f. Beauty owns the affordable beauty brand E.l.f., as well as Alicia Keys’s Keys Soulcare brand and Susan Yara’s Naturium, acquired in 2023. It announced the acquisition ahead of its fourth quarter 2025 earnings call.
Bieber will remain on as the brand’s chief creative officer and head of innovation. Rhode’s co-founders Michael D. Ratner and Lauren Ratner and CEO Nick Vlahos will also retain their positions and remain based in Los Angeles. According to Bieber, the acquisition will expand Rhode’s international distribution. The brand entered Canada in 2023.
“We can’t wait to bring rhode to more faces, places, and spaces. From day one, my vision for rhode has been to make essential skin care and hybrid makeup you can use every day,” said Bieber in a press release. “Just three years into this journey, our partnership with E.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally.”
E.l.f. Beauty stated that Rhode achieved $212 million in net sales in the past 12 months through purely DTC channels. The brand will expand to Sephora later in 2025. The acquisition comes after it was reported that Rhode hired JP Morgan and Moelis to explore deal options in April.
“We plan to invest in marketing and fuel their disruptive marketing engine to further Rhode’s brand awareness and further build its community of loyalists. We also plan to leverage our expertise and help Rhode further move into retail distribution,” said E.l.f. Beauty CEO Tarang Amin on Wednesday’s earnings call. He also shared that Rhode’s aided awareness in the U.S. sits at just 20%. “We see potential to provide Rhode with opportunities to broaden its product assortment and innovation in the skin-care and hybrid makeup categories and expand into new adjacent categories in the future.”
E.l.f. Beauty reported a 4% increase in net sales for the fourth quarter of fiscal year 2025, reaching $3.32 billion. For the full year of fiscal year 2025, net sales increased 28%.
During the earnings call, E.l.f. stated that it will intend to reduce its dependence on China, which currently produces roughly 75% of its products. In light of escalating tariffs on goods from China, E.l.f. will raise its prices by $1 beginning August 1. The company declined to provide a 2026 outlook due to uncertainty in the market.
“We don’t believe it’s prudent to provide an outlook and then have to adjust it if tariffs were to move from where they are today,” said Mandy Fields, E.l.f. Beauty svp and CFO.
