On Wednesday, May 28, e.l.f. Beauty Inc. (NYSE:ELF) announced the acquisition of makeup and skincare brand rhode for approximately $1.0 billion. The deal comprises $600 million in cash and $200 million in e.l.f. Beauty common stock, along with a potential performance-based earnout of $200 million, contingent on the brand’s growth over a three-year post-closing period.
The rhode brand, launched in 2022 by model Hailey Bieber, has gained significant popularity among Gen-Z and millennials. The brand sells skincare products, pocket blushes, peptide lip treatments, and other products, and reported $212 million in revenue for fiscal year 2025 (ending in March).
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For e.l.f. Beauty, which traditionally focuses on affordable, mass-market cosmetics, the acquisition marks a strategic move to expand into higher-end, premium products. In the announcement, e.l.f. Chairman and CEO Tarang Amin described rhode as a like-minded disruptor, stating:
“rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible. 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.”
e.l.f. Beauty also reported Q4 FY2025 results, with net sales of $332.6 million—up 4% year over year. Earnings per share (EPS) stood at $0.78, beating market expectations of $0.72. However, the company is not providing guidance for FY2026 due to the impact of tariffs.
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