E.l.f. Beauty Skyrockets with Strategic Acquisition of Hailey Bieber’s Rhode Skincare
Discover how E.l.f. Beauty's innovative growth strategy and acquisition of Hailey Bieber’s Rhode skincare brand are reshaping the beauty industry with impressive financial results and future potential.
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Highlights
- E.l.f. Beauty surpasses profit and sales expectations while acquiring Hailey Bieber’s Rhode skincare brand in a deal valued up to $1 billion.
- The agreement includes $800 million in cash and stock upfront, with an additional $200 million contingent on Rhode’s growth over the next three years.
- Fiscal 2025 fourth-quarter earnings and revenue outperform analyst forecasts, driven by strong retail and e-commerce demand.
E.l.f. Beauty (ELF) shares surged 25% following the announcement of robust quarterly results and the acquisition of Rhode, a skincare brand co-founded by model and entrepreneur Hailey Bieber. This strategic move positions E.l.f. to broaden its portfolio and capitalize on emerging beauty trends.
In fiscal Q4 2025, E.l.f. reported adjusted earnings per share of $0.78 and net sales of $332.6 million—a 4% increase compared to the previous year—both surpassing market expectations. The growth was attributed to strong performance across retail outlets and online platforms, as well as expansion in both domestic and international markets.
CEO Tarang Amin emphasized the company’s confidence in its growth strategy, stating, “We are well-positioned to continue leading sales and market share growth. The acquisition of Rhode enhances our portfolio with a fast-growing, innovative brand that aligns perfectly with our vision.”
The acquisition deal comprises $600 million in cash and $200 million in stock at closing, with a potential additional $200 million based on Rhode’s performance over the following three years. The transaction is expected to finalize during E.l.f.’s fiscal Q2 2026.
Hailey Bieber will take on the role of Chief Creative Officer and Head of Innovation at Rhode, as well as Strategic Advisor to the combined company. Bieber expressed enthusiasm about the partnership, highlighting its potential to accelerate innovation and expand global reach.
Despite the recent surge, E.l.f. Beauty’s shares have experienced an approximate 10% decline year-to-date, indicating room for growth as the company integrates Rhode and executes its strategic plans.
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