Honestly, if you told a beauty editor five years ago that the brand selling $3 eyeliners would eventually shell out a cool billion for the "it-girl" brand of the decade, they probably would’ve laughed you out of the room. But here we are. It actually happened.
In May 2025, e.l.f. Beauty officially pulled the trigger on a definitive agreement to acquire rhode, the skincare-first brainchild of Hailey Bieber. This wasn't some minor partnership or a "collab" that disappears in three months; we’re talking about a massive $1 billion deal that shook the entire industry. By August 2025, the ink was dry and the deal was closed.
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It’s a wild move for a brand like e.l.f. that basically lived in the drugstore aisle for twenty years.
The $1 Billion Breakdown: How the e.l.f. beauty acquires rhode Deal Actually Works
When people hear "billion dollars," they usually think of a giant suitcase full of cash. In the real world of corporate mergers, it’s rarely that simple. The price tag was tiered. Basically, e.l.f. paid $800 million upfront—$600 million in cash and $200 million in e.l.f. stock.
The other $200 million? That's what’s called an "earnout."
It’s basically a performance-based bonus. If rhode hits specific growth targets over the next three years (leading us right into 2028), Hailey and her team get that extra cash. It’s a smart way for e.l.f. to ensure the brand doesn't just fizzle out now that the founders have been paid.
You’ve gotta wonder why e.l.f. wanted this so badly. Well, rhode isn't just a celebrity brand; it’s a "prestige" brand. By snagging rhode, e.l.f. suddenly has a seat at the table in Sephora. In fact, right after the deal closed, rhode made its massive debut in Sephora stores across the US and Canada in September 2025.
That’s a huge shift. e.l.f. used to be the "affordable dupe" brand. Now, they own the brand that everyone else is trying to dupe.
What Hailey Bieber’s Role Looks Like Now
There’s always a fear that when a big corporation buys a "cool" brand, they’ll ruin the vibe. They’ll change the formulas, cheapen the packaging, or lose the soul of the business. But rhode fans can breathe a little. Hailey Bieber isn't walking away to live on a private island.
She stayed on as Chief Creative Officer and Head of Innovation.
Basically, she’s still the "vibe curator." She oversees the product development, the marketing campaigns, and that very specific "glazed" aesthetic that made the brand a TikTok sensation. She’s also taking on a role as a strategic advisor for e.l.f. Beauty as a whole.
Imagine that: the woman who made peptide lip treatments a status symbol is now helping the team behind "Power Grip Primer" figure out what’s next.
Why This Acquisition Changed the Game for Beauty Investors
If you look at the numbers, rhode was a beast before the sale even happened. In the 12 months leading up to March 2025, they did $212 million in net sales. That’s incredible for a brand that was barely three years old and mostly sold directly through its own website.
The market response was... interesting.
Some analysts at firms like Jefferies and Goldman Sachs have stayed bullish on e.l.f. Beauty (ELF) throughout late 2025 and into early 2026. They see the acquisition as a way for e.l.f. to capture "prestige" shoppers who usually wouldn't look twice at a $5 mascara. Others, like the folks at Piper Sandler, have been a bit more cautious. They’re worried about the debt e.l.f. took on to fund the cash portion of the deal.
As of January 2026, e.l.f. stock is trading around $87-$110, depending on which day you check the ticker. It’s a "growth story" now. They aren't just a makeup company; they’re building a multi-brand powerhouse that looks a lot like a modern-day Estée Lauder or L’Oréal.
The "Naturium" Blueprint
This wasn't e.l.f.'s first rodeo. Back in 2023, they bought Naturium for $355 million.
That was the "test run."
They proved they could take a trendy, high-quality skincare brand, keep its fans happy, and scale it through their massive distribution network. rhode is just that same play, but with a much bigger spotlight and a much higher entry price.
What’s Coming in 2026: Pimple Patches and Beyond
So, what does this mean for your vanity? Since the acquisition, the product pipeline has actually accelerated. Now that they have the "e.l.f. machine" behind them, rhode is moving faster.
In early 2026, the brand started teasing some major launches:
- Hydrogel Pimple Patches: These are shaped like little jelly beans. They’re supposed to heal spots without drying out the skin.
- The Bronzer/Contour Stick: People have been begging for this since 2024. It’s finally happening. It uses the same "Pocket Blush" packaging that fits perfectly in your hand.
- Lip Tint Expansion: Expect more shimmery, glittery finishes in the Peptide Lip Treatment line.
There’s also talk about rhode Eye Cream. The brand has been showing these tiny gray jars on production lines recently, and if it’s anything like the Glazing Milk, it’ll probably sell out in five minutes.
Actionable Insights for the Savvy Beauty Consumer
If you’re a fan of either brand or an investor watching the space, here is how you should navigate the "new" rhode.
1. Watch the Ingredients
Keep an eye on the back of the box. While the brand says formulas aren't changing, corporate owners sometimes look for "supply chain efficiencies." If the texture of your Barrier Restore Cream starts feeling different, you'll know why. So far, though, they’ve stayed true to the original lab work.
2. Shop at Sephora for the Points
The biggest perk of this deal for regular people is accessibility. You no longer have to pay $10 for shipping on a single lip tint. You can go to Sephora, test the shades in person, and use your Beauty Insider points.
3. Expect More "e.l.f.-isms"
Don’t be surprised if you see more frequent "drops" and limited editions. e.l.f. is the king of keeping the internet talking, and they are definitely applying that high-frequency launch strategy to rhode.
4. Diversify Your Portfolio (If You’re Into Stocks)
If you're looking at ELF stock in 2026, remember that they are now a multi-category player. They have mass-market (e.l.f.), clean beauty (Well People), lifestyle (Keys Soulcare), science-backed skincare (Naturium), and now prestige (rhode). That’s a lot of eggs in one basket, but the basket is very well-made.
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The e.l.f. beauty acquires rhode story is really about the death of the "drugstore vs. high-end" divide. In 2026, we just want stuff that works and looks cool on our bathroom counter. Whether it costs $8 or $38, if the "vibes" are right, we're buying it.
To keep track of the latest rhode releases, you should regularly check the "New Arrivals" section at Sephora or sign up for the e.l.f. Beauty investor newsletters if you're tracking the financial health of the merger. Watching the quarterly earnings calls will give you the first heads-up on whether rhode is expanding into new categories like hair or body care later this year.