• by Sarah Mahoney , May 29, 2025

Image above: E.L.F. CEO Tarang Amin and Rhode founder Hailey Bieber

The fast-growing budget beauty brand aims to move upmarket, deepen the connection to Gen Z, and crack prestige retailers with its boldest acquisition yet. 

E.L.F. Beauty is adding a major new brand to its portfolio, announcing plans to acquire Rhode, Hailey Bieber’s buzz-heavy skincare company, in a deal worth up to $1 billion. The move signals a strategic push into prestige beauty and higher-income Gen Z shoppers without losing the viral marketing flair that’s fueled E.L.F.’s own meteoric rise.

Rhode, launched in 2022, has already amassed $212 million in annual sales, becoming the No. 1 skincare brand in Earned Media Value last year, with 367% year-over-year EMV growth. With a minimalist aesthetic, tight product line and D2C strength, Rhode has turned the brand into a Gen Z favorite and a logical complement to E.L.F.’s social-savvy strategy.

“This powerhouse alliance between E.L.F. Beauty and Rhode is built on both brands’ shared focus on disruption and product innovation,” said E.L.F. CEO Tarang Amin in the announcement. “Rhode is a beautiful brand that we believe is ready for rocketship growth.”

Bieber, who will stay on as founder and take on the title of chief creative officer and head of innovation, called the deal “an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products” in the announcement.

Rhode is decidedly higher-end. For example, its Glazing Milk costs $32. E.L.F.’s best-selling Power Grip Prime costs $10.

Analysts largely welcomed the deal while noting broader challenges. “Overall, we look favorably upon the acquisition of this fast-growing and popular beauty brand founded by Hailey Bieber,” wrote Rupesh Parikh, an analyst who follows E.L.F. for Oppenheimer, “but at the same time, we are focused on management's efforts to re-accelerate the core business and manage through tariff dynamics.”

The company announced plans to raise prices by $1 across the portfolio to offset the impact of tariffs.

Steve Powers, an analyst who follows E.L.F. for Deutsche Bank, noted, "E.L.F. sees significant near-term opportunities related to expansion of the brand’s current product assortment, entering adjacent categories/geographies, as well as transforming the brand from DTC to retail.” 

Rhode’s entrance into Sephora stores in North America and the U.K. is expected later this year. E.L.F. leaders say Rhode will continue operating from its Los Angeles base, with Bieber's cofounders Michael and Lauren Ratner remaining in key leadership roles.

Beyond product, the acquisition may supercharge E.L.F.’s already-formidable social presence. Tubular Labs data shows the two brands appeal to largely distinct followings, with just 10% audience overlap between Hailey Bieber and E.L.F. on TikTok. That gives both brands room to grow independently, with less risks of cannibalization.

So far in 2025, Rhode has drawn 85 million TikTok views, while E.L.F. has already racked up 218 million—on track to beat its 2024 total. Rhode’s rise has come largely through organic content and Bieber’s influence, with just seven cross-platform sponsorships this year. E.L.F., by contrast, has run 119. 

That difference signals complementary marketing styles: E.L.F. wins with creator partnerships and bold, meme-ready messaging. Rhode’s appeal is more curated, aspirational and intimate. Rhode may give E.L.F. more than a shiny new asset. The brand might offer the company a louder voice in prestige beauty and a new face to help define affordable aspiration.

The Rhode announcement came alongside E.L.F.’s fourth-quarter results, which beat expectations on both the top and bottom line, Amin cited “industry-leading results” and U.S. market share growth, while cautioning that full-year guidance for 2026 will be delayed due to tariff uncertainties. Still, fourth-quarter sales rose just 4% to $332.6 million, far less than the meteoric gains of the past. For the full year, net sales gained 28%.

The company announced plans to raise prices by $1 across the portfolio to offset the impact of tariffs.