Following e.l.f. Beauty’s (e.l.f.’s) full FY2025 result announcement, which reflected a net sales increase of 28%, the company’s Chairman and CEO shared in a press statement that “e.l.f. Beauty found a like-minded disruptor in rhode,” who “further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible.”
Under the terms of the agreement, e.l.f. will acquire rhode for $800 million at closing, paid through a combination of $600 million in cash and $200 million in newly issued shares of e.l.f. common stock, with an additional $200 million in potential earn-out payments contingent on future growth, according to the company’s press release.
Brand profile and strategic expansion
Founded in 2022, rhode has established a reputation for minimalist, skin-first formulations and an efficient direct-to-consumer (DTC) model. The brand reported $212 million in net sales for the 12 months ended March 31, 2025, more than doubling its consumer base in the past year, according to e.l.f.’s press release, and the acquisition marks e.l.f.’s latest move to scale its skin care presence, following its acquisition of Naturium in 2023.
Founder Hailey Bieber will remain involved in the same role while assuming additional responsibilities as Chief Creative Officer and Head of Innovation. “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 e.lf.’s press statement.
“Our partnership with e.l.f. Beauty marks an incredible opportunity to elevate,” she continued, “and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally.”
rhode will also enter its first physical retail partnership with Sephora later this year, launching in stores across North America and the UK The brand will continue to operate from its Los Angeles headquarters under the leadership of Bieber, Co-Founders Michael D. Ratner and Lauren Ratner, and CEO Nick Vlahos, e.l.f.’s announcement confirmed.
Digital momentum and creator-driven growth
The acquisition comes amid rapid digital growth for both brands. According to data from software company Tubular Labs, rhode garnered 325 million TikTok views in 2024, and has already matched that number in 2025 through May 27. e.l.f., meanwhile, saw 326 million TikTok views in 2024 and 218 million so far in 2025.
Despite their similar engagement levels, the brands currently have limited audience overlap on TikTok, just 10% for Bieber and 9% for rhode with e.l.f., indicating potential for incremental growth.
rhode has leaned more heavily on organic traction than paid sponsorships, executing just 7 cross-platform sponsorships so far in 2025, compared to e.l.f.’s 119, according to Tubular Labs. However, its influence is expanding through a rapidly growing creator network.
Data from influencer marketing program software company Traackr shows rhode’s creator community expanded from roughly 2,000 creators in 2022 to over 8,600 in 2024. The proportion of brand attention driven by Bieber herself fell from 73% in 2022 to 14% in 2024, reflecting a strategic pivot toward scalable creator-driven marketing.
Traackr also reported a rise in creator loyalty, with average posts per creator increasing from 2 in 2022 to over 5 in 2024. Meanwhile, rhode’s content performance, measured by the company’s Brand Vitality Score, rose from 6.9% to 8% during the same period.
The move positions e.l.f. to deepen its penetration of the prestige skin care market and expand retail partnerships beyond mass channels. “This acquisition strengthens our ability to deliver breakout innovation while accelerating our international and omnichannel growth,” Amin concluded in the press statement.
