Hailey Bieber just pulled off one of the biggest beauty deals of the year: e.l.f. Beauty (NYSE: ELF) announced that it has entered a definitive agreement to acquire Rhode, Bieber’s skincare brand, for up to $1 billion.
The deal was disclosed in e.l.f.’s fourth-quarter earnings report on May 28, 2025. It includes $800 million in cash and stock payable at closing, with an additional $200 million in potential earn-out based on Rhode’s performance over the next three years.
“e.l.f. Beauty found a like-minded disruptor in Rhode,” said CEO Tarang Amin in the official press release. “Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible.”
Following the announcement, e.l.f. shares initially fell 14% in after-hours trading. However, the stock quickly recovered. As of this morning, ELF is up 8% in premarket trading.
How much will Hailey Bieber make from the deal?
While the exact ownership percentage of Hailey Bieber in Rhode hasn’t been publicly disclosed, as the founder and a key figure in the brand’s identity, it’s reasonable to assume she holds a significant stake.
She will remain deeply involved in Rhode’s future, taking on an expanded role as Chief Creative Officer and Head of Innovation. According to e.l.f., she’ll oversee product development, creative direction, and marketing while continuing to advise on strategy.
Hailey Bieber’s net worth
Hailey Bieber’s net worth has seen a significant increase following the sale of her skincare brand, Rhode, to e.l.f. Beauty for $1 billion. Indeed, the deal could boost her net worth to somewhere between $300 million and $500 million, depending on her exact share and how the brand performs over time.
What this means for ELF stock
The Rhode acquisition was revealed alongside e.l.f. Beauty’s fourth-quarter and full-year earnings, which beat Wall Street expectations. The company reported Q1 calendar-year 2025 revenue of $332.6 million, up 3.6% year-over-year. Non-GAAP earnings came in at $0.78 per share, 8.3% ahead of consensus estimates.
Analysts see the acquisition as a bold but potentially rewarding bet. Rhode more than doubled its customer base in the past year and posted $212 million in sales in the 12 months ending March 31, 2025. With plans to launch in Sephora across North America and the UK later this year, Rhode’s growth trajectory is one e.l.f. is clearly banking on.
Whether it pays off in the long run will depend on how well Rhode scales under the e.l.f. umbrella, and whether Hailey Bieber’s cultural influence continues to drive consumer demand.
Featured image via Shutterstock.
