Overview

• The transaction, e.l.f.’s largest acquisition to date, comprises $800 million in cash and stock at closing and a potential $200 million earnout based on Rhode’s growth over the next three years and is expected to close in the second quarter of fiscal 2026.
• Hailey Bieber will remain founder and take on the roles of chief creative officer and head of innovation for Rhode, with co-founders Michael and Lauren Ratner and CEO Nick Vlahos continuing in their leadership positions in Los Angeles.
• Rhode posted $212 million in net sales in the 12 months ended March 31, 2025, and will make its brick-and-mortar debut in Sephora locations across North America and the U.K. starting this fall.
• The deal builds on e.l.f.’s 2023 acquisition of Naturium and reflects a strategic push into the entry-level prestige skincare market to diversify its mass-market portfolio.
• Facing U.S. import duties on about 75% of its China-made products, e.l.f. Beauty declined to issue fiscal 2026 guidance and plans a $1 across-the-board price increase to offset higher costs.