e.l.f. Beauty has declined to offer 2026 guidance "due to the wide range of potential outcomes related to tariffs," even as the company revealed fiscal 2025 net sales growth of 28% and its acquisition of Hailey Bieber's Rhode for $1 billion. The news follows an announcement by e.l.f. Beauty that its prices would be going up by $1 due to tariff uncertainty.
e.l.f. Beauty Acquires Rhode in $1 Billion Deal to Accelerate Global Growth
Rhode, which is set for a major expansion to North American and U.K. Sephoras later this year, has been a dominant force in the lip and blush categories, among others.
The brand has reportedly more than doubled its consumer base over the past year, racking up $212 million in net sales in the 12 months ended March 31, 2025.
The $1 billion deal with e.l.f. Beauty comprises "$800 million of consideration payable at closing in a combination of cash and stock, subject to customary adjustments, and an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year timeframe," per an official announcement.
Bieber will continue her role as founder and additionally serve as Rhode’s chief creative officer and head of innovation, overseeing creative, product innovation and marketing.
She will also act as a strategic advisor to the combined companies.
The brand will continue to function out of Los Angeles, including:
- co-founder Michael D. Ratner as co-executive chairman
- co-founder Lauren Ratner as president and chief brand officer
- Nick Vlahos as CEO
“e.l.f. Beauty found a like-minded disruptor in Rhode,” said e.l.f. chairman and CEO Tarang Amin. “Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible. We are excited by rhode’s ability to break beauty barriers, fully aligning with e.l.f. Beauty’s vision to create a different kind of company. Rhode is a beautiful brand that we believe is ready for rocketship growth.”
“We can’t wait to bring Rhode to more faces, places, and spaces. From day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day,” said Bieber. “Just three years into this journey, our partnership with e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally. As I continue as Founder and step into an expanded role of Chief Creative Officer and Head of Innovation, I look forward to leading the brand into this exciting new chapter of possibilities alongside my Co-Founders Michael D. Ratner and Lauren Ratner, who have helped bring my vision to life from the start."
e.l.f. Beauty Reports Strong Fiscal 2025 Growth with 28% Sales Increase
e.l.f. Beauty has unveiled Q4 and full-year fiscal 2025 results.
In Q4, net sales increased 4% to $332.6 million, led by retailer and e-commerce channels. Gross margin increased approximately 50 basis points to 71%,
Net income totaled $28.3 million on a GAAP basis, while adjusted net income was $45.2 million.
Full-year net sales increased 28% to $1,313.5 million, while gross margin increased about 50 basis points to 71%.
Net income was $112.1 million on a GAAP basis, while adjusted net income was $197.6 million.
“In this dynamic environment, we continue to deliver industry-leading results. In fiscal 2025, we grew net sales 28%, gained 190 basis points of market share in the U.S. and continued our international expansion strategy,” said Amin. “We believe we have the right strategy to drive continued category-leading sales and market share growth in the years to come, and believe the acquisition of Rhode will further strengthen and diversify our portfolio of fast-growing disruptive brands.”
