
Rhode is owned by e.l.f. Beauty, Inc. (NYSE: ELF), a publicly traded American beauty company headquartered in Oakland, California. e.l.f. Beauty announced the acquisition of Rhode in May 2025 and completed it on August 5, 2025, for $800 million at closing ($600 million cash plus $200 million in stock) plus up to $200 million in earnout consideration tied to future growth, bringing the total deal value to approximately $1 billion. Rhode was founded in June 2022 by Hailey Rhode Bieber, who retained her role as Chief Creative Officer and Head of Innovation following the acquisition. Rhode generated $212 million in net sales in the 12 months ending March 31, 2025, and is expected to contribute approximately $260 to $265 million to e.l.f. Beauty's fiscal 2026 revenue. The brand launched in Sephora North America in September 2025 as the retailer's largest brand launch ever, and has since expanded to Sephora UK, Mecca Australia, and is planning a 19-country European Sephora launch in September 2026.
Parent Company
Acquired
2025
Status
Publicly Traded
Headquarters
| Brand | Parent Company | Ownership Type |
|---|---|---|
| Rhode | e.l.f. Beauty, Inc. | Wholly owned |
Rhode was founded in June 2022 by Hailey Rhode Bieber, a model and media personality who had built a significant social media following across Instagram and TikTok. Bieber had been publicly interested in skincare for several years before launching Rhode, frequently discussing her skincare routine and the products she used with her audience. The brand name Rhode is Bieber's middle name, reflecting the personal connection between the founder and the brand.
The brand launched with a small, curated product range focused on skincare essentials. The initial lineup included the Peptide Glazing Fluid, the Barrier Restore Cream, and the Peptide Lip Treatment, which quickly became the brand's most viral product. The Peptide Lip Treatment, a tinted lip balm with peptide ingredients, generated significant social media attention and became one of the most discussed beauty products of 2022 and 2023, with consumers sharing their experiences on TikTok and Instagram.
Rhode's founding philosophy was built around the concept of "glazed donut skin," a term Bieber popularized to describe a dewy, hydrated, luminous skin appearance. The brand's products were formulated to support this aesthetic, with an emphasis on hydration, barrier support, and peptide ingredients. The minimalist approach, with a small product range focused on doing a few things well rather than offering a comprehensive skincare system, resonated with consumers who were overwhelmed by the complexity of many skincare brands.
The brand's growth was driven significantly by Bieber's social media presence and her ability to generate organic content around Rhode products. Bieber's Instagram and TikTok accounts, with tens of millions of followers, provided Rhode with a built-in marketing platform that most new beauty brands could not access. The brand's clean, minimalist packaging and cohesive visual identity were well-suited to social media presentation.
Rhode expanded its product range through 2023 and 2024, adding new formulations and product categories while maintaining the minimalist philosophy. The brand more than doubled its consumer base over the year preceding the acquisition, generating $212 million in net sales in the 12 months ending March 31, 2025. This represented a purchase price of approximately 3.8 times LTM net sales at the time of acquisition, a valuation that reflected both Rhode's current financial performance and its growth trajectory.
On May 28, 2025, e.l.f. Beauty announced the definitive agreement to acquire Rhode. The acquisition closed on August 5, 2025. Following the acquisition, Rhode launched in Sephora North America on September 4, 2025, marking its first expansion into physical retail. The Sephora launch was the retailer's largest brand launch ever, exceeding $10 million in retail sales in the first two days according to YipitData, with roughly three Rhode products selling per second. Rhode became the top-selling brand at Sephora North America following the launch.
In November 2025, Rhode launched in Sephora UK, achieving another record-breaking launch with the highest number of consumer sign-ups ever for a brand launch in the retailer's history. In February 2026, Rhode launched in Mecca, a prestige beauty retailer across Australia and New Zealand, marking the biggest launch in Mecca's history with over one million visitors across its 110 stores on launch weekend.
By Q1 of e.l.f. Beauty's fiscal 2027 (the quarter ending June 30, 2026), Rhode contributed $160 million in net sales to the company. A single summer product launch drove $27 million in direct-to-consumer sales on rhodeskin.com in one day, acquiring 90,000 new consumers with over 70% of sales from existing customers. e.l.f. Beauty CEO Tarang Amin stated that the company believes Rhode "could be the fastest beauty brand to achieve $1 billion in annual net sales."
Rhode is planning its next major expansion for September 2026, when it will launch in 19 European countries with Sephora. As of mid-2026, Rhode is in less than 20% of Sephora's stores globally, indicating significant remaining growth runway.
What does e.l.f. Beauty own?
e.l.f. Beauty owns five brands: e.l.f. Cosmetics (affordable makeup, number one by units in US cosmetics), e.l.f. SKIN (affordable skincare), rhode (prestige skincare and beauty brand founded by Hailey Bieber, acquired in August 2025 for $800 million plus earnout), Naturium (high-performance skincare, acquired in 2023 for approximately $355 million), and Well People (clean beauty brand). Keys Soulcare was transferred back to founder Alicia Keys in 2026.
Is e.l.f. Beauty publicly traded?
Yes. e.l.f. Beauty, Inc. is listed on the New York Stock Exchange under ticker ELF. The company went public in 2016 through an initial public offering. As of May 2026, there were approximately 59.4 million shares outstanding. The company has a dispersed shareholder base with institutional investors holding the majority of shares. The market capitalisation is approximately $9.7 billion.
Who founded e.l.f. Beauty?
e.l.f. Beauty was founded in 2004 by Joseph Shamah and Scott Borba in Oakland, California. The company name "e.l.f." stands for "eyes, lips, face." The founders recognised an opportunity to provide high-quality cosmetics at affordable prices, launching as an e-commerce brand with products priced as low as $1. The founders no longer hold significant stakes in the company.
Where is e.l.f. Beauty headquartered?
e.l.f. Beauty is headquartered in Oakland, California, USA. The company has an additional office in New York and employs approximately 735 people across 22 countries, including the United States, India, the United Kingdom, China, and Canada. Distribution centres are located in Ontario, California.
What is e.l.f. Beauty's annual revenue?
e.l.f. Beauty reported $1,636.5 million in net sales for FY2026 (ended March 31, 2026), up 25% from $1,313.5 million in FY2025. Adjusted EBITDA was $335.2 million (20% of net sales). GAAP net income was $26.3 million, impacted by acquisition costs and contingent consideration adjustments. Adjusted net income was $185.9 million with adjusted diluted EPS of $3.13. For FY2027, the company projects net sales of $1,835 to $1,865 million.
What is the rhode acquisition?
In May 2025, e.l.f. Beauty signed a definitive agreement to acquire rhode, a lifestyle beauty brand founded by Hailey Bieber, for $800 million at closing ($600 million cash and $200 million in stock) plus up to $200 million in earnout. The acquisition closed on 5 August 2025. rhode's LTM net sales were approximately $212 million at acquisition. The acquisition marked e.l.f. Beauty's entry into the prestige beauty channel through Sephora. In FY2026, rhode recorded a $57.6 million fair value adjustment to contingent consideration due to revenue outperformance.
What is the Muddy Waters report about?
In November 2024, Muddy Waters Research published a report alleging that e.l.f. Beauty had materially overstated revenue over the past three quarters and that reported inventory was materially inflated. The report accused the company of concealing inventory challenges from investors. A securities fraud class action lawsuit was subsequently filed, and in February 2026, the court partially denied the company's motion to dismiss, finding that CEO Tarang Amin's statements on CNBC's Mad Money were plausibly misleading. The case is ongoing.
Rhode's sustainability and ethics practices focus on mindful consumption, responsible ingredient sourcing, and packaging reduction.
Cruelty-Free and Vegan: Rhode is certified cruelty-free by both Leaping Bunny and PETA. The brand's formulations are vegan, fragrance-free, and dermatologist-developed. No animal testing is conducted at any stage of product development or manufacturing.
Post-Consumer Recycled Packaging: Rhode's bottles, tubes, and caps are made with post-consumer recycled (PCR) materials. The brand provides information about recycled content percentages for each product and includes recycling instructions on packaging.
Recycling Program: Rhode offers a take-back program where customers can ship back at least three empty products for complimentary recycling. Free shipping labels are provided via email request. The brand also uses Boox zero-waste shipping boxes that can be reused up to 12 times, reducing environmental impact by up to 70% compared to single-use shipping boxes. Customers can scan a QR code on the box to return it for reuse.
Mindful Consumption: Rhode's limited product releases and curated product line reflect a commitment to mindful skincare, encouraging consumers to purchase only what they need. This approach helps reduce waste compared to brands that encourage extensive product accumulation.
Rhode does not hold B Corp certification. The brand's sustainability practices are reported through its website rather than through a formal annual sustainability report, as it operates as a brand within e.l.f. Beauty rather than as a standalone company.
Rhode's recognition comes from retail launch records, brand valuation milestones, and industry awards:
No Product Recalls: Rhode has not been subject to any product recalls since its founding in 2022. The brand's products are manufactured through contract manufacturing partners and are subject to FDA cosmetic regulations, but no recall events have been publicly documented.
Trademark Infringement Lawsuit (2022 to 2024): In June 2022, Rhode-NYC, LLC, an unaffiliated clothing and lifestyle brand that had been using the Rhode name since 2014, filed a trademark infringement lawsuit against Hailey Bieber's Rhode beauty brand in the U.S. District Court for the Southern District of New York. The original Rhode alleged that Bieber's use of the name "Rhode" for beauty products caused consumer confusion and infringed on its trademark rights for apparel and accessories.
In July 2022, Judge Lorna G. Schofield denied Rhode-NYC's motion for a preliminary injunction, finding that the older brand failed to demonstrate a likelihood of success on the merits. While the similarity of the marks weighed slightly in favor of the original Rhode brand, the judge held that the proximity of the marks and their competitiveness weighed toward Bieber's brand. The legal battle concluded in July 2024 with both parties agreeing to voluntarily dismiss their claims and pay their respective costs. The settlement allowed both brands to continue using the Rhode name.
The trademark case became a notable example in beauty industry discussions about brand naming, trademark protection, and the challenges faced by celebrity-founded brands versus established companies with similar names. It was frequently cited in industry analyses of celebrity beauty brands and trademark strategy.
Celebrity Brand Authenticity Debate: Rhode has been part of a broader industry discussion about celebrity-founded beauty brands and whether their success is driven by product quality or celebrity association. Some industry commentators have questioned whether celebrity beauty brands can maintain their position without the founder's continued involvement. Rhode's strong product reviews and repeat purchase rates, combined with its successful retail expansion under e.l.f. Beauty, have been cited as evidence that the brand has substance beyond celebrity endorsement. However, the brand remains closely associated with Hailey Bieber's personal brand, creating a degree of dependency on her continued involvement and public profile.
These competing brands operate in the same categories and provide similar products or services. Compare key attributes to understand market positioning and competitive landscape.
| Brand | Parent Company | Country | Founded | Market Position | Primary Market | Gender Target |
|---|---|---|---|---|---|---|
| Lvmh | France | 1969 | Premium | Global | Female-focused | |
| Ulta Beauty Inc | USA | 1990 | Mass market | Global | Unisex | |
| Clorox | USA | 1984 | Mass market | United states | Unisex | |
| Estee Lauder | USA | 1968 | Premium | Global | Womens | |
| Unilever | United Kingdom | 1957 | Mass market | Global | Womens | |
| Lvmh | United States | 2017 | Premium | Global | Womens |
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Global prestige beauty retailer owned by LVMH. Founded in 1969 in France, Sephora operates over 2,200 stores in 35 countries. Offers cosmetics, skincare, fragrance, and haircare from hundreds of brands in a self-service retail format.
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Market Positioning: Rhode competes with 6 brands in the same categories, ranging from mass market to luxury positioning.
Geographic Distribution: Competitors are headquartered across multiple regions, indicating global competition in this market segment.
Brand Heritage: Competitor brands range from established heritage brands to newer market entrants, with founding years spanning several decades.
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