E.l.f. Beauty Acquired Rhode for $1 Billion
The deal gives the skincare brand global infrastructure while allowing the founders to maintain creative control.
Updated on Oct. 14, 2026 in Beauty
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In an acquisition valued at up to $1 billion, E.l.f. Beauty purchased Rhode, the skincare company founded in 2022 by Hailey Bieber and Lauren Ratner. The partnership provides the smaller brand with the operational support needed to scale internationally.
Why it matters
The acquisition reflects a shift in beauty brand strategy where lean, influencer-led companies leverage established corporate infrastructure to meet high consumer demand. This partnership allows Rhode to maintain product development autonomy while utilizing E.l.f. Beauty's distribution network.
Rhode reported $390 million in net sales for fiscal 2026, representing an 80% increase in annual growth compared to fiscal 2025. While these figures confirm rapid expansion, the long-term impact on global product pricing and availability remains to be seen.
The players
E.l.f. Beauty
A cosmetics and skincare company known for mass-market beauty products and managing large-scale global retail operations.
Rhode
A skincare brand co-founded by Hailey Bieber and Lauren Ratner that focuses on minimalist product formulations.
Hailey Bieber
The co-founder and chief creative officer of Rhode who now serves as a strategic advisor to E.l.f. Beauty.
The details
E.l.f. Beauty facilitates this growth by providing the logistical and operational infrastructure required to sustain a larger global footprint. Despite this integration, the agreement mandates that founders retain decision-making autonomy regarding product development and creative direction. This structure aims to preserve the brand identity established since its 2022 launch while enabling it to manage high-volume retail environments like Sephora.
Timeline
Hailey Bieber and Lauren Ratner launched Rhode in 2022.
Rhode launched sales in U.S. Sephora retail locations in September 2025.
The company generated $390 million in net sales during fiscal 2026.
Rhode launched in 19 European markets with 500 Sephora doors in October 2026.
Health Landscape
This acquisition follows the documented trend of independent beauty brands leveraging corporate partnerships to scale retail distribution. It marks a departure from purely independent operation, situating the brand within a larger framework of established skincare market players.
As brands like Rhode scale through larger parent companies, readers should continue to monitor ingredient labels for any changes in product formulations. Always consult with a dermatologist if you have questions about whether a specific product's new infrastructure or distribution shift affects your routine.
The takeaway
The acquisition of Rhode highlights the importance of corporate infrastructure in supporting rapid brand growth. As you evaluate new products, focus on checking the ingredient lists for consistency regardless of changes in the parent company's ownership status.
Further reading
For more on the latest developments in skincare, visit our Beauty section.
Source note: This article includes information reported by Fortune.
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