Hailey Bieber built Rhode into one of the fastest-growing skincare brands through a focused product lineup, organic social media growth, and a landmark acquisition by e.l.f. Beauty.
The Story: Hailey Bieber launched a skincare brand in June 2022 with just 10 products and no celebrity-brand shortcuts — no broad product catalog, no aggressive paid advertising, no rushed retail expansion. Three years later, e.l.f. Beauty acquired Rhode for up to $1 billion, the largest acquisition in e.l.f.’s history. It’s one of the fastest, cleanest celebrity-brand exits of the decade — and a case study in how restraint, rather than scale, became the differentiator.
People Also Ask
- What is Rhode? A skincare and lifestyle beauty brand founded by Hailey Bieber, along with Michael D. and Lauren Ratner, that launched in June 2022 with a small, curated product lineup.
- How much did Rhode sell for? e.l.f. Beauty acquired Rhode in a deal worth up to $1 billion $800 million in cash and stock at closing, plus a potential $200 million earnout tied to future growth.
- How much revenue did Rhode make before the sale? Rhode generated $212 million in net sales in the 12 months ending March 31, 2025, almost entirely through direct-to-consumer sales with just 10 products.
- Does Hailey Bieber still run Rhode? Yes she remains Rhode’s founder and now also serves as Chief Creative Officer and Head of Innovation, and has joined e.l.f. Beauty as a strategic adviser.
- Why did e.l.f. Beauty pay so much for Rhode? e.l.f.’s CEO cited the brand’s growth from zero to $212 million in net sales with only 10 products as unprecedented, and the deal gives e.l.f. entry into the prestige beauty channel through Sephora.
Timeline: From 10 Products to e.l.f.’s Biggest-Ever Acquisition
| Date | Event | Significance |
|---|---|---|
| June 2022 | Rhode launches | Founded by Hailey Bieber with Michael D. and Lauren Ratner; D2C only |
| 2022–2024 | Brand grows almost entirely through digital engagement | No major paid advertising; relies on Bieber’s social reach |
| 2024 | Rhode becomes the #1 skincare brand in earned media value | 367% year-over-year growth in non-paid exposure |
| March 31, 2025 | Trailing 12-month net sales hit $212 million | More than doubled customer base year-over-year |
| Early 2025 | Sephora partnership announced | First major retail expansion beyond D2C |
| May 28, 2025 | e.l.f. Beauty announces acquisition | $1 billion deal: $800M cash/stock + $200M earnout |
| Mid/late 2025 | Deal closes | Expected to close in e.l.f.’s fiscal Q2 2026 |
| 2025 | Rhode launches in Sephora (US & UK) | First physical retail presence |
| FY2026 Q2 | Rhode contributes ~$52 million (17%) to e.l.f.’s quarterly net sales | Confirms strong post-acquisition performance |
| Late 2025 | Bieber discusses plans for the $1 billion proceeds | States intent to invest for her son’s future rather than spend immediately |
Quick Facts
| Metric | Value | Source |
|---|---|---|
| Founder | Hailey Bieber (with Michael D. and Lauren Ratner) | CNN/CNBC |
| Founded | June 2022 | CNBC |
| Acquirer | e.l.f. Beauty (NYSE: ELF) | SEC filing |
| Deal Value | Up to $1 billion ($800M + $200M earnout) | SEC filing |
| Net Sales (12 mo. ending March 2025) | $212 million | SEC filing/CNBC |
| Product Count at Time of Sale | 10 products | CNBC |
| Primary Channel | Direct-to-consumer (pre-acquisition) | CNBC |
| Post-Acquisition Retail | Sephora (US, UK) | e.l.f. Beauty |
| Bieber’s Post-Sale Role | Founder, Chief Creative Officer & Head of Innovation | e.l.f. Beauty press release |
| e.l.f. Beauty Market Cap (2025, est.) | ~$7.7 billion | Fortune |
| Rhode Contribution to e.l.f. FY2026 Q2 Net Sales | ~$52 million (~17%) | e.l.f. Beauty 8-K |
How Rhode Built Billion-Dollar Value With Only 10 Products
Restraint as a Brand Strategy
While most celebrity beauty lines launch with broad catalogs to maximize immediate revenue, Rhode deliberately stayed narrow 10 products total at the time of its sale. That restraint let the brand build a reputation for curated quality rather than chasing every adjacent category, and it kept operational complexity low enough that a small team could maintain consistent quality and messaging across every release.
Earned Media Over Paid Advertising
Rhode’s growth came almost entirely through organic digital engagement rather than traditional ad spend. By 2024, the brand was recognized as the top skincare brand in earned media value exposure generated through methods other than paid advertising posting 367% year-over-year growth on that metric. Bieber’s personal platform, both independent of and amplified by her marriage to Justin Bieber, functioned as the brand’s primary distribution channel.
Doubling the Customer Base Before Touching Retail
Rhode more than doubled its customer base in the year leading up to its sale while remaining direct-to-consumer only. That progression proving sustained, accelerating demand online before expanding into physical retail gave e.l.f. Beauty’s leadership concrete evidence of organic growth momentum rather than a one-time launch spike, which is part of why CEO Tarang Amin described the brand’s trajectory from zero to $212 million in net sales with only 10 products as something he hadn’t previously thought possible.
The Acquisition: Buying a Disruptor, Not Just a Celebrity Name
e.l.f. Beauty’s $1 billion purchase its largest acquisition ever, surpassing the $355 million Naturium deal in 2023 was structured with $800 million in upfront cash and stock plus a $200 million earnout tied to Rhode’s performance over three years. That earnout structure aligns Bieber’s continued involvement with the brand’s post-acquisition growth rather than letting her simply cash out and depart. According to outside analysts, the deal’s value reflected celebrity-driven brand equity at least as much as product innovation Rhode’s pricing ($20–$40) wasn’t dramatically different from competitors, but the brand carried disproportionate cultural cachet.
Staying Involved, Not Walking Away
Unlike many celebrity-brand exits where the founder disappears after the sale, Bieber negotiated a structure that kept her embedded: she retained her role as founder and added Chief Creative Officer and Head of Innovation titles, plus a strategic adviser role at e.l.f. Beauty itself. By late 2025, the integration appeared to be working Rhode contributed roughly $52 million, or about 17%, of e.l.f.’s net sales in a single fiscal quarter, with strong margins and efficient marketing spend cited as factors in the brand’s continued performance under its new parent.
Rhode’s Model vs. Other Celebrity Beauty Exits
| Model | Rhode (Hailey Bieber) | Rare Beauty (Selena Gomez) | Kylie Cosmetics (Kylie Jenner) |
|---|---|---|---|
| Time to exit/sale | ~3 years to acquisition | 2024 sale explored, paused | ~2 years to first majority sale (Coty, 2020) |
| Product catalog at exit | 10 products | Dozens across categories | Broad catalog from launch |
| Primary channel pre-deal | D2C only | Sephora + D2C | D2C + retail |
| Deal outcome | Completed: $1B acquisition by e.l.f. | Paused; no deal reached | Completed: 51% stake sold to Coty |
| Founder’s post-deal role | Active: CCO + Head of Innovation | N/A (no sale occurred) | Reduced operational role |
The Risks Ahead
1. Integration Dependency: Rhode’s continued growth under e.l.f. Beauty depends on maintaining the brand’s distinct identity rather than being absorbed into a larger, budget-oriented parent’s operating playbook.
2. Earnout Pressure: The $200 million earnout tied to three-year performance creates an incentive to grow quickly, which can sometimes push brands to expand product lines faster than their original “less is more” positioning would support.
3. Retail Expansion Risk: Moving from pure D2C into Sephora introduces new competitive dynamics, shelf placement battles, and retailer relationship management that the brand hadn’t previously needed to navigate.
4. Celebrity-Brand Cyclicality: As with any founder-fronted brand, Rhode’s continued cultural relevance is tied to Bieber’s own visibility and public standing.
Key Takeaways
- Rhode launched in June 2022 with just 10 products and built its brand almost entirely through organic, earned media rather than paid advertising
- The brand generated $212 million in net sales in the year ending March 2025 entirely direct-to-consumer
- e.l.f. Beauty acquired Rhode for up to $1 billion in May 2025, its largest deal ever, with $800 million upfront and a $200 million earnout
- Hailey Bieber retained an active operating role post-acquisition rather than exiting the business entirely
- Rhode contributed roughly 17% of e.l.f. Beauty’s net sales in a single fiscal quarter shortly after the deal closed, signaling strong post-acquisition performance
The Bottom Line
Rhode’s billion-dollar outcome wasn’t built on scale or product breadth it was built on disciplined restraint, organic cultural relevance, and a founder willing to stay operationally engaged after the sale rather than cash out and walk away. For a category as crowded as celebrity skincare, doing less, but doing it with sustained authenticity, turned out to be the more valuable strategy.
Sources
- e.l.f. Beauty: “e.l.f. Beauty Announces Definitive Agreement to Acquire rhode in $1 Billion Deal” (SEC 8-K) https://www.sec.gov/
- CNBC: “E.l.f. Beauty to acquire Hailey Bieber skincare brand Rhode in deal valued up to $1 billion” https://www.cnbc.com/
- CNN Business: “Hailey Bieber’s beauty brand rhode just sold to e.l.f. for $1 billion” https://www.cnn.com/
- Fortune: “Hailey Bieber has shared what she will do with the $1 billion she made from her Rhode sale” https://fortune.com/
- Northeastern University News: “Why e.l.f. paid $1 billion for Hailey Bieber’s rhode beauty line” https://news.northeastern.edu/
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