Hailey Bieber’s Rhode Snatched by ELF on $1B Deal, Stock Leaps 25%, Q1 Earnings – $145 Next?
e.l.f. Beauty shares surged at the start after the business announced in the Q1 results report that it would acquire Rhode, Hailey Bieber's.

Quick overview
- e.l.f. Beauty's stock surged after announcing a $1 billion acquisition of Rhode, Hailey Bieber's cosmetics brand.
- The acquisition includes an $800 million upfront payment and a potential $200 million earnout based on brand performance.
- e.l.f. reported strong Q1 earnings, with a 47% increase in earnings per share and consistent market share growth over 25 quarters.
- Despite the positive acquisition news, management expressed caution regarding future guidance due to potential tariff uncertainties.
e.l.f. Beauty shares surged at the start after the business announced in the Q1 results report that it would acquire Rhode, Hailey Bieber’s rapidly growing cosmetics brand, for $1 billion.
ELF Stock Surges Following High-Profile Acquisition
After closing at $90.45 the previous day, e.l.f. Beauty (NYSE: ELF) opened the U.S. trading session at $108.88, gapping sharply higher in reaction to its announcement that it had entered into a definitive agreement to acquire Rhode, the skincare and makeup company founded by Hailey Bieber in 2022.
The stock quickly broke above the $100 mark—a significant technical level coinciding with the 2024 lows—and continued its rally to hit an intraday high of $120.90, marking a powerful breakout move.
ELF Stock Chart Monthly – Bullish Chart Pattern Points Higher
Deal Details: e.l.f. Bets on Growth and Brand Strength
Under the terms of the agreement, e.l.f. Beauty will pay $800 million upfront for Rhode, composed of $600 million in cash and $200 million in newly issued ELF shares allocated to Rhode’s current equity holders. Additionally, there is a potential $200 million earnout tied to brand performance over the next three years, bringing the total transaction value to $1 billion.
Rhode has seen a meteoric rise in brand awareness and sales. According to first-quarter data, the company has doubled its customer base within the past year and reported $212 million in net sales year-over-year. e.l.f. Beauty sees the acquisition as a strategic opportunity to further solidify its position in both the premium skincare segment and international markets. The announcement to acquire Rhode came together with the Q1 earnings report.
e.l.f. Beauty Q1 Earnings Highlights
- Earnings surged 47% year over year to 78 cents per share (adjusted), exceeding Wall Street’s expectation of 72 cents.
- Revenue rose 4% to $332.65 million, beating analyst forecasts of $326.7 million.
- Gross margin expanded by approximately 50 basis points, reaching 71%, reflecting strong cost management and premium product mix.
- Q4 marked the 25th straight quarter of both net sales growth and market share expansion, reinforcing e.l.f.’s consistency in outpacing industry peers.
- CFO Tarang Amin noted that e.l.f. Beauty captured an additional 190 basis points of U.S. market share over the year, signaling growing brand penetration and retail shelf space.
- Management emphasized robust performance across core categories, with new product innovation and digital sales channels contributing positively.
- Continued investment in marketing and international expansion supported brand awareness and consumer acquisition.
e.l.f. Beauty once again delivered strong quarterly results, underscoring its ability to grow both earnings and market share in a challenging retail environment. With consistent sales momentum, improving margins, and a record of 25 quarters of growth, the company remains a standout in the beauty sector. Beating expectations on both top and bottom lines suggests continued investor confidence as e.l.f. deepens its footprint in skincare and capitalizes on evolving consumer trends.
Strong Momentum Continues for e.l.f.
CEO Tarang Amin highlighted that Q4 marked the company’s 25th consecutive quarter of both net sales growth and market share expansion, underscoring the brand’s sustained consumer traction. The acquisition of Rhode is expected to enhance that momentum, particularly as Rhode’s cult following among younger demographics complements e.l.f.’s fast-growing portfolio.
Outlook Clouded by Global Uncertainty
Despite the acquisition optimism, the company offered a measured tone on forward guidance. CFO Mandy Fields noted that due to uncertainty surrounding potential tariff changes, especially those that could impact costs and margins, e.l.f. will not provide fiscal 2026 guidance at this time. She emphasized that the range of possible outcomes is too broad to offer a reliable forecast, particularly during the early stages of integrating the Rhode brand.
Conclusion: e.l.f. Beauty’s acquisition of Rhode is being viewed as a bold and strategic move that could significantly enhance its market footprint in premium skincare and international markets. The stock’s powerful breakout reflects investor confidence in the deal’s long-term potential. However, management’s cautious approach to fiscal guidance reminds investors that macroeconomic headwinds, especially tariffs, remain a key variable as the company navigates its next phase of expansion.
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