Rhode
Hailey Bieber's skincare brand, sold to e.l.f. Beauty for $1 billion in three years. Self-funded, no incubator, ten products.
Rhode launched in June 2022 with three products, no retail partner, and no beauty incubator behind it. Three years later, e.l.f. Beauty acquired it for up to $1 billion, making it the fastest celebrity beauty brand to reach that valuation in the history of the industry. At the time of acquisition, Rhode had roughly ten products on its entire roster, which means the brand was valued at approximately $100 million per SKU.
Hailey Bieber funded the majority of Rhode with her own money, chose not to take venture capital, and maintained majority ownership throughout. Industry experts estimate she received north of $300 million from a brand she built in her mid-twenties with a strategy that most of the beauty industry considered too slow, too small, and too narrow to work.
At a glance:
| Founded | June 2022 |
| Founder | Hailey Rhode Bieber |
| CEO | Nick Vlahos |
| Ownership | Majority held by Bieber pre-sale; acquired by e.l.f. Beauty in August 2025 |
| Revenue (trailing 12 months, March 2025) | $212 million |
| Acquisition price | Up to $1 billion ($600M cash + $200M stock + $200M earnout) |
| Products at time of sale | ~10 SKUs |
| Retailers | Sephora (U.S., Canada, U.K.), rhodeskin.com |
The Story
In 2021, Bieber posted that if she didn’t go to bed looking like a glazed donut then she was doing something wrong, and that single phrase generated billions of TikTok views under the #glazeddonutskin hashtag before Rhode even existed as a company. By the time the brand launched a year later, the aesthetic it was selling had already become the dominant skincare trend on the internet.
She developed the products with cosmetic chemist Dr. Ron Robinson and dermatologist Dr. Dhaval Bhanusali, and she deliberately chose not to work with a beauty incubator like Kendo Brands or Seed Beauty because she wanted to maintain majority ownership. The co-founders were Michael D. Ratner and Lauren Ratner, with One Luxury Group as a strategic partner. The entire company remained under 40 employees through 2024.
The Strategy
Three products and a waitlist
Most celebrity beauty brands launch with dozens of SKUs to maximize the initial revenue spike. Rhode launched with three: a Peptide Glazing Fluid, a Barrier Restore Cream, and a Peptide Lip Treatment. All three sold out within three days, and 440,000 people joined the waitlist for the lip treatment alone. Every product was priced under $30 and formulated around peptides and barrier repair. By the time of acquisition, the line had expanded to only about ten SKUs, fewer than most celebrity brands launch with on a single day.
DTC for three years, then Sephora
Rhode sold exclusively through its own website until September 2025, creating scarcity, generating waitlists, and building a direct relationship with every customer. When the brand finally launched at Sephora, it generated $15 million in first-day sales, the largest launch in Sephora North America’s history, and captured approximately 2% of total skincare sales at the retailer within days.
The lip treatment that sold itself
The Peptide Lip Treatment sold one million units by August 2023 and generated an estimated $16 to $20 million in revenue in its first year, from a product that costs $16. Rhode extended its cultural reach through collaborations built around sensory, almost-edible aesthetics: a Krispy Kreme partnership that created a Strawberry Glaze lip treatment alongside a matching donut, a phone case designed to hold a lip treatment on the back of an iPhone, and an Erewhon smoothie collaboration. Product names like Glazing Milk and Vanilla Cake Tint made these feel like natural extensions of the brand rather than stunts.
The Numbers
| Year | Estimated Revenue | Notes |
|---|---|---|
| 2022 (Jun–Dec) | ~$10M | $10M in first 11 days; partial year |
| 2023 | ~$50M | Industry estimate |
| 2024 | ~$100M | Industry estimate |
| Trailing 12 months (ending March 2025) | $212M | Confirmed via e.l.f. Beauty SEC filing |
The $212 million figure comes from e.l.f. Beauty’s SEC filings and is the only confirmed revenue number in this case study. Rhode roughly doubled its revenue every year from launch through acquisition, reaching that figure from approximately ten products sold primarily through a single website. For comparison, Rare Beauty reached $400 million by year four with Sephora distribution from day one, and Fenty Beauty reached $570 million in year one with LVMH’s global infrastructure.
The acquisition: e.l.f. Beauty closed the deal on August 5, 2025, paying $600 million in cash and $200 million in stock at closing, with up to $200 million more in performance-based earnout over three years. It was the largest acquisition in e.l.f.’s history, nearly three times what they paid for Naturium in 2023.
Bieber’s payout: Her exact ownership stake was never confirmed, but estimates range from 50 to 70 percent. Based on the $800 million at closing, that puts her take north of $300 million, transforming her net worth from roughly $20 million (modeling income) to over $300 million overnight.
Earned media: Rhode ranked number one globally in earned media value in 2024, generating $248 million in EMV with 367% year-over-year growth.
Controversies
Trademark lawsuit
A New York fashion label called Rhode, founded in 2014 by Purna Khatau and Phoebe Vickers, filed a trademark infringement lawsuit one week after launch. Bieber had tried to buy the trademark in 2018 and been declined. The case drew attention as a small, minority-owned brand challenging a celebrity with tens of millions of followers, and it ran for two years before both parties settled in July 2024 with each keeping the name in its own category.
Influencer non-competes
Beauty creators Golloria and Toni Bravo (Bonitravo), both known for honest Rare Beauty reviews, stopped reviewing Rare Beauty entirely after signing with Rhode to co-develop lip liner shades. Both continued reviewing other brands, which led to widespread speculation that Rhode’s contracts included non-compete clauses specifically targeting Rare Beauty. Toni Bravo had previously worked at Rare Beauty before becoming an influencer. Both creators deleted and blocked comments asking why they had stopped covering Rare Beauty products, which fueled the perception that the exclusivity was deliberate rather than coincidental.
What You Can Learn
Fewer products can mean more revenue per product. Rhode generated $212 million from ten SKUs because every product had to justify its existence in a lineup that small. Most online businesses would benefit from that discipline.
Build demand before you build distribution. Three years of DTC-only sales meant the Sephora launch performed from its first hour instead of requiring months of in-store marketing to build awareness.
Self-funding preserves ownership. Bieber put up her own money, kept majority control, and received north of $300 million when the company sold. Sara Blakely did the same with Spanx and kept 100% for over twenty years before selling.
Your brand’s aesthetic can be its own marketing channel. The “glazed donut skin” trend generated billions of views before Rhode launched and cost nothing beyond a single social media post. The product names, the food collaborations, and the phone case all extended that aesthetic into spaces where traditional advertising cannot reach.
Frequently Asked Questions
How much did e.l.f. pay for Rhode?
Up to $1 billion: $600 million in cash and $200 million in e.l.f. stock at closing in August 2025, plus up to $200 million in earnout over three years.
How much did Hailey Bieber make from selling Rhode?
Experts estimate north of $300 million from the $800 million at closing, based on an estimated 50 to 70 percent ownership stake. She may receive additional payments from the earnout.
How many products does Rhode have?
Approximately ten SKUs as of the acquisition, including the Peptide Glazing Fluid, Barrier Restore Cream, Peptide Lip Treatment (multiple flavors), Peptide Lip Tint, Pocket Blush, Pineapple Refresh Cleanser, Barrier Butter, and Glazing Milk.
What happened with the Rhode trademark lawsuit?
A New York fashion brand filed a trademark infringement lawsuit in June 2022, claiming consumer confusion between the two brands. Bieber had tried to buy the trademark in 2018. Both parties settled in July 2024, each continuing to use the name in its own category. See the Controversies section above for the full details.
How does Rhode compare to other celebrity beauty brands?
Rhode reached a $1 billion valuation faster than any other celebrity beauty brand, doing so in three years. Fenty Beauty generated higher first-year revenue ($570 million) but had LVMH’s infrastructure. Rare Beauty reached $400 million+ by year four as an independent brand. Rhode’s revenue per SKU and speed to exit are both unprecedented.
Is Rhode cruelty-free?
Rhode is cruelty-free and vegan, with all products priced under $30.
Who founded Rhode?
Hailey Rhode Bieber founded Rhode and developed the products with cosmetic chemist Dr. Ron Robinson and dermatologist Dr. Dhaval Bhanusali. The co-founders were Michael D. Ratner and Lauren Ratner, with One Luxury Group as a strategic partner. Bieber chose not to work with a beauty incubator so she could keep majority ownership.
Who owns Rhode?
e.l.f. Beauty acquired Rhode on August 5, 2025, for up to $1 billion. Hailey Bieber held majority ownership (estimated 50 to 70 percent) before the sale and received north of $300 million at closing. CEO Nick Vlahos continues to run the brand under e.l.f.’s ownership.
When was Rhode founded?
Rhode launched in June 2022 with three products: a Peptide Glazing Fluid, a Barrier Restore Cream, and a Peptide Lip Treatment. All three sold out within three days, and 440,000 people joined the waitlist for the lip treatment alone.
What is Hailey Bieber’s net worth?
Hailey Bieber’s net worth jumped from roughly $20 million to over $300 million the day Rhode sold. Industry experts estimate she received north of $300 million at closing based on a 50 to 70 percent ownership stake. Performance-based earnouts could add up to $200 million more over three years.
What happened to Rhode?
e.l.f. Beauty acquired Rhode in August 2025 for up to $1 billion, only three years after launch, the fastest celebrity beauty brand to hit that valuation in industry history. The deal included $600 million cash, $200 million in e.l.f. stock at closing, and up to $200 million in earnout over three years. Rhode continues to operate as a standalone brand under e.l.f.’s portfolio.
Sources: e.l.f. Beauty SEC filings, Fortune, CNBC, Business of Fashion, WWD, Beauty Independent, The Fashion Law, Influencer Marketing Hub, BusinessWire