Who Owns elf Cosmetics? The Real Story After the Rhode Acquisition

Elf Beauty, Inc. owns e.l.f. Cosmetics as its flagship brand. The company made headlines with its $1 billion acquisition of Hailey Bieber's Rhode skincare line—a deal structured with $800 million payable at closing and a potential $200 million earnout tied to performance over three years.

e.l.f. Beauty ranks as the No. 1 brand in units across U.S. cosmetics and No. 2 in dollar share. The company posted a 77% year-over-year increase in net sales, crossing $1 billion for the fiscal year ending March 2024. Its vegan and cruelty-free product positioning appeals to ethically conscious consumers, strengthening its competitive advantage.

The Rhode acquisition numbers tell a compelling story. The skincare brand generated $212 million in net sales for the 12 months ending March 2025 while more than doubling its consumer base over the past year. For e.l.f. Beauty—a publicly traded company on the NYSE—this represents a major expansion beyond its core portfolio into the prestige beauty segment.

The ownership structure behind e.l.f. Cosmetics

E.l.f. Cosmetics operates under e.l.f. Beauty, Inc. as its parent company. The ownership structure includes institutional investors, individual insiders, and public shareholders—a mix that has supported the brand's growth trajectory.

e.l.f. Beauty, Inc. as the parent company

Founded in 2004 and headquartered in Oakland, California, e.l.f. Beauty, Inc. functions as a holding company providing inclusive, accessible, clean, vegan, and cruelty-free cosmetics and skincare products. The company has built a family of brands including e.l.f. Cosmetics, e.l.f. SKIN, Naturium, Well People, and Keys Soulcare.

The parent company operates across e-commerce, national retailers, and international business channels. Products reach consumers through direct e-commerce platforms and third-party websites, creating multiple touchpoints for brand engagement.

Publicly traded on NYSE under ticker ELF

e.l.f. Beauty trades publicly on the New York Stock Exchange under ticker symbol "ELF". This public status means no single entity owns the company completely. Instead, the structure allows individual investors to hold shares alongside larger institutional players, providing transparency into ownership composition.

Major institutional shareholders and insider ownership

Institutional investors control approximately 97.7% of shares, while individual insiders own about 2.23%.

The largest institutional shareholders include:

• Baillie Gifford & Co. (14.09% or approximately 7.9 million shares)

• BlackRock, Inc. (9.56% or about 5.4 million shares)

• The Vanguard Group, Inc. (9.52% or roughly 5.4 million shares)

• JPMorgan Chase & Co. (4.96% or nearly 2.8 million shares)

Notable insider ownership includes Joseph A. Shamah with 11.55% and CEO Tarang Amin holding 5.92% of shares. Substantial insider ownership typically signals leadership confidence in company direction.

The ownership composition demonstrates strong institutional confidence in e.l.f. Beauty's business model, with major financial players maintaining significant positions across the company's growth phase.

Inside the $1 billion Rhode acquisition

e.l.f. Beauty's Rhode acquisition represents one of the largest deals in the beauty industry's recent history. The transaction structure and strategic rationale reveal how beauty companies are now valuing founder-led brands with strong digital communities.

Deal structure: cash, stock, and earnout

The acquisition is valued at up to $1 billion, with $800 million payable at closing and a potential additional $200 million earnout based on Rhode's performance over three years. e.l.f. will pay $600 million in cash and $200 million through approximately 2.6 million newly issued shares of e.l.f. Beauty common stock.

The company secured $600 million in fully committed debt financing to fund the cash portion, despite today's high interest rate environment.

This earnout structure ties additional payments to Rhode's future growth, aligning incentives between e.l.f. Beauty and Rhode's founding team while providing downside protection for the acquiring company.

Why e.l.f. acquired Rhode

Rhode achieved $212 million in revenue during the 12 months ending March 31, 2025, while doubling its customer base over the past year—all with just 10 products sold direct-to-consumer. e.l.f. CEO Tarang Amin called Rhode "the most exciting skincare brand in the world," highlighting its viral product performance and brand equity.

The acquisition serves multiple strategic purposes. Rhode's products average in the high $20s compared to e.l.f.'s $6.50 entry price point, allowing e.l.f. to capture higher-income consumers in the prestige beauty channel. The deal also strengthens e.l.f.'s relationship with Sephora, as Rhode will launch in all North American Sephora stores this fall and expand to the UK by year-end.

What this means for the beauty industry

Large public beauty companies are now placing billion-dollar bets on digitally native, founder-led brands with strong community engagement. This shift reflects how beauty brands are being built, scaled, and valued differently than in previous decades.

Rhode's $1 billion valuation demonstrates the growing influence of female entrepreneurs in beauty and shows how authentic branding can translate into substantial financial success. The transaction signals that celebrity-founded brands can scale beyond their founder's personal appeal when backed by the right strategic partner and distribution network.

For beauty investors and entrepreneurs, this deal sets a new benchmark for how direct-to-consumer skincare brands with strong community engagement can command premium valuations in acquisition scenarios.

Hailey Bieber's role after the acquisition

Hailey Bieber retains significant control over Rhode's direction following the acquisition. Her continued involvement addresses a common concern in beauty acquisitions—whether founder-led brands lose their authentic voice when absorbed by larger companies.

Chief Creative Officer and Head of Innovation

Bieber continues as Rhode's Chief Creative Officer while adding Head of Innovation to her responsibilities. These dual roles ensure she maintains creative oversight while expanding her influence across product development. Her involvement extends beyond typical celebrity brand partnerships; she remains directly engaged in formulating new products and defining Rhode's aesthetic direction.

This structure preserves the brand authenticity that drove Rhode's initial success. Rather than stepping back after the sale, Bieber's hands-on approach signals e.l.f. Beauty's commitment to maintaining Rhode's distinctive market position.

Strategic advisor to e.l.f. Beauty

Bieber now advises e.l.f. Beauty's leadership team on broader strategic initiatives. This role positions her to influence decisions beyond Rhode, particularly regarding younger consumer segments where her insights prove valuable.

The advisory arrangement benefits both parties strategically. e.l.f. Beauty gains direct access to Bieber's understanding of Gen Z and Millennial consumers, while Bieber can apply e.l.f.'s operational expertise to accelerate Rhode's growth.

Leadership continuity with the founding team

The acquisition preserves Rhode's founding team structure. Bieber continues working alongside co-founder and CEO Melanie Bender, maintaining the leadership dynamic that built the brand.

This continuity approach reduces integration risks while preserving Rhode's entrepreneurial culture. The founding team handles daily operations with added support from e.l.f. Beauty's infrastructure and distribution networks.

Per the deal structure, this arrangement allows Rhode to operate with relative autonomy while benefiting from e.l.f.'s resources and market access.

How Rhode fits into e.l.f.'s brand strategy

Rhode's integration offers e.l.f. Beauty three distinct strategic advantages that address key market opportunities. Each element strengthens the company's position across different consumer segments and distribution channels.

Expanding into prestige skincare

The acquisition enables e.l.f. Beauty to move upmarket into premium skincare. Rhode's products average in the high $20s compared to e.l.f.'s core $6.50 price point, creating access to more affluent consumers. This price diversification spans both mass and prestige categories within a single portfolio.

Rhode achieved its $212 million revenue with just 10 products. This focused approach contrasts with e.l.f.'s broader product assortment, giving the company experience with different operational models. The streamlined product strategy demonstrates how premium brands can achieve significant scale through targeted offerings rather than extensive SKU counts.

Strengthening Gen Z and Millennial connections

Rhode's direct-to-consumer success provides e.l.f. Beauty with proven strategies for engaging younger demographics. The brand more than doubled its customer base over one year, demonstrating powerful appeal among digitally-native shoppers who respond to authentic brand stories.

This acquisition gives e.l.f. Beauty insights into building passionate brand communities. Rhode's community engagement model can inform strategies across the entire portfolio, particularly for reaching consumers who prioritize brand authenticity over traditional marketing approaches.

Boosting global retail presence through Sephora

Rhode will launch in all Sephora North American locations this fall, with UK expansion planned by year-end. This partnership accelerates Rhode's physical presence while strengthening e.l.f. Beauty's relationship with a major global retailer.

The Sephora distribution creates portfolio synergies. Cross-merchandising opportunities and expanded shelf space become possible for other e.l.f. Beauty brands. This omnichannel approach combines Rhode's digital expertise with e.l.f.'s retail experience, creating multiple consumer touchpoints regardless of shopping preferences.

Takeaways

The Rhode acquisition positions e.l.f. Beauty across three strategic areas: premium pricing, younger consumer engagement, and enhanced retail partnerships. Each element addresses different market opportunities while creating synergies that benefit the entire brand portfolio.

What the Rhode acquisition means for beauty industry ownership

e.l.f. Beauty, Inc. owns e.l.f. Cosmetics through a publicly traded structure that includes institutional investors like Baillie Gifford & Co., BlackRock, and The Vanguard Group alongside individual insiders. The Rhode acquisition represents more than portfolio expansion—it signals a fundamental shift in how beauty companies build and scale brands.

This deal showcases e.l.f.'s evolution from affordable cosmetics leader to multi-tier beauty platform. Rhode's direct-to-consumer success story, built with just 10 products, offers e.l.f. a proven model for premium market entry. Hailey Bieber's continued leadership as Chief Creative Officer and strategic advisor ensures brand authenticity remains intact during integration.

The Sephora partnership launching this fall creates immediate retail presence for Rhode while strengthening e.l.f.'s relationship with a key beauty retailer. This omnichannel approach combines Rhode's digital expertise with e.l.f.'s established retail operations, creating multiple consumer touchpoints across price segments.

The acquisition reflects broader industry trends. Digitally-native, founder-led brands with authentic community engagement now command billion-dollar valuations. Beauty companies are recognizing that sustainable growth requires both mass-market accessibility and prestige positioning to capture diverse consumer segments.

For e.l.f. Beauty, the Rhode integration positions the company to compete across multiple market tiers while maintaining its core affordable beauty mission. The strategic framework established through this acquisition could shape future brand partnerships and expansion opportunities within the evolving beauty landscape.

FAQs

Q1. Who is the current owner of e.l.f. Cosmetics?

e.l.f. Cosmetics is owned by e.l.f. Beauty, Inc., a publicly traded company listed on the New York Stock Exchange under the ticker symbol "ELF". The ownership structure includes institutional investors, individual insiders, and public shareholders.

Q2. What was the value of e.l.f. Beauty's acquisition of Rhode?

e.l.f. Beauty acquired Rhode for up to $1 billion. The deal includes $800 million payable at closing, with $600 million in cash and $200 million in newly issued e.l.f. Beauty common stock, plus a potential $200 million earnout based on future performance.

Q3. How will Hailey Bieber be involved with Rhode after the acquisition?

Hailey Bieber will continue as Rhode's Chief Creative Officer and Head of Innovation, while also serving as a strategic advisor to e.l.f. Beauty's leadership team. She will remain actively involved in product development and shaping the brand's identity.

Q4. How does the Rhode acquisition fit into e.l.f. Beauty's strategy?

The acquisition allows e.l.f. Beauty to expand into prestige skincare, strengthen its appeal to Gen Z and Millennial consumers, and boost its global retail presence through a partnership with Sephora. It diversifies e.l.f.'s portfolio and helps capture a more affluent consumer segment.

Q5. What impact will the Rhode acquisition have on e.l.f.'s retail presence?

With the acquisition, Rhode will launch in all Sephora North American locations this fall, with UK expansion planned by year-end. This significantly expands e.l.f. Beauty's physical presence and strengthens its relationship with a major global beauty retailer, creating potential for cross-merchandising opportunities across its brand portfolio.