E.L.F. Just Dropped $1 Billion On Justin Beibers Sugar Momma… Shares Soar 25%

Somewhere, Justin Bieber is popping bottles and checking Zillow for mansions with even bigger panic rooms. E.l.f. Beauty, just signed a deal to acquire Hailey Bieber’s Rhode for up to $1 billion in straight cash homie.  

(Source: Giphy) 

In short, the numbers are enough to make veteran retail CEOs question their existence. Why? Because Rhode went from zero to $212 million in net sales in under three years, direct-to-consumer, with just 10 products. E.l.f. CEO Tarang Amin admitted he thought stats like that were only reserved for fantasy league spreadsheets and MLM fever dreams. But TikTok’s gravitational pull is real, and Rhode’s “no-makeup makeup” strategy has turned every Gen Z bathroom into a shrine for glazed donut skin.

(Source: CNBC) 

The details of the deal are as follows: $800 million in cash and stock up front, with a juicy $200 million performance kicker just to keep the Biebers interested. That’s E.l.f.’s biggest swing ever… and spoiler, they’re funding $600 million of it with debt, which is a bold move when your main supplier is China (which as we all know, is in a pissing match with the U.S. of A.). For instance, E.l.f. sources 75% of its inventory from China, and new duties just shot up to 30%. The company’s answer is simple: Jack up prices by $1 starting August 1 and cross their fingers Beijing and DC don’t escalate things. 

For Wall Street though, they didn’t seem to care about the debt hangover, at least not immediately. E.l.f. shares surged 25% after the news, juiced by a fourth quarter beat: 78 cents adjusted earnings per share (vs. 72 cents expected) and $333 million in revenue (vs. $328 million estimates). Additionally, net income for the quarter came in at $28.3 million, double last year’s haul. Bigly. 

(Source: Giphy) 

Now to be fair, while the Beibers are already insufferable, Rhode brings more than Hailey’s Instagram following and “dewy” vibes. It’s the number one skincare brand in earned media value, posting a brain-melting 367% year-over-year growth in exposure… without setting fire to cash on influencer sponcon. For this reason, E.l.f. is betting Rhode’s direct-to-consumer rocket fuel will work just as well in real life stores, with launches planned in Sephora across North America and the UK.

As for Hailey, she’s going to stay on as Chief Creative Officer and Head of Innovation (read: she’ll keep posting thirst traps and pretending to work in product development meetings while TikTok eats it up). On the other hand, there is a risk here… a big one. E.l.f. is hoping bored millennials and spoiled Zoomers will keep splurging on $29 serums even if the economy tanks. And they’re doing it with borrowed money… during a time, might I add, when interest rates are still stuck at “are you f*ing kidding me?” levels. Plus, the China tariff sword is still dangling, and no one’s offering a fiscal 2026 forecast until DC stops playing chicken with the supply chain. 

However, IF Rhode can keep up the momentum, E.l.f. just bought itself a seat at the money printers table. Or at least the “high income consumer” table previously reserved for people who think La Mer is a personality trait. And honestly, the market is here for it. E.l.f. Is currently riding 25.65% at the time of this writing. Of course, we’ll see how long that ride lasts… but as for me, I’m chilling and fully content with my three-in-one body wash. Hailey Beiber’s moisturizer cream be damned. Until next time, friends…

Stocks.News does not hold positions in companies mentioned in the article.