When e.l.f. Beauty dropped its latest earnings report, most people scrolled past the usual wall of numbers — sales figures, profit margins, and corporate buzzwords that make most of us want to take a nap. But hiding inside all that financial fine print was one line that should make Hailey Bieber very, very happy.
e.l.f. Beauty Had a Strong Year — But One Number Stood Out
e.l.f. Beauty recently shared its earnings for the fourth quarter and full fiscal year of 2026. The results were solid across the board. Net sales for the fourth quarter hit $449.3 million, a 35% jump compared to the same period last year. For the full year, the company brought in $1.64 billion in net sales, up 25%.
Adjusted earnings per share came in at $3.13, and the company is already looking ahead — forecasting net sales of between $1.835 billion and $1.865 billion for fiscal 2027.
Not everything was rosy, though. e.l.f. is dealing with tariff pressures, rolling back some price hikes after noticing customers pushing back, and keeping a close eye on supply chain costs. The company also posted a net loss for the quarter thanks to a jump in expenses.
But none of that is the interesting part.
The One Line That Changes Everything for Hailey
Buried deep in the earnings report was this note:
“The Company recorded a fair value adjustment of $57.6 million for the fiscal year ended March 31, 2026, driven by the outperformance of rhode’s revenue results relative to the earnout thresholds.”
So what does that actually mean? Let’s break it down simply.
When e.l.f. bought rhode — Hailey Bieber’s skincare brand — the deal included a bonus structure called an earnout. Basically, e.l.f. promised to pay extra money if rhode hit certain growth targets. Think of it like a performance bonus, but worth up to $200 million.
That $57.6 million adjustment means e.l.f. had to officially update its financial books because rhode is crushing those targets ahead of schedule. The company now considers it highly likely that a big chunk of that bonus pool will actually be paid out.
In short: rhode is doing so well that it’s already forcing its new owner to plan for a massive payout.
How Did Rhode Even Get Here?
From Three Products to a Billion-Dollar Brand
Hailey launched rhode (yes, the lowercase “r” is intentional) back in June 2022. The brand was named after her middle name and started with just three products: a Peptide Glazing Fluid, a Barrier Restore Cream, and a Peptide Lip Treatment.
The timing was perfect. Hailey had already gone viral for her “glazed donut skin” look — dewy, glowy, and effortlessly fresh. Rhode leaned directly into that aesthetic, keeping things simple, clean, and very affordable. It was exactly the kind of skincare TikTok was obsessed with.
Products sold out fast. Waitlists grew long. And unlike many celebrity beauty brands that fade quickly, rhode kept growing. It wasn’t just famous packaging — it had a real identity, loyal customers, and strong sales to back it up.
The Billion-Dollar Deal
By 2025, rhode had grown from a buzzy startup into a serious acquisition target. On May 28, 2025, e.l.f. Beauty announced it was buying the brand for up to $1 billion.
Here’s how the deal broke down:
- $600 million in cash paid upfront
- $200 million in e.l.f. stock paid upfront
- Up to $200 million more in milestone-based earnout payments
That’s a jaw-dropping result for a brand that was less than three years old at the time of the deal.
So How Much Is Hailey Actually Walking Away With?
Running the Numbers
Hailey’s exact ownership percentage in rhode has never been publicly confirmed. But industry insiders generally estimate she owned somewhere between 50% and 70% of the company.
Using that range, here’s what the math looks like:
From the $600 million cash portion:
- At 50% ownership → $300 million
- At 70% ownership → $420 million
From the $200 million in e.l.f. stock:
- At 50% ownership → $100 million
- At 70% ownership → $140 million
From the $200 million earnout (if fully paid out):
- At 50% ownership → $100 million
- At 70% ownership → $140 million
The Grand Total
Add it all up, and Hailey Bieber’s total pre-tax payday from the rhode deal could look like this:
| Ownership Stake | Total Estimated Earnings |
|---|---|
| 50% | ~$500 million |
| 70% | ~$700 million |
That’s before the $57.6 million earnout milestone already being locked in. If Rhode continues to perform — and right now all signs point to yes — Hailey’s share of that milestone alone could be worth $28.8 million to $40.3 million more, before taxes.
Why Rhode’s Success Is Such a Big Deal
It Wasn’t Just a Celebrity Vanity Project
A lot of famous people launch beauty brands. Most of them fizzle out within a few years because they rely entirely on the celebrity’s name rather than building a real product with real value.
Rhode was different. Hailey and her team built something with a clear vision, consistent branding, and products people actually loved. The glazed donut skin trend wasn’t just a moment — it became a lasting aesthetic that helped rhode build a dedicated community.
That’s why e.l.f. paid top dollar for it. And that’s why the brand is still hitting milestones even after the acquisition closed.
What the $57.6 Million Adjustment Really Signals
The earnout adjustment isn’t just an accounting footnote. It’s e.l.f. officially acknowledging that rhode is outperforming expectations. When a company acquires a brand and then has to upgrade its financial projections because the brand is doing better than anyone anticipated — that’s a big deal.
It means rhode isn’t just surviving inside a larger company. It’s thriving.
The Bottom Line
Hailey Bieber built a skincare brand in her mid-twenties, grew it into a cultural phenomenon in under three years, sold it for up to $1 billion, and is now watching it continue to break records under new ownership.
The $57.6 million earnout adjustment buried in e.l.f.’s earnings report isn’t just a boring accounting entry. It’s proof that rhode is one of the most successful celebrity beauty brand launches in history — and that Hailey Bieber turned a great idea into a life-changing fortune.
Not bad for a lip treatment that started with a waitlist.
