In a surprising turn of events, Hailey Bieber has finalized the sale of her skincare brand, Rhode, to e.l.f. Beauty for $1 billion. This announcement comes amidst initial skepticism about her intent to sell, as rumors floated just days prior. This article explores the development of Rhode and the financial implications of this major deal.
From Glazed Skin to Generational Wealth
Launched in June 2022 with a modest lineup of just three products—a peptide serum, a barrier cream, and a lip treatment—Rhode swiftly rose to prominence in the skincare realm. Hailey’s “glazed donut skin” aesthetic captured the attention of consumers on TikTok, leading to frequent sellouts. Within the first 11 days, Rhode reportedly surpassed the eight-figure revenue mark. Now, less than three years later, the brand boasts over $212 million in annual net sales despite offering only 10 products, all sold directly to consumers.
This venture transcended the typical celebrity vanity project; Rhode demonstrated real traction and revenue growth. In May 2025, the brand expanded its reach by launching in Sephora across the United States and Canada, with plans to enter the UK market by year’s end. The timing of the e.l.f. acquisition aligns perfectly with Rhode’s retail expansion, providing e.l.f. with a rapidly growing, Gen Z-oriented brand as it adjusts its manufacturing strategy and aims for a more upscale market.
Financial Breakdown of the Deal
While the specifics of Hailey’s equity stake in Rhode have not been disclosed, multiple reports indicate she possesses a significant share. If her ownership lies between 50% and 70%, her pre-tax earnings from the $1 billion sale would range from $500 million to $700 million. This total factors in the upfront cash and stock worth $800 million and an additional potential $200 million based on Rhode’s performance over the next three years.
Considering her tax obligations, which include both federal and California state taxes, the effective rate on long-term capital gains could reach approximately 38.1%. For a 70% stake, Hailey could net around $433 million after taxes from a gross payout of $700 million. Conversely, a 50% stake would yield around $309 million after taxes from a $500 million gross. Even without accounting for the earnout, her after-tax gain from the $800 million initial payment alone would fall between $247 million to $346 million, depending on her percentage of ownership.
Regardless of the final stake, Hailey Bieber is poised to significantly enhance her wealth, potentially exceeding that of her husband, Justin Bieber, whose net worth is currently estimated at $200 million. Consequently, Hailey’s net worth is now projected to be around $300 million.
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