E.l.f. Beauty (ELF) shares skyrocketed 25% Thursday, a day after the beauty products maker posted better-than-expected results and announced that it had purchased the rhode skincare company founded by model and socialite Hailey Bieber for up to $1 billion.

The company reported fiscal 2025 fourth-quarter adjusted earnings per share of $0.78, with net sales rising 4% year-over-year to $332.6 million. Both exceeded Visible Alpha estimates. E.l.f. credited the sales jump primarily to "strength across our retailer and e-commerce channels, as well as geographically across our U.S. and international markets."

CEO Tarang Amin said the company believes it has "the right strategy to drive continued category-leading sales and market share growth in the years to come, and believe the acquisition of rhode will further strengthen and diversify our portfolio of fast-growing disruptive brands."

E.l.f. explained that the rhode deal includes $600 million in cash and $200 million in stock at closing, with a possible addition of another $200 million "based on the future growth of the brand over a three-year post-closing period." The transaction is seen closing in e.l.f.'s fiscal 2026 second quarter.

The company noted that Bieber will be rhode's Chief Creative Officer and Head of Innovation, as well as a Strategic Advisor to the combined firms. Bieber called the partnership "an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally."

Even with to😼day’s gains, sh♉ares of e.l.f. Beauty are down almost 10% year-to-date.