Rhode Is Fueling e.l.f.'s Latest Surge. Is It Time to Jump In?

e.l.f. Beauty posted fiscal Q1 revenue of $479.4 million, up 36% year-over-year, with its recently acquired Rhode brand delivering $160 million of that total. The cosmetics maker raised its full-year guidance following the beat and announced plans to expand Rhode distribution through Sephora and international channels while pushing the brand into hair care.

The Rhode acquisition is reshaping e.l.f.'s growth trajectory. The $160 million contribution represents roughly one-third of quarterly sales, marking the brand as a major revenue driver barely into the integration. Management's decision to broaden Rhode's footprint beyond its direct-to-consumer roots signals confidence in scaling the brand through traditional retail partners.

Shares trade at a forward price-to-earnings ratio below 25, a valuation the source analyst considers attractive given the growth rate and Rhode's expansion runway. The combination of organic momentum and acquisition-fueled sales is positioning e.l.f. to sustain double-digit top-line gains as it layers in new product categories and geographies.