e.l.f. Beauty delivered a strong earnings surprise on Wednesday and lifted its full-year outlook, fueled by robust global demand and a boost from its recent acquisition of Rhode, founded by Hailey Bieber.

Shares of e.l.f. jumped as much as 15% in after-hours trading before giving back most of those gains.

For its third fiscal quarter, the company reported results well ahead of Wall Street expectations:

• Adjusted earnings per share: $1.24, versus $0.72 expected

• Revenue: $490 million, versus $460 million expected

Net sales climbed 38% year over year to $489.5 million, driven by broad-based growth across international markets, retail partners, and e-commerce channels. Adjusted net income rose to $74.5 million, up from $43 million in the same quarter last year.

The company’s roughly $1 billion acquisition of Rhode made an immediate impact, contributing $128 million to third-quarter sales. Management now expects Rhode to generate as much as $265 million in net revenue this fiscal year—about $65 million higher than its previous forecast.

Reflecting the momentum, e.l.f. raised its full-year revenue guidance by $42 million to $50 million.

CEO Tarang Amin said the quarter marked another chapter in the company’s sustained expansion, highlighted by market-share gains for e.l.f. Cosmetics and a record-setting launch of Rhode at Sephora UK. He credited the performance to the brand’s value-driven positioning, rapid innovation, and bold marketing strategy, noting that these pillars have powered consistent, category-leading growth over the past several years.