If you’ve Googled “Is Rodan and Fields going out of business?” lately, you’re not alone. The skincare brand has been making headlines for all sorts of financial problems and rumors of a shutdown. But let’s clear things up right away: Rodan + Fields is not shutting down. The company is very much still operating, although it’s facing some pretty big financial headaches.
So what’s going on? Let’s walk through what’s fueling the confusion, how bad the money situation really is, what the company is doing to fix things, and whether your favorite Lash Boost is going to vanish from the shelves anytime soon.
Rodan + Fields’ Financial Problems Are Hard to Ignore
First, the numbers aren’t good. Rodan + Fields has been struggling to prop up its sales. In 2024, direct-to-consumer sales fell by 19.4% compared to the year before. When you look at their actual website revenue, it’s stagnant—hovering at $31 million for the whole year, with almost no growth expected for 2025.
That’s a real problem for a business that used to pull in billions back in its heyday. You don’t have to be a finance expert to know that steady declines put serious pressure on a company’s ability to pay its bills and invest in itself.
On top of that, Rodan + Fields has been falling behind on payments to suppliers. Their average “days beyond terms”—that just means bills paid late—were bouncing between 19 and 35 days, while most companies in this space pay around 9 to 11 days late at the most. In June 2024, things got really messy: an eye-popping 95% of their payables were past due.
When bills stack up, that’s a classic sign of a cash crunch. Lenders, partners, and vendors all start to worry that you won’t make good on your word.
Why Is This Happening Now?
Some of this goes back a few years. Rodan + Fields grew fast in the 2010s with a classic multi-level marketing (MLM) model, letting anyone become a consultant and earn money both by selling beauty products and recruiting other sellers. By 2018, the company was flying high with a massive army of consultants—over 300,000 at the time, according to reports.
But a string of controversies and complaints caught up to them, especially around their Lash Boost product and claims made by consultants. The FTC got involved, which never helps. Add in ongoing criticisms of “pyramid” business structures and some lawsuits, and suddenly, Rodan + Fields became a riskier proposition for new sellers.
Since 2019, the company has seen both its revenue and the number of active consultants nosedive. By 2024, those 300,000 consultants dropped to below 200,000. Sales dropped right alongside.
Debt Loads and Credit Downgrades
All those revenue problems made it tougher to pay back loans. In June 2024, Rodan + Fields missed some key payments. Lenders noticed. Moody’s, a major credit rating agency, gave them a downgrade. The reason? Declining revenues, mounting debt, and negative cash flow.
After that, Rodan + Fields went into talks with creditors, trying to work out a new deal. They’ve discussed giving up some control in exchange for loans—like a $75 million second-lien loan (meaning these lenders will only get paid after others if something goes wrong) and some complex debt swaps.
If you ever look at a business in this much financial pressure, you’d expect to start seeing big changes come down the pipeline.
A Massive Shakeup: MLM Gets Dumped for Affiliation
The biggest change happened in September 2024. The company said goodbye to the old multi-level marketing approach—the thing they’d built their name on.
Now, instead of the focus on recruiting new sellers, Rodan + Fields is moving to a more standard direct-to-consumer model, powered by online affiliates. The idea is simple: pay higher commissions for people who actually sell the products, no more pyramid-style downlines. Some consultants became “affiliates.” They get bigger sales commissions, discounts (90% or more), and don’t have to recruit anyone to make money. For people who only wanted to sell skincare on the side, this is probably a win.
The company also slashed about 100 jobs, including some C-suite executives (like the Chief Global Sales Officer). These are always tough moments for employees, but they’re also signals that an organization is trimming costs and trying to reset.
All of this was meant to keep them relevant, speed up online sales, and use the power of social media marketing the way newer brands do.
How Many People Are Still Working There?
Despite the consultant drop, Rodan + Fields still employs over 500 staff. The big layoff in 2024 did shrink the workforce, but they’re not down to bare bones yet. Their website is still live and taking orders, and the brand is still promoted as North America’s #1 dermatologist-created skincare regimen (at least by their metrics).
Legal Trouble and More Bad Press
With big changes and late payments come lawsuits—or at least in this case, another big class-action lawsuit. In 2024, some former consultants accused Rodan + Fields of misclassifying their worker status and failing to pay out owed commissions.
That’s a common theme with companies that mix freelance sales and direct payouts. So far, Rodan + Fields hasn’t said much about the lawsuit, but the timing couldn’t be more awkward.
These sorts of lawsuits don’t always bring a company down, but they do eat up resources and focus. And when your finances are shaky, any new cost—especially a big legal hit—can sting.
Is the Restructuring Working? Will Rodan + Fields Survive?
That’s the real question. After all these cuts, pay delays, and a brand new business structure, will it actually work?
The company recently managed to secure new funding and recapitalize its debts, so there’s no immediate sign of shutting the doors. Management is betting that the new affiliate-powered structure can turn things around, attract influencers, and stabilize the revenue swings.
People shopping for skincare products will still be able to find Rodan + Fields online and through affiliates. The idea is to blend what worked in the old MLM days (loyal sellers, word-of-mouth buzz) with a platform that looks a lot more like what you see from digital-first beauty brands now.
A lot of companies have tried shifting from MLM to direct selling, but it isn’t easy. The gig economy is more crowded than ever, and the MLM stigma is hard to shake. Meanwhile, customers care more about product reviews and less about buying from a friend’s Facebook party invite.
If you’re thinking about selling beauty products, or just curious about switching business models, you might want to read more about MLM versus direct sales at StartBusinessPage.com. They have some plain-English explainers that break down what each system actually means for people looking to sell on the side.
What to Watch in 2025 and Beyond
No matter how you slice it, Rodan + Fields faces a tough road. The pressures aren’t just about selling moisturizer or eye cream—they’re about rebuilding trust, growing real sales, and keeping the lights on.
But if you’re a customer, or even an affiliate, you’ll still see the site up and orders going out. Those recent investments should keep inventory stocked and online operations running at least into 2025 and likely longer, unless things get dramatically worse or the funding runs out. There’s no announced shutdown date and no statement about a final sale or closure. For now, the company is still making moves to adjust and compete.
If you’re expecting some huge turnaround overnight, that’s not likely. These sorts of restructurings take time. The days of Rodan + Fields as a recruiting powerhouse are probably over, but the brand might have found a way to stick around in a more low-key, traditional way.
The Bottom Line: Rodan + Fields Isn’t Closed—But It’s Far From Smooth Sailing
If you see rumors online about Rodan + Fields disappearing this year, they’re not accurate. The company is facing real financial distress and is trying to reinvent itself just to keep up. Plenty of businesses have been through similar pivots and survived, though some don’t make it out the other side.
At the end of the day, Rodan + Fields still seems set to be around in 2025, even if the business looks different than it did a few years ago. If you’ve still got a bottle or two of their serum on your shelf, don’t worry—restocking shouldn’t be a problem anytime soon. But like a lot of brands in the MLM and beauty world, they’re under some serious pressure to prove they can make this new model work. We’ll keep watching to see how it all shakes out.
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