Oddity Tech Ltd
NASDAQ:ODD
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Oddity Tech Ltd
NASDAQ:ODD
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Oddity Tech Ltd
Oddity Tech is a consumer company that sells beauty and wellness products directly to shoppers online. Its main brands include makeup and skincare under IL MAKIAGE and hair, skin, and supplement products under SpoiledChild. It uses a mostly digital model to find customers, match them to products, and sell branded items without relying on a traditional store network. The company makes money by selling its own products through its websites and related online channels. Customers are mainly individual consumers looking for cosmetics, skincare, and personal care products. Oddity also uses data and software tools to guide product discovery and marketing, which helps it reach shoppers more efficiently than a classic retail or wholesale beauty company. What makes Oddity different is that it is both a brand owner and a technology-driven seller. Instead of building its business around physical shelves, it builds direct relationships with consumers, learns from online shopping behavior, and uses that information to design and market products. That gives it more control over branding, pricing, and customer experience than a typical beauty supplier that depends heavily on stores and distributors.
Oddity Tech is a consumer company that sells beauty and wellness products directly to shoppers online. Its main brands include makeup and skincare under IL MAKIAGE and hair, skin, and supplement products under SpoiledChild. It uses a mostly digital model to find customers, match them to products, and sell branded items without relying on a traditional store network.
The company makes money by selling its own products through its websites and related online channels. Customers are mainly individual consumers looking for cosmetics, skincare, and personal care products. Oddity also uses data and software tools to guide product discovery and marketing, which helps it reach shoppers more efficiently than a classic retail or wholesale beauty company.
What makes Oddity different is that it is both a brand owner and a technology-driven seller. Instead of building its business around physical shelves, it builds direct relationships with consumers, learns from online shopping behavior, and uses that information to design and market products. That gives it more control over branding, pricing, and customer experience than a typical beauty supplier that depends heavily on stores and distributors.
Revenue: Q2 net revenue fell 25% year over year to $181 million, at the favorable end of the company’s guidance range, as IL MAKIAGE continued to suffer from an advertising-account algorithm problem.
Recovery: Management believes the acquisition-driven pressure is beginning to ease, forecasting Q3 revenue to decline approximately 5% year over year and targeting a return to IL MAKIAGE growth in 2027, though the timing remains uncertain.
Brand momentum: SpoiledChild is on track to grow at least 35% in 2026 and approach $350 million of revenue, while METHODIQ is expected to exceed SpoiledChild’s first-year revenue performance.
Profitability: Adjusted EBITDA was $13 million, ahead of the $8 million to $10 million outlook, but gross margin declined to 68.7% from 72.3% because of lower average order value and unfavorable product mix.
Outlook: Full-year revenue is expected to decline approximately 19%, with adjusted EBITDA of $30 million to $32 million. Q4 guidance remains conservative because spending allocation and testing plans are still uncertain.
Capital allocation: ODDITY repurchased 5.6 million shares for $80 million during the quarter and ended with $561 million of cash, cash equivalents, and investments, while its $350 million credit facilities remained undrawn.