ODDITY Tech (NASDAQ:ODD) Posts Earnings Results, Beats Expectations By $0.08 EPS

ODDITY Tech (NASDAQ:ODD) released its quarterly earnings data on Wednesday. The company reported $0.20 EPS for the quarter, beating the consensus estimate of $0.12 by $0.08, FiscalAI reports. ODDITY Tech had a return on equity of 2.37% and a net margin of 2.23%.The company had revenue of $180.52 million during the quarter, compared to the consensus estimate of $178.23 million. During the same quarter in the prior year, the firm posted $0.92 EPS. The firm’s revenue for the quarter was down 24.9% compared to the same quarter last year.

Here are the key takeaways from ODDITY Tech’s conference call:

• IL MAKIAGE’s advertising algorithm disruption continued to weigh heavily on results. Q2 revenue fell 25% year over year to $181 million, with first-order revenue down approximately 40%, repeat-order revenue down 20%, and AOV down 8%.
• Management expects sequential improvement, guiding for Q3 revenue to decline approximately 5% year over year versus a 25% decline in Q2, and believes the worst of the acquisition-driven pressure is behind the company. Full-year revenue is still expected to decline approximately 19%, with adjusted EBITDA of $30 million-$32 million.
• SpoiledChild remained a major growth driver, with 2026 revenue expected to grow at least 35% and approach $350 million. The brand continues to post strong customer metrics, including 12-month net revenue repeat rates well above 100%.
• METHODIQ’s early performance is exceeding management’s expectations, with first-year revenue expected to surpass SpoiledChild’s first year. The company plans to expand into additional medical-grade categories, including longevity and metabolic health, and launch a fourth brand in 2027.
• Oddity maintained substantial financial flexibility, ending the quarter with $561 million in cash and investments and undrawn credit facilities. It repurchased 5.6 million shares for $80 million in Q2, reducing shares outstanding by approximately 20% year to date, while $87 million remains under its buyback authorization.

ODDITY Tech Trading Down 2.9%

NASDAQ ODD opened at $16.01 on Friday. The stock has a market cap of $921.86 million, a P/E ratio of 66.71 and a beta of 2.38. The company has a fifty day simple moving average of $14.93 and a two-hundred day simple moving average of $14.20. ODDITY Tech has a 12-month low of $9.25 and a 12-month high of $64.23. The company has a current ratio of 4.06, a quick ratio of 2.86 and a debt-to-equity ratio of 1.96.

ODDITY Tech News Summary

Here are the key news stories impacting ODDITY Tech this week:

• Positive Sentiment: Earnings beat and improving outlook: ODDITY reported adjusted EPS of $0.20 versus the $0.12 consensus estimate and revenue of $180.5 million versus expectations of $178.2 million. Management expects third-quarter revenue to decline approximately 5% year over year, a meaningful improvement from the 25% decline in the second quarter. ODDITY Tech Shares Rise on 2Q Beat, Rosier 3Q Outlook
• Positive Sentiment: Growth outside IL MAKIAGE: SpoiledChild delivered double-digit growth and is expected to approach $350 million in 2026 revenue, while newer brand METHODIQ is tracking ahead of SpoiledChild’s first-year performance. Management also believes the technical advertising issue affecting IL MAKIAGE is solvable. ODDITY Tech Reports Q2 2026 Revenue Decline as SpoiledChild and METHODIQ Grow
• Positive Sentiment: Capital-return and liquidity support: ODDITY repurchased approximately $163 million of shares year to date, reducing shares outstanding by about 20%, and retired $50 million of zero-coupon exchangeable notes for roughly $35 million. It ended the quarter with $561 million in cash and investments plus $350 million of undrawn credit facilities. A Seeking Alpha analysis also highlighted the discounted convertible debt as a potential financial flexibility benefit. Oddity Tech: Turnaround Potential And Discounted Debt Value Lever
• Positive Sentiment: Some analysts raised targets: Jefferies increased its target to $18 from $16, while Truist raised its target to $18 from $16 and Morgan Stanley raised its target to $16.50 from $10. All maintained cautious ratings ranging from hold to equal weight. ODDITY Tech Stock Price Expected to Rise, Jefferies Analyst Says

Insider Buying and Selling at ODDITY Tech

In other news, CFO Mann Drucker sold 7,717 shares of ODDITY Tech stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $15.09, for a total transaction of $116,449.53. Following the completion of the sale, the chief financial officer directly owned 116,135 shares of the company’s stock, valued at approximately $1,752,477.15. The trade was a 6.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 172,454 shares of company stock worth $2,592,610 in the last 90 days.

Hedge Funds Weigh In On ODDITY Tech

A number of hedge funds have recently made changes to their positions in the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in ODDITY Tech by 16.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 76,117 shares of the company’s stock valued at $3,293,000 after acquiring an additional 10,582 shares during the last quarter. Geode Capital Management LLC increased its position in shares of ODDITY Tech by 12.9% in the 2nd quarter. Geode Capital Management LLC now owns 75,063 shares of the company’s stock valued at $5,660,000 after buying an additional 8,561 shares in the last quarter. Legal & General Group Plc bought a new position in shares of ODDITY Tech during the 2nd quarter valued at about $71,000. American Century Companies Inc. increased its holdings in ODDITY Tech by 17.3% during the 2nd quarter. American Century Companies Inc. now owns 14,300 shares of the company’s stock worth $1,079,000 after purchasing an additional 2,105 shares in the last quarter. Finally, Invesco Ltd. bought a new position in shares of ODDITY Tech during the second quarter worth about $327,000. Hedge funds and other institutional investors own 35.88% of the company’s stock.

Analyst Upgrades and Downgrades

ODD has been the subject of several research reports. The Goldman Sachs Group downgraded ODDITY Tech from a “hold” rating to a “sell” rating and cut their price target for the company from $16.00 to $8.00 in a report on Wednesday, June 3rd. Citigroup reiterated a “market perform” rating on shares of ODDITY Tech in a research report on Thursday. Jefferies Financial Group increased their price target on ODDITY Tech from $16.00 to $18.00 and gave the stock a “hold” rating in a research report on Wednesday. Truist Financial upped their target price on ODDITY Tech from $16.00 to $18.00 and gave the company a “hold” rating in a research report on Thursday. Finally, Zacks Research raised ODDITY Tech from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 4th. Ten investment analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of $27.23.

About ODDITY Tech

Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands.