ODDITY Tech Q1 revenue declines

Oddity Tech

02/06/2026 12:16

Overview
US-based tech platform focused on beauty and wellness industry posted a 26% fall in  Q1 net revenue 
Adjusted EPS and adjusted EBITDA turned negative due to reduced media efficiency and growth spending
Company repurchased 6.1 mln shares for $82.3 mln in Q1, reducing Class A shares outstanding by 10.6%

Outlook
ODDITY expects Q2 net revenue to decline 25-30% year-over-year
Company expects Q2 adjusted EBITDA between $8 mln and $10 mln
ODDITY expects full-year 2026 adjusted EBITDA to be positive

Result Drivers
HIGHER CUSTOMER ACQUISITION COSTS - Co said a sudden, technical disruption with its largest advertising partner sharply increased CPA, leading to lower first orders and reduced media efficiency
REMEDIATION SPENDING - Co increased acquisition spending and ran tests to address the advertising account dislocation, which further weighed on profitability
GROSS MARGIN PRESSURE - Gross margin declined due to product and brand mix and a low single digit drop in average order value

Company press release: ID:nGNX2XmDtF

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Revenue
 
$197.9 mln
 
Q1 Adjusted EPS
 
-$0.17
 
Q1 EPS
 
-$0.38
 
Q1 Adjusted Net Income
 
-$9.8 mln
 
Q1 Adjusted EBITDA
 
-$7 mln
 
Q1 Gross Margin
 
69.7%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the personal products peer group is "buy."
Wall Street's median 12-month price target for Oddity Tech Ltd is $18.00, about 28.8% above its June 1 closing price of $13.98
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)