Oddity Tech Ltd. (OTD) reported fourth‑quarter 2025 results on February 25, 2026, posting revenue of $153 million and an adjusted diluted EPS of $0.20. Both figures beat consensus estimates of $151.89 million and $0.14, respectively, marking a $0.06 or 42.9 % earnings surprise and a revenue beat of roughly $1.1 million.
Gross margin rose to 70.5 % from 72.7 % a year earlier, a 220‑basis‑point compression driven by a mix shift toward lower‑margin product lines and higher cost of customer acquisition. Adjusted EBITDA margin fell from 19.0 % to 18.0 %, reflecting the impact of the advertising partner disruption and the company’s investment in new brand launches.
Management announced that it would suspend its full‑year 2026 guidance after a dislocation with its largest advertising partner, which the company attributes to algorithm changes that pushed it into lower‑quality auctions at abnormally high costs. The CFO said the company expects first‑quarter 2026 revenue to decline about 30 % year‑over‑year, but that it plans to issue a new outlook once visibility improves.
Segment analysis shows that the core beauty brands IL MAKIAGE, SpoiledChild, and METHODIQ contributed $90 million of the quarter’s revenue, while the new telehealth dermatology brand METHODIQ added $15 million, underscoring the company’s push into medical‑grade solutions. Despite the advertising headwind, repeat‑customer sales remained strong, supporting the company’s long‑term growth focus.
The earnings announcement was met with a sharp market reaction, as investors focused on the elevated user acquisition costs and the guidance suspension. CEO Oran Holtzman said, "We experienced a dislocation in our account with our largest advertising partner that we believe was driven by algorithm changes which diverted us to lower quality auctions at abnormally high costs." CFO Lindsay Drucker Mann added, "Given the dislocation we are experiencing in acquisition costs, we expect first quarter 2026 revenue to decline approximately 30% year‑over‑year, but we hope to see material improvement in the second half of 2026."
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