Oddity Tech Ltd. (NASDAQ: ODD) announced that its Board of Directors has approved a new share‑repurchase program authorizing the repurchase of up to $200 million of the company’s common stock, replacing the previously authorized $150 million program that had been in place since June 2024.
The new program supersedes the earlier authorization after $97 million had already been repurchased, leaving $53 million unused. By doubling the available budget, the company signals confidence in its valuation and a commitment to returning capital to shareholders while preserving liquidity for future growth initiatives.
Despite record 2025 results—$810 million in revenue, up 25% year‑over‑year, and adjusted EBITDA of $163 million—Oddity Tech faces significant headwinds. Algorithm changes by its largest advertising partner have sharply increased customer acquisition costs, prompting a forecast of roughly 30% revenue decline in Q1 2026 and a suspension of full‑year guidance. The company’s stock has fallen 73% over the past year, making the buyback a potential tool to support the share price.
Management highlighted the record performance while acknowledging the acquisition‑cost challenge. CEO Oran Holtzman noted the company’s strong results and the need to address rising costs, and CFO Lindsay Mann pointed to margin compression as a result of the higher acquisition expenses. The expanded buyback is part of a broader strategy to maintain liquidity and provide shareholder value amid these operational pressures.
Investors responded positively to the announcement, reflecting confidence in the company’s capital‑return strategy. Analysts, however, remain cautious due to the ongoing acquisition‑cost headwinds and the uncertain near‑term outlook.
The expansion of the share‑repurchase program is a material capital‑structure change that may influence investor perception, but the company’s near‑term challenges suggest a nuanced outlook.
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