Oddity Tech shares tumble despite earnings beat and raised guidance

Published 04/08/2025, 21:52
Oddity Tech shares tumble despite earnings beat and raised guidance

Investing.com -- Oddity Tech Ltd. (NASDAQ:ODD) reported second-quarter earnings that exceeded analyst expectations, but shares tumbled 6.8% as investors appeared to focus on slowing profit margin growth despite the company’s strong revenue performance.

The beauty and wellness technology company posted adjusted earnings per share of $0.92 for the quarter ended June 30, 2025, surpassing the analyst estimate of $0.84. Revenue came in at $241 million, beating the consensus estimate of $237.78 million and representing a 25% increase YoY from $193 million in the same quarter last year.

Despite the strong results, Oddity’s adjusted EBITDA margin decreased by 350 basis points to 28.8% compared to 32.3% in the second quarter of 2024, which may have contributed to the negative market reaction.

"ODDITY’s momentum continued into the second quarter with yet another beat and raise across revenue, profit, and earnings per share. Our business is growing with high profitability, multiple engines, and long runways," said Oran Holtzman, ODDITY co-founder and CEO.

The company raised its full-year 2025 outlook, now projecting revenue between $799 million and $804 million, representing 23-24% YoY growth and above the analyst consensus of $797.9 million. Oddity also increased its adjusted EPS guidance to between $2.06 and $2.09, up from its previous forecast of $1.99-$2.04.

For the third quarter, Oddity expects revenue between $144 million and $146 million, representing 21-23% YoY growth, with adjusted EPS between $0.33 and $0.36.

"The remainder of our year is driven mostly by a high visibility backlog of repeat orders. These factors altogether give us confidence to once again raise our full year outlook," said Lindsay (NYSE:LNN) Drucker Mann, ODDITY Global CFO.

The company highlighted double-digit online revenue growth for both its IL MAKIAGE and SpoiledChild brands, and announced plans to launch its third brand in the fourth quarter of 2025, expanding into medical-grade products and dermatology.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.