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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.
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