ODDITY Tech (NASDAQ:ODD) Shares Gap Up After Strong Earnings

Key Points

• ODDITY Tech shares surged after an earnings beat: Adjusted EPS came in at $0.20 versus the $0.12 consensus, while revenue reached $180.5 million, slightly above expectations. The stock opened at $17.50 after previously closing at $13.02.
• Management expects sequential improvement: Third-quarter revenue is projected to decline only about 5% year over year, compared with a 25% drop in the second quarter, with guidance well above analyst estimates. SpoiledChild and newer brand METHODIQ are showing encouraging growth.
• Significant risks remain: Second-quarter adjusted EBITDA and EPS fell sharply year over year, full-year revenue is expected to decline about 19%, and IL MAKIAGE continues to face an advertising-algorithm disruption. Analysts remain cautious, with the stock carrying a consensus “Reduce” rating and recent insider selling.

ODDITY Tech Ltd. (NASDAQ:ODD - Get Free Report)'s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $13.02, but opened at $17.50. ODDITY Tech shares last traded at $15.6950, with a volume of 4,665,209 shares.

The company reported $0.20 EPS for the quarter, topping the consensus estimate of $0.12 by $0.08. ODDITY Tech had a return on equity of 15.38% and a net margin of 6.97%.The business had revenue of $180.52 million during the quarter, compared to analysts' expectations of $178.23 million. During the same quarter in the prior year, the business earned $0.92 earnings per share. The company's quarterly revenue was down 24.9% compared to the same quarter last year.

Key ODDITY Tech News

Here are the key news stories impacting ODDITY Tech this week:

• Positive Sentiment: Quarterly results beat estimates: Adjusted earnings were $0.20 per share versus the $0.12 consensus estimate, while revenue of $180.5 million modestly exceeded expectations of $178.2 million. Oddity Tech Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Improving third-quarter outlook: ODDITY expects third-quarter revenue to decline approximately 5% year over year, a meaningful improvement from the 25% decline in the second quarter. Adjusted EBITDA is projected at $18 million to $20 million, and reported revenue guidance of approximately $140.5 million is above the $121.8 million analyst consensus. ODDITY Tech Reports Second Quarter 2026 Results
• Positive Sentiment: Growth outside IL MAKIAGE: SpoiledChild posted double-digit growth and is expected to approach $350 million in 2026 revenue. Early results for newer brand METHODIQ are also tracking ahead of SpoiledChild’s first-year performance.
• Positive Sentiment: Capital returns and liquidity support sentiment: The company repurchased approximately $80 million of shares during the quarter, bringing year-to-date repurchases to about $163 million and reducing shares outstanding by roughly 20%. ODDITY also reported $561 million in cash and investments, plus $350 million in undrawn credit facilities.
• Neutral Sentiment: IL MAKIAGE remains the key swing factor: Management said it is working with its largest advertising partner to resolve a technical algorithm disruption and believes the issue is solvable. Successful normalization could improve customer acquisition and revenue trends, but the timing remains uncertain.
• Negative Sentiment: Major year-over-year deterioration: Second-quarter revenue fell 25% to $181 million, adjusted EBITDA dropped to $13 million from $70 million, and adjusted EPS declined from $0.92 to $0.20. Full-year revenue is expected to decline approximately 19%, while first-half operating cash flow was negative.
• Negative Sentiment: Insider selling and cautious coverage: Recent reported insider activity consisted entirely of sales, while Needham reaffirmed a “hold” rating. These factors may limit investor enthusiasm despite the earnings beat.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on ODD shares. Barclays cut their target price on ODDITY Tech from $13.00 to $8.00 and set an "underweight" rating for the company in a research note on Wednesday, June 3rd. Jefferies Financial Group restated a "hold" rating and issued a $10.25 price target on shares of ODDITY Tech in a research note on Tuesday, June 2nd. The Goldman Sachs Group cut ODDITY Tech from a "hold" rating to a "sell" rating and cut their price objective for the stock from $16.00 to $8.00 in a research report on Wednesday, June 3rd. Morgan Stanley reduced their target price on ODDITY Tech from $16.00 to $10.00 and set an "equal weight" rating for the company in a report on Wednesday, June 3rd. Finally, Needham & Company LLC restated a "hold" rating on shares of ODDITY Tech in a research report on Tuesday. Nine analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, ODDITY Tech currently has a consensus rating of "Reduce" and an average price target of $25.75.

Insiders Place Their Bets

In related news, CFO Mann Drucker sold 109,602 shares of the firm's stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $15.09, for a total value of $1,653,894.18. Following the completion of the transaction, the chief financial officer directly owned 77,709 shares of the company's stock, valued at $1,172,628.81. This trade represents a 58.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 172,454 shares of company stock valued at $2,592,610.

Institutional Trading of ODDITY Tech

Large investors have recently bought and sold shares of the company. Wexford Capital LP acquired a new position in shares of ODDITY Tech during the 3rd quarter worth $40,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in ODDITY Tech by 134.8% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,134 shares of the company's stock valued at $69,000 after acquiring an additional 651 shares during the last quarter. Legal & General Group Plc acquired a new stake in ODDITY Tech in the 2nd quarter valued at about $71,000. SG Americas Securities LLC purchased a new position in ODDITY Tech during the 1st quarter valued at about $104,000. Finally, Headlands Technologies LLC purchased a new position in ODDITY Tech during the 2nd quarter valued at about $108,000. Institutional investors and hedge funds own 35.88% of the company's stock.

ODDITY Tech Trading Up 16.5%

The company has a debt-to-equity ratio of 1.96, a current ratio of 4.06 and a quick ratio of 2.86. The company has a market cap of $873.36 million, a price-to-earnings ratio of 19.35 and a beta of 2.38. The business's 50-day simple moving average is $14.98 and its 200-day simple moving average is $14.41.

ODDITY Tech Company Profile

Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands.

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