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EarningsQ2 2026 Earnings Report
ODD Q2 2026 EPS Results
Actual EPS$0.20
Consensus EPS$0.12
Beat/MissBeat by +$0.08
One Year Ago EPS$0.79
ODD Q2 2026 Revenue Results
Actual Revenue$180.52M
Expected Revenue$178.23M
Beat/MissBeat by +$2.29M
YoY Revenue Growth-25.14%
Earnings Announcement Details
QuarterQ2 2026
Date09/09/2026
TimeBefore Open
Conference CallWednesday, September 9, 2026
ODD Upcoming Earnings
ODDITY Tech Ltd. Class A's next earnings date is estimated for November 11, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
ODD Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
Management remains bullish about ODDITY's long-term future and highlighted strong growth from SpoiledChild, encouraging early performance from METHODIQ, continued product and technology investment, significant liquidity, and expected sequential improvement in Q3. However, the current period was materially affected by the unresolved IL MAKIAGE advertising algorithm dislocation, resulting in a 25% revenue decline, lower orders and AOV, gross margin compression, excess inventory, and a full-year revenue decline outlook. The strong brand pipeline and recovery plans outweigh the current challenges, but near-term execution remains dependent on resolving the advertising issue.Company Guidance
SpoiledChild On Track for Strong 2026 Growth
SpoiledChild had a good quarter and strong year-to-date performance, is on track to grow at least 35% this year, and is expected to approach $350 million of net revenue in 2026.
SpoiledChild Reached Scale Ahead of IL MAKIAGE
SpoiledChild is expected to approach $350 million of net revenue in 2026, more than a year ahead of the time it took IL MAKIAGE to reach that milestone.
Strong SpoiledChild Customer Cohort Metrics
SpoiledChild continues to deliver strong AOV and repeat metrics at scale, with 12-month net revenue repeat rates well in excess of 100%.
METHODIQ Showing Strong Early Promise
METHODIQ, launched only several months ago and less than a year ago in other remarks, is expected to deliver first-year revenue ahead of SpoiledChild's first year. Management said the brand has shown a strong start and expects significant future potential.
METHODIQ Has Broad Product and Category Potential
METHODIQ launched with 30 products spanning medical-grade makeup and specialized prescription protocols. The company plans additional category and product launches across 2027, including legally available prescription injectable and peptide therapies for longevity and metabolic health.
Hyperpigmentation Offering Showing Positive Customer Signals
Hyperpigmentation was described as a success story for METHODIQ, with high customer satisfaction and retention signals. The offering combines computer-vision skin assessment, personalized prescription and non-prescription treatment plans, and product sequencing intended to maximize efficacy and minimize side effects.
ODDITY Labs Advancing Product Innovation
ODDITY Labs' patented ODDL1007 molecule combination powers METHODIQ's Melanex 509 product, which targets visible skin discoloration with reduced side effects. Additional molecules are in development, with progress on pathways intended to address hyperpigmentation from multiple angles.
Continued Investment in ODDITY Labs and Technology
The company continues to invest in ODDITY Labs and its technology infrastructure, while prioritizing projects with nearer-term payback potential. Management also cited early in-vitro promise from aging-related molecules in increasing collagen synthesis and reducing aging markers.
AI Expected to Accelerate Molecule Discovery
ODDITY said AI can be leveraged materially within ODDITY Labs to speed molecule discovery and laboratory processes, supported by a dedicated team.
Large Direct-to-Consumer User Base and Broader Platform
ODDITY said it has more than 70 million users on its direct-to-consumer platform and a portfolio spanning beauty, wellness, medical-grade, cosmetics, OTC, and prescription products.
Medical-Grade Category Has Attractive Customer Economics
Management said METHODIQ is acquiring a more determined customer with attractive LTVs and good cross-sell characteristics. Although acquisition costs are higher than in makeup, the company believes AOV, retention, and expected paybacks justify the cost.
Q2 Adjusted EBITDA Beat Guidance
Adjusted EBITDA was $13 million in the second quarter, ahead of the company's outlook of $8 million to $10 million.
Strong Liquidity Position
ODDITY exited the quarter with $561 million of cash, cash equivalents, and investments. Its $350 million credit facilities remained undrawn.
Significant Share Repurchases and Debt Management
The company repurchased 5.6 million shares for $80 million during the quarter and 11.7 million shares for $163 million year-to-date, reducing ordinary shares outstanding by approximately 20%. Approximately $87 million remained on the $200 million buyback authorization. ODDITY also repurchased $50 million face value of its zero-coupon June 2030 exchangeable notes for $35 million.
Sequential Revenue Improvement Expected in Q3
The company expects third-quarter net revenue to decline approximately 5% year-over-year, representing a meaningful sequential improvement versus the first half. Adjusted EBITDA is expected to be between $18 million and $20 million.
Strong Company-Level Repeat Revenue
Management said company-level 12-month net revenue repeat rates remain well in excess of 100%, with strong repeat flow from the base business and SpoiledChild contributing to expected second-half sequential improvement.
Business Resilience Through Brand Diversification
Management said the business now has more brands, categories, and products to rely on than when ODDITY first became public or began building the business, with SpoiledChild and METHODIQ performing well despite IL MAKIAGE challenges.
Expanded Distribution and Channel Strategy
ODDITY increased efforts to make the business more resilient through more distribution and additional channels, while maintaining a focus on its direct-to-consumer model and continuing to work with advertising partners.
SpoiledChild International Expansion and 2027 Pipeline
SpoiledChild continues to expand internationally and has more than eight products and categories planned for next year. The company also plans to continue investing in its direct-to-consumer business while adding new growth levers in 2027.
Brand 4 Planned for 2027
ODDITY plans to launch BRAND 4 in 2027, alongside continued growth plans for SpoiledChild and METHODIQ.
Try Before You Buy Model Retained With Greater Flexibility
The company shifted part of acquisition away from Try Before You Buy toward Buy without a notable impact on unit economics and believes it can move 50% or more of acquisition to Buy from Try at a minimum. Management said it has no plans to eliminate the Try Before You Buy model.
Gross Margin Target Remains in the High 60s
Management reiterated long-term gross margin expectations in the high 60s and said the current year's gross margin pressure from lower AOV is not viewed as structural. The company expects to improve AOV optimization as acquisition conditions improve and has not yet optimized METHODIQ's gross margin.
Other Revenue Increased 8%
The other revenue line increased 8%, although management identified Israel as the source of this revenue and said that market has been volatile.
ODD Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed