ODDITY posts quarterly revenue of $145 million, raises annual outlook after beating plan
Key Facts
ODDITY reported on November 11 results for the third quarter ended September 30, with net revenue of $145 million, down nearly 2% year over year, and said results were ahead of plan. Adjusted EBITDA was $22 million, while the company recorded net income of $11 million and adjusted net income of $18 million. The company raised its full-year outlook for net revenue and adjusted EBITDA. The results followed previous guidance for a quarterly revenue decline of about 5% and adjusted EBITDA of $18 million to $20 million. Revenue therefore fell less than the company had expected, while adjusted EBITDA exceeded the top end of its previous range.
A comparison with the second quarter shows an improvement in the pace of the annual decline: revenue then fell 25% to $181 million from $241 million in the corresponding quarter of 2025. Adjusted EBITDA in the second quarter also fell to $13 million from $70 million a year earlier. The chief financial officer said the second-quarter revenue decline was driven by lower IL MAKIAGE sales, which were affected by disruption to its account with the company’s largest advertising partner. Management also cited higher customer acquisition costs among the pressures associated with the disruption. In the second quarter, gross profit fell to $124 million from $174 million, and gross margin narrowed to 68.7% from 72.3%.
The company said in September that net revenue was showing an early improvement in its year-over-year trend during the third quarter, as SpoiledChild and METHODIQ grew and the impact of disruption to IL MAKIAGE’s account eased. It added that it had conducted tests and implemented strategies to address signal distortion and retrain the advertising algorithm in cooperation with its largest advertising partner. The chief executive had said the company made progress in the second quarter and that results for SpoiledChild and METHODIQ were strong, expressing hope that IL MAKIAGE was on a recovery path. In its previous guidance, the company expected 2026 revenue to decline about 19%, with adjusted EBITDA ranging from $30 million to $32 million. The summary of the new announcement did not specify the revised annual outlook range.
At the brand level, ODDITY said SpoiledChild revenue grew at a double-digit rate in the second quarter, and forecast growth of at least 35% during 2026, approaching $350 million. It also expected METHODIQ revenue in its first year to exceed what SpoiledChild achieved in its first year. This growth is set against pressure on IL MAKIAGE, the brand whose sales the company said were hurt by disruption to its advertising account. These developments put the third-quarter results in the context of the company’s effort to balance weakness at its largest brand with growth at newer brands. The company reported $561 million in cash, cash equivalents and investments, as well as $350 million in undrawn credit facilities.
Before the results were announced, analyst estimates pointed to revenue of $140.5 million and earnings of $0.28 per share, with revenue expected to decline 5% year over year. Reuters reported before the announcement that the stock had fallen from its 52-week high of $46.45 to about $22, with its market capitalization down to about $1 billion. According to EL7 data, ODD shares closed at $19.51 on November 10, before the results were released. No documented post-announcement share price movement was available in the data. The company had scheduled the results for release before the market opened on November 11, followed by a call at 8:30 a.m. Eastern time.