ODDITY Tech Ltd. Class A ((ODD)) has held its Q3 earnings call. Read on for the main highlights of the call.
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ODDITY Tech Ltd. Class A recently held its earnings call, revealing a robust financial performance that exceeded expectations. The company reported significant growth in both revenue and earnings, driven by successful strategic initiatives and international expansion. Despite facing challenges such as higher acquisition costs and a slight decline in average order value, ODDITY’s strong repeat purchase rates and successful brand launches contributed to a positive outlook.
Strong Financial Performance
ODDITY reported a remarkable 24% growth in revenue and a similar 24% increase in adjusted diluted earnings per share year-over-year. These figures not only exceeded the company’s targets but also led to an upward revision of its full-year guidance. This strong financial performance underscores ODDITY’s effective execution of its growth strategies.
Successful Launch of METHODIQ
The launch of METHODIQ, ODDITY’s third brand, was a notable highlight. Focused on dermatology, METHODIQ includes a line of 28 prescription and nonprescription products. The brand’s successful introduction is part of ODDITY’s strategy to expand into new medical domains, further diversifying its product offerings.
International Expansion
ODDITY’s international revenue saw a substantial increase of around 40% year-over-year in the first nine months of 2025. The company successfully scaled its operations in key markets such as the U.K. and Australia, contributing significantly to its overall growth.
Growth in IL MAKIAGE and SpoiledChild
The company’s brands, IL MAKIAGE and SpoiledChild, continued to show strong growth. IL MAKIAGE achieved double-digit online growth and is on track to reach $1 billion in revenue by 2028. Meanwhile, SpoiledChild is expected to surpass $225 million in revenue in 2025, highlighting the strength of ODDITY’s brand portfolio.
ODDITY LABS Progress
ODDITY LABS is making significant strides, with plans to have at least eight products featuring proprietary molecules on the market by 2026. This progress is expected to contribute to strong commercial discoveries and enhance the company’s competitive edge.
Higher Acquisition Costs
The company faced higher acquisition costs, which impacted its overall expenses. However, these costs were partially offset by higher repeat purchase rates, demonstrating the loyalty of ODDITY’s customer base.
Average Order Value Decline
ODDITY experienced a slight decline of around 1% in average order value, primarily due to faster growth in international markets, which typically have a lower average order value. Despite this, the company’s overall growth trajectory remains strong.
Forward-Looking Guidance
During the earnings call, ODDITY raised its full-year guidance, now expecting net revenue between $806 million and $809 million, representing 24% to 25% growth. The company also anticipates a gross margin of approximately 72.5%. This optimistic outlook is supported by the successful launch of METHODIQ and strong international market performance.
In conclusion, ODDITY Tech Ltd. Class A’s recent earnings call highlighted a period of significant growth and strategic success. The company’s ability to exceed financial targets, coupled with its successful brand launches and international expansion, paints a positive picture for its future. Despite some challenges, ODDITY’s strong performance and forward-looking guidance suggest continued momentum in the coming quarters.