ODDITY Tech Ltd. Class A (ODD) AI Stock Analysis

• Market Cap: $1.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 1.52
• Revenue Growth: 25.80%
• EPS Growth: 10.73%
• Country: US
• Employees: 489
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.20
• Shares Outstanding: 45,891,872
• 10 Day Avg. Volume: 3,764,323
• 30 Day Avg. Volume: 1,814,782
• PEG Ratio: 2.16
• Price to Book (P/B): 5.77
• Price to Sales (P/S): 2.82
• P/FCF Ratio: 27.34
• Enterprise Value/Market Cap: 0.29
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 0.81
• Enterprise Value/Ebitda: 3.46
• 1Y Price Target: $18.22
• Price Target Upside: 23.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.13
• Revenue Forecast (FY): $743.71M

• Rating: 69 Neutral
• Price Target: $16.00 ▲(8.55% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is supported primarily by strong financial fundamentals (profitability and a low-debt balance sheet) and an attractive P/E. It is held back by very weak technical momentum and a cautious earnings-call outlook with near-term revenue declines, elevated acquisition costs, and limited guidance visibility.

Positive Factors

Revenue Scaling / Product Demand

Multi-year revenue scaling to $810M in 2025 demonstrates durable product-market fit for ODDITY’s AI-driven commerce and subscription offerings. Sustained demand across core brands and repeat purchase behavior support predictable revenue streams and long-term market penetration beyond short-term ad cycles.

High Gross Margins & Profitability

Very high gross margins and a 20% adjusted EBITDA margin reflect structurally advantaged unit economics from software, platform and branded commerce integration. This margin base provides durable capacity to invest in R&D, marketing, and new brands while retaining the ability to generate operating profits as the business scales.

Strong Balance Sheet & Cash Generation

Large cash reserves, positive annual free cash flow and a newly expanded $350M undrawn credit line provide financial flexibility to fund product development, weather temporary marketing disruptions, pursue M&A or maintain buybacks. Conservative leverage supports resilience over a multi‑quarter horizon.

Negative Factors

Ad Partner Concentration & Algorithm Risk

Heavy reliance on a single advertising partner creates structural execution risk: algorithm changes doubled acquisition costs and materially depressed near-term revenue. Sustained dependence increases volatility in new user acquisition economics and forces strategic shifts (channel diversification) to secure long-term growth.

Rising Customer Acquisition Costs & Margin Pressure

A sustained increase in ad spend and elevated CPAs compress operating margins and reduce the payoff from scale. If higher marketing intensity or worse acquisition economics persist, adjusted EBITDA and FCF will be structurally constrained, limiting reinvestment capacity and forcing tougher unit‑economics decisions.

Cash Flow Volatility & Reinvestment Needs

Although FCF remained positive, a meaningful drop and a sharp asset increase in 2025 indicate working‑capital swings and heavier reinvestment. Continued cash‑flow volatility raises funding risk for growth initiatives and may require using credit or slowing returns if new investments don’t translate into steady earnings.

ODDITY Tech Ltd. Class A Business Overview & Revenue Model

Company Description

Oddity Tech Ltd., together with its subsidiaries, operates as a consumer-tech company worldwide. The company provides beauty and wellness products utilizing its PowerMatch technology. It builds and scales digital-first brands to disrupt the offline-dominated beauty and wellness industries. The company offers products for face and complexion, eyes and brows, lips, and skin care under the IL MAKIAGE brand; and hair and skin care products under the SpoiledChild brand. The company was incorporated in 2013 and is based in Tel Aviv-Jaffa, Israel.

How the Company Makes Money

ODDITY Tech Ltd. generates revenue primarily through a subscription-based model, offering its technology solutions and platforms to beauty brands on a recurring basis. Key revenue streams include subscription fees from brands utilizing its AI-driven analytics tools, transaction fees from e-commerce sales facilitated through its platform, and consulting services that help brands optimize their marketing strategies. Additionally, the company may benefit from significant partnerships with major beauty retailers and brands, providing access to a larger customer base and enhancing its market presence. These partnerships can also lead to collaborative marketing efforts and shared revenue opportunities.

ODDITY Tech Ltd. Class A Financial Statement Overview

Summary

Strong overall fundamentals: rapid multi-year revenue scaling and solid profitability, supported by a conservatively levered balance sheet. Offsetting factors include 2025 growth deceleration, signs of margin pressure, and a notable step-down/volatility in operating cash flow and free cash flow versus 2024.

Income Statement

Revenue has scaled rapidly over the last several years (from $111M in 2020 to $810M in 2025), showing strong product demand and business momentum, though 2025 growth slowed materially versus the prior two years. Profitability is a clear strength: gross profit has remained high and net income increased to $111M in 2025. A watch item is that operating profit appears to have grown much more slowly than revenue in 2025, suggesting some margin pressure or higher operating investment as the company scales.

Balance Sheet

The balance sheet is conservatively levered, with low debt relative to equity across the period (debt-to-equity stayed well under 0.2 in the years provided). Equity has expanded significantly, and the company has posted strong returns on equity in 2023–2024, indicating efficient capital use. The main caution is that total assets jumped sharply in 2025, which may imply heavier reinvestment or balance sheet expansion that needs to translate into sustained earnings and cash generation.

Cash Flow

Cash generation is generally solid: free cash flow has been positive each year provided and was ~$84M in 2025. In 2023–2024, free cash flow tracked closely with net income, supporting earnings quality. However, cash flow volatility is a key weakness—operating cash flow fell meaningfully in 2025 versus 2024 and free cash flow declined about 18% in 2025, indicating potentially higher working-capital needs or timing effects that bear monitoring.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	809.84M	647.04M	508.69M	324.52M	222.56M
Gross Profit	588.71M	468.32M	358.23M	218.05M	153.18M
EBITDA	129.46M	125.43M	82.92M	32.07M	23.52M
Net Income	110.75M	101.49M	58.53M	21.73M	13.92M
Balance Sheet
Total Assets	1.14B	438.88M	404.91M	216.41M	142.97M
Cash, Cash Equivalents and Short-Term Investments	413.38M	100.22M	115.65M	40.95M	28.83M
Total Debt	40.93M	22.71M	12.51M	15.88M	5.35M
Total Liabilities	741.30M	156.58M	121.80M	117.70M	74.32M
Stockholders Equity	396.50M	282.30M	283.11M	98.70M	68.65M
Cash Flow
Free Cash Flow	83.64M	129.76M	81.84M	31.25M	3.12M
Operating Cash Flow	87.58M	137.76M	87.45M	39.03M	9.87M
Investing Cash Flow	-267.25M	1.35M	-139.99M	-25.78M	-18.78M
Financing Cash Flow	531.35M	-127.30M	48.81M	-246.00K	-318.00K

ODDITY Tech Ltd. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODD, the sentiment is Negative. The current price of 14.74 is below the 20-day moving average (MA) of 29.65, below the 50-day MA of 35.03, and below the 200-day MA of 53.69, indicating a bearish trend. The MACD of -2.78 indicates Positive momentum. The RSI at 18.59 is Positive, neither overbought nor oversold. The STOCH value of 30.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ODD.

ODDITY Tech Ltd. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLBT	73 Outperform	$3.02B	43.78	19.10%	―	18.37%	―
PAYO	71 Outperform	$1.79B	27.62	9.79%	―	10.58%	-45.52%
ODD	69 Neutral	$1.67B	8.20	32.63%	―	25.80%	10.73%
DOCN	68 Neutral	$5.74B	23.59	―	―	14.20%	204.86%
AVPT	66 Neutral	$2.19B	―	0.58%	―	24.71%	99.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TENB	60 Neutral	$2.18B	-63.29	-9.95%	―	11.05%	45.23%

ODDITY Tech Ltd. Class A Corporate Events

ODDITY Tech Posts Record 2025 Results but Warns of Q1 2026 Revenue Hit from Ad Disruption

ODDITY Tech reported record results for 2025 on February 25, 2026, with fourth quarter net revenue up 24% year over year to $153 million and full-year revenue up 25% to $810 million, both above prior guidance. The company also delivered full-year adjusted EBITDA of $163 million, strong cash generation with $84 million in free cash flow and ended 2025 with $776 million in cash and investments plus amended credit facilities totaling $350 million.

Management highlighted continued double-digit growth from IL MAKIAGE and SpoiledChild and the successful fourth-quarter launch of its third brand, METHODIQ, while continuing to invest in the ODDITY LABS platform. However, CEO Oran Holtzman disclosed a significant disruption with the firm’s largest advertising partner that has sharply raised new user acquisition costs, leading ODDITY to forecast an approximately 30% year-over-year revenue decline in the first quarter of 2026 even as it expects gradual recovery later in the year and maintains its share buyback program with $103 million remaining authorized through mid-2027.

The most recent analyst rating on (ODD) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on ODDITY Tech Ltd. Class A stock, see the ODD Stock Forecast page.

ODDITY Tech Secures Expanded $350 Million Credit Facilities to Fund Growth

On January 12, 2026, ODDITY Tech Ltd. disclosed that it has amended its existing agreements with a syndicate of banks to secure expanded credit facilities totaling $350 million, effective January 15, 2026, replacing its previous $200 million lines of credit. The new undrawn facilities, available for three years through January 14, 2029, are designed to enhance the company’s financial flexibility to support growth initiatives, acquisitions, share buybacks and other general corporate purposes, with borrowings priced at SOFR plus 2.7% for term loans maturing January 14, 2031 and a 0.3% commitment fee on unused amounts; the facilities are backed by a negative pledge and subsidiary guarantees and include standard covenants, notably a net debt-to-EBITDA cap of 4x, underscoring a balanced approach to leveraging for expansion while maintaining financial discipline for stakeholders.

The most recent analyst rating on (ODD) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on ODDITY Tech Ltd. Class A stock, see the ODD Stock Forecast page.

ODDITY Tech Announces Leadership Change at ODDITY LABS, Affirms Outlook

On January 7, 2026, ODDITY Tech Ltd. reported that Dr. Ido Bachelet, formerly Chief Science Officer of ODDITY LABS, is no longer employed by the company, with his responsibilities redistributed among the existing ODDITY LABS leadership team. The company emphasized that his departure did not stem from any disagreement over operations, policies, or practices and stated that the organizational change is not expected to affect its financial outlook or disrupt ODDITY LABS’ operations, including current product development and commercialization timelines, signaling continuity and stability for stakeholders despite the leadership change.

The most recent analyst rating on (ODD) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on ODDITY Tech Ltd. Class A stock, see the ODD Stock Forecast page.