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ODDITY Tech Ltd. Class A (ODD)
NASDAQ:ODD
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ODDITY Tech Ltd. Class A
(NASDAQ:ODD)
Rating:74Outperform
Price Target:
$67.00
▲(6.35% Upside)
Positive Factors
Guidance and Growth Prospects
Management has raised 2025 guidance across all metrics, expecting significant revenue growth and improved EBITDA margins.
Sales and Financial Performance
The company's sales grew by 27%, surpassing guidance, driven by strength at both brands and higher average order value.
Technological Differentiation
ODD is disrupting the beauty & wellness market with its differentiated tech platform that uses AI, leveraging its vast consumer dataset.
Negative Factors
Investment Impact on Margins
Management plans significant investments behind new brands and towards Oddity Labs in 2025, which it expects will drive margin contraction this year.
Market Competition
Competing beauty brands continue to innovate and are increasingly offering technology on their websites/apps to use for product matching.
ODDITY Tech Ltd. Class A (ODD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.47B
Dividend YieldN/A
Average Volume (3M)927.50K
Price to Earnings (P/E)34.7
Beta (1Y)1.68
Revenue Growth26.12%
EPS Growth28.03%
CountryUS
Employees489
SectorTechnology
Sector Strength83
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.79
Shares Outstanding44,281,292
10 Day Avg. Volume361,024
30 Day Avg. Volume927,503
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue5.38
Enterprise Value/Gross Profit7.38
Enterprise Value/Ebitda29.69
Forecast
1Y Price Target
$75.60Price Target Upside20.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
ODDITY Tech Ltd. Class A Business Overview & Revenue Model
Company DescriptionOddity 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 MoneyODDITY Tech Ltd. generates revenue primarily through its direct-to-consumer e-commerce platform, where it sells a variety of beauty and wellness products. The company utilizes a subscription model that allows customers to receive personalized product recommendations and replenishments on a regular basis, ensuring steady cash flow and customer retention. Additional revenue streams include partnerships with beauty brands for exclusive product launches and collaborations, as well as data monetization by providing insights and analytics to other companies in the beauty and wellness industry. The integration of advanced technology enhances customer experience, driving higher conversion rates and increasing average order values, further contributing to its earnings.
ODDITY Tech Ltd. Class A Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
ODDITY demonstrated strong financial performance with significant revenue growth, international expansion, and successful product diversification. Despite some challenges with average order value and gross margin compression, the company's strong cash position and successful execution of growth initiatives contributed to an overall positive outlook.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
ODDITY reported a 26% revenue increase to $509 million for the first half of 2025, with a second-quarter revenue growth of 25% to $241 million, surpassing guidance expectations.
Record Adjusted EBITDA and Free Cash Flow
The company generated adjusted EBITDA of $122 million and free cash flow of $99 million in the first half of 2025, surpassing the full-year totals for 2023.
International Expansion Success
International sales grew over 40%, reaching $85 million in the first half, with strong performance in established markets such as the U.K. and Australia.
Brand and Product Diversification
ODDITY is on track to launch Brand 3, entering the medical-grade space in dermatology, with plans for Brand 4 in the following year. SpoiledChild is expected to reach $200 million in revenue this year.
Strong Cash Position
ODDITY finished the quarter with $815 million in cash, cash equivalents, and investments, supported by a $600 million exchangeable note offering.
Negative Updates
Decrease in Average Order Value
The average order value was down around 1% due to mix, including faster growth in international markets and an increase in the mix of repeat sales.
Gross Margin Compression
Adjusted EBITDA margin compressed by around 350 basis points due to planned growth investments, with a gross margin impacted by tariffs expected to be a headwind to the tune of 100 basis points.
Company Guidance
During ODDITY's Second Quarter 2025 Earnings Conference Call, the company reported a strong performance with revenue growth of 26% to $509 million for the first half of 2025, and adjusted EBITDA of $122 million. Free cash flow was $99 million, surpassing the figures for the entire year of 2023. In Q2 alone, net revenue increased by 25% to $241 million, beating the guidance of 22%-24% growth. The company maintained a robust gross margin of 72.3%, exceeding the expected 70.5%. Adjusted EBITDA for Q2 was $70 million, with an adjusted EBITDA margin of 28.8%. ODDITY's strategic focus on expanding internationally and launching new brands was highlighted, with IL MAKIAGE projected to reach $1 billion in revenue by 2028 and SpoiledChild expected to surpass $200 million in revenue in 2025. The company plans to launch Brand 3, targeting the medical-grade dermatology market with innovative, personalized products, in Q4 2025, and Brand 4 in 2026. For the full year 2025, ODDITY anticipates net revenue between $799 million and $804 million, representing 23%-24% growth, with a gross margin of 71% and adjusted EBITDA between $160 million and $162 million.ODDITY Tech Ltd. Class A Financial Statement Overview
Summary
ODDITY Tech Ltd. Class A shows strong financial health with consistent revenue growth and profitability. The company maintains a solid balance sheet with low leverage and high return on equity. While cash flow generation is robust, the negative growth in free cash flow warrants attention.Income Statement
ODDITY Tech Ltd. Class A demonstrates strong revenue growth with a TTM increase of 6.88%. The company maintains a high gross profit margin of 72.93% and a solid net profit margin of 14.65%, indicating efficient cost management and profitability. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting potential pressure on operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet is robust with a low debt-to-equity ratio of 0.065, reflecting minimal leverage and financial stability. The return on equity is impressive at 33.29%, showcasing effective use of shareholder funds to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.80
Positive
Cash Flow
ODDITY Tech Ltd. Class A has a strong operating cash flow to net income ratio of 1.06, indicating good cash generation from operations. However, the free cash flow growth rate is negative at -8.47%, which could signal potential challenges in maintaining cash reserves. The free cash flow to net income ratio remains healthy at 0.94, suggesting efficient conversion of profits into cash.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 751.85M | 647.04M | 508.69M | 324.52M | 222.56M | 110.64M |
| Gross Profit | 548.32M | 468.32M | 358.23M | 218.05M | 153.18M | 77.83M |
| EBITDA | 136.37M | 125.43M | 82.92M | 32.07M | 23.52M | 20.92M |
| Net Income | 110.13M | 101.49M | 58.53M | 21.73M | 13.92M | 11.71M |
Balance Sheet | ||||||
| Total Assets | 1.10B | 438.88M | 404.91M | 216.41M | 142.97M | 81.75M |
| Cash, Cash Equivalents and Short-Term Investments | 678.68M | 100.22M | 115.65M | 40.95M | 28.83M | 39.77M |
| Total Debt | 22.85M | 22.71M | 12.51M | 15.88M | 5.35M | 5.49M |
| Total Liabilities | 746.66M | 156.58M | 121.80M | 117.70M | 74.32M | 29.40M |
| Stockholders Equity | 351.24M | 282.30M | 283.11M | 98.70M | 68.65M | 52.35M |
Cash Flow | ||||||
| Free Cash Flow | 126.08M | 129.76M | 81.84M | 31.25M | 3.12M | 19.75M |
| Operating Cash Flow | 133.71M | 137.76M | 87.45M | 39.03M | 9.87M | 23.02M |
| Investing Cash Flow | 17.25M | 1.35M | -139.99M | -25.78M | -18.78M | 6.67M |
| Financing Cash Flow | 418.76M | -127.30M | 48.81M | -246.00K | -318.00K | 161.00K |
ODDITY Tech Ltd. Class A Technical Analysis
Positive
63.00
Price Trends
66.52
Negative
65.09
Negative
54.77
Positive
Market Momentum
-1.12
Negative
52.02
Neutral
84.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODD, the sentiment is Positive. The current price of 63 is above the 20-day moving average (MA) of 60.30, below the 50-day MA of 66.52, and above the 200-day MA of 54.77, indicating a neutral trend. The MACD of -1.12 indicates Negative momentum. The RSI at 52.02 is Neutral, neither overbought nor oversold. The STOCH value of 84.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ODD.
ODDITY Tech Ltd. Class A Risk Analysis
ODDITY Tech Ltd. Class A disclosed 95 risk factors in its most recent earnings report. ODDITY Tech Ltd. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ODDITY Tech Ltd. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $17.62B | 7.94 | 69.34% | 8.26% | 28.65% | 6.05% | |
74 Outperform | $3.47B | 34.67 | 30.36% | ― | 26.12% | 28.03% | |
73 Outperform | $23.97B | 119.89 | 14.51% | ― | 26.11% | ― | |
65 Neutral | $6.06B | ― | -27.34% | ― | 25.39% | -42.90% | |
63 Neutral | $9.34B | ― | -6.42% | ― | 33.17% | 82.85% | |
61 Neutral | $35.52B | 8.84 | -11.06% | 1.87% | 8.55% | -8.14% | |
57 Neutral | $6.40B | ― | -32.18% | ― | 23.02% | 21.01% |
* Technology Sector Average
Performance Comparison
ODD
ODDITY Tech Ltd. Class A
63.00
29.87
90.16%
CFLT
Confluent
19.34
-0.61
-3.06%
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18.73
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TOST
Toast Inc
41.22
17.60
74.51%
KVYO
Klaviyo, Inc. Class A
32.19
2.07
6.87%
KSPI
Kaspi.kz JSC Sponsored ADR RegS
88.62
-32.71
-26.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.