ODDITY Tech Ltd. Class A (ODD)
NASDAQ:ODD
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ODDITY Tech Ltd. Class A
(NASDAQ:ODD)
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Rating:55Neutral
Price Target:
$11.50
▼(-25.03% Downside)
Action:Reiterated
Date:06/03/26
The score is held back primarily by weakening financial quality (negative operating/free cash flow and slowing growth) and bearish technical momentum (below key moving averages with a negative MACD). Low valuation (P/E 5.108) provides meaningful support, but the latest earnings call guidance and ongoing uncertainty around ad-platform-driven CPA normalization remain a key near-term risk.
Positive Factors
High gross margins and strong repeat cohorts
Sustained high gross margins and rising repeat revenue share underpin durable contribution margins and reduce sensitivity to new-customer acquisition costs. Strong cohorts mean a larger share of revenue from lower marginal CAC customers, supporting margin resilience and steadier unit economics as acquisition normalizes.
Negative Factors
Concentrated reliance on largest ad partner
Dependence on a single large ad partner creates a structural single-point-of-failure: algorithmic audience or platform changes can abruptly and persistently inflate acquisition costs, materially degrading new-customer economics, funnel volume and multi-quarter revenue visibility until normalization or channel diversification is achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins and strong repeat cohorts
Sustained high gross margins and rising repeat revenue share underpin durable contribution margins and reduce sensitivity to new-customer acquisition costs. Strong cohorts mean a larger share of revenue from lower marginal CAC customers, supporting margin resilience and steadier unit economics as acquisition normalizes.
Read all positive factors
ODDITY Tech Ltd. Class A (ODD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$654.95M
Dividend YieldN/A
Average Volume (3M)1.81M
Price to Earnings (P/E)12.5
Beta (1Y)1.54
Revenue Growth5.15%
EPS Growth-51.68%
CountryUS
Employees489
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.90
Shares Outstanding45,109,684
10 Day Avg. Volume2,725,708
30 Day Avg. Volume1,807,033
Financial Highlights & Ratios
PEG Ratio2.16
Price to Book (P/B)5.77
Price to Sales (P/S)2.82
P/FCF Ratio27.34
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue1.33
Enterprise Value/Gross Profit1.86
Enterprise Value/Ebitda11.88
Forecast
1Y Price Target
$10.09Price Target Upside-34.20% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering10
EPS Forecast (FY)0.24
Revenue Forecast (FY)$625.35M
ODDITY Tech Ltd. Class A Business Overview & Revenue Model
Company Description
Operating globally, Oddity Tech Ltd. and its affiliated companies function as a consumer technology enterprise. It delivers beauty and wellness merchandise, leveraging its proprietary PowerMatch technology. The firm's strategic focus is on develop...
How the Company Makes Money
ODDITY primarily makes money by selling beauty and wellness products directly to consumers through its e-commerce platforms under its owned brands. The core revenue stream is product sales (net of discounts/returns) fulfilled to end customers, wit...
ODDITY Tech Ltd. Class A Earnings Call Summary
Earnings Call Date:Jun 02, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Negative
The call reflects a company facing a material near-term operational and financial shock driven by a technical dislocation with its largest advertising partner that caused severe CPA inflation, a 26% revenue decline, damaged new-customer acquisition (first orders down ~50%), negative Q1 EBITDA and FCF outflow. Offsets include an encouraging sequential CPA improvement in May (down ~28% vs April), an ad partner estimate of 40%–60% recoverability, solid liquidity ($667M cash and undrawn $350M facility), successful remediation steps (40% of TBYB acquisition shifted without unit-economics impact), early traction for METHODIQ (targeting $25M revenue in 2026), ongoing R&D/product pipeline progress, and a sizeable share buyback. Given the severity of the revenue and acquisition headwinds and remaining uncertainty over whether the algorithmic issue will fully normalize, the negatives currently outweigh the positives, although management believes recovery is achievable in H2 2026.Positive Updates
Sequential CPA Improvement in May
IL MAKIAGE cost-per-acquisition (CPA) declined an estimated 28% sequentially from April to May, marking the first month of sequential recovery since Q4 2025 and providing a positive inflection after months of deterioration.
Negative Updates
Major Advertising Partner Algorithm Dislocation
A technical issue with the company's largest ad partner caused dramatic, sudden CPA spikes across multiple geographies (U.S., Canada, U.K., Australia, Israel), with some CPA levels ~2x higher than expected; management attributes the issue to algorithmic audience quality changes.
Read all updates
Q1-2026 Updates
Positive
Negative
Sequential CPA Improvement in May
IL MAKIAGE cost-per-acquisition (CPA) declined an estimated 28% sequentially from April to May, marking the first month of sequential recovery since Q4 2025 and providing a positive inflection after months of deterioration.
Read all positive updates
Company Guidance
ODDITY expects Q2 net revenue down 25–30% year‑over‑year with adjusted EBITDA of $8–10 million and a positive full‑year adjusted EBITDA; Q1 results were net revenue down 26% (slightly better than the prior ~30% outlook), first orders down ~50%, repeat orders down ~15%, repeat sales ~2/3 of net revenue (vs ~56% in Q1’25), AOV down low single digits, gross margin 69.7% (≈520 bps compression YoY), adjusted EBITDA of −$7M, adjusted diluted EPS −$0.17, and Q1 free cash flow −$21M; balance sheet and capital items include $667M cash/cash equivalents/investments, $350M undrawn credit facility, a $200M buyback authorization under which ~6M shares were repurchased for ~$82M (~10% reduction) with ~$167M remaining; operationally, IL MAKIAGE CPA improved an estimated 28% in May vs April, the ad partner estimates a potential 40–60% CPA recovery from their systems alone, some 2026 CPAs were as high as ~2x expectations, the company shifted ~40% of acquisition revenue from Try‑Before‑You‑Buy into standard Buy with no unit‑economics hit, and METHODIQ is expected to deliver about $25M in 2026 revenue — management hopes normalization and a return to growth and profitability in H2 if CPA trends continue.ODDITY Tech Ltd. Class A Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 739.71M | 809.84M | 647.04M | 508.69M | 324.52M | 222.56M |
| Gross Profit | 525.83M | 588.71M | 468.32M | 358.23M | 218.05M | 153.18M |
| EBITDA | 82.51M | 146.39M | 137.81M | 87.21M | 33.32M | 23.52M |
| Net Income | 51.55M | 110.75M | 101.49M | 58.53M | 21.73M | 13.92M |
Balance Sheet | ||||||
| Total Assets | 1.05B | 1.14B | 438.88M | 404.91M | 216.41M | 142.97M |
| Cash, Cash Equivalents and Short-Term Investments | 295.71M | 413.38M | 100.22M | 115.65M | 40.95M | 28.83M |
| Total Debt | 609.02M | 40.93M | 22.71M | 12.51M | 15.88M | 5.35M |
| Total Liabilities | 750.92M | 741.30M | 156.58M | 121.80M | 117.70M | 74.32M |
| Stockholders Equity | 298.91M | 396.50M | 282.30M | 283.11M | 98.70M | 68.65M |
Cash Flow | ||||||
| Free Cash Flow | -24.78M | 83.64M | 129.76M | 81.84M | 31.25M | 3.12M |
| Operating Cash Flow | -20.99M | 87.58M | 137.76M | 87.45M | 39.03M | 9.87M |
| Investing Cash Flow | -286.78M | -267.25M | 1.35M | -139.99M | -25.78M | -18.78M |
| Financing Cash Flow | 449.38M | 531.35M | -127.30M | 48.81M | -246.00K | -318.00K |
ODDITY Tech Ltd. Class A Technical Analysis
Negative
15.34
Price Trends
13.38
Negative
17.32
Negative
32.46
Negative
Market Momentum
-0.67
Negative
44.79
Neutral
82.95
Negative
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 15.34 is above the 20-day moving average (MA) of 11.59, above the 50-day MA of 13.38, and below the 200-day MA of 32.46, indicating a bearish trend. The MACD of -0.67 indicates Negative momentum. The RSI at 44.79 is Neutral, neither overbought nor oversold. The STOCH value of 82.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ODD.
ODDITY Tech Ltd. Class A Risk Analysis
ODDITY Tech Ltd. Class A disclosed 99 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 3 New Risks
1.
We may not have the ability to raise the funds necessary to settle exchanges of our Exchangeable Notes or to repurchase the Exchangeable Notes upon a fundamental change. Q4, 2025
2.
Exchange of the Exchangeable Notes may dilute the ownership interest of our shareholders or may otherwise depress the share price of our Class A ordinary shares. Q4, 2025
3.
We may lose our foreign private issuer status, which would then require us to comply with the Exchange Act's domestic reporting regime, increasing our regulatory and administrative burden. Q4, 2025
ODDITY Tech Ltd. Class A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.35B | 33.59 | 10.01% | ― | 7.19% | -36.03% | |
78 Outperform | $3.26B | 43.93 | 15.53% | ― | 18.43% | ― | |
74 Outperform | $2.31B | 49.65 | 10.20% | ― | 27.12% | ― | |
71 Outperform | $18.92B | 68.43 | 154.32% | ― | 17.61% | 119.62% | |
70 Outperform | $3.06B | ― | -3.71% | ― | 10.74% | 74.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $654.95M | 12.45 | 30.38% | ― | 5.15% | -51.68% |
* Technology Sector Average
ODD
ODDITY Tech Ltd. Class A
11.40
-59.59
-83.94%
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ODDITY Tech Ltd. Class A Corporate Events
ODDITY Tech Sets July 29, 2026 AGM to Vote on Board, Auditor and Governance Matters
Jun 16, 2026
ODDITY Tech Ltd. has scheduled its Annual General Meeting of Shareholders for July 29, 2026, in Tel Aviv, with shareholders of record as of June 22, 2026 eligible to participate and vote. The meeting will present the audited 2025 financial stateme...
ODDITY Tech to Repurchase $50 Million of Exchangeable Notes at Discount
Jun 12, 2026
On June 11, 2026, Oddity Finance LLC, a wholly owned indirect subsidiary of ODDITY Tech Ltd., entered into privately negotiated agreements to repurchase $50 million in principal amount of its 0% Exchangeable Senior Notes due 2030. The transaction ...
ODDITY Tech Swings to Q1 Loss as Ad Disruption Hits Sales but Steps Up Buybacks
Jun 2, 2026
On June 2, 2026, ODDITY Tech reported first-quarter 2026 results showing net revenue of $197.9 million, down 26% year over year, and a swing to a net loss of $21.4 million as gross margin compressed and adjusted EBITDA fell to a $7 million loss. T...
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.