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ODDITY Tech Ltd. Class A (ODD)
NASDAQ:ODD
Top Page
ODDITY Tech Ltd. Class A
(NASDAQ:ODD)
Rating:71Outperform
Price Target:
$64.00
▲(9.70% Upside)
Positive Factors
Market Expansion
ODD is placing more emphasis on international expansion by growing existing markets and conducting tests in new markets.
Sales Growth
Sales grew 27%, surpassing guidance, driven by strength at both brands and higher average order value.
Technological Differentiation
ODD's strong and profitable growth profile and enhanced technological capabilities are viewed as a differentiator versus legacy peers.
Negative Factors
Competitive Innovation
Competing beauty brands continue to innovate and are increasingly offering technology on their websites/apps to use for product matching.
Gross Margin Pressure
Gross margin is expected to contract over 200 basis points to 70% as product mix normalizes and Brand 3 launches.
Investment Impact
Management plans significant investments behind new brands and towards Oddity Labs in 2025, which it expects will drive margin contraction this year.
ODDITY Tech Ltd. Class A (ODD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.26B
Dividend YieldN/A
Average Volume (3M)1.15M
Price to Earnings (P/E)32.6
Beta (1Y)1.70
Revenue Growth26.12%
EPS Growth28.03%
CountryUS
Employees489
SectorTechnology
Sector Strength94
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.79
Shares Outstanding44,281,292
10 Day Avg. Volume1,704,043
30 Day Avg. Volume1,145,956
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)8.54
Price to Sales (P/S)3.72
P/FCF Ratio18.57
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue5.38
Enterprise Value/Gross Profit7.38
Enterprise Value/Ebitda29.69
Forecast
1Y Price Target
$74.67Price Target Upside27.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
ODDITY Tech Ltd. Class A Business Overview & Revenue Model
Company DescriptionODDITY Tech Ltd. Class A (ODD) is a technology-driven consumer company specializing in the beauty and wellness sectors. The company leverages its proprietary technology to deliver beauty and wellness products directly to consumers through its online platform. ODDITY Tech Ltd. is known for its innovative approach to product development and customer experience, utilizing data and technology to personalize offerings and enhance consumer engagement.
How the Company Makes MoneyODDITY Tech Ltd. makes money primarily through the sale of its beauty and wellness products directly to consumers via its e-commerce platform. The company employs a direct-to-consumer model, which allows it to maintain control over its branding and customer interactions, thereby enhancing profit margins. Revenue streams include product sales, subscription services for recurring purchases, and potentially exclusive partnerships with beauty influencers or brands. The company's use of data analytics and artificial intelligence also plays a significant role in optimizing marketing strategies and product recommendations, which helps increase sales and customer retention. Additionally, ODDITY Tech Ltd. may explore opportunities for monetization through strategic collaborations or technology licensing agreements within the beauty and wellness industries.
ODDITY Tech Ltd. Class A Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: -21.20%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant revenue growth and successful brand expansion. However, there were concerns regarding a slight decline in average order value and gross margin guidance. Overall, positive sentiments outweigh the challenges noted.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue grew by 26% to $509 million in the first half of 2025, surpassing financial targets for the ninth consecutive quarter since IPO.
Successful Brand Expansion
ODDITY plans to launch Brand 3 in Q4 2025 and Brand 4 in 2026, marking entry into the medical-grade space with OTC and prescription products.
International Sales Growth
International sales grew over 40% in the first half of 2025, showcasing strong performance in markets like the UK and Australia.
High Cash Flow Conversion
In the first half of 2025, ODDITY generated $99 million of free cash flow, converting more than 80% of adjusted EBITDA into free cash.
Negative Updates
Decline in Average Order Value
Average order value was down around 1%, impacted by mix changes including faster growth in international markets and an increase in repeat sales.
Gross Margin Concerns
Gross margin guidance for Q3 slightly below expectations, influenced by seasonality and fixed COGS leverage.
Company Guidance
In the second quarter of 2025, ODDITY demonstrated robust financial performance, with revenue growth of 25% year-over-year, reaching $241 million, surpassing the guidance of 22% to 24%. The company's adjusted EBITDA for the quarter was $70 million, exceeding the projected range of $65 million to $68 million, while the adjusted EBITDA margin was 28.8%, reflecting a strategic investment in growth initiatives including the launch of new brands. The adjusted diluted earnings per share stood at $0.92, above the anticipated $0.85 to $0.89. ODDITY's international sales grew over 40%, contributing to the overall success, and the company maintains a positive outlook for the remainder of the year, with full-year 2025 revenue expected to be between $799 million and $804 million, representing 23% to 24% growth. The company also highlighted its future growth drivers, including the upcoming launch of Brand 3, which will enter the medical-grade dermatology space, and continued investments in ODDITY Labs and technology.ODDITY Tech Ltd. Class A Financial Statement Overview
Summary
ODDITY Tech Ltd. Class A exhibits strong financial health across all verticals. The Income Statement highlights significant revenue and profit growth, supported by high margins. The Balance Sheet is solid, with low leverage and strong equity metrics. Cash Flow analysis reveals excellent cash generation and growth, underscoring financial robustness and potential for sustained performance.Income Statement
The company demonstrates strong revenue growth, with a significant increase in Total Revenue from $222.6 million in 2021 to $703.5 million in TTM 2025. Gross Profit Margin remains high at 72.9% TTM, indicating effective cost control and pricing power. The Net Profit Margin has improved to 15.1% TTM, showing enhanced profitability. EBIT and EBITDA margins have also strengthened, supporting the company's operating efficiency.87
Very Positive
Balance Sheet
The balance sheet reflects a healthy financial position with a Debt-to-Equity Ratio of 0.07, indicating low leverage. Return on Equity is robust at 32.2% TTM, implying effective use of equity capital. The Equity Ratio is 61.7% TTM, suggesting a solid equity base relative to assets. The company's asset management and capital structure are well-balanced, providing stability.82
Very Positive
Cash Flow
Cash flow performance is impressive, with strong Operating Cash Flow of $146.5 million TTM. Free Cash Flow shows consistent growth, increasing by 6.2% from 2024 to TTM 2025, and the Free Cash Flow to Net Income Ratio is a healthy 1.30, indicating efficient cash conversion. The Operating Cash Flow to Net Income Ratio of 1.38 suggests robust cash generation relative to earnings.90
Very 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
Negative
58.34
Price Trends
69.82
Negative
62.51
Negative
53.46
Positive
Market Momentum
-3.35
Positive
38.68
Neutral
21.63
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 58.34 is below the 20-day moving average (MA) of 64.94, below the 50-day MA of 69.82, and above the 200-day MA of 53.46, indicating a neutral trend. The MACD of -3.35 indicates Positive momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 21.63 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 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 | $18.30B | 8.36 | 69.34% | 7.64% | 28.65% | 6.05% | |
73 Outperform | $25.07B | 125.40 | 14.51% | ― | 26.11% | ― | |
71 Outperform | $3.26B | 32.56 | 30.36% | ― | 26.12% | 28.03% | |
67 Neutral | $9.09B | ― | -6.42% | ― | 33.17% | 82.85% | |
64 Neutral | $5.51B | ― | -26.98% | ― | 28.19% | -31.34% | |
61 Neutral | $36.30B | 7.26 | -7.27% | 1.97% | 7.74% | -7.92% | |
57 Neutral | $6.15B | ― | -32.18% | ― | 23.02% | 21.01% |
* Technology Sector Average
Performance Comparison
ODD
ODDITY Tech Ltd. Class A
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20.30
50.97%
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43.15
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KVYO
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31.43
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KSPI
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-21.88%
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.