Oddity Tech Ltd. (ODD): A Bull Case Theory

We came across a bullish thesis on Oddity Tech Ltd. on Business Ontology’s Substack by Lorenzo Bastianelli. In this article, we will summarize the bulls’ thesis on ODD. Oddity Tech Ltd. 's share was trading at $62.82 as of September 12th. ODD’s trailing P/E was 34.90 according to Yahoo Finance.

Oddity (ODD) continues to demonstrate its ability to consistently execute on its growth strategy, positioning itself as a leading player in the beauty and emerging medical-grade healthcare markets. In Q2, the company grew revenue 25% year-over-year to $241 million and generated $70 million in adjusted EBITDA, bringing LTM revenue to $752 million with $130 million in free cash flow, while trading at roughly 30x FCF. Originally focused on makeup, Oddity has expanded into skin, hair, and now medical-grade prescription and OTC products through its upcoming Brand 3 telehealth platform.

This move leverages its 60+ million-user base and targets dermatology as a high-demand, high-friction entry point, addressing consumer dissatisfaction with conventional solutions and limited access to dermatologists. Personalized treatment plans, powered by AI, computer-vision technology, and mobile coaching, provide a differentiated and scalable approach that demonstrates meaningful improvements over standard treatments.

Oddity’s data-driven, direct-to-consumer model forms a self-reinforcing flywheel: user insights inform product development, which drives superior results, enhances engagement, and generates actionable feedback for ongoing refinement. CEO Oran Holtzman and CFO Lindsay Drucker Mann emphasize sustainable, compounding growth with 20% revenue growth and EBITDA margins, resisting short-term pull-forwards. Despite lingering skepticism from past short reports, the company’s audited financials, strong Trustpilot scores, and expanding portfolio validate its model.

Brand 3, alongside future Brand 4, represents a major growth catalyst, potentially pushing revenue growth beyond 25% YoY by late 2026. Even assuming modest growth, Oddity’s valuation appears compelling, with significant upside potential driven by continued execution, new market expansion, and the reinforcement of its technology-driven, consumer-focused strategy. Overall, Oddity remains a highly asymmetric investment with multiple levers for meaningful long-term value creation.

Previously we covered a bullish thesis on Oddity Tech Ltd. (ODD) by Lorenzo Bastianelli in May 2025, which highlighted the company’s strong revenue growth, AI-driven direct-to-consumer model, high repeat purchase rates, and the upcoming launch of Brand 3 telehealth platform into medical-grade skincare. The company's stock price has depreciated approximately by 1.6% since our coverage. The thesis still stands as Oddity continues executing its multi-sector growth strategy. Bastianelli shares an identical perspective but emphasizes Q2 results, LTM revenue, free cash flow, and the AI-driven flywheel reinforcing product innovation and user engagement.

Oddity Tech Ltd. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held ODD at the end of the second quarter which was 23 in the previous quarter. While we acknowledge the potential of ODD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.