ODDITY Tech Ltd. (NASDAQ:ODD) shares are trading lower Wednesday after the company reported fourth-quarter financial results and issued first-quarter sales guidance below estimates.
Double Beat Overshadowed By Weak Q1 Outlook
The company reported adjusted earnings per share of 20 cents, beating the consensus estimate of 13 cents. In addition, Oddity reported revenue of $152.72 million, beating the consensus estimate of $151.04 million.
“ODDITY delivered strong fourth quarter results to cap off a record breaking 2025, once again exceeding our guidance across revenue, profit, and earnings per share like we did in the past 11 consecutive quarters since going public,” said Oran Holtzman, Oddity co-founder and CEO.
“The strength of our business, reflected in strong sales from repeat customers, allowed us to deliver excellent financial results, with double digit revenue growth from both IL MAKIAGE and SpoiledChild. We also continued to invest in our future growth drivers, including a successful launch of our 3rd brand METHODIQ during the fourth quarter with strong early signs.”
Oddity ended the quarter with $776 million in cash, cash equivalents and investments.
Looking ahead, the company said it expects first-quarter revenue to decline approximately 30% year-over-year, citing disruption with its largest advertising partner that led to higher customer acquisition costs. Specifically, it sees first-quarter revenue of $187.65 million, well below the consensus estimate of $323.20 million, according to Benzinga Pro.
“We believe we recently identified the root cause of the problem and have already implemented significant actions that we hope will drive meaningful progress in Q2 and return our acquisition costs to normal levels in Q3 or Q4,” Holtzman added.
Oddity noted that it plans to issue its financial outlook for fiscal 2026 in the next few months when the company has more visibility into the dislocation it’s experiencing with acquisition costs.
Oddity Shares Plummet After Q4 Results
ODD Price Action: At the time of writing, Oddity shares are trading 52.79% lower at $13.79, according to data from Benzinga Pro.
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