Oddity Tech Ltd. (NASDAQ:ODD) shares rose 23.99% in premarket trading on Wednesday after the beauty and wellness technology company reported second-quarter earnings and revenue above analyst expectations and provided its third-quarter outlook.
Adjusted earnings per share were $0.20, compared with the analyst consensus estimate of $0.19.
Revenue totalled $181 million, exceeding the analyst estimate of $176.48 million but declining 25% year over year from $241 million.
The company attributed the revenue decline to continuing advertising algorithm issues affecting its IL MAKIAGE brand.
“We made progress during the quarter, including strong results for both SpoiledChild and METHODIQ,” said Oran Holtzman, ODDITY co-founder and CEO. “We remain hopeful that IL MAKIAGE is on track to achieve normalization and we continue to work in close partnership with our largest advertising partner to solve the technical issue.”
Q2 adjusted EBITDA falls to $13 million
Oddity reported adjusted EBITDA of $13 million for the second quarter, compared with $70 million in the prior-year period.
Net income declined to $13 million from $49 million, while gross margin was 68.7%, compared with 72.3% a year earlier.
At the end of the period, the company reported $561 million in cash, cash equivalents and investments.
Oddity repurchased approximately 5.6 million Class A ordinary shares for $80 million during the quarter and retired $50 million of exchangeable notes.
Oddity expects Q3 revenue to decline about 5%
For the third quarter, Oddity expects revenue to decline approximately 5% year over year.
The company forecasts adjusted EBITDA of between $18 million and $20 million.
For full-year 2026, Oddity expects revenue to decline approximately 19% from the previous year, with adjusted EBITDA forecast at between $30 million and $31 million.
Oddity Tech stock price
