ODDITY Tech Reports Q2 Earnings Amid Advertising Disruption
ODDITY Tech (NASDAQ: ODD) reported second-quarter revenue of $181 million for the quarter ending June 30, 2026, a decline of 25% year-over-year. The drop was primarily attributed to increased customer-acquisition costs at its IL MAKIAGE brand due to an advertising-account disruption with its largest ad partner. Despite this challenge, adjusted EBITDA came in stronger than expected at $13 million versus guidance of $8–$10 million. Management described the issue as technical and related to audience targeting within the algorithm used by their main advertising platform rather than a decline in brand demand or performance. The company expects growth to resume once this is resolved, with CEO Oran Holtzman noting that IL MAKIAGE has product pipelines ready for launch when customer acquisition costs normalize. Meanwhile, other brands under ODDITY's portfolio showed promise: SpoiledChild is projected to grow by at least 35% in 2026 and newer brand METHODIQ demonstrated early traction. The company ended the quarter with $561 million in cash and investments and repurchased $80 million of shares, signaling continued confidence despite near-term headwinds.
Tickers: $ODD
Topics: adjusted_ebitda customer_acquisition_costs revenue_decline share_repurchase