Oddity Tech’s Revenue Fell 25%. Is the IL MAKIAGE Advertising Fix Working?
Oddity Tech Ltd. (NASDAQ: ODD ) reported second-quarter revenue of approximately $181 million on September 9, down 25% from $241 million a year earlier. Company-defined non-GAAP adjusted EBITDA fell to $13 million from $70 million. This measure excludes net financial income, income taxes, depreciation and amortization, share-based compensation, and certain unusual or nonrecurring items from net income.
Other brands provide operating evidence beyond that hypothesis. SpoiledChild delivered double-digit quarterly revenue growth, and management expects at least 35% growth for 2026, approaching $350 million in revenue. Management expects METHODIQ's first-year revenue to exceed SpoiledChild's first-year result.
Second-quarter adjusted EBITDA also exceeded management's $8 million to $10 million guidance. That shows some ability to manage through the disruption, although profitability remains well below its previous level.
That could slow the recovery. Even if new-customer acquisition improves, rebuilding the pool of customers available for repeat purchases takes time. Competition or weaker demand could also prevent a technical repair from restoring previous customer economics.
Gross margin fell to 68.7% from 72.3%, while adjusted EBITDA margin, calculated as adjusted EBITDA divided by revenue, dropped to 7.1% from 28.8%. Revenue recovery must therefore improve both acquisition efficiency and the profit retained from each sale.
Oddity Tech Ltd. (NASDAQ:ODD) now forecasts a full-year revenue decline of approximately 19% and adjusted EBITDA of $30 million to $32 million. Growth at newer brands could improve consolidated results before IL MAKIAGE itself recovers.
The filings available so far reflect positions held before Oddity Tech Ltd. (NASDAQ:ODD) reported its second-quarter results. Insider Monkey's database showed 15 hedge funds holding Oddity Tech Ltd. (NASDAQ:ODD) at the end of 2Q2026, down from 19 funds three months earlier.
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