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.
Management attributed the disruption primarily to an advertising-algorithm problem affecting IL MAKIAGE. Oddity Tech Ltd. (NASDAQ:ODD) expects third-quarter revenue to decline approximately 5% year over year, with adjusted EBITDA of $18 million to $20 million. The sequential improvement describes a narrowing year-over-year revenue decline.
Management's diagnosis centers on distorted advertising signals that impair IL MAKIAGE's ability to reach suitable customers at acceptable acquisition costs. Oddity Tech Ltd. (NASDAQ:ODD) is testing changes with its largest advertising partner to retrain the algorithm. If those changes restore profitable customer acquisition, the existing brand could recover without a fundamental overhaul of its products.
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.
These results support the argument that Oddity Tech Ltd. (NASDAQ:ODD) can build additional brands using its technology platform. A broader sales base could gradually reduce dependence on IL MAKIAGE, while successful customer retention would help recover upfront advertising spending over multiple purchases.
#revenue #NASDAQ #advertising #expects
Management attributed the disruption primarily to an advertising-algorithm problem affecting IL MAKIAGE. Oddity Tech Ltd. (NASDAQ:ODD) expects third-quarter revenue to decline approximately 5% year over year, with adjusted EBITDA of $18 million to $20 million. The sequential improvement describes a narrowing year-over-year revenue decline.
Management's diagnosis centers on distorted advertising signals that impair IL MAKIAGE's ability to reach suitable customers at acceptable acquisition costs. Oddity Tech Ltd. (NASDAQ:ODD) is testing changes with its largest advertising partner to retrain the algorithm. If those changes restore profitable customer acquisition, the existing brand could recover without a fundamental overhaul of its products.
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.
These results support the argument that Oddity Tech Ltd. (NASDAQ:ODD) can build additional brands using its technology platform. A broader sales base could gradually reduce dependence on IL MAKIAGE, while successful customer retention would help recover upfront advertising spending over multiple purchases.
#revenue #NASDAQ #advertising #expects
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