Oddity Tech Reports Significant Q1 Loss Amid Rising Acquisition Costs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: stocktwits
- Financial Performance Decline: Oddity Tech's Q1 net revenue fell 26% to $197.9 million, although it exceeded Wall Street's estimate of $187.9 million, the company reported a significant net loss of $21.3 million, indicating severe impairment of profitability.
- Surge in Customer Acquisition Costs: The company noted that the rise in cost per acquisition (CPA) was due to technical issues rather than weakening brand demand, with the CPA index jumping 83% year-over-year in Q1, which materially impacted adjusted EBITDA.
- Pessimistic Future Revenue Outlook: Oddity expects Q2 revenue to decline by 25% to 30% year-over-year, further affecting repeat business, although the company hopes to return to profitability in the second half of 2026.
- Market Sentiment Shift: Despite a stock price drop of over 66%, retail sentiment on Stocktwits shifted from 'bullish' to 'extremely bullish', reflecting confidence in the company's future earnings guidance despite current challenges.
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Analyst Views on ODD
Wall Street analysts forecast ODD stock price to rise
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 13.980
Low
49.00
Averages
66.63
High
80.00
Current: 13.980
Low
49.00
Averages
66.63
High
80.00
About ODD
Oddity Tech Ltd is an Israel-based company engaged in the beauty and wellness sector. The Company is operating a tech platform under its own brand on the Internet, whose purpose is to support a portfolio of brands and services connected to the beauty and wellness market and to develop products customized to the wishes of the Company's clients. The Company is using algorithms and machine learning models to match a corresponding physical product. Advanced biological models and machine learning-based tools are used to find new molecules for beauty and wellness purposes. The Company is active in research and development in areas such as data science, machine learning, and computer vision to enhance its products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oddity Tech to Announce Q1 Earnings on June 2
- Earnings Announcement Date: Oddity Tech is set to announce its Q1 earnings on June 2 before market open, with a consensus EPS estimate of $0.00, reflecting a 100% year-over-year decline, indicating significant profitability challenges that may affect investor confidence.
- Revenue Decline Expected: The anticipated revenue for Q1 is $187.87 million, down 29.9% year-over-year, highlighting the competitive pressures the company faces in the market, which could lead to uncertainties in future growth prospects.
- Historical Performance Review: Over the past two years, Oddity Tech has consistently beaten EPS and revenue estimates 100% of the time, indicating reliability in financial forecasting, yet the current expectations reveal a stark downturn.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates and two downward revisions, while revenue estimates saw one upward and one downward revision, reflecting analysts' cautious outlook on the company's future performance.
See More
Oddity Tech Reports Significant Q1 Loss Amid Rising Acquisition Costs
- Financial Performance Decline: Oddity Tech's Q1 net revenue fell 26% to $197.9 million, although it exceeded Wall Street's estimate of $187.9 million, the company reported a significant net loss of $21.3 million, indicating severe impairment of profitability.
- Surge in Customer Acquisition Costs: The company noted that the rise in cost per acquisition (CPA) was due to technical issues rather than weakening brand demand, with the CPA index jumping 83% year-over-year in Q1, which materially impacted adjusted EBITDA.
- Pessimistic Future Revenue Outlook: Oddity expects Q2 revenue to decline by 25% to 30% year-over-year, further affecting repeat business, although the company hopes to return to profitability in the second half of 2026.
- Market Sentiment Shift: Despite a stock price drop of over 66%, retail sentiment on Stocktwits shifted from 'bullish' to 'extremely bullish', reflecting confidence in the company's future earnings guidance despite current challenges.
See More
Oddity Tech Q1 Earnings Report Analysis
- Earnings Performance: Oddity Tech reported a Q1 non-GAAP EPS of -$0.17, missing expectations by $0.17, indicating challenges in profitability that could affect investor confidence.
- Revenue Situation: The company generated $197.9M in revenue, a 26.2% year-over-year decline, although it beat market expectations by $10.03M; however, the ongoing revenue decline may pressure future growth.
- Future Outlook: Oddity Tech expects net revenue to decline between 25% and 30% year-over-year for Q2 2026, signaling a challenging market environment that may require strategic adjustments to address revenue declines.
- Adjusted EBITDA Forecast: The company anticipates adjusted EBITDA to range between $8M and $10M, which, while indicating some profitability expectations, still necessitates careful monitoring of overall financial health as investors assess risks.
See More
ODDITY Tech to Release Q1 2026 Financial Results on June 2
- Earnings Release Schedule: ODDITY Tech Ltd. will announce its Q1 2026 financial results before the market opens on June 2, 2026, providing investors with insights into its latest financial health and operational performance.
- Conference Call Details: Following the earnings release, ODDITY will host a conference call at 8:30 a.m. Eastern Time, where investors can dial in at 1-877-407-9208 (US) or 1-201-493-6784 (international) to gain further insights into the company's financial results.
- Webcast Availability: The conference call will be accessible via a webcast on ODDITY's investor website, with an archive available for seven days post-call, ensuring that investors unable to attend live can still access critical information.
- Company Overview: ODDITY is a consumer tech firm that leverages an AI-driven platform to serve approximately 68 million users with beauty and wellness products, aiming to disrupt the offline-dominated market and enhance its competitive edge in the industry.
See More
ODDITY Tech Faces Securities Class Action Lawsuit
- Stock Price Plunge: ODDITY Tech's shares plummeted 49% on February 25, 2026, resulting in over $600 million in market capitalization loss, primarily due to the company's forecast of a 30% year-over-year decline in Q1 2026 revenue, triggering investor panic.
- Lawsuit Context: A class action lawsuit has been filed for investors who purchased ODDITY securities between February 26, 2025, and February 24, 2026, alleging the company failed to disclose crucial information regarding an algorithm change by its largest advertising partner, which significantly increased customer acquisition costs.
- Investor Confidence Eroded: ODDITY acknowledged issues with its advertising partner in its earnings report, and when pressed by analysts about when the company first became aware of the problem, management only stated they noticed something was different in the second half of 2025, failing to provide a specific timeline, further undermining investor confidence.
- Ongoing Legal Investigation: Hagens Berman is investigating whether ODDITY intentionally misled investors, urging those who suffered significant losses to submit their information and encouraging witnesses to assist in the investigation, highlighting serious concerns regarding corporate governance and transparency.
See More
ODDITY Tech Faces Class Action After 49% Stock Plunge
- Stock Plunge: ODDITY Tech's shares plummeted by 49% on February 25, 2026, dropping $14.28 to close at $14.74, resulting in a market cap loss exceeding $600 million, which severely undermined investor confidence.
- Lawsuit Allegations: The securities class action lawsuit filed by Hagens Berman accuses ODDITY of knowingly issuing false statements while failing to disclose a critical disruption in its digital operating model during the second half of 2025, potentially leading to significant investor losses.
- Market Reaction: Following the stock's collapse, major Wall Street firms, including JPMorgan and Bank of America, quickly downgraded their ratings on ODDITY, reflecting a pessimistic outlook on the company's future growth potential and exacerbating investor panic.
- Investor Action: Affected investors must apply to be lead plaintiffs by May 11, 2026, and Hagens Berman encourages whistleblowers with non-public information to assist in the investigation to expose any potential wrongdoing by ODDITY.
See More
Oddity Tech to Announce Q1 Earnings on June 2
- Earnings Announcement Date: Oddity Tech is set to announce its Q1 earnings on June 2 before market open, with a consensus EPS estimate of $0.00, reflecting a 100% year-over-year decline, indicating significant profitability challenges that may affect investor confidence.
- Revenue Decline Expected: The anticipated revenue for Q1 is $187.87 million, down 29.9% year-over-year, highlighting the competitive pressures the company faces in the market, which could lead to uncertainties in future growth prospects.
- Historical Performance Review: Over the past two years, Oddity Tech has consistently beaten EPS and revenue estimates 100% of the time, indicating reliability in financial forecasting, yet the current expectations reveal a stark downturn.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates and two downward revisions, while revenue estimates saw one upward and one downward revision, reflecting analysts' cautious outlook on the company's future performance.
See More
Oddity Tech Reports Significant Q1 Loss Amid Rising Acquisition Costs
- Financial Performance Decline: Oddity Tech's Q1 net revenue fell 26% to $197.9 million, although it exceeded Wall Street's estimate of $187.9 million, the company reported a significant net loss of $21.3 million, indicating severe impairment of profitability.
- Surge in Customer Acquisition Costs: The company noted that the rise in cost per acquisition (CPA) was due to technical issues rather than weakening brand demand, with the CPA index jumping 83% year-over-year in Q1, which materially impacted adjusted EBITDA.
- Pessimistic Future Revenue Outlook: Oddity expects Q2 revenue to decline by 25% to 30% year-over-year, further affecting repeat business, although the company hopes to return to profitability in the second half of 2026.
- Market Sentiment Shift: Despite a stock price drop of over 66%, retail sentiment on Stocktwits shifted from 'bullish' to 'extremely bullish', reflecting confidence in the company's future earnings guidance despite current challenges.
See More
Oddity Tech Q1 Earnings Report Analysis
- Earnings Performance: Oddity Tech reported a Q1 non-GAAP EPS of -$0.17, missing expectations by $0.17, indicating challenges in profitability that could affect investor confidence.
- Revenue Situation: The company generated $197.9M in revenue, a 26.2% year-over-year decline, although it beat market expectations by $10.03M; however, the ongoing revenue decline may pressure future growth.
- Future Outlook: Oddity Tech expects net revenue to decline between 25% and 30% year-over-year for Q2 2026, signaling a challenging market environment that may require strategic adjustments to address revenue declines.
- Adjusted EBITDA Forecast: The company anticipates adjusted EBITDA to range between $8M and $10M, which, while indicating some profitability expectations, still necessitates careful monitoring of overall financial health as investors assess risks.
See More
ODDITY Tech to Release Q1 2026 Financial Results on June 2
- Earnings Release Schedule: ODDITY Tech Ltd. will announce its Q1 2026 financial results before the market opens on June 2, 2026, providing investors with insights into its latest financial health and operational performance.
- Conference Call Details: Following the earnings release, ODDITY will host a conference call at 8:30 a.m. Eastern Time, where investors can dial in at 1-877-407-9208 (US) or 1-201-493-6784 (international) to gain further insights into the company's financial results.
- Webcast Availability: The conference call will be accessible via a webcast on ODDITY's investor website, with an archive available for seven days post-call, ensuring that investors unable to attend live can still access critical information.
- Company Overview: ODDITY is a consumer tech firm that leverages an AI-driven platform to serve approximately 68 million users with beauty and wellness products, aiming to disrupt the offline-dominated market and enhance its competitive edge in the industry.
See More
ODDITY Tech Faces Securities Class Action Lawsuit
- Stock Price Plunge: ODDITY Tech's shares plummeted 49% on February 25, 2026, resulting in over $600 million in market capitalization loss, primarily due to the company's forecast of a 30% year-over-year decline in Q1 2026 revenue, triggering investor panic.
- Lawsuit Context: A class action lawsuit has been filed for investors who purchased ODDITY securities between February 26, 2025, and February 24, 2026, alleging the company failed to disclose crucial information regarding an algorithm change by its largest advertising partner, which significantly increased customer acquisition costs.
- Investor Confidence Eroded: ODDITY acknowledged issues with its advertising partner in its earnings report, and when pressed by analysts about when the company first became aware of the problem, management only stated they noticed something was different in the second half of 2025, failing to provide a specific timeline, further undermining investor confidence.
- Ongoing Legal Investigation: Hagens Berman is investigating whether ODDITY intentionally misled investors, urging those who suffered significant losses to submit their information and encouraging witnesses to assist in the investigation, highlighting serious concerns regarding corporate governance and transparency.
See More
ODDITY Tech Faces Class Action After 49% Stock Plunge
- Stock Plunge: ODDITY Tech's shares plummeted by 49% on February 25, 2026, dropping $14.28 to close at $14.74, resulting in a market cap loss exceeding $600 million, which severely undermined investor confidence.
- Lawsuit Allegations: The securities class action lawsuit filed by Hagens Berman accuses ODDITY of knowingly issuing false statements while failing to disclose a critical disruption in its digital operating model during the second half of 2025, potentially leading to significant investor losses.
- Market Reaction: Following the stock's collapse, major Wall Street firms, including JPMorgan and Bank of America, quickly downgraded their ratings on ODDITY, reflecting a pessimistic outlook on the company's future growth potential and exacerbating investor panic.
- Investor Action: Affected investors must apply to be lead plaintiffs by May 11, 2026, and Hagens Berman encourages whistleblowers with non-public information to assist in the investigation to expose any potential wrongdoing by ODDITY.
See More
