ODDITY Tech Ltd. announced fourth quarter and full year financial results for the year ended December 31, 2025.

ODDITY Tech Ltd. (NASDAQ: ODD) today announced its financial results for the fourth quarter and full year ended December 31, 2025.

"ODDITY delivered strong fourth quarter results to cap off a record breaking 2025, once again exceeding our guidance across revenue, profit, and earnings per share like we did in the past 11 consecutive quarters since going public," said Oran Holtzman, ODDITY co-founder and CEO. "The strength of our business, reflected in strong sales from repeat customers, allowed us to deliver excellent financial results, with double digit revenue growth from both IL MAKIAGE and SpoiledChild. We also continued to invest in our future growth drivers, including a successful launch of our 3rd brand METHODIQ during the fourth quarter with strong early signs."

"However, we experienced a dislocation in our account with our largest advertising partner that we believe was driven by algorithm changes which diverted us to lower quality auctions at abnormally high costs. This is resulting in significant increases in new user acquisition costs that are not correlated with the market or our historical experience. We believe we recently identified the root cause of the problem and have already implemented significant actions that we hope will drive meaningful progress in Q2 and return our acquisition costs to normal levels in Q3 or Q4," Holtzman continued. "Despite this headwind, there is no change to strategy or long-term growth focus. The underlying metrics of our business, including net revenue repeat rates as a key indicator of customer demand, remain very strong."

ODDITY achieved key objectives during the fourth quarter, which include:

Exceeding financial guidance across all metrics for the fourth quarter ended December 31, 2025.

A successful launch of METHODIQ.

Ongoing development and expansion of the ODDITY LABS molecule discovery platform.

A strong cash position on our balance sheet, including cash, cash equivalents and investments of $776 million. In January of 2026 we amended our credit agreements to secure credit facilities for a total of $350 million.

"We are pleased with our financial results for the fourth quarter, which beat our guidance on revenue, gross margin, adjusted EBITDA, and adjusted diluted EPS," said Lindsay Drucker Mann, ODDITY Global CFO. "Given the dislocation we are experiencing in acquisition costs, we expect first quarter 2026 revenue to decline approximately 30% year-over-year, but we hope to see material improvement in the second half of 2026. We plan to issue our financial outlook for FY 2026 in the next few months when we have more visibility."

Share Buyback Program

ODDITY believes repurchasing its stock is attractive at recent share prices and intends to opportunistically return cash to shareholders through share buybacks. $103 million remains on its previously announced $150 million repurchase authorization, which expires June 30, 2027.

Fourth Quarter Fiscal 2025 Financial Highlights1:

Results for the fourth quarter ended December 31, 2025 are presented below in comparison to the same period in the prior year:

Net revenue was $153 million compared to $124 million in the fourth quarter of 2024, representing a 24% year-over-year increase.

Gross profit was $108 million compared to $90 million in the fourth quarter of 2024, representing a 20% year-over-year increase. Gross margin was 70.5%, decreasing by 220 bps compared to gross margin of 72.7% in the fourth quarter of 2024.

Net income was $6 million compared to $5 million in the fourth quarter of 2024. Net income margin was 3.9% compared to 4.3% in the fourth quarter of 2024.

Adjusted net income was $12 million compared to $12 million in the fourth quarter of 2024, representing a 3.6% year-over-year increase. Adjusted net income margin was 8.1% compared to 9.7% in the fourth quarter of 2024.

Adjusted EBITDA was $13 million compared to $15 million in the fourth quarter of 2024, representing a 17% year-over-year decrease. Adjusted EBITDA margin was 8.2%, decreasing by 410 bps compared to adjusted EBITDA margin of 12.3% in the fourth quarter of 2024.

Diluted EPS were $0.10 for the fourth quarter of 2025 compared to $0.09 in the fourth quarter of 2024. Adjusted diluted EPS were $0.20 for the fourth quarter of 2025 compared to $0.20 in the fourth quarter of 2024.

Cash and cash equivalents, restricted cash, short-term deposits and marketable securities were $776 million.

The table below sets forth our actual results for the three months ended December 31, 2025 and the low and high end of our guidance range regarding our results for the fourth quarter of 2025 as issued on November 19, 2025.

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