ODDITY Tech (NASDAQ:ODD) Shares Gap Up After Strong Earnings

Shares of ODDITY Tech Ltd. (NASDAQ:ODD) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $13.02, but opened at $17.50. ODDITY Tech shares last traded at $15.6950, with a volume of 4,665,209 shares changing hands.

The company reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.12 by $0.08. ODDITY Tech had a net margin of 6.97% and a return on equity of 15.38%. The business had revenue of $180.52 million during the quarter, compared to analysts’ expectations of $178.23 million. During the same period last year, the company posted $0.92 EPS. The company’s revenue was down 24.9% on a year-over-year basis.

Trending Headlines about ODDITY Tech

Here are the key news stories impacting ODDITY Tech this week:

• Positive Sentiment: Quarterly results beat estimates: Adjusted earnings were $0.20 per share versus the $0.12 consensus estimate, while revenue of $180.5 million modestly exceeded expectations of $178.2 million. Oddity Tech Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Improving third-quarter outlook: ODDITY expects third-quarter revenue to decline approximately 5% year over year, a meaningful improvement from the 25% decline in the second quarter. Adjusted EBITDA is projected at $18 million to $20 million, and reported revenue guidance of approximately $140.5 million is above the $121.8 million analyst consensus. ODDITY Tech Reports Second Quarter 2026 Results
• Positive Sentiment: Growth outside IL MAKIAGE: SpoiledChild posted double-digit growth and is expected to approach $350 million in 2026 revenue. Early results for newer brand METHODIQ are also tracking ahead of SpoiledChild’s first-year performance.
• Positive Sentiment: Capital returns and liquidity support sentiment: The company repurchased approximately $80 million of shares during the quarter, bringing year-to-date repurchases to about $163 million and reducing shares outstanding by roughly 20%. ODDITY also reported $561 million in cash and investments, plus $350 million in undrawn credit facilities.
• Neutral Sentiment: IL MAKIAGE remains the key swing factor: Management said it is working with its largest advertising partner to resolve a technical algorithm disruption and believes the issue is solvable. Successful normalization could improve customer acquisition and revenue trends, but the timing remains uncertain.
• Negative Sentiment: Major year-over-year deterioration: Second-quarter revenue fell 25% to $181 million, adjusted EBITDA dropped to $13 million from $70 million, and adjusted EPS declined from $0.92 to $0.20. Full-year revenue is expected to decline approximately 19%, while first-half operating cash flow was negative.
• Negative Sentiment: Insider selling and cautious coverage: Recent reported insider activity consisted entirely of sales, while Needham reaffirmed a “hold” rating. These factors may limit investor enthusiasm despite the earnings beat.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on ODD. Truist Financial boosted their price objective on shares of ODDITY Tech from $12.00 to $16.00 and gave the company a “hold” rating in a research report on Tuesday, September 1st. KeyCorp reiterated a “sector weight” rating on shares of ODDITY Tech in a report on Wednesday, June 3rd. Jefferies Financial Group reissued a “hold” rating and issued a $10.25 price objective on shares of ODDITY Tech in a research report on Tuesday, June 2nd. Morgan Stanley decreased their price target on ODDITY Tech from $16.00 to $10.00 and set an “equal weight” rating for the company in a report on Wednesday, June 3rd. Finally, Barclays dropped their price objective on shares of ODDITY Tech from $13.00 to $8.00 and set an “underweight” rating on the stock in a research note on Wednesday, June 3rd. Nine equities research analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $25.75.

Insider Activity at ODDITY Tech

In other news, CFO Mann Drucker sold 109,602 shares of the firm’s stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $15.09, for a total transaction of $1,653,894.18. Following the completion of the sale, the chief financial officer owned 77,709 shares of the company’s stock, valued at approximately $1,172,628.81. This trade represents a 58.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 172,454 shares of company stock worth $2,592,610.

Institutional Investors Weigh In On ODDITY Tech

Institutional investors have recently modified their holdings of the stock. Wexford Capital LP bought a new position in shares of ODDITY Tech during the third quarter worth about $40,000. Legal & General Group Plc acquired a new stake in ODDITY Tech during the second quarter valued at approximately $71,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in ODDITY Tech by 134.8% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,134 shares of the company’s stock valued at $69,000 after buying an additional 651 shares in the last quarter. Headlands Technologies LLC bought a new position in ODDITY Tech during the second quarter worth $108,000. Finally, Thrivent Financial for Lutherans bought a new position in shares of ODDITY Tech in the 2nd quarter worth about $225,000. Institutional investors and hedge funds own 35.88% of the company’s stock.

ODDITY Tech Trading Up 16.5%

The company has a quick ratio of 2.86, a current ratio of 4.06 and a debt-to-equity ratio of 1.96. The firm’s 50 day moving average is $14.98 and its two-hundred day moving average is $14.41. The stock has a market cap of $873.36 million, a price-to-earnings ratio of 19.35 and a beta of 2.38.

ODDITY Tech Company Profile

Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands.