Exciting Growth: ODDITY Tech Breaks Records and Projects Success

Author: Logan Wright Updated: 08-04-2025 04:15 PM

ODDITY Tech's Second Quarter Achievements

In a remarkable turn of events, ODDITY Tech Ltd. (ODD) has reported net revenues of $241 million for the second quarter, reflecting a tremendous growth of 25% year-over-year. This remarkable performance has prompted the company to raise its full-year outlook, lending credence to its ongoing growth narrative.

Financial Highlights: A Deeper Look

The financial report reveals adjusted EBITDA of $70 million and a net income of $49 million, underscoring the company's operational efficiency. Moreover, the adjusted net income climbed to $57 million, which indicates a healthy trajectory towards sustained profitability. This performance is supported by a solid operating cash flow of $101 million and free cash flow amounting to $99 million for the first half of the fiscal year.

Building Future Foundations

ODDITY's co-founder and CEO, Oran Holtzman, expressed his enthusiasm, stating that despite the challenges in the market, the company continues to show momentum through high profitability, multiple growth engines, and expansive opportunities ahead.

Strategic Innovations on the Horizon

Looking forward, ODDITY is gearing up for the launch of Brand 3, which is set to explore the rapidly growing market for medical-grade products, starting with dermatology. This strategic expansion is seen as a strong avenue for profitability and growth, akin to the company’s transformative approach in the beauty sector.

Key Objectives Achieved in Q2

During the second quarter, ODDITY achieved several key objectives:

Exceeding financial guidance on all metrics for Q2.
Doubling online revenue growth for both IL MAKIAGE and SpoiledChild.
Accelerating international expansion strategies.
Advancing Brand 3 towards a launch in Q4 2025, alongside the development of Brand 4 for a projected launch in 2026.
Successfully executing its first-ever exchangeable note offering, with an upsized amount of $600 million.

This proactive approach has solidified their cash position, totaling $815 million in cash and equivalents, with a strong balance sheet reinforced by undrawn credit lines of $200 million.

Financial Outlook for 2025

Given the impressive performance and high visibility of repeat orders, ODDITY has revised its financial outlook for the full year ending December 31, 2025. The company is anticipating:

Net revenue estimated between $799 million and $804 million, yielding a year-over-year growth of 23% to 24%.
A gross margin target of approximately 71%.
Adjusted EBITDA projected between $160 million and $162 million.
Adjusted diluted EPS expected between $2.06 and $2.09, assuming an effective tax rate around 19%.

Projected Performance and Insights

For the upcoming third quarter, ODDITY expects net revenue to fall between $144 million and $146 million, reflecting a year-over-year growth rate of 21% to 23%. Adjusted EBITDA is expected to be between $26 million and $28 million, alongside adjusted diluted EPS projected between $0.33 and $0.36, suggesting continued robust performance in the near term.

Frequently Asked Questions

What were ODDITY's second-quarter net revenues?

ODDITY reported net revenues of $241 million for the second quarter, marking a 25% increase year-over-year.

How does ODDITY plan to expand its operations?

The company plans to launch Brand 3 focused on medical grade products and expand its international presence, enhancing its market reach.

What is the projected outlook for ODDITY in 2025?

ODDITY anticipates net revenues between $799 million and $804 million for the year, with substantial growth expected in various segments.

How has ODDITY managed its profits?

With a strategic focus on multiple growth engines and an efficient operational model, ODDITY has maintained strong profitability margins, including a 28.8% adjusted EBITDA margin.

What strategies are driving ODDITY’s revenue growth?

Key strategies include the use of a direct-to-consumer model, innovative product launches, and ongoing developments in its technology and brand advancements.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

Contact Logan Wright privately here. Or send an email with ATTN: Logan Wright as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.