Key results and guidance
Oddity Tech reported adjusted EBITDA of $13 million for the second quarter of 2026, a result that exceeded the company's previously stated guidance range of $8 to $10 million. Ahead of the market open, the stock responded sharply, climbing 23.8% in pre-market trading.
For the third quarter of 2026, management now expects revenue to decline by roughly 5% year-over-year, a marked improvement from the approximately 25% year-over-year revenue decline recorded in Q2. The company set adjusted EBITDA guidance for Q3 at $18 to $20 million, signaling a materially stronger near-term earnings trajectory than investors had anticipated.
Capital return and balance sheet strength
Oddity pursued an aggressive capital return program in the quarter, repurchasing $80 million of its own shares during Q2 and $163 million year-to-date, actions that reduced ordinary shares outstanding by about 20%. The company also retired $50 million in principal of its 2030 exchangeable notes during the quarter.
At quarter end, Oddity held $561 million in cash, cash equivalents and investments, and had $350 million in undrawn credit facilities available, underscoring a resilient liquidity position even as top-line pressures persisted.
Operational signals from brand performance
CEO Oran Holtzman reported that SpoiledChild is expected to grow at least 35% in 2026 and to approach $350 million in net revenue. The company also noted that METHODIQ is tracking ahead of SpoiledChild's own first-year performance, indicating promising momentum within newer business lines.
Share-price history and market reaction
Shares of Oddity had been under significant pressure since early 2026, when a sudden increase in customer acquisition costs tied to an advertising algorithm disruption at IL MAKIAGE weighed on results. The stock fell sharply from a 52-week high of $64.23 and reached a 52-week low of $9.25 prior to the latest move. The combination of a profitability beat, a much improved near-term revenue outlook, an extensive buyback program, and early signs of advertising normalization combined to drive a substantial relief rally as investors reassessed the pace and credibility of the company's recovery.
What this means for investors
The company has demonstrated both cash generation and an active capital allocation strategy while updating guidance that points to a shallower revenue decline in the near term. Those elements together appear to have prompted investors who had been pricing in prolonged deterioration to revise expectations about Oddity's recovery trajectory.
This article presents the company-reported results, guidance, and balance sheet figures as disclosed by Oddity Tech. It does not introduce additional facts beyond those provided by the company.