Financial Data and Key Metrics Changes - In Q2 2025, the company achieved a revenue growth of 26% to $509 million, generated adjusted EBITDA of $122 million, and free cash flow of $99 million, surpassing the entire free cash flow delivered in 2023 [4][30] - The adjusted diluted earnings per share for Q2 was $0.92, exceeding the guidance of $0.85 to $0.89 [29] - Gross margin expanded to 72.3%, exceeding guidance of 70.5% [28] Business Line Data and Key Metrics Changes - The company reported double-digit online growth in both its brands, Il Makiage and Spoiled Child, with Il Makiage expected to reach $1 billion in revenue by 2028 [12][24] - Spoiled Child is projected to cross $200 million in revenue this year, having launched only three years ago [13][42] Market Data and Key Metrics Changes - International sales represented approximately 15% of total net revenue, with a growth of over 40% in the first half of 2025, amounting to around $85 million [25][62] - The company is focusing on expanding its international presence, particularly in markets like the UK, Germany, Canada, Australia, and Israel, where it aims to replicate its U.S. success [27][62] Company Strategy and Development Direction - The company aims to become one of the largest beauty companies globally, with a focus on expanding its product offerings into healthcare, starting with dermatology [5][15] - Investments are being made in technology and new brands, with a strong emphasis on innovation and consumer demand for high-efficacy products [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another record-breaking year in 2025, with expected net revenue between $799 million and $804 million, representing a year-over-year growth of 23% to 24% [32] - The company plans to front-load investments in 2026, which may impact EBITDA margins in the first half of the year but is expected to maintain a long-term growth algorithm of 20% revenue growth and 20% adjusted EBITDA margin [34] Other Important Information - The company successfully issued its first convertible exchangeable note, upsized to $600 million, which significantly increased its cash position to $815 million [31] - The company is preparing for the launch of Brand Three, which will enter the medical-grade space, focusing on dermatology and offering both OTC and prescription products [13][15] Q&A Session Summary Question: What is driving the sequential compression in gross margin for Q3? - Management explained that gross margin is not a primary metric managed by teams, who focus on contribution margin, and that seasonality and lower revenue dollars in Q3 and Q4 contribute to the compression [39][40] Question: Will the company constrain growth on existing brands to manage future growth? - Management confirmed that they often constrain growth to ensure sustainable long-term growth, maintaining a commitment to 20% revenue growth and 20% adjusted EBITDA margin [51][52] Question: What are the investment plans for Brand Three and expected returns? - Management indicated that significant investments are being made in new brands and technology, with expectations of substantial future returns similar to past successful launches [56][57] Question: What are the growth drivers for international markets? - Management highlighted that international markets could be as large as the U.S. business, with strong growth in established markets and potential in new testing markets [62] Question: How will the go-to-market strategy differ for Brand Three? - Management stated that while the strategy will leverage existing technology and user base, it will also incorporate personalized treatments developed over two years [71][72] Question: What long-term revenue streams are anticipated from Brand Three? - Management outlined that Brand Three will operate as a telehealth platform with medical-grade products, focusing on compliance and leveraging existing user data for product development [78][80]

Financial Data and Key Metrics Changes - In Q2 2025, the company achieved a revenue growth of 26% to $509 million, generated adjusted EBITDA of $122 million, and free cash flow of $99 million, surpassing the entire free cash flow delivered in 2023 [5][25][32] - The adjusted EBITDA margin for Q2 was 28.8%, which compressed by approximately 350 basis points due to planned growth investments [31] - The gross margin expanded by 10 basis points year over year to 72.3%, exceeding guidance of 70.5% [30] Business Line Data and Key Metrics Changes - The company reported double-digit online growth in both its brands, Il Makiage and Spoiled Child, contributing to the overall revenue increase [26][10] - Il Makiage is on track to reach $1 billion in revenue by 2028, with international sales representing 15% of the business in 2024 [13][29] - Spoiled Child is projected to cross $200 million in revenue this year, having launched only three years ago [14] Market Data and Key Metrics Changes - International sales grew over 40% in the first half of 2025, amounting to approximately $85 million, with $75 million from established markets and $10 million from new testing markets [66] - The company is focusing on expanding its presence in international markets, which currently represent a smaller portion of its overall revenue compared to competitors [29][66] Company Strategy and Development Direction - The company aims to become one of the largest beauty companies globally, with a focus on expanding its online presence and entering the healthcare market [6][7] - Upcoming launches include Brand three, which will focus on medical-grade dermatology products, and Brand four next year [14][35] - Investments in technology and new brands are prioritized to sustain long-term growth and innovation [12][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 20% revenue growth and 20% adjusted EBITDA margin in the long term, even without contributions from new brands [34][44] - The company is preparing for a strong finish to 2025, driven by a backlog of repeat sales and a focus on long-term initiatives [11][34] Other Important Information - The company generated $99 million in free cash flow in the first half of 2025, converting over 80% of adjusted EBITDA into free cash [32] - The company has a remaining buyback authorization of $103 million with no share repurchases year to date [33] Q&A Session Summary Question: What is driving the sequential compression in gross margin for Q3? - Management explained that gross margin is not a primary metric they manage to, and seasonal factors contribute to lower margins in the second half of the year due to repeat business dynamics [40][42] Question: Will Brand three's success impact growth management for existing brands? - Management confirmed that they do not need Brand three for their 2025 or 2026 outlook, as existing brands have sufficient growth potential [44][45] Question: What is the strategy for Brand three's launch? - Management indicated that a soft launch will occur in Q3 to test the market, with a full launch planned for Q4 [52] Question: What are the growth drivers for international markets? - Management highlighted that international markets are expected to grow significantly, with a focus on deeper penetration and new market entries [63][66] Question: How does Brand three differ from previous launches? - Management noted that Brand three will leverage advanced technology and personalized treatment plans, setting it apart from traditional offerings [72][74]

the concentration of our voling power as a result of our dual class structure; our status as a foreign private issuer, and other risk factors set forth in the section titled "Risk Fadors" in the Company's Amud Recort on Form 20-F filed with the Sexrities Exchange Commission (the "SEC") on February 25, 2025 and other documents filed or furrished to the SEC. These statements reflect management's current expectations regading fulure events and operating performance and speak only as of the date of this press r ...

Core Viewpoint - Oddity Tech reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, and showing an increase from $0.82 per share a year ago, indicating a positive earnings surprise of +4.55% [1] Financial Performance - The company achieved revenues of $241.14 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.83% and reflecting a year-over-year increase from $192.77 million [2] - Over the last four quarters, Oddity Tech has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - Oddity Tech shares have increased approximately 70.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 6.1% [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, with current consensus EPS estimates at $0.32 for the coming quarter and $2.04 for the current fiscal year [7] - The Zacks Rank for Oddity Tech is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Internet - Software industry, to which Oddity Tech belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Performance - Second quarter net revenue reached $241 million, a 25% increase year-over-year from $193 million[6] - Gross profit for the second quarter was $174 million, also reflecting a 25% year-over-year increase, with a gross margin of 72.3%[8] - Adjusted EBITDA for the second quarter was $70 million, representing a 12% increase from $62 million in the same quarter of the previous year[8] - The company raised its full year 2025 outlook to a net revenue range of $799-804 million, indicating year-over-year growth of 23-24%[11] - The third quarter 2025 guidance includes net revenue expectations of $144-146 million, representing year-over-year growth of 21-23%[13] - Adjusted diluted EPS for the second quarter was $0.92, up from $0.82 in the same quarter of the previous year[8] - Net revenue for Q2 2025 reached $241,140,000, a 25% increase from $192,774,000 in Q2 2024[24] - Gross profit for the first half of 2025 was $375,200,000, up 27% from $295,203,000 in the same period of 2024[24] - The company reported a net income of $49,285,000 for Q2 2025, representing an 8% increase compared to $45,491,000 in Q2 2024[24] - Adjusted EBITDA for the first half of 2025 was $121,920,000, an increase from $110,442,000 in the same period of 2024[30] Cash Position and Assets - The company completed its first exchangeable note offering, upsized to $600 million with a 0% coupon, enhancing its cash position[7] - As of June 30, 2025, ODDITY reported cash, cash equivalents, and investments totaling $815 million, along with undrawn credit facilities of $200 million[7] - Cash and cash equivalents surged to $656,822,000 as of June 30, 2025, compared to $50,340,000 at the end of 2024[25] - Total assets increased to $1,097,899,000 as of June 30, 2025, significantly up from $438,882,000 at the end of 2024[26] - The company generated $101,384,000 in net cash from operating activities for the first half of 2025, slightly down from $105,440,000 in the same period of 2024[27] - Free cash flow for the first half of 2025 was $99,433,000, compared to $103,938,000 in the first half of 2024[31] - The company issued exchangeable notes generating proceeds of $583,500,000 during the first half of 2025[27] Business Expansion and Strategy - ODDITY is progressing towards the launch of Brand 3 in the fourth quarter of 2025, expanding into medical grade products[4] - The company is focusing on international expansion and the ongoing development of the ODDITY LABS molecule discovery platform[7] - Online direct-to-consumer sales accounted for 98% of net revenue in Q2 2025, totaling $235,161,000, up from 94% in Q2 2024[33]

Core Insights - ODDITY Tech Ltd. reported strong financial results for Q2 2025, exceeding guidance across revenue, profit, and earnings per share, indicating robust business growth and profitability [2][4][6] - The company is expanding into new markets, particularly in healthcare with the upcoming launch of Brand 3, which focuses on medical-grade products [3][4] - ODDITY raised its full-year financial outlook for 2025, reflecting confidence in continued growth driven by a backlog of repeat orders [4][9] Financial Performance - Q2 2025 net revenue reached $241 million, a 25% increase year-over-year from $193 million in Q2 2024 [4][6] - Adjusted EBITDA for Q2 2025 was $70 million, up 12% from $62 million in Q2 2024, with an adjusted EBITDA margin of 28.8% [4][6] - Net income for Q2 2025 was $49 million, compared to $45 million in Q2 2024, with a net income margin of 20.4% [4][6] Financial Outlook - The updated full-year 2025 outlook includes net revenue between $799 million and $804 million, representing year-over-year growth of 23% to 24% [9][10] - For Q3 2025, ODDITY expects net revenue between $144 million and $146 million, with a gross margin of approximately 68% [11][9] - Adjusted diluted EPS for the full year is projected to be between $2.06 and $2.09, an increase from the previous outlook [9][10] Strategic Initiatives - The company is progressing towards the formal launch of Brand 3 in Q4 2025 and Brand 4 in 2026, indicating a focus on innovation and market expansion [5][4] - ODDITY is also developing its ODDITY LABS molecule discovery platform, which may enhance its product offerings in the future [5][4] - The company completed its first exchangeable note offering, upsized to $600 million, strengthening its cash position [5][4]

Core Insights - Oddity Tech (ODD) is set to announce its second-quarter 2025 results on August 4, with expected non-GAAP earnings between $0.85 and $0.89 per share and revenues anticipated between $235 million and $239 million [1][9] Earnings Expectations - The Zacks Consensus Estimate for second-quarter earnings is at $0.88 per share, reflecting a year-over-year growth of 7.3%, while the revenue consensus is $239.2 million, indicating a 24.1% year-over-year increase [2] Historical Performance - ODD has consistently exceeded the Zacks Consensus Estimate in the past four quarters, achieving an average surprise of 32.8% [2] Growth Drivers - The company is expected to benefit from a growing user base, an expanding online presence, and a strong direct-to-consumer (DTC) platform, which are anticipated to drive revenue growth [4] - Strong demand for IL Makiage and SpoiledChild brands is likely to contribute positively to revenue in the upcoming quarter [5][9] Margin Considerations - Despite the expected revenue growth, gross margins may be negatively impacted by higher tariffs, which are projected to affect margins by 50 to 100 basis points [5][9] Earnings Prediction Model - According to the Zacks model, ODD has a positive Earnings ESP of +1.14% and a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook for an earnings beat [6]

Core Viewpoint - The market anticipates Oddity Tech (ODD) to report a year-over-year increase in earnings driven by higher revenues, with a focus on how actual results compare to estimates [1][2]. Earnings Expectations - Oddity Tech is expected to report quarterly earnings of $0.88 per share, reflecting a year-over-year increase of +7.3% [3]. - Revenues are projected to reach $237.22 million, representing a 23.1% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate for Oddity Tech has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for Oddity Tech is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.29% [11]. Earnings Surprise History - In the last reported quarter, Oddity Tech exceeded the expected earnings of $0.63 per share by delivering $0.69, resulting in a surprise of +9.52% [12]. - The company has beaten consensus EPS estimates in each of the last four quarters [13]. Industry Context - In the Zacks Internet - Software industry, F5 Networks (FFIV) is expected to report earnings of $3.49 per share, with a year-over-year change of +3.9% and revenues of $753.06 million, up 8.3% from the previous year [17]. - F5 Networks has a negative Earnings ESP of -0.33%, making it challenging to predict a beat on the consensus EPS estimate, despite having beaten estimates in the last four quarters [18].

Company Overview - ODDITY Tech Ltd. is a consumer tech company focused on building and scaling digital-first brands to disrupt the offline-dominated beauty and wellness industries [3] - The company serves approximately 60 million users through its AI-driven online platform, utilizing data science to identify consumer needs and develop beauty and wellness products [3] - ODDITY owns brands such as IL MAKIAGE and SpoiledChild, with headquarters in New York City, an R&D center in Tel Aviv, Israel, and a biotechnology lab in Boston [3] Financial Results Announcement - ODDITY will release its second quarter 2025 financial results after the market close on August 4, 2025 [1] - A conference call to discuss the financial results will take place on August 5, 2025, at 8:30 a.m. Eastern Time [1] Conference Call Details - Participants can join the conference call by dialing 1-800-717-1738 (US) or 1-646-307-1865 (international) [2] - A webcast of the call will be available on the Investors section of ODDITY's website, with a recording accessible shortly after the call [2]

Core Insights - Oddity Tech has consistently surpassed earnings estimates, averaging a 31.68% beat over the last two quarters [1][2] - The company reported earnings of $0.69 per share against a consensus estimate of $0.63, resulting in a 9.52% surprise [2] - In the previous quarter, Oddity Tech exceeded expectations by reporting $0.20 per share compared to an estimate of $0.13, achieving a 53.85% surprise [2] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Oddity Tech, with a positive Earnings ESP indicating a strong likelihood of an earnings beat [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests that another earnings beat is likely [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of beating consensus estimates [6][8] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - Oddity Tech's current Earnings ESP stands at +0.29%, indicating recent bullish sentiment among analysts regarding the company's earnings prospects [8] - A negative Earnings ESP does not necessarily indicate an earnings miss but can reduce the predictive power of the metric [8]