Company Performance - Oddity Tech shares have increased by 66.6% over the past month, reaching a new 52-week high of $65.42 [1] - The stock has gained 50.6% since the beginning of the year, outperforming the Zacks Computer and Technology sector, which declined by 7.3%, and the Zacks Internet - Software industry, which returned 0.1% [1] Earnings and Revenue - Oddity Tech has consistently exceeded earnings expectations, reporting EPS of $0.69 against a consensus estimate of $0.63 in its last earnings report [2] - For the current fiscal year, the company is projected to achieve earnings of $2.02 per share on revenues of $796.06 million, reflecting a 3.06% increase in EPS and a 23.03% increase in revenues [3] - For the next fiscal year, earnings are expected to rise to $2.48 per share on revenues of $935.13 million, indicating year-over-year changes of 23.14% and 17.47%, respectively [3] Valuation Metrics - Oddity Tech's current valuation metrics show a P/E ratio of 31.4X for the current fiscal year, higher than the peer industry average of 26.3X [7] - The stock trades at a trailing cash flow basis of 33.3X compared to the peer group's average of 25.6X, with a PEG ratio of 2.43 [7] Zacks Rank and Style Scores - Oddity Tech holds a Zacks Rank of 1 (Strong Buy) due to favorable earnings estimate revisions from analysts [8] - The company has a Value Score of F, while its Growth and Momentum Scores are both A, resulting in a combined VGM Score of B [6] Industry Comparison - The Internet - Software industry is positioned in the top 38% of all industries, suggesting favorable conditions for both Oddity Tech and its peer, NCR Atleos Corporation [12] - NCR Atleos Corporation has a Zacks Rank of 1 (Strong Buy) and has also shown strong earnings performance, beating consensus estimates by 4.72% [10][11]

Core Viewpoint - The U.S. stock market is experiencing volatility, with the S&P 500 declining 0.8% in April, marking its third consecutive monthly drop, while GDP shrank 0.3%, the first decline since early 2022. However, strong consumer spending and a stable job market indicate underlying confidence in the economy [1]. Group 1: Investment Strategy - In uncertain market conditions, a relative price strength strategy can help investors identify stocks that outperform their peers, thus staying aligned with market momentum [2]. - Stocks that show better performance than their industry or benchmark should be included in investment portfolios, as they are more likely to yield significant returns [4]. - It is essential to assess whether a stock has upside potential, particularly those that have outperformed the S&P 500 over the past 1 to 3 months and possess solid fundamentals [5]. Group 2: Screening Parameters - The screening criteria for identifying potential stocks include positive relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [7]. - Stocks must have a Zacks Rank of 1 (Strong Buy), a current price of at least $5, and an average 20-day trading volume of at least 50,000 to ensure adequate liquidity [8]. Group 3: Featured Stocks - **Kaiser Aluminum Corporation (KALU)**: Expected earnings growth of 66.1% for 2025, with a market cap of $1.1 billion. The Zacks Consensus Estimate for 2025 earnings has increased by 35.4% over the past 30 days, although shares have decreased by 29.3% in the past year [10][11]. - **Sprouts Farmers Market, Inc. (SFM)**: Anticipated earnings growth of 30.7% for 2025, with shares rising 131.9% in the past year. The company has consistently beaten earnings estimates, with a trailing four-quarter earnings surprise of approximately 16.5% [12][13]. - **BGC Group, Inc. (BGC)**: Projected EPS growth rate of 23.2% year-over-year for 2025, with a favorable expected growth rate of 24.7% over the next three to five years compared to the industry average of 13.8%. Shares have gained 7% in the past year [14][15]. - **ODDITY Tech Ltd. (ODD)**: Expected earnings growth of 3.1% for 2025, with shares increasing by 95.8% in the past year. The company has a trailing four-quarter earnings surprise of about 32.8% [16][17].

Company Overview - Oddity Tech is an Israel-based beauty tech company that operates two direct-to-consumer (DTC) beauty brands, IL MAKIAGE and Spoiled Child, and is set to launch a third brand [1] Business Model - The company focuses on a DTC model, which allows for direct engagement with consumers and potentially higher margins [1] Market Position - Oddity Tech is positioned within the beauty tech industry, which is experiencing growth due to increasing consumer demand for innovative beauty solutions [1]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue growth of 27% to $268 million, with adjusted EBITDA of $52 million, representing a 19.5% adjusted EBITDA margin and free cash flow of $87 million [4][22][23] - The company expects full-year revenue growth to be between 22% and 23%, or between $790 million and $798 million, raising its gross margin outlook to 71% for the full year [28][29] Business Line Data and Key Metrics Changes - The growth in net revenue was primarily driven by increased orders and a 4% year-over-year increase in average order value, influenced by a mix of higher-priced products [23][25] - The company continues to expect order growth to be the primary driver of revenue growth moving forward [24] Market Data and Key Metrics Changes - International markets contributed to growth, although they currently represent less than 20% of the business, with both U.S. and international markets growing in double digits in Q1 [34][60] - The company is focusing on scaling existing markets and testing new markets, with positive results from recent tests in large developing markets [61] Company Strategy and Development Direction - The company aims to build one of the largest beauty companies globally by focusing on online consumer shifts and high-efficacy products [5][6] - Strategic priorities include driving existing brands, accelerating international expansion, and investing in new brand launches and technology [9][10][18] Management's Comments on Operating Environment and Future Outlook - Management views the current environment as a significant opportunity, emphasizing the resilience of the beauty industry and the company's strong performance [20][21] - The company remains confident in its ability to exceed long-term growth targets of 20% revenue growth and 20% adjusted EBITDA margins despite potential tariff impacts [29] Other Important Information - The company has a strong balance sheet with $257 million in cash equivalents and investments, zero debt, and a new undrawn $200 million credit line [26][27] - The company is actively looking for acquisition opportunities that align with its strategic goals, particularly in technology and brands that complement its existing portfolio [62] Q&A Session Summary Question: Contribution of international markets to the quarter - Management confirmed that international markets are a core part of the growth strategy, with both U.S. and international markets growing double digits in Q1, although international is still less than 20% of the business [34][60] Question: Impact of the FTC's click-to-cancel rule - Management does not foresee significant impact from the regulation, as the company has already adapted its subscription and cancellation processes to be user-friendly and self-serve [36][37] Question: Factors driving gross margin increases - Management highlighted that gross margin improvements are due to cost efficiencies and product mix, with a focus on contribution margin rather than gross margin as a key performance indicator [42][45] Question: Updates on Brand three and telehealth infrastructure - Management expressed excitement about Brand three, emphasizing the extensive testing and infrastructure built to support its launch, which is expected to address significant consumer needs [51][73] Question: Strategic focus for acquisitions - Management indicated a focus on acquiring brands with strong products or capabilities that would take significant time to develop internally, particularly in biotech and AI [62]

DISCLAIMER This presentation contains estimates and other statistical data made by independent parties and by the Company relating to market size and growth and other data about the Company's industry and estimated total addressable market. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither the Company nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to ...

Financial Data and Key Metrics Changes - In Q1 2025, revenue grew 27% to $268 million, with adjusted EBITDA of $52 million, representing a 19.5% adjusted EBITDA margin and free cash flow of $87 million [5][26][29] - The company expects full year revenue growth between 22% to 23%, or between $790 million and $798 million, raising gross margin outlook to 71% for the full year [31][32] Business Line Data and Key Metrics Changes - Il Makiage and Spoiled Child drove net revenue growth, with average order value increasing by 4% year over year [26][27] - Spoiled Child is on track to cross the $200 million revenue mark this year, maintaining healthy margins [14] Market Data and Key Metrics Changes - International markets contributed to growth, with both U.S. and international segments growing double digits in Q1, although international remains less than 20% of total business [38][66] - The company is focusing on scaling existing markets and testing new markets, with positive results from recent tests in France, Italy, and Spain [66] Company Strategy and Development Direction - The company aims to build one of the largest beauty companies globally by focusing on online sales and high-efficacy products [6][7] - Strategic priorities include driving existing brands, accelerating international expansion, and investing in new brands and technology [11][12][21] Management's Comments on Operating Environment and Future Outlook - Management views the current environment as a significant opportunity, with a resilient business model that allows for aggressive growth [23][24] - The company remains confident in achieving its long-term growth targets despite potential tariff impacts, which are expected to be manageable [32][60] Other Important Information - The company has zero debt and exited the quarter with $257 million in cash equivalents and investments, along with a $200 million undrawn credit line [29] - The company is actively looking for acquisition opportunities to enhance its platform and capabilities [30][66] Q&A Session Summary Question: Contribution of international markets to the quarter - Management confirmed that international markets are a core part of the growth strategy, with both U.S. and international segments growing double digits in Q1, although international is still less than 20% of total business [38][66] Question: Impact of the FTC's click-to-cancel rule - Management does not foresee significant impact from the regulation, as their subscription model is already designed to be user-friendly and self-service [40][41] Question: Factors driving gross margin increase - Management highlighted that gross margin is not a primary KPI, focusing instead on contribution margin, with cost efficiencies and product mix contributing to the increase [46][48] Question: Updates on Brand Three and tariffs - Management expressed excitement about Brand Three, emphasizing the extensive testing and technology development that has been completed [54][57] - Tariff impacts are expected to be between 50 to 100 basis points on gross margin, which management considers manageable [57][60] Question: Priorities for acquisitions - Management indicated a focus on acquiring brands with strong products or capabilities that would take significant time to develop internally, particularly in biotech and AI [66]

Financial Data and Key Metrics Changes - In Q1 2025, revenue grew 27% to $268 million, with adjusted EBITDA of $52 million, representing a 19.5% adjusted EBITDA margin and free cash flow of $87 million [5][24][27] - The company expects full year revenue growth to be between 22-23%, or between $790 million and $798 million, raising the gross margin outlook to 71% for the full year [29][30] Business Line Data and Key Metrics Changes - The growth in net revenue was driven primarily by increased orders, with average order value increasing by 4% year over year, influenced by a mix of higher-priced products [24][26] - Il Makiage is on track to meet its $1 billion revenue goal by 2028, with skin products expected to approach 40% of brand revenue this year [10][11] Market Data and Key Metrics Changes - International markets contributed to growth, although they currently represent less than 20% of the business, with both U.S. and international markets growing in double digits [36][62] - The company is expanding its presence in international markets, having tested large-scale operations in countries like France, Italy, and Spain, with positive results [63] Company Strategy and Development Direction - The company aims to build one of the largest beauty companies globally by focusing on online sales and high-efficacy products, investing heavily in technology and data-driven user customization [6][7] - The strategic priorities for 2025 include driving existing brands, accelerating international expansion, and launching new brands [10][11][19] Management's Comments on Operating Environment and Future Outlook - Management views the current environment as a significant opportunity, with the business model allowing for aggressive growth despite economic challenges [21][22] - The company remains confident in its ability to exceed long-term growth targets of 20% revenue growth and 20% adjusted EBITDA margins [30] Other Important Information - The company has zero debt and exited the quarter with $257 million in cash equivalents and investments, along with a $200 million undrawn credit line [27][28] - The company is actively looking for acquisition opportunities to enhance its platform, focusing on brands and technology that can provide significant value [28][62] Q&A Session Summary Question: Contribution of international markets to the quarter - Management confirmed that international markets are a core part of the growth strategy, with both U.S. and international markets growing double digits in Q1, although international is still less than 20% of the business [36][62] Question: Impact of the FTC's click-to-cancel rule - Management does not foresee a significant impact from the regulation, as the company has already adapted its subscription and cancellation processes to be user-friendly [38][39] Question: Factors driving gross margin increases - Management highlighted that gross margin improvements are due to cost efficiencies and product mix, with a focus on contribution margin rather than gross margin as a key performance indicator [44][47] Question: Details on Brand three and its launch - Management expressed excitement about Brand three, emphasizing the extensive testing and technology development that has been completed, positioning the brand for success upon launch [53][55] Question: Strategic focus for acquisitions - Management indicated that acquisitions would focus on brands with strong products or technology that would take significant time to develop internally, particularly in biotech and AI [62][63]

Core Viewpoint - Oddity Tech reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, and showing an increase from $0.61 per share a year ago, indicating a 9.52% earnings surprise [1][2] Financial Performance - The company achieved revenues of $268.08 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.86%, and up from $211.63 million year-over-year [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 7.2% since the beginning of the year, contrasting with a -6% decline in the S&P 500 [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.87 on revenues of $231.98 million, and for the current fiscal year, it is $1.95 on revenues of $782.57 million [7] - The estimate revisions trend for Oddity Tech is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Internet - Software industry, to which Oddity Tech belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Viewpoint - Oddity Tech is raising its earnings and profit guidance for fiscal 2025 despite anticipated tariff impacts, indicating strong growth and resilience in the retail sector [1][2]. Financial Performance - The company reported a net income of $37.8 million, or 63 cents per share, for the fiscal first quarter, an increase from $33 million, or 53 cents per share, a year earlier [3]. - Sales rose to $268 million, reflecting a 27% increase from $212 million a year prior [4]. - Oddity expects revenue for the current fiscal year to be between $790 million and $798 million, up from a previous range of $776 million to $785 million, exceeding analyst expectations of $784 million [4]. - Adjusted earnings per share are projected to be between $1.99 and $2.04, compared to the prior range of $1.94 to $1.98, also ahead of the $1.93 expected by analysts [5]. Margin and EBITDA Outlook - The company anticipates a gross margin of 71% for fiscal 2025, an increase from the previous forecast of 70% [6]. - Adjusted EBITDA is expected to be between $157 million and $161 million, up from the prior outlook of $155 million to $158 million [6]. Future Projections - For the current quarter, Oddity expects revenue between $235 million and $239 million, surpassing estimates of $232 million [7]. - Adjusted earnings are projected to be between 85 cents and 89 cents per share, ahead of the 84 cents estimate [7]. Industry Context - Oddity Tech stands out in the retail industry, which is facing challenges due to tariffs, as it maintains a focus on growth rather than cost-cutting [9]. - The beauty industry is perceived as resilient during economic downturns, as consumers may opt for beauty products over higher-ticket items [9]. - Oddity's stock has increased by 11% this year, outperforming the S&P 500's 5.4% loss [9].

[Executive Summary & Highlights](index=1&type=section&id=ExecutiveSummaryHighlights) [CEO & CFO Commentary](index=1&type=section&id=CEO_CFO_Commentary) ODDITY's CEO and CFO expressed strong satisfaction with Q1 2025 results, which exceeded expectations across all metrics, leading to a raised full-year outlook. They highlighted the ongoing industry transformation towards online and high-performance products, ODDITY's early investments, and a powerful financial model - Q1 **2025** results exceeded expectations across all metrics, allowing ODDITY to raise its full-year outlook[4](index=4&type=chunk)[5](index=5&type=chunk) - The beauty industry is transforming with consumers moving online and towards high-performance products, which strengthens ODDITY's market opportunity[4](index=4&type=chunk) - Early and aggressive investments in industry transformation enable a powerful financial model, allowing ODDITY to beat guidance and consistently raise its outlook[4](index=4&type=chunk) [Q1 2025 Financial Highlights](index=1&type=section&id=Q1_2025_Financial_Highlights) ODDITY reported robust financial performance for Q1 2025, with significant year-over-year growth in net revenue, gross profit, and net income, alongside strong cash flow generation and a healthy balance sheet with no outstanding debt Q1 2025 Key Financial Highlights | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--------------------- | :---------- | :---------- | :--------- | | Net Revenue | $268 million | $212 million | +27% | | Gross Profit | $201 million | $156 million | +29% | | Gross Margin | 74.9% | 73.8% | +116 bps | | Adjusted EBITDA | $52 million | $48 million | +9% | | Net Income | $38 million | $33 million | +15.2% | | Adjusted Net Income | $42 million | $38 million | +10.5% | | Operating Cash Flow | $88 million | $79.6 million | +10.5% | | Free Cash Flow | $87 million | $79 million | +10.1% | | Diluted EPS | $0.63 | $0.53 | +18.9% | | Adjusted Diluted EPS | $0.69 | $0.61 | +13.1% | | Cash & Investments (as of Mar 31, 2025) | $257 million | N/A | N/A | | Outstanding Debt (as of Mar 31, 2025) | $0 | N/A | N/A | [Q1 2025 Operational Highlights](index=1&type=section&id=Q1_2025_Operational_Highlights) ODDITY achieved several operational milestones in Q1 2025, including double-digit revenue growth for both IL MAKIAGE and SpoiledChild, accelerated international expansion, progress on Brand 3, and ongoing development of its molecule discovery platform - Achieved double-digit revenue growth for both IL MAKIAGE and SpoiledChild brands[7](index=7&type=chunk) - Accelerated international expansion efforts[7](index=7&type=chunk) - Progressed Brand 3 towards a planned soft launch in Q3 **2025** and formal launch in Q4 **2025**[7](index=7&type=chunk) - Continued development and expansion of the ODDITY LABS molecule discovery platform[7](index=7&type=chunk) [Q1 2025 Actual Results vs. Guidance](index=3&type=section&id=Q1_2025_Actual_Results_vs_Guidance) ODDITY's actual financial results for Q1 2025 surpassed its own guidance across all key metrics, including net revenue, gross margin, adjusted EBITDA, and adjusted diluted EPS Q1 2025 Actual Results vs. Guidance | Metric | Actual Results | Guidance Low End | Guidance High End | | :----------------- | :------------- | :--------------- | :---------------- | | Net Revenue | $268 million | $258 million | $262 million | | Gross Margin | 74.9% | 72.0% | 72.0% | | Adjusted EBITDA | $52 million | $49 million | $50 million | | Adjusted Diluted EPS | $0.69 | $0.61 | $0.63 | [Financial Outlook](index=3&type=section&id=FinancialOutlook) [Full Year 2025 Outlook](index=3&type=section&id=Full_Year_2025_Outlook) ODDITY raised its full-year 2025 financial outlook across all metrics, now expecting revenue growth ahead of its 20% long-term algorithm, despite anticipating manageable tariff and trade-related headwinds - ODDITY raised its **2025** financial outlook across all metrics, expecting revenue growth to exceed its **20%** long-term algorithm[11](index=11&type=chunk)[13](index=13&type=chunk) - Tariff and trade-related headwinds are expected to be manageable and largely offset by cost efficiencies in **2025** and **2026**[12](index=12&type=chunk) Current vs. Prior Full Year 2025 Outlook | Metric | Current FY2025 Outlook | Prior FY2025 Outlook | | :----------------- | :--------------------- | :------------------- | | Net Revenue | $790-798 million (22-23% YoY growth) | $776-785 million | | Gross Margin | 71% | 70% | | Adjusted EBITDA | $157-161 million | $155-158 million | | Adjusted Diluted EPS | $1.99-2.04 | $1.94-1.98 | [Second Quarter 2025 Guidance](index=3&type=section&id=Second_Quarter_2025_Guidance) ODDITY provided guidance for the second quarter ending June 30, 2025, projecting strong year-over-year revenue growth and healthy profitability metrics Q2 2025 Guidance | Metric | Q2 2025 Outlook | | :----------------- | :---------------- | | Net Revenue | $235-239 million (22-24% YoY growth) | | Gross Margin | 70.5% | | Adjusted EBITDA | $65-68 million | | Adjusted Diluted EPS | $0.85-0.89 | [Additional Information](index=5&type=section&id=AdditionalInformation) [Conference Call Details](index=5&type=section&id=Conference_Call_Details) ODDITY scheduled a conference call for April 30, 2025, to discuss Q1 2025 financial and business results and outlook, with details provided for participation and webcast access - A conference call is scheduled for April **30**, **2025**, at **8:30** a.m. ET to discuss Q1 **2025** financial and business results and outlook[19](index=19&type=chunk) - Dial-in numbers and webcast access details are provided for participation and replay[19](index=19&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non_GAAP_Financial_Measures) ODDITY utilizes several non-GAAP financial measures, including Adjusted EBITDA, Adjusted net income, and free cash flow, to provide supplemental information for evaluating business performance and trends, with clear definitions for each measure and its purpose - ODDITY uses non-GAAP financial measures (Adjusted EBITDA, Adjusted net income, free cash flow) to provide useful supplemental information for evaluating its business, performance, and trends[20](index=20&type=chunk) - Adjusted EBITDA is defined as net income before financial income, taxes, depreciation, amortization, share-based compensation expense, and non-recurring items[21](index=21&type=chunk) - Adjusted net income is defined as net income adjusted for share-based compensation, non-recurring items, one-time tax gains/losses, and the tax effect of non-GAAP adjustments; Adjusted diluted EPS is Adjusted net income divided by diluted shares outstanding[22](index=22&type=chunk) - Free cash flow is defined as net cash provided by operating activities less purchase of property and equipment[23](index=23&type=chunk) [Forward-Looking Statements & Risk Factors](index=6&type=section&id=Forward_Looking_Statements_Risk_Factors) The report contains forward-looking statements regarding ODDITY's future performance and outlook, which are inherently subject to various risks and uncertainties, including market trends, competition, supply chain disruptions, regulatory changes, and geopolitical factors - The press release includes forward-looking statements concerning ODDITY's business strategy, market opportunity, product delivery, long-term success, and financial outlook for Q2 and FY**2025**[24](index=24&type=chunk) - These statements are subject to risks and uncertainties such as maintaining brand value, responding to market trends, customer acquisition/retention, supply chain issues, demand forecasting, competition, raw material costs, counterfeiting, shipping disruptions, growth management, economic downturns, new product introduction, currency fluctuations, regulatory compliance, product liability, trade restrictions, tariffs, data breaches, intellectual property, and geopolitical conflicts[24](index=24&type=chunk) [About ODDITY](index=7&type=section&id=About_ODDITY) ODDITY is a consumer tech company that builds and scales digital-first beauty and wellness brands, leveraging an AI-driven online platform to identify consumer needs and develop solutions, serving approximately 60 million users through brands like IL MAKIAGE and SpoiledChild - ODDITY is a consumer tech company focused on building and scaling digital-first brands in the beauty and wellness industries[25](index=25&type=chunk) - The company utilizes an AI-driven online platform and data science to identify consumer needs, serving approximately **60 million** users[25](index=25&type=chunk) - ODDITY owns IL MAKIAGE and SpoiledChild, with business headquarters in New York City, an R&D center in Tel Aviv, and a biotechnology lab in Boston[25](index=25&type=chunk) [Contacts](index=7&type=section&id=Contacts) Contact information for press and investor inquiries is provided - Contact details for press (Michael Braun) and investor relations are provided[26](index=26&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=ConsolidatedFinancialStatements) [Consolidated Statements of Income](index=8&type=section&id=Consolidated_Statements_of_Income) The consolidated statements of income detail ODDITY's financial performance for the three months ended March 31, 2025, compared to the same period in 2024, outlining net revenue, cost of revenue, gross profit, operating expenses, and net income Consolidated Statements of Income (Three months ended March 31, USD in thousands) | Metric | 2025 | 2024 | | :------------------------ | :----- | :----- | | Net revenue | $268,076 | $211,628 | | Cost of revenue | $67,228 | $55,522 | | Gross profit | $200,848 | $156,106 | | Selling, general and administrative | $158,183 | $117,125 | | Operating income | $42,665 | $38,981 | | Financial income, net | $(2,647) | $(2,955) | | Income before taxes on income | $45,312 | $41,936 | | Taxes on income | $7,481 | $8,953 | | Net income | $37,831 | $32,983 | | Basic earnings per share | $0.68 | $0.57 | | Diluted earnings per share | $0.63 | $0.53 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated_Balance_Sheets) The consolidated balance sheets present ODDITY's financial position as of March 31, 2025, compared to December 31, 2024, providing a detailed breakdown of current and long-term assets, liabilities, and shareholders' equity Consolidated Balance Sheets (USD in thousands) | ASSETS | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :--------------- | :------------------ | | **CURRENT ASSETS:** | | | | Cash and cash equivalents | $136,860 | $50,340 | | Short-term deposits | $48,000 | $48,000 | | Marketable securities | $1,799 | $1,880 | | Trade receivables | $13,477 | $9,188 | | Inventories | $96,256 | $99,810 | | Prepaid expenses and other current assets | $18,852 | $14,151 | | **Total current assets** | **$315,244** | **$223,369** | | **LONG-TERM ASSETS:** | | | | Marketable securities | $70,034 | $68,831 | | Property, plant and equipment, net | $10,114 | $9,817 | | Deferred tax asset, net | $9,279 | $8,786 | | Intangible assets, net | $36,636 | $36,458 | | Goodwill | $64,904 | $64,904 | | Operating lease right-of-use assets | $24,762 | $23,567 | | Other assets | $3,268 | $3,150 | | **Total long-term assets** | **$218,997** | **$215,513** | | **Total assets** | **$534,241** | **$438,882** | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | **CURRENT LIABILITIES:** | | | | Trade payables | $120,772 | $79,130 | | Other accounts payable and accrued expenses | $41,422 | $38,566 | | Operating lease liabilities, current | $7,322 | $7,106 | | **Total current liabilities** | **$169,516** | **$124,802** | | **LONG-TERM LIABILITIES:** | | | | Operating lease liabilities, non-current | $16,352 | $15,604 | | Other long-term liabilities | $18,637 | $16,172 | | **Total liabilities** | **$204,505** | **$156,578** | | **SHAREHOLDERS' EQUITY:** | | | | Class A Ordinary shares | $14 | $14 | | Class B Ordinary shares | $3 | $3 | | Additional paid-in capital | $86,315 | $76,912 | | Accumulated other comprehensive income | $2,304 | $2,106 | | Retained earnings | $241,100 | $203,269 | | **Total shareholders' equity** | **$329,736** | **$282,304** | | **Total liabilities and shareholders' equity** | **$534,241** | **$438,882** | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated_Statements_of_Cash_Flows) The consolidated statements of cash flows detail ODDITY's cash movements from operating, investing, and financing activities for the three months ended March 31, 2025, compared to the same period in 2024, showing a significant net increase in cash and equivalents Consolidated Statements of Cash Flows (Three months ended March 31, USD in thousands) | Cash Flows From | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Net cash provided by operating activities | $88,336 | $79,647 | | Net cash used in investing activities | $(3,961) | $(47,099) | | Net cash provided by financing activities | $1,931 | $6,431 | | Effect of exchange rate fluctuations on cash | $284 | $(127) | | Net increase in cash, cash equivalents and restricted cash | $86,590 | $38,852 | | Cash, cash equivalents and restricted cash at beginning of period | $50,347 | $38,766 | | Cash, cash equivalents and restricted cash at end of period | $136,937 | $77,618 | [Reconciliations & Supplemental Data](index=12&type=section&id=ReconciliationsSupplementalData) [Reconciliation of GAAP to Non-GAAP Financial Information](index=12&type=section&id=Reconciliation_of_GAAP_to_Non_GAAP_Financial_Information) This section provides detailed reconciliations of GAAP net income to Adjusted EBITDA and Adjusted net income, outlining the specific adjustments made for non-GAAP reporting, such as share-based compensation and tax adjustments Reconciliation of Net Income and Adjusted EBITDA (Three months ended March 31, USD in thousands) | Metric | 2025 | 2024 | | :------------------------ | :----- | :----- | | Net Income | $37,831 | $32,983 | | Financial income, net | $(2,647) | $(2,955) | | Taxes on Income | $7,481 | $8,953 | | Depreciation and amortization | $2,655 | $2,301 | | Share-based compensation | $7,084 | $6,862 | | **Adjusted EBITDA** | **$52,404** | **$48,144** | Reconciliation of Net Income and Adjusted Net Income (Three months ended March 31, USD in thousands) | Metric | 2025 | 2024 | | :------------------------ | :----- | :----- | | Net Income | $37,831 | $32,983 | | Share-based compensation | $7,084 | $6,862 | | Tax adjustments | $(3,106) | $(1,465) | | **Adjusted Net Income** | **$41,809** | **$38,380** | | Diluted earnings per share | $0.63 | $0.53 | | **Adjusted diluted earnings per share** | **$0.69** | **$0.61** | [Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow](index=12&type=section&id=Reconciliation_of_Net_Cash_Provided_by_Operating_Activities_to_Free_Cash_Flow) This section reconciles net cash provided by operating activities to free cash flow for the three months ended March 31, 2025 and 2024, by deducting purchases of property and equipment Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Three Months Ended March 31, USD in thousands) | Metric | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Net operating cash flow | $88,336 | $79,647 | | Purchase of property and equipment | $(1,002) | $(655) | | **Free cash flow** | **$87,334** | **$78,992** | [Cash, Cash Equivalents, and Investments](index=12&type=section&id=Cash_Cash_Equivalents_and_Investments) This section provides a breakdown of ODDITY's cash, cash equivalents, and investments as of March 31, 2025, and December 31, 2024, showing a significant increase in total cash and investments Cash, Cash Equivalents, and Investments (USD in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------- | :--------------- | :------------------ | | Cash and cash equivalents | $136,860 | $50,340 | | Short-term deposits and restricted cash | $48,077 | $48,007 | | Marketable securities | $71,833 | $70,711 | | **Total cash and investments** | **$256,770** | **$169,058** | [Net Revenue by Sales Channel](index=13&type=section&id=Net_Revenue_by_Sales_Channel) This section details ODDITY's net revenue breakdown by sales channel for the three months ended March 31, 2025, and 2024, highlighting the continued dominance of online direct-to-consumer sales Net Revenue by Sales Channel (Three Months Ended March 31, USD in thousands) | Sales Channel | 2025 | Percent of Net Revenue (2025) | 2024 | Percent of Net Revenue (2024) | | :------------------------------ | :----- | :---------------------------- | :----- | :---------------------------- | | Online direct-to-consumer | $261,053 | 97% | $203,575 | 96% | | Other (Israel retail, marketing affiliates) | $7,023 | 3% | $8,053 | 4% | | **Net Revenue** | **$268,076** | **100%** | **$211,628** | **100%** | - Online direct-to-consumer sales constitute the vast majority of net revenue, accounting for **97%** in Q1 **2025**[34](index=34&type=chunk)