Company Overview - Oddity Tech, trading under NASDAQ:ODD, is recognized for its innovative beauty brands, Il Makiage and SpoiledChild, which have gained popularity due to their strong online presence and unique product offerings [1] - The company operates in the competitive beauty and skincare industry, facing competition from major players like Estée Lauder and L'Oréal [1] Financial Performance - Oddity's net revenue increased by 24% year over year, reaching $148 million, driven by strong online sales for its brands [3] - The company's gross margin improved to 71.6%, up from 69.9% the previous year, indicating effective cost management [3][6] - Adjusted net income soared by 26% to $25 million, or $0.40 per share, surpassing Wall Street's forecast of $0.35 per share [4][6] Market Activity - Following a price target set by Truist Financial at $80, indicating a potential increase of about 84.71%, ODD shares surged over 10% by midday [2][6] - The current stock price is $39.57, reflecting a 6.49% increase, with a market capitalization of approximately $2.25 billion [5]

Financial Data and Key Metrics Changes - The company reported a 24% year-over-year revenue growth, reaching $148 million in Q3 2025, exceeding guidance of 21% to 23% [16][19] - Adjusted diluted earnings per share increased to $0.40, surpassing guidance of $0.33 to $0.36 [18] - Gross margins expanded to 71.6%, up 170 basis points from the previous year, exceeding guidance of 68% [17] - Adjusted EBITDA for the quarter was $29 million, above the guidance of $26 million to $28 million [18] Business Line Data and Key Metrics Changes - Il Makiage experienced double-digit online revenue growth, with a target of $1 billion revenue by 2028 [11] - SpoiledChild is expected to generate $225 million in revenue for 2025, indicating strong performance [12] - International revenue increased approximately 40% year-over-year in the first nine months of 2025, with successful scaling in existing markets [11] Market Data and Key Metrics Changes - The company noted that 83% of revenue still comes from the U.S., with international markets contributing 17% [23] - New geographic expansions include Italy, Spain, Netherlands, Ireland, Sweden, and Denmark, with testing in Japan, Mexico, and Korea [24] Company Strategy and Development Direction - The launch of Methodic, a new brand focused on dermatology, aims to transform medical care with high-efficacy treatments [5][6] - The company plans to expand Methodic into new medical domains beyond dermatology in the future [7] - Continued investment in technology and innovation, particularly in AI and proprietary datasets, is a key focus for driving direct-to-consumer growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging industry backdrop, citing strong repeat customer rates as a buffer against acquisition cost increases [40] - The outlook for 2025 has been raised, with expected net revenue between $806 million and $809 million, representing 24% to 25% year-over-year growth [19] Other Important Information - The company ended the quarter with $793 million in cash and cash equivalents, plus an additional $200 million available on undrawn credit facilities [19] - Methodic's launch includes a significant media campaign, marking the largest TikTok activation in the company's history [10] Q&A Session Summary Question: Can you unpack the 40% year-to-date growth in international markets? - Management noted that 83% of revenue still comes from the U.S., with international growth being strategically important and focused on existing markets [23][24] Question: Thoughts on Methodic's ability to bring in new customers? - Management indicated that Methodic will attract both new and existing customers, with a mixed approach to user acquisition [25][27] Question: How to think about Methodic's brand for 2026? - Expectations are for Methodic to scale faster than SpoiledChild, with a focus on user acquisition and long-term growth [32][34] Question: Views on the health of the U.S. consumer? - Management acknowledged external softness but highlighted strong internal performance and repeat customer growth as mitigating factors [40] Question: Is the growth algorithm for 2026 any different? - No changes to the growth algorithm of 20% revenue growth and 20% adjusted EBITDA margin were indicated [42] Question: How replicable is the data model for international efforts? - Management confirmed a measured approach for Methodic, starting only in the U.S. before considering international expansion [64] Question: Are the molecules for Methodic prescription or non-prescription? - The initial products will be a combination of OTC and cosmetic, with a focus on non-prescription offerings [67][93] Question: What is the total addressable market (TAM) for Methodic? - The TAM is viewed in terms of the number of people suffering from chronic skin conditions, with a focus on improving access and outcomes [84]

Financial Data and Key Metrics Changes - ODDITY reported a 24% year-over-year revenue growth in Q3, reaching $148 million, exceeding guidance of 21% to 23% growth [16][19] - Adjusted diluted earnings per share increased to $0.40, surpassing guidance of $0.33 to $0.36 [18] - Gross margins expanded to 71.6%, up 170 basis points from the previous year, exceeding guidance of 68% [17] Business Line Data and Key Metrics Changes - Il Makiage experienced double-digit online revenue growth, with a target of $1 billion revenue by 2028 [11] - SpoiledChild is expected to generate $225 million in revenue for 2025, showing strong performance [12] - METHODIQ, the new brand, aims to launch 28 products addressing various skin conditions, with a focus on dermatology [8][9] Market Data and Key Metrics Changes - International revenue increased approximately 40% year-over-year in the first nine months of 2025, with significant growth in existing markets like the U.K. and Australia [11][24] - The U.S. still accounts for 83% of total revenue, indicating room for international expansion [23] Company Strategy and Development Direction - ODDITY is focused on expanding its international presence while responsibly managing growth across brands and geographies [23] - The company aims to leverage technology and innovation, particularly through ODDITY Labs, to enhance product offerings and consumer experience [14][52] - METHODIQ is positioned to transform the medical care system by providing high-efficacy treatments without traditional barriers [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the industry but emphasized strong financial performance and growth potential [5][16] - The company raised its full-year guidance, expecting net revenue between $806 million and $809 million for 2025, representing 24% to 25% growth [19] - Management remains optimistic about the consumer environment, citing strong repeat purchase rates as a buffer against acquisition cost increases [40] Other Important Information - ODDITY plans to launch a major media campaign for METHODIQ, including a significant TikTok activation [10][89] - The company has a strong cash position with $793 million in cash and equivalents, plus $200 million available on undrawn credit facilities [19][60] Q&A Session Summary Question: Can you unpack the 40% year-to-date growth in international markets? - Management noted that 83% of revenue still comes from the U.S., with international growth primarily from existing markets like Canada and the U.K. [23][24] Question: How does METHODIQ plan to attract new customers? - METHODIQ is expected to draw customers from existing brands while also focusing on user acquisition [27] Question: What is the growth outlook for Il Makiage and SpoiledChild? - Management aims for sustained 20% growth across brands, with Il Makiage targeting $1 billion by 2028 [75] Question: How is the company addressing higher acquisition costs? - Management highlighted strong repeat purchase rates as a key factor in offsetting higher acquisition costs [40] Question: What is the financial profile of METHODIQ? - METHODIQ is expected to have a similar long-term growth framework as Il Makiage and SpoiledChild, with a focus on repeat business [50] Question: How will the company leverage its physician network for METHODIQ? - The company is currently using third-party networks for physicians and plans to integrate technology to enhance treatment outcomes [67]

Financial Data and Key Metrics Changes - Oddity reported a 24% year-over-year revenue growth, reaching $148 million in Q3 2025, exceeding guidance of 21% to 23% [13][14] - Adjusted diluted earnings per share increased to $0.40, surpassing guidance of $0.33 to $0.36 [16] - Gross margins expanded to 71.6%, up 170 basis points from the prior year, exceeding guidance of 68% [15] - Adjusted EBITDA for the quarter was $29 million, above the guidance of $26 million to $28 million [16] - The company ended the quarter with $793 million in cash and cash equivalents, plus an additional $200 million available on undrawn credit facilities [17] Business Line Data and Key Metrics Changes - Il Makiage experienced double-digit online revenue growth, on track to achieve $1 billion in revenue by 2028 [9] - SpoiledChild is expected to generate $225 million in revenue for 2025, indicating strong performance [10] - International revenue increased approximately 40% year-over-year in the first nine months of 2025, with significant growth in existing markets like the U.K. and Australia [9][10] Market Data and Key Metrics Changes - The company noted that 83% of revenue still comes from the U.S., with international markets contributing 17% [20] - New geographic expansions include Italy, Spain, Netherlands, Ireland, Sweden, and Denmark, with testing in Japan, Mexico, and Korea [21][22] Company Strategy and Development Direction - The launch of Methodic, a telehealth platform, aims to transform the medical care system, starting with dermatology [5][6] - Methodic is expected to feature 28 products addressing various skin conditions, with a focus on high-efficacy treatments [6][7] - The company plans to continue investing in its long-term growth engines, including Methodic and ODDITY Labs [16][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging industry backdrop, citing strong repeat customer rates as a buffer against acquisition cost increases [36] - The outlook for 2025 has been raised, with expected net revenue between $806 million and $809 million, representing 24% to 25% year-over-year growth [17] - Management remains bullish on Methodic's potential, emphasizing the unique market opportunity it presents [30][31] Other Important Information - The company is leveraging artificial intelligence and proprietary datasets to enhance its direct-to-consumer model [11] - Methodic's launch includes a significant media campaign, marking the largest TikTok activation in the company's history [8][9] Q&A Session Summary Question: Can you unpack the 40% year-to-date growth in international markets? - Management noted that while international growth is strong, 83% of revenue still comes from the U.S., and they plan to responsibly grow in international markets [20][21] Question: How is Methodic expected to drive new customer acquisition? - Management indicated that Methodic will attract both existing and new customers, with a mix of user acquisition strategies [25] Question: What are the expectations for SG&A in the context of the new brand launch? - Management stated that they are not ready to provide specific guidance for 2026 but expect Methodic to scale faster than SpoiledChild [29][32] Question: How does the company view the health of the U.S. consumer? - Management acknowledged softness in the consumer market but highlighted strong revenue and margin performance, driven by repeat customers [36] Question: What is the financial profile of Methodic? - Management expects Methodic to support long-term revenue growth and healthy unit economics, with lower gross margins initially due to prescription costs [44][45] Question: How will the company approach international expansion for Methodic? - Management confirmed that Methodic will initially focus on the U.S. market before considering international expansion [55]

Core Insights - Oddity Tech Ltd. is set to release its quarterly earnings on November 19, 2025, with an expected EPS of $0.35 and revenue of approximately $145.47 million [1][6] Company Developments - The launch of Methodiq, a telehealth platform for medical skincare, signifies Oddity's strategic entry into the medical-grade skincare market, competing with companies like Hims [2][6] - Methodiq offers 28 new products targeting skin conditions such as acne and eczema, with prices ranging from $29 to $59, making them accessible to a broad audience [2] - The development of Methodiq took four years and integrates investments in biotechnology and AI-based computational imaging, allowing for online diagnosis and personalized treatments [3] Financial Performance - Oddity has a price-to-earnings (P/E) ratio of 18.89, indicating the market's valuation of its earnings [4][6] - The price-to-sales ratio stands at 2.76, reflecting investor willingness to pay per dollar of sales [4] - The enterprise value to sales ratio is 1.92, showing the company's total valuation relative to its sales [4] - The company maintains a low debt-to-equity ratio of 0.065, indicating conservative debt use [5] - A current ratio of 6.32 suggests strong liquidity, ensuring the company can cover short-term liabilities [5] - An earnings yield of 5.29% demonstrates Oddity's ability to generate earnings from each dollar invested [5]

Group 1 - Oddity Tech Ltd. is recognized as one of the best performing new tech stocks, with a recent price target adjustment by KeyBanc from $90 to $80 while maintaining an Overweight rating [1][3] - The company reported a net revenue of $241 million in Q2 2025, reflecting a 25% year-over-year increase from $193 million in Q2 2024, with a gross profit of $174 million and a gross margin of 72.3% [2] - Oddity Tech has raised its full-year financial outlook for 2025, projecting net revenue between $799 million and $804 million, indicating a 23% to 24% annual growth, driven by strong online revenue growth and international expansion [3] Group 2 - Oddity Tech operates as a consumer tech company focused on building digital-first brands in the beauty and wellness sectors, both in the US and internationally [4]

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]

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]

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]