Financial Data and Key Metrics Changes - ODDITY reported a record revenue of $810 million for 2025, representing a 25% increase year-over-year [4][21] - Adjusted EBITDA reached $163 million, with an adjusted EBITDA margin of 20.2%, consistent with long-term targets [4][21] - The company experienced a gross margin of 70.5% in Q4, which compressed by 220 basis points year-over-year [19] Business Line Data and Key Metrics Changes - IL MAKIAGE generated approximately $560 million in revenue, with low double-digit growth, and IL MAKIAGE SKIN accounted for about 40% of brand revenue [6][7] - SpoiledChild achieved approximately $250 million in revenue, marking a strong performance for a brand launched only four years ago [7] - The launch of Methodic, a medical telehealth platform, is off to a promising start, focusing on dermatological treatments [8] Market Data and Key Metrics Changes - ODDITY's international revenue grew by 42%, representing 17.5% of overall net revenue for 2025 [7] - The company noted that many competitors generate over 65% of their net sales from international markets, highlighting ODDITY's growth potential [7] Company Strategy and Development Direction - ODDITY is focused on leveraging its platform and technology to expand into new product categories and brands, with significant investments in ODDITY Labs and tech infrastructure [5][9] - The company aims to address consumer pain points with high-performance products and has a robust product development pipeline [9][10] - Despite challenges in user acquisition costs, ODDITY remains committed to its long-term growth strategy and online distribution model [17][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged unprecedented increases in user acquisition costs due to algorithm changes from a major advertising partner, impacting new user acquisition efficiency [12][13] - The company expects a negative impact on 2026 financial results, particularly in the first half, but does not foresee a structural issue in its business model [17][18] - Management remains optimistic about returning to growth and believes the current challenges are temporary [36][38] Other Important Information - ODDITY ended the year with $776 million in cash and cash equivalents, positioning itself well for future investments and potential stock buybacks [22] - The company is navigating a situation where current customer acquisition costs are significantly higher than historical levels, affecting profitability on first orders [24] Q&A Session Summary Question: Inquiry about LTV changes and user acquisition issues - Management noted that the issue was first observed in the second half of 2025 and worsened in 2026, with ongoing efforts to address it while maintaining the try-before-you-buy model [28][29][30] Question: Concerns about guidance and user acquisition shifts - Management confirmed no change in strategy towards online distribution and expressed confidence in returning to growth despite current challenges [34][36] Question: Discussion on advertising spend strategy - Management emphasized the need to balance spending to feed algorithms while managing costs effectively during high CPA periods [41][43] Question: Clarification on changes within the acquisition funnel - Management explained that the dislocation affects multiple brands and highlighted the importance of maintaining a diversified advertising strategy [51][52] Question: Strength in international opportunities and brand launches - Management reported strong initial success with the Methodic brand and emphasized the need for user acquisition to support growth [59][60]

Financial Data and Key Metrics Changes - ODDITY reported a record revenue of $810 million for 2025, representing a 25% increase year-over-year [4][22] - Adjusted EBITDA reached $163 million, with an adjusted EBITDA margin of 20.2%, consistent with long-term targets [4][22] - The company experienced a gross margin of 72.7%, which expanded by 30 basis points year-over-year [22] - In Q4 2025, net revenue grew by 24% to $153 million, exceeding guidance [20] Business Line Data and Key Metrics Changes - IL MAKIAGE generated approximately $560 million in revenue, with low double-digit growth, and IL MAKIAGE SKIN accounted for about 40% of brand revenue [6][22] - SpoiledChild achieved revenue of approximately $250 million, marking a strong performance for a brand launched only four years ago [8][22] - The launch of Methodic, a medical telehealth platform, is off to a strong start, focusing on dermatological treatments [9] Market Data and Key Metrics Changes - ODDITY's international revenue grew by 42%, representing 17.5% of overall net revenue for 2025 [7] - The company noted that many competitors generate over 65% of their net sales from international markets, indicating room for growth [7] Company Strategy and Development Direction - ODDITY is focused on expanding its brand portfolio and investing in technology and product development, particularly through ODDITY Labs [5][10] - The company aims to leverage its platform and technology to maintain a competitive edge in the beauty and wellness market [5] - Despite challenges in user acquisition costs, the long-term strategy remains unchanged, emphasizing online consumer migration [5][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged unprecedented increases in user acquisition costs due to algorithm changes from a major advertising partner, impacting new user acquisition efficiency [13][19] - The company expects a negative impact on 2026 financial results, particularly in the first half, but remains committed to correcting the issue and returning to growth [18][25] - Management believes the current challenges are technical rather than structural, and they anticipate normalization in the second half of 2026 [19] Other Important Information - ODDITY ended the year with a strong liquidity position, holding $776 million in cash and cash equivalents [24] - The company plans to repurchase stock opportunistically, with $103 million remaining on its repurchase authorization [24] Q&A Session Summary Question: Inquiry about LTV change and its relation to Google's Andromeda - Management observed issues starting in the second half of 2025, worsening into 2026, and is working on solutions while maintaining the try-before-you-buy model [29][30][32] Question: Concerns about guidance and user acquisition shifts - Management confirmed no change in strategy, emphasizing online growth and addressing current user acquisition challenges without moving into retail [36][37] Question: Discussion on advertising spend strategy post-normalization - Management indicated a balanced approach to advertising spend, continuing to feed algorithms while managing costs effectively [42][44] Question: Clarification on changes within the acquisition funnel - Management noted that the dislocation affects multiple brands and is working on adjustments to improve performance [52][53] Question: Strength in international opportunities and brand rollout - The launch of Methodic is performing well, and management remains focused on growth despite current challenges [60][61]

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, 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]