Key Highlights

  • Shares were trading down 12.96% at $17.32, from a prior close of $19.90.
  • Third quarter Revenue fell 2% to $145 million, ahead of the roughly 5% decline outlook, and adjusted EPS was $0.37 versus $0.30 expected.
  • Adjusted EBITDA was $22 million versus an outlook of $18 million to $20 million.
  • The 2026 outlook was raised to a revenue decline of about 18.5% and adjusted EBITDA of $32 million to $34 million.
  • Il Makiage first-order revenue declined sharply, and the ad account issue with its largest Advertising partner is unresolved.

ODDITY Tech (NASDAQ:ODD) shares were trading down 12.96% at $17.32 today, from a prior close of $19.90, even after the company beat third quarter expectations and raised its 2026 outlook. The shares had closed up about 2% after the results. Needham said the issues at Il Makiage are not yet resolved.

Q3 Beat Fails to Calm Concerns

Net revenue fell 2% to $145 million, better than the roughly 5% decline the company had guided and a sharp improvement from the 25% decline in the second quarter. Revenue topped the $140.5 million estimate. Adjusted EPS was $0.37 versus $0.30 expected and $0.40 a year earlier, on a diluted share count about 23% lower after buybacks.

Adjusted EBITDA was $22 million, above the $18 million to $20 million outlook. Gross Margin was 67.4%, down from 71.6%, partly due to lower average order value. More than 80% of net revenue came from repeat sales, while first-order revenue fell by roughly the high teens.

Il Makiage Ad Dislocation Remains Unresolved

Il Makiage first-order revenue declined sharply because of an ongoing dislocation with its largest advertising partner, which Chief Executive Oran Holtzman said accounts for well over 50% of online customer Acquisition in its category. He said September delivered the best customer acquisition cost since 2025, but October was weaker, and described results as volatile.

The company has not solved the problem, though it said the partner is putting substantial resources into a fix.

Newer Brands, Raised Guidance and Cash

SpoiledChild is on track for growth of at least 35% in 2026, approaching $350 million of revenue, and METHODIQ is on track to beat SpoiledChild's first-year revenue. For 2027, METHODIQ plans to offer prescription injectables including NAD+ and semaglutide, plus six additional peptide therapies covered by the enforcement discretion policy published by HHS last month.

The company raised 2026 guidance to a net revenue decline of about 18.5% and adjusted EBITDA of $32 million to $34 million. It gave no 2027 guidance. Nine-month revenue was $523 million, down 20%. ODDITY ended the quarter with $561 million in cash, equivalents and investments, with its $350 million of Credit facilities undrawn, and has repurchased 11.7 million shares for $163 million this year, cutting shares outstanding by about 20%.

Il Makiage Recovery Decides Whether the Beat Holds

The decline came after a quarter that cleared every target, and the concern centers on the Brand that built the company. Il Makiage first-order revenue is still falling, October acquisition costs weakened after a strong September, and revenue still fell 2% despite strong growth at SpoiledChild and METHODIQ. Management has not issued 2027 guidance and has said the goal is a return to growth for every brand.

The next markers are the fourth quarter report, due in about three months, and any update on the advertising partner fix. Barclays raised its price target to $15 from $12, and beauty peers including e.l.f. Beauty (NYSE:ELF) traded lower, with ELF down 4.22%.