Key Highlights

  • Net Revenue declined 2% to USD 145 million in the third quarter, better than the roughly 5% decline management had guided and a large improvement on the 25% fall reported in the second quarter.
  • Adjusted EBITDA came in at USD 22 million, above the USD 18 million to USD 20 million outlook, while gross Margin slipped to 67.4% from 71.6% a year earlier.
  • Adjusted Diluted Earnings per Share were USD 0.37 against USD 0.40 a year ago, on a diluted share count about 23% lower after buybacks.
  • Management now expects full-year 2026 net revenue to decline about 18.5% and adjusted EBITDA of USD 32 million to USD 34 million, both raised.

Third-Quarter Revenue Beats the Top of Guidance

Oddity Tech (NASDAQ:ODD) held its third-quarter Earnings Call on November 11, 2026, and management said the press release had been issued earlier that day. Management said revenue and adjusted EBITDA both exceeded the top end of guidance. Net revenue of USD 145 million was down 2%, against an outlook of a decline of approximately 5%. The finance chief attributed part of the sequential improvement to repeat orders stabilizing versus the prior year, with more than 80% of net revenue coming from repeat sales. First-order net revenue still declined by approximately the high teens, and average order value fell by approximately mid-single digits.

SpoiledChild and METHODIQ Offset the IL MAKIAGE Drag

The company runs beauty and wellness brands sold directly to consumers online. Management said IL MAKIAGE remains hurt by an Advertising account dislocation with its largest advertising partner, which sharply cut first-order revenue. SpoiledChild grew by strong double digits in the quarter and is on track to grow at least 35% for the year, approaching USD 350 million of revenue. METHODIQ, launched this year, is on track to beat SpoiledChild's first-year revenue, and management plans to add prescription injectable therapies and further peptide products in 2027. The CEO said September brought the best cost per Acquisition for IL MAKIAGE since earlier in the year, but October was weaker.

Buybacks, Liquidity and a Raised 2026 Outlook

Free Cash Flow was USD 10 million in the quarter and about USD 3 million for the first nine months. Inventory ended at USD 158 million, and management said IL MAKIAGE is still working through excess stock bought in anticipation of stronger sales. The company held USD 561 million of cash, cash equivalents and investments, with USD 350 million of Credit facilities undrawn. In nine months it repurchased 11.7 million shares for USD 163 million, leaving about USD 86 million on a USD 200 million authorization, and about USD 550 million of 2030 exchangeable notes remain outstanding. Management gave no 2027 guidance and said a return to growth would need investment.

Where Things Stand

Mostly through stabilization of repeat orders and faster growth at SpoiledChild and METHODIQ, though the base is still shrinking. Oddity Tech (NASDAQ:ODD) beat its own third-quarter outlook and raised 2026 guidance, yet adjusted earnings per share and gross margin were lower than a year ago. Management said the fourth quarter is tracking as planned, with room built in for Volatility while it resets IL MAKIAGE advertising. Next markers are fourth-quarter results, progress with the advertising partner and the 2027 launches.