Core Viewpoint - Oddity Tech reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, and showing an increase from $0.82 per share a year ago, indicating a positive earnings surprise of +4.55% [1] Financial Performance - The company achieved revenues of $241.14 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.83% and reflecting a year-over-year increase from $192.77 million [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 70.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 6.1% [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, with current consensus EPS estimates at $0.32 for the coming quarter and $2.04 for the current fiscal year [7] - The Zacks Rank for Oddity Tech is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Internet - Software industry, to which Oddity Tech belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Performance - Second quarter net revenue reached $241 million, a 25% increase year-over-year from $193 million[6] - Gross profit for the second quarter was $174 million, also reflecting a 25% year-over-year increase, with a gross margin of 72.3%[8] - Adjusted EBITDA for the second quarter was $70 million, representing a 12% increase from $62 million in the same quarter of the previous year[8] - The company raised its full year 2025 outlook to a net revenue range of $799-804 million, indicating year-over-year growth of 23-24%[11] - The third quarter 2025 guidance includes net revenue expectations of $144-146 million, representing year-over-year growth of 21-23%[13] - Adjusted diluted EPS for the second quarter was $0.92, up from $0.82 in the same quarter of the previous year[8] - Net revenue for Q2 2025 reached $241,140,000, a 25% increase from $192,774,000 in Q2 2024[24] - Gross profit for the first half of 2025 was $375,200,000, up 27% from $295,203,000 in the same period of 2024[24] - The company reported a net income of $49,285,000 for Q2 2025, representing an 8% increase compared to $45,491,000 in Q2 2024[24] - Adjusted EBITDA for the first half of 2025 was $121,920,000, an increase from $110,442,000 in the same period of 2024[30] Cash Position and Assets - The company completed its first exchangeable note offering, upsized to $600 million with a 0% coupon, enhancing its cash position[7] - As of June 30, 2025, ODDITY reported cash, cash equivalents, and investments totaling $815 million, along with undrawn credit facilities of $200 million[7] - Cash and cash equivalents surged to $656,822,000 as of June 30, 2025, compared to $50,340,000 at the end of 2024[25] - Total assets increased to $1,097,899,000 as of June 30, 2025, significantly up from $438,882,000 at the end of 2024[26] - The company generated $101,384,000 in net cash from operating activities for the first half of 2025, slightly down from $105,440,000 in the same period of 2024[27] - Free cash flow for the first half of 2025 was $99,433,000, compared to $103,938,000 in the first half of 2024[31] - The company issued exchangeable notes generating proceeds of $583,500,000 during the first half of 2025[27] Business Expansion and Strategy - ODDITY is progressing towards the launch of Brand 3 in the fourth quarter of 2025, expanding into medical grade products[4] - The company is focusing on international expansion and the ongoing development of the ODDITY LABS molecule discovery platform[7] - Online direct-to-consumer sales accounted for 98% of net revenue in Q2 2025, totaling $235,161,000, up from 94% in Q2 2024[33]

Core Insights - ODDITY Tech Ltd. reported strong financial results for Q2 2025, exceeding guidance across revenue, profit, and earnings per share, indicating robust business growth and profitability [2][4][6] - The company is expanding into new markets, particularly in healthcare with the upcoming launch of Brand 3, which focuses on medical-grade products [3][4] - ODDITY raised its full-year financial outlook for 2025, reflecting confidence in continued growth driven by a backlog of repeat orders [4][9] Financial Performance - Q2 2025 net revenue reached $241 million, a 25% increase year-over-year from $193 million in Q2 2024 [4][6] - Adjusted EBITDA for Q2 2025 was $70 million, up 12% from $62 million in Q2 2024, with an adjusted EBITDA margin of 28.8% [4][6] - Net income for Q2 2025 was $49 million, compared to $45 million in Q2 2024, with a net income margin of 20.4% [4][6] Financial Outlook - The updated full-year 2025 outlook includes net revenue between $799 million and $804 million, representing year-over-year growth of 23% to 24% [9][10] - For Q3 2025, ODDITY expects net revenue between $144 million and $146 million, with a gross margin of approximately 68% [11][9] - Adjusted diluted EPS for the full year is projected to be between $2.06 and $2.09, an increase from the previous outlook [9][10] Strategic Initiatives - The company is progressing towards the formal launch of Brand 3 in Q4 2025 and Brand 4 in 2026, indicating a focus on innovation and market expansion [5][4] - ODDITY is also developing its ODDITY LABS molecule discovery platform, which may enhance its product offerings in the future [5][4] - The company completed its first exchangeable note offering, upsized to $600 million, strengthening its cash position [5][4]

Core Insights - Oddity Tech (ODD) is set to announce its second-quarter 2025 results on August 4, with expected non-GAAP earnings between $0.85 and $0.89 per share and revenues anticipated between $235 million and $239 million [1][9] Earnings Expectations - The Zacks Consensus Estimate for second-quarter earnings is at $0.88 per share, reflecting a year-over-year growth of 7.3%, while the revenue consensus is $239.2 million, indicating a 24.1% year-over-year increase [2] Historical Performance - ODD has consistently exceeded the Zacks Consensus Estimate in the past four quarters, achieving an average surprise of 32.8% [2] Growth Drivers - The company is expected to benefit from a growing user base, an expanding online presence, and a strong direct-to-consumer (DTC) platform, which are anticipated to drive revenue growth [4] - Strong demand for IL Makiage and SpoiledChild brands is likely to contribute positively to revenue in the upcoming quarter [5][9] Margin Considerations - Despite the expected revenue growth, gross margins may be negatively impacted by higher tariffs, which are projected to affect margins by 50 to 100 basis points [5][9] Earnings Prediction Model - According to the Zacks model, ODD has a positive Earnings ESP of +1.14% and a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook for an earnings beat [6]

Core Viewpoint - The market anticipates Oddity Tech (ODD) to report a year-over-year increase in earnings driven by higher revenues, with a focus on how actual results compare to estimates [1][2]. Earnings Expectations - Oddity Tech is expected to report quarterly earnings of $0.88 per share, reflecting a year-over-year increase of +7.3% [3]. - Revenues are projected to reach $237.22 million, representing a 23.1% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate for Oddity Tech has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for Oddity Tech is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.29% [11]. Earnings Surprise History - In the last reported quarter, Oddity Tech exceeded the expected earnings of $0.63 per share by delivering $0.69, resulting in a surprise of +9.52% [12]. - The company has beaten consensus EPS estimates in each of the last four quarters [13]. Industry Context - In the Zacks Internet - Software industry, F5 Networks (FFIV) is expected to report earnings of $3.49 per share, with a year-over-year change of +3.9% and revenues of $753.06 million, up 8.3% from the previous year [17]. - F5 Networks has a negative Earnings ESP of -0.33%, making it challenging to predict a beat on the consensus EPS estimate, despite having beaten estimates in the last four quarters [18].

Company Overview - ODDITY Tech Ltd. is a consumer tech company focused on building and scaling digital-first brands to disrupt the offline-dominated beauty and wellness industries [3] - The company serves approximately 60 million users through its AI-driven online platform, utilizing data science to identify consumer needs and develop beauty and wellness products [3] - ODDITY owns brands such as IL MAKIAGE and SpoiledChild, with headquarters in New York City, an R&D center in Tel Aviv, Israel, and a biotechnology lab in Boston [3] Financial Results Announcement - ODDITY will release its second quarter 2025 financial results after the market close on August 4, 2025 [1] - A conference call to discuss the financial results will take place on August 5, 2025, at 8:30 a.m. Eastern Time [1] Conference Call Details - Participants can join the conference call by dialing 1-800-717-1738 (US) or 1-646-307-1865 (international) [2] - A webcast of the call will be available on the Investors section of ODDITY's website, with a recording accessible shortly after the call [2]

Core Insights - Oddity Tech has consistently surpassed earnings estimates, averaging a 31.68% beat over the last two quarters [1][2] - The company reported earnings of $0.69 per share against a consensus estimate of $0.63, resulting in a 9.52% surprise [2] - In the previous quarter, Oddity Tech exceeded expectations by reporting $0.20 per share compared to an estimate of $0.13, achieving a 53.85% surprise [2] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Oddity Tech, with a positive Earnings ESP indicating a strong likelihood of an earnings beat [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests that another earnings beat is likely [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of beating consensus estimates [6][8] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - Oddity Tech's current Earnings ESP stands at +0.29%, indicating recent bullish sentiment among analysts regarding the company's earnings prospects [8] - A negative Earnings ESP does not necessarily indicate an earnings miss but can reduce the predictive power of the metric [8]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Oddity Tech (ODD) - Oddity Tech currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [2][3] - The stock has seen significant price increases, with shares up 59.51% over the past quarter and 62.57% over the last year, compared to the S&P 500's increases of 7.87% and 14.01% respectively [6] Price Performance - Over the past week, ODD shares increased by 3.92%, outperforming the Zacks Internet - Software industry, which rose by 2.75% [5] - The monthly price change for ODD is 18.33%, significantly higher than the industry's 0.18% performance [5] Trading Volume - ODD's average 20-day trading volume is 1,309,542 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, four earnings estimates for ODD have been revised upwards, increasing the consensus estimate from $1.96 to $2.04 [9] - For the next fiscal year, four estimates have also moved upwards with no downward revisions, indicating positive earnings momentum [9] Conclusion - Given the strong performance metrics and positive earnings outlook, ODD is positioned as a promising investment opportunity with a Momentum Score of B [11]

Technical Analysis - Oddity Tech (ODD) has recently reached a key level of support and has overtaken the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average is a popular trading tool that smooths out price fluctuations and provides trend reversal signals, beneficial for short-term traders [2] Performance Metrics - Over the past four weeks, ODD has gained 18.3%, indicating strong performance [4] - The company is currently ranked a Zacks Rank 1 (Strong Buy), suggesting potential for further price increases [4] Earnings Estimates - There have been 4 upward revisions in earnings estimates for the current fiscal year, with no downward revisions, leading to an increase in the consensus estimate [4] - The combination of positive earnings estimate revisions and favorable technical indicators suggests that investors may want to monitor ODD for potential gains in the near future [5]

Core Viewpoint - Oddity Finance LLC, a subsidiary of ODDITY Tech Ltd, is pricing $525 million of 0% exchangeable senior notes due 2030, increasing from a previously announced offering size of $350 million [1][2] Group 1: Offering Details - The offering is expected to close on June 12, 2025, and will result in approximately $510.6 million in net proceeds after deducting initial purchasers' discounts [1] - The Issuer has granted initial purchasers an option to purchase an additional $75 million of notes within a 13-day period [1] - The notes will be senior, unsecured obligations and will not bear regular interest, maturing on June 15, 2030 [3] Group 2: Use of Proceeds - Net proceeds will be used for general corporate purposes, with no immediate plans for material acquisitions, but potential for strategic M&A in the future [2] - Approximately $55.3 million of the net proceeds will be allocated to capped call transactions [2] Group 3: Capped Call Transactions - Capped call transactions are designed to reduce potential dilution of ODDITY's Class A ordinary shares upon exchange of the notes [4] - The initial cap price for these transactions is set at $138.92 per share, representing a 100% premium over the last reported sale price [5] Group 4: Exchange and Redemption Terms - The notes are exchangeable at an initial rate of 10.8655 Class A ordinary shares per $1,000 principal amount, with an exchange price of approximately $92.03 per share, reflecting a 32.5% premium [9] - The Issuer may redeem the notes starting June 20, 2028, under specific conditions related to the stock price [10] Group 5: Company Overview - ODDITY is a consumer tech company focused on disrupting the beauty and wellness industries through digital-first brands, serving approximately 60 million users [16]