Oddity Tech (ODD) Q2 2025 earnings summary

Executive summary

• Revenue grew 26% year-over-year to $509 million for the first half of 2025, with Q2 net revenue up 25% to $241 million, both exceeding guidance and driven by double-digit online growth in IL MAKIAGE and SpoiledChild.

• Adjusted EBITDA for H1 2025 was $122 million, with Q2 adjusted EBITDA at $70 million (28.8% margin), both above guidance.

• Free cash flow for H1 2025 was $99 million, converting over 80% of adjusted EBITDA.

• Continued expansion into new categories and markets, with Brand 3 (medical-grade dermatology) launching in Q4 2025 and Brand 4 planned for 2026.

• Focused on technology-driven personalization, international growth, and innovation through ODDITY Labs.

Financial highlights

• Q2 2025 gross margin was 72.3%, up 10 bps year-over-year and above guidance.

• Adjusted EBITDA margin for Q2 was 28.8%, down 350 bps year-over-year due to planned growth investments.

• Adjusted diluted EPS for Q2 was $0.92, above guidance, with H1 2025 adjusted diluted EPS at $1.61.

• Cash, cash equivalents, and investments stood at $815 million as of June 30, 2025, plus $200 million undrawn credit facilities.

• Free cash flow conversion exceeded 80% of adjusted EBITDA in H1 2025.

Outlook and guidance

• Full-year 2025 net revenue expected between $799 million and $804 million, representing 23%-24% growth.

• Gross margin for 2025 expected at 71%, including tariff impacts.

• Adjusted EBITDA forecasted at $160-$162 million; adjusted diluted EPS at $2.06-$2.09.

• Q3 2025 net revenue guidance: $144–146 million (21–23% YoY growth), gross margin ~68%, adjusted EBITDA $26–28 million.

• No revenue from Brand 3 included in 2025 outlook; 2026 expected to align with long-term 20% revenue growth and 20% EBITDA margin.