Oddity Tech (ODD) Q2 2025 earnings summary

Executive summary

• Revenue grew 26% year-over-year to $509 million in H1 2025, with Q2 net revenue up 25% to $241 million, both exceeding guidance and driven by double-digit online growth for IL MAKIAGE and SpoiledChild.

• Adjusted EBITDA for H1 2025 was $122 million, with Q2 adjusted EBITDA at $70 million and margin of 28.8%, despite a 350 bps decline due to planned investments.

• Free cash flow for H1 2025 was $99 million, with cash, cash equivalents, and investments totaling $815 million at quarter-end.

• The company is expanding its brand portfolio, with Brand 3 (medical-grade dermatology) launching in Q4 2025 and Brand 4 planned for 2026.

• International sales represented 15% of 2024 net revenue and grew over 40% in H1 2025, reaching $85 million, with $10 million from new test markets.

Financial highlights

• Q2 2025 gross margin was 72.3%, up 10 bps year-over-year, and adjusted EBITDA margin was 28.8%.

• Q2 adjusted diluted EPS was $0.92, above guidance, and H1 2025 adjusted diluted EPS was $1.61, both up 12% year-over-year.

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

• LTM Q2 2025 net revenue was $752 million (+26% YoY), adjusted EBITDA $162 million (22% margin), and free cash flow $130 million.

• Cash, cash equivalents, and investments stood at $815 million as of June 30, 2025.

Outlook and guidance

• Full-year 2025 net revenue expected between $799 million and $804 million, representing 23%-24% growth, with gross margin at 71%.

• Adjusted EBITDA forecasted at $160-$162 million; adjusted diluted EPS at $2.06-$2.09, assuming no share buybacks.

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

• 2026 performance expected to align with long-term targets of 20% revenue growth and 20% adjusted EBITDA margin, with front-loaded investments in H1 2026.

• FY 2025 adjusted diluted EPS expected at $2.06–2.09, up from prior guidance.