Oddity Tech (ODD) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 results with 24% year-over-year revenue growth to $148 million and 24% growth in adjusted diluted EPS, surpassing guidance despite industry challenges.

• Launched METHODIQ, a new telehealth dermatology brand, after four years of R&D and two acquisitions, supported by major marketing campaigns and the largest TikTok activation in company history.

• Continued robust growth in core brands IL MAKIAGE and SpoiledChild, with international revenue up 40% year-over-year for the first nine months of 2025.

• ODDITY Labs' proprietary molecules and AI-driven tech innovation are driving product development and commercial impact, with at least eight products with proprietary molecules expected in 2026.

• Maintained a strong cash position with $793 million in cash, cash equivalents, and investments, plus $200 million in undrawn credit facilities.

Financial highlights

• Q3 2025 net revenue was $148 million, up 24% year-over-year, surpassing guidance of 21–23% growth.

• Gross margin expanded to 71.6%, up 170 basis points year-over-year and above guidance; nine-month gross margin was 73.2%.

• Adjusted EBITDA reached $29 million, exceeding guidance of $26–28 million and up 16% year-over-year.

• Adjusted diluted EPS was $0.40, above guidance of $0.33–0.36 and up from $0.32 year-over-year.

• Free cash flow for the first nine months was $90 million; for the last twelve months, $105 million.

Outlook and guidance

• Raised full-year 2025 net revenue guidance to $806–809 million, representing 24–25% year-over-year growth.

• Gross margin forecasted at approximately 72.5%.

• Adjusted EBITDA projected at $161–163 million; adjusted diluted EPS at $2.10–2.12, assuming no share buybacks.

• Q4 2025 revenue expected to increase 21–23% year-over-year, with gross margin ~69%.

• No change to medium-term algorithm of 20% revenue growth and 20% adjusted EBITDA margin.