Oddity Tech (ODD) Q4 2025 earnings summary

Executive summary

• Achieved record financial results in 2025, with net revenue up 25% to $810 million and adjusted EBITDA of $163 million, surpassing internal plans and prior guidance.

• Q4 2025 net revenue was $153 million, up 24% year-over-year, exceeding guidance.

• Launched third brand, METHODIQ, expanding into the medical-grade telehealth space, with strong early traction.

• Continued significant investments in ODDITY Labs, technology infrastructure, and new product development.

• Maintained a strong balance sheet with $776 million in cash, cash equivalents, and investments at year-end.

Financial highlights

• Full-year gross margin was 72.7%, up 30 basis points year-over-year; Q4 gross margin was 70.5%, down 220 basis points year-over-year but above guidance.

• Full-year adjusted EBITDA reached $163 million (20.2% margin); Q4 adjusted EBITDA was $13 million (8.2% margin), above guidance but down year-over-year due to growth investments and higher media costs.

• Adjusted diluted EPS for 2025 was $2.21, up from $1.96 in 2024; Q4 adjusted diluted EPS was $0.20.

• Free cash flow for 2025 was $84 million; net operating cash flow was $88 million.

• Advertising costs rose ~50% year-over-year, reflecting growth investments and higher acquisition costs.

Outlook and guidance

• Not issuing full-year 2026 guidance due to uncertainty around timing of user acquisition cost normalization.

• Q1 2026 sales expected to decline approximately 30% year-over-year due to increased user acquisition costs; Q2 sales also likely to decline.

• Expect normalization of acquisition costs and business performance in H2 2026, pending successful remediation.

• Near-term EBITDA materially pressured by high customer acquisition costs, though 12-month direct contribution margin remains profitable due to strong repeat rates.

• Management will issue FY 2026 guidance in the coming months.