Oddity Tech Stock Soars After Q2 Profit Beat, Improved Outlook

Oddity Tech (NASDAQ: ODD) stock surged in pre-market trading after the beauty and wellness technology firm reported better-than-expected second-quarter profitability and issued a significantly improved outlook, signaling that the worst of its recent operational headwinds may be over.

Earnings Beat and Upbeat Guidance

For its second quarter of 2026, Oddity reported an adjusted EBITDA of $13 million, comfortably exceeding its own guidance range of $8 million to $10 million. This outperformance was a key catalyst for the stock's rally, according to a report from Investing.com.

Looking ahead, the company provided a materially better-than-feared forecast for the third quarter. It now anticipates a year-over-year revenue decline of only approximately 5%, a marked improvement from the roughly 25% drop recorded in Q2. Furthermore, Oddity projects Q3 adjusted EBITDA to be between $18 million and $20 million, suggesting a strong recovery in profitability.

Aggressive Capital Returns

A substantial capital return program also bolstered investor confidence. The company's aggressive buyback activity included:

Ad

• $80 million in share repurchases during the second quarter.
• $163 million in repurchases year-to-date, reducing total ordinary shares outstanding by approximately 20%.
• The retirement of $50 million in principal of its 2030 exchangeable notes.

Oddity ended the quarter with a strong liquidity position, holding $561 million in cash, equivalents, and investments, along with $350 million in undrawn credit facilities.

Context and Market Reaction

The positive results triggered a significant relief rally for the stock, which had been under severe pressure since early 2026. Shares had fallen from a 52-week high of $64.23 after the company's IL MAKIAGE brand experienced a spike in customer acquisition costs tied to an advertising algorithm disruption.

CEO Oran Holtzman also highlighted strong performance from the company's other brands, noting that SpoiledChild is on track for at least 35% growth in 2026 to approach $350 million in net revenue. The combination of a profitability beat, a dramatically improved revenue outlook, and a massive buyback program has led investors to reassess the pace and credibility of the company's recovery.