ODD Stock Forecast & Price Target

ODDITY Tech Ltd demonstrated robust financial performance with online direct-to-consumer sales reaching $140.5 million, reflecting a 27.5% year-over-year increase, and total revenue increasing by 24.3% to $147.9 million, surpassing consensus estimates. The company reported strong gross margins of 71.6%, an increase of 2.4% year-over-year, alongside an upward revision of fiscal year 2025 gross margin guidance to approximately 72.5%. Additionally, management raised their adjusted diluted EPS guidance to a range of $2.10 - $2.12, up from the previous forecast, highlighting their confidence in sustained growth and profitability.

ODDITY Tech Ltd experienced a significant quarter-over-quarter revenue decline of 38.7%, amounting to $147.9 million, which was only marginally above consensus estimates but signals potential underlying weaknesses. The adjusted EBITDA margin declined year-over-year by 6.4% to 19.5%, indicating ongoing challenges in maintaining profitability amid rising competition and increased marketing expenditures. Additional factors such as intense industry competition, limitations stemming from targeting the high-priced prestige market, and digital privacy initiatives affecting marketing efficacy add further pressure to the company’s growth prospects, reinforcing a negative outlook on its stock.