Oddity Tech Ltd. is a consumer technology company that creates digital-first brands within the beauty and wellness sectors, both in the U.S. and internationally. The company serves consumers via its AI-powered online platform, leveraging data science, machine learning, and computer vision to understand consumer needs and develop innovative beauty, wellness, and tech products.
Recent Highlights
CEO Statement-ODDITY's momentum continued into the second quarter, delivering another strong performance with a beat and raise across revenue, profit, and earnings per share. The business is experiencing robust growth with high profitability, driven by multiple engines and significant long-term potential," said Oran Holtzman, ODDITY's co-founder and CEO. "These solid financial results enable the company to continue reinvesting in its future, including advancements in technology, ODDITY Labs, and the development of new brands.
The upcoming launch of Brand 3 represents a major opportunity, as it allows the company to tap into the medical-grade product market," Holtzman added. "Just as ODDITY leveraged technology and its direct-to-consumer model to transform the beauty industry, they are now focusing on healthcare, starting with dermatology, where they see a promising and profitable growth trajectory.
Second Quarter 2025 Financial Highlights
Net revenue reached $241 million, up from $193 million in the same period last year, marking a 25% year-over-year increase driven by sustained consumer demand and successful brand expansion.
Gross profit rose to $174 million, compared to $139 million in the second quarter of 2024, also representing a 25% year-over-year increase. The company’s gross margin expanded to 72.3%, an improvement of 10 basis points from 72.2% a year earlier, underscoring the efficiency and scalability of its digital-first model.
Net income for the quarter totaled $49 million, compared to $45 million in the prior-year period, reflecting solid profitability and prudent cost management. The net income margin was 20.4%, compared to 23.6% in the second quarter of 2024, primarily reflecting continued investments in growth initiatives.
On an adjusted basis, adjusted net income was $57 million, up from $51 million a year ago, representing a 12% year-over-year increase. The adjusted net income margin was 23.7%, compared to 26.5% in the second quarter of 2024, as the company strategically reinvested in technology, innovation, and brand development to support long-term growth.
Stock Observation-Looking ahead, ODDITY anticipates continued growth as it capitalizes on sustained consumer demand and further expands its brand portfolio. The company expects to maintain its strong momentum, with net revenue continuing to benefit from strategic brand expansions and increasing consumer engagement across its digital-first platforms.
Risk Involved- Financial performance of the company may have an impact on the company stock performance.
Considering all the factors and financials of the company Acrobull UK maintains Buy for the stock.
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