ODDITY (ODD) Q2 2026 Earnings Call: Revenue Falls 25% as Ad Dislocation Persists
Source Tradingkey
Key Takeaways
- ODDITY (NASDAQ: ODD) reported second-quarter 2026 net revenue of $181 million, down 25% year over year, as IL MAKIAGE continued to face elevated customer acquisition costs caused by an advertising-account algorithm dislocation.
- Adjusted EBITDA was $13 million, above the company’s prior outlook of $8 million to $10 million. Adjusted diluted EPS was $0.20.
- First-order net revenue declined approximately 40%, while repeat-order net revenue fell approximately 20%. Average order value declined about 8%.
- SpoiledChild remains on track, according to management, to grow at least 35% and approach $350 million in 2026 net revenue. METHODIQ is expected to generate more first-year revenue than SpoiledChild did.
- Management expects the year-over-year net revenue decline to improve to approximately 5% in Q3 2026, with adjusted EBITDA of $18 million to $20 million.
- Full-year 2026 guidance calls for an approximately 19% net revenue decline and adjusted EBITDA of $30 million to $32 million.
Core Financial Data
| Metric | Q2 2026 result | Change or context |
|---|---|---|
| Net revenue | $181 million | Down 25% year over year |
| First-order net revenue | — | Down approximately 40% year over year |
| Repeat-order net revenue | — | Down approximately 20% year over year |
| Average order value | — | Down approximately 8% year over year |
| Gross margin | 68.7% | Down from 72.3%; approximately 360 basis points of compression |
| Adjusted EBITDA | $13 million | Above company outlook of $8 million to $10 million |
| Adjusted diluted EPS | $0.20 | Adjusted basis |
| Free cash flow | Increased by $14 million in Q2 | Decreased by $8 million in the first half |
| Cash, cash equivalents and investments | $561 million | At quarter-end |
| Credit facilities | $350 million | Undrawn |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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