Q2 2025 Oddity Tech Ltd Earnings Call Transcript
Key Points
- ODDITY Tech Ltd (ODD) reported a 26% revenue growth to $509 million for the first half of 2025, surpassing their financial targets.
- The company achieved an adjusted EBITDA of $122 million and free cash flow of $99 million in the first half of 2025, exceeding the full-year results of 2023.
- ODDITY Tech Ltd (ODD) is expanding its brand portfolio with the upcoming launch of Brand 3, entering the medical-grade space, and Brand 4 next year.
- International sales grew over 40% in the first half of 2025, indicating strong global market potential.
- The company maintains a strong cash position with $815 million in cash, cash equivalents, and investments, alongside an additional $200 million available on undrawn credit facilities.
- Average order value decreased by around 1% due to a mix of faster growth in international markets and an increase in repeat sales, which carry lower AOV.
- Gross margin for Q2 was impacted by higher supply chain expenses, although it exceeded guidance.
- The company anticipates a 700 basis points drag on first-half EBITDA margin in 2026 due to front-loaded investments.
- There is no revenue contribution from Brand 3 included in the 2025 outlook, indicating potential uncertainty in its initial impact.
- The company faces a manageable headwind from tariffs, expected to be less than 100 basis points on gross margin in 2025 and 2026.
Good morning and welcome to Oddity's second quarter 2025 earnings conference call. Today's call is being recorded, and we have allocated time for prepared remarks and Q&A. At this time, I'd like to turn the conference over to Maria Lycouris. Investor Relations for Oddity. Thank you. You may begin.
Thank you, operator. I'm joined by Oran Holtzman, ODDITY's Co-Founder and CEO, and Lindsay Drucker Mann, ODDITY's Global CFO. Niv Price, ODDITYâs CTO, will also be available for the question and answer session. As a reminder, managementâs remarks on this call that do not concern past events are forward-looking statements. These may include predictions, expectations, or estimates, including statements about ODDITYâs business strategy, market opportunity, future financial performance, and potential long-term success.
Forward-looking statements involve risks and uncertainties, and actual results could differ materially due to a variety of factors. These factors are described under forward-looking
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