Q4 2025 Oddity Tech Ltd Earnings Call Transcript
Key Points
- ODDITY Tech Ltd (ODD) achieved record financial results in 2025, with revenue increasing by 25% to $810 million.
- The company successfully launched its third brand, METHODIQ, expanding into the medical-grade space with promising initial success.
- ODDITY Tech Ltd (ODD) maintained a strong cash position, ending the year with $776 million in cash and cash equivalents.
- International revenue grew by 42%, with international markets representing 17.5% of overall net revenue.
- The company demonstrated strong repeat sales, with approximately 70% of revenue in 2025 coming from repeat customers, indicating high customer satisfaction and brand loyalty.
- ODDITY Tech Ltd (ODD) faced significant challenges with increased user acquisition costs due to algorithm changes by a major advertising partner.
- The elevated acquisition costs are expected to negatively impact financial results in the first half of 2026, with a projected 30% decline in Q1 sales.
- Gross margin compressed by 220 basis points year-over-year in Q4 2025, partly due to product mix and higher media costs.
- The company is experiencing a dislocation in user acquisition costs, which is severely affecting its ability to acquire new users efficiently.
- ODDITY Tech Ltd (ODD) has not issued full-year 2026 guidance due to the uncertain timing of recovery from the acquisition cost issues.
Good morning and welcome to Oddity's fourth 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, Oddity's CTO will also be available for the question-and-answer session.
As a reminder, management's remarks on this call that do not concern past events are forward-looking statements. These may include predictions, expectations, or estimates, including statements made about Oddity's business strategy, market opportunity, future financial performance, customer acquisition costs, 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
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