Q1 2026 Oddity Tech Ltd Earnings Call Transcript
Key Points
- ODDITY Tech Ltd (ODD) saw a meaningful improvement in IL MAKIAGE CPA in May, with a 28% decline from April, indicating potential recovery.
- The company successfully shifted 40% of acquisition revenue from Try Before You Buy to a standard Buy model, maintaining unit economics.
- METHODIQ, a new brand, is off to a strong start and is expected to deliver $25 million in revenue this year.
- ODDITY Labs continues to innovate with new products targeting significant beauty and wellness issues, such as hyperpigmentation and aging.
- The company maintains a strong cash position with $667 million in cash, cash equivalents, and investments, and has an undrawn $350 million credit facility.
- Net revenue declined by 26% in Q1 2026, driven by a significant reduction in acquisition efficiency due to higher CPA.
- First orders declined by around 50%, impacting repeat orders and overall revenue.
- Gross margin compressed by approximately 520 basis points year-over-year due to product mix and lower AOV.
- The company reported an adjusted EBITDA of negative $7 million, reflecting abnormal CPA levels and continued spending.
- ODDITY Tech Ltd (ODD) faces challenges with its largest advertising partner, impacting financial results and requiring ongoing remediation efforts.
Good morning, and welcome to ODDITY's first quarter 2026 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 call 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 factors
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