Revenue and earnings have collapsed, but Q3 guidance suggests a moderation of the decline. Monitor the resolution of the IL MAKIAGE advertising algorithm issue and whether SpoiledChild and METHODIQ can sustain growth to offset weakness. The aggressive buyback provides a floor on shares outstanding, but until the core brand stabilizes, the stock remains under significant fundamental pressure.
Price Chart
Executive Summary
ODDITY Tech reported Q2 2026 net revenue of $181M, down ~25% YoY, with net income falling from $49M to $13M and adjusted EBITDA slumping from $70M to $13M. The company guided Q3 net revenue to decline ~5% YoY and full-year 2026 to decline ~19%, citing ongoing advertising algorithm issues at its IL MAKIAGE brand. Despite aggressive share buybacks ($80M in Q2) and a note repurchase, the fundamental deterioration remains severe.
Key Facts
- Q2 2026 net revenue $181M, down ~25% YoY from $241M
- Q2 2026 net income $13M vs $49M YoY (down 74%)
- Q2 2026 adjusted EBITDA $13M vs $70M YoY (down 81%)
- Q2 2026 diluted EPS $0.24 vs $0.79 YoY; adjusted diluted EPS $0.20 vs $0.92
- Guidance: Q3 2026 net revenue to decline ~5% YoY, adjusted EBITDA $18-20M
- Guidance: Full-year 2026 net revenue to decline ~19% YoY, adjusted EBITDA $30-32M
- Repurchased ~5.6M Class A shares for ~$80M in Q2; YTD repurchases reduced shares outstanding ~20%
- Repurchased and retired $50M of 0% exchangeable notes due 2030 for ~$35M
- Cash, cash equivalents, and investments of $561M; $350M credit facilities undrawn
Financial Impact
Net revenue fell $60M (-25%), net income dropped $36M (-73%), adjusted EBITDA plunged $57M (-81%) year-over-year.
Risk Factors
- IL MAKIAGE advertising algorithm dislocation may persist or fail to normalize
- Full-year revenue decline of ~19% implies continued weakness across H2 2026
- SpoiledChild and METHODIQ growth may not fully offset the IL MAKIAGE decline
- Liquidity reduced by $215M in H1 due to buybacks and note repurchase, though still ample
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-106126 |
| Document: tm2624995d1_6k.htm | 0001104659-26-106126 |
| Document: 0001104659-26-106126-index-headers.html | 0001104659-26-106126 |
| Document: 0001104659-26-106126-index.html | 0001104659-26-106126 |
| Document: 0001104659-26-106126.txt | 0001104659-26-106126 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 9, 2026 5w ago | 6-K | $16.48 $19.14 | ▼ −16.14% | ▼ −13.94% | $22.43 (−36.10%) |
Aug 21, 2026 8w ago | 6-K | $13.22 $18.29 | ▲ +38.35% | ▲ +38.88% | $22.43 (+69.67%) |
Jun 16, 2026 17w ago | 6-K | $10.97 $16.34 | ▲ +48.95% | ▲ +47.63% | $22.43 (+104.47%) |
Jun 12, 2026 18w ago | 6-K | $11.72 $17.08 | ▲ +45.73% | ▲ +43.95% | $22.43 (+91.38%) |
Jun 2, 2026 19w ago | 6-K | $9.84 $17.01 | ▼ −72.87% | ▼ −74.43% | $22.43 (−127.95%) |
Jun 2, 2026 19w ago | Press Release | $9.84 $17.01 | ▼ −72.87% | ▼ −74.43% | $22.43 (−127.95%) |
US Market Status
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