ODDITY Tech Reports Record First Quarter Results, Raises Full Year Outlook

   -- First quarter net revenue of $268 million, up 27% year-over-year 
 
   -- First quarter adjusted EBITDA of $52 million 
 
   -- First quarter net income of $38 million and first quarter adjusted net 
      income of $42 million 
 
   -- First quarter operating cash flow of $88 million and free cash flow of 
      $87 million 

NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) -- ODDITY Tech Ltd. (NASDAQ: ODD) today announced its financial results for the first quarter ended March 31, 2025.

"Our Q125 results exceeded our expectations across all metrics and allow us to raise our full year outlook. We delivered an outstanding result for our biggest quarter of the year, setting us up to overdeliver on our financial algorithm in 2025," said Oran Holtzman, ODDITY co-founder and CEO. "The beauty industry continues to transform, as we said it would, with consumers moving online and towards high performance products, in our view. The structural changes in the industry, including the growth of online, are only strengthening as the store model is less suited for the current environment. It only makes our opportunity bigger."

"Our early and aggressive investments in this transformation allow us to sustain a powerful financial model, to beat our guidance, and to once again raise our full year outlook as we have done in the past 8 quarters since our IPO," Holtzman continued. "Our DNA, business model, and strong performance allow us to play full offense in times like today."

ODDITY achieved a number of objectives during the first quarter, which include:

   -- Exceeding financial guidance across all metrics for the first quarter 
      ended March 31, 2025. 
 
   -- Double-digit revenue growth for both IL MAKIAGE and SpoiledChild. 
 
   -- Accelerating our international expansion. 
 
   -- Progressing Brand 3 towards a planned soft launch in the third quarter 
      and formal launch in the fourth quarter of 2025. 
 
   -- Ongoing development and expansion of the ODDITY LABS molecule discovery 
      platform. 
 
   -- Generating $87 million of free cash flow. 
 
   -- A strong balance sheet position including $257 million of cash, cash 
      equivalents, and investments, with zero outstanding debt, as of March 31, 
      2025. 

"We are pleased with our financial results for the first quarter, which beat our guidance across revenue, gross margin, adjusted EBITDA, and adjusted EPS," said Lindsay Drucker Mann, ODDITY Global CFO. "These excellent Q125 results, combined with a strong start to Q2, our sustained high repeat rates, the resilience of our category, and our agile business model allow us to continue investing in our growth while raising our full year outlook."

First Quarter Fiscal 2025 Financial Highlights(1) :

Results for the first quarter ended March 31, 2025 are presented below in comparison to the same period in the prior year:

   -- Net revenue was $268 million compared to $212 million in the first 
      quarter of 2024, representing a 27% year-over-year increase. 
 
   -- Gross profit was $201 million compared to $156 million in the first 
      quarter of 2024, representing a 29% year-over-year increase. Gross margin 
      was 74.9%, increasing by 116 bps compared to gross margin of 73.8% in the 
      first quarter of 2024. 
 
   -- Net income was $38 million compared to $33 million in the first quarter 
      of 2024. Net income margin was 14.1% compared to 15.6% in the first 
      quarter of 2024. 
 
   -- Adjusted net income was $42 million compared to $38 million in the first 
      quarter of 2024, representing a 9% year-over-year increase. Adjusted net 
      income margin was 15.6% compared to 18.1% in the first quarter of 2024. 
 
   -- Adjusted EBITDA was $52 million compared to $48 million in the first 
      quarter of 2024, representing a 9% year-over-year increase. Adjusted 
      EBITDA margin was 19.5%, decreasing by 320 bps compared to adjusted 
      EBITDA margin of 22.7% in the first quarter of 2024. 
 
   -- Diluted EPS were $0.63 for the first quarter of 2025 compared to $0.53 in 
      the first quarter of 2024. Adjusted diluted EPS were $0.69 for the first 
      quarter of 2025 compared to $0.61 in the first quarter of 2024. 
 
   -- Cash and cash equivalents, restricted cash, short-term deposits and 
      marketable securities were $257 million, with no outstanding debt as of 
      March 31, 2025. 

(1) Financial results have been rounded to the nearest million, unless indicated otherwise.

The table below sets forth our actual results for the three months ended March 31, 2025 and the low and high end of our guidance range regarding our results for the first quarter of 2025 as issued on February 25, 2025.

 
                           Three months ended March 31, 2025 
-------------------  --------------------------------------------- 
                          Actual          Guidance      Guidance 
                          Results          Low End      High End 
-------------------  -----------------  ------------  ------------ 
Net Revenue            $268 million     $258 million  $262 million 
-------------------  -----------------  ------------  ------------ 
Gross Margin               74.9%           72.0%         72.0% 
-------------------  -----------------  ------------  ------------ 
Adjusted EBITDA         $52 million     $49 million   $50 million 
-------------------  -----------------  ------------  ------------ 
Adjusted Diluted 
 EPS                       $0.69           $0.61         $0.63 
-------------------  -----------------  ------------  ------------ 
 

Financial Outlook

ODDITY is raising its 2025 financial outlook across all metrics and now expects to deliver revenue growth ahead of its 20% long-term algorithm.

The 2025 outlook incorporates ODDITY's current view of tariff and trade-related headwinds. While policy outcomes are in flux, based on the information ODDITY has today, these headwinds are expected to be manageable and largely offset by cost efficiencies. ODDITY believes the impact from tariff and trade-related headwinds in 2026 will be similarly manageable.

ODDITY is raising its guidance across all metrics for the full year ending December 31, 2025:

   -- Net revenue between $790 million and $798 million, representing 
      year-over-year growth between 22% and 23%. 
 
   -- Gross margin of approximately 71%. 
 
   -- Adjusted EBITDA between $157 million and $161 million. 
 
   -- Adjusted diluted EPS between $1.99 and $2.04. This assumes an effective 
      tax rate of approximately 20%. 
 
                       Current FY2025 Outlook  Prior FY2025 Outlook 
---------------------  ----------------------  -------------------- 
Net Revenue               $790-798 million       $776-785 million 
---------------------  ----------------------  -------------------- 
Gross Margin                    71%                    70% 
---------------------  ----------------------  -------------------- 
Adjusted EBITDA           $157-161million        $155-158 million 
---------------------  ----------------------  -------------------- 
Adjusted Diluted EPS         $1.99-2.04             $1.94-1.98 
---------------------  ----------------------  -------------------- 
 

ODDITY is providing the following guidance for the second quarter ending June 30, 2025:

   -- Net revenue between $235 million and $239 million, representing 
      year-over-year growth between 22% and 24%. 
 
   -- Gross margin of approximately 70.5%. 
 
   -- Adjusted EBITDA between $65 million and $68 million. 
 
   -- Adjusted diluted EPS between $0.85 and $0.89. This assumes an effective 
      tax rate of approximately 20%. 
 
                       Q2 2025 Outlook 
---------------------  ---------------- 
Net Revenue            $235-239 million 
---------------------  ---------------- 
Gross Margin                      70.5% 
---------------------  ---------------- 
Adjusted EBITDA          $65-68 million 
---------------------  ---------------- 
Adjusted Diluted EPS      $0.85-0.89 
---------------------  ---------------- 
 

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted net income margin, Adjusted diluted EPS and free cash flow are non-GAAP financial measures. Please see the sections titled "Non-GAAP Financial Measures" and "Reconciliations of GAAP to Non-GAAP Measures" below for more information regarding ODDITY's use of non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. ODDITY has not provided a quantitative reconciliation of its Adjusted EBITDA and Adjusted diluted EPS outlook to the corresponding net income and diluted EPS GAAP measures, because the quantification of certain items included in the calculation of GAAP net income and GAAP diluted EPS cannot be calculated or predicted at this time without unreasonable efforts. ODDITY is unable to address the probable significance of the unavailable reconciling items, which could have a potentially unpredictable, and potentially significant, impact on its future GAAP financial results.

The financial outlook figures presented above are forward-looking statements that are subject to a variety of assumptions and estimates. Actual results may differ materially from ODDITY's financial outlook as a result of, among other things, the factors described under "Forward-Looking Statements" below.

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