ODD Oddity Tech Ltd
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Executive Summary
ODDITY Tech reported Q1 2026 net revenue of $197.9M, down 26% YoY, and a net loss of $21.4M vs. net income of $37.8M a year ago, driven by a severe CPA dislocation with its largest advertising partner. The company guided Q2 revenue to decline 25-30% YoY and expects full-year 2026 Adjusted EBITDA to be positive, while highlighting early signs of CPA improvement in May. The massive earnings collapse confirms the structural advertising issue is far from resolved, making this a bearish filing despite the buyback and liquidity narrative.
Actionable Insight
The CPA dislocation is a structural advertising-platform issue, not a transient blip — Q2 guidance of another 25-30% revenue decline confirms the damage is ongoing. The May CPA improvement is early and unquantified beyond a sequential decline; wait for concrete evidence of sustained normalization before considering a long position. The $200M buyback authorization provides a floor but does not offset the fundamental earnings destruction.
Key Facts
- Q1 2026 net revenue of $197.9M, down 26% YoY from $268.1M
- Net loss of $21.4M vs. net income of $37.8M in Q1 2025
- Adjusted EBITDA of $(7.0)M vs. $52.4M in Q1 2025
- Gross margin contracted to 69.7% from 74.9% YoY
- Diluted loss per share of $(0.38) vs. diluted EPS of $0.63 in Q1 2025
- Q2 2026 revenue guidance: decline of 25-30% YoY
- Full-year 2026 Adjusted EBITDA expected to be positive (no specific range given)
- CPA with largest advertising partner spiked 83% YoY in H1 through May 2026
- Repurchased 6.1M Class A shares for $82.3M in Q1, reducing shares outstanding by ~10.6%
- Cash, cash equivalents and investments of $667.4M; $350M undrawn credit facilities
Financial Impact
Revenue decline of $70.1M YoY (-26%), net income swing of -$59.2M from profit to loss, Adjusted EBITDA swing of -$59.4M from $52.4M profit to $7.0M loss
Risk Factors
- CPA dislocation may persist or worsen if the advertising partner's algorithm does not fully remediate
- Loss of first-order customers in Q1 will depress repeat revenue for the remainder of 2026
- Q2 guidance of 25-30% revenue decline implies no near-term recovery
- Full-year 2026 Adjusted EBITDA guidance of 'positive' is vague and could be minimal
- Share buyback consumes cash during an operational crisis, reducing financial flexibility
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-069208 |
| Document: tm2615689d1_6k.htm | 0001104659-26-069208 |
| Document: 0001104659-26-069208-index-headers.html | 0001104659-26-069208 |
| Document: 0001104659-26-069208-index.html | 0001104659-26-069208 |
| Document: 0001104659-26-069208.txt | 0001104659-26-069208 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 2, 2026
3d ago
|
6-K
| $9.84 $10.25 | ▼ −4.17% | ▼ −4.86% | $9.81 (+0.30%) |
|
Jun 2, 2026
3d ago
|
Press Release
| $9.84 $10.25 | ▼ −4.17% | ▼ −4.86% | $9.81 (+0.30%) |
US Market Status
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