Oddity Tech's Earnings Beat Signals Momentum in Beauty-Tech Sector

Investors took notice on Thursday as Oddity Tech (NASDAQ: ODD) shares climbed over 10% following the release of third-quarter results that outpaced market consensus. The skincare and cosmetics platform’s performance has reignited interest in how traditional beauty brands are leveraging digital transformation.

The Numbers Tell the Story

Oddity Tech’s expansion narrative is building steadily. The company’s net revenue reached $148 million in Q3, reflecting a robust 24% year-over-year increase. This growth wasn’t driven by a single product line—both the Il Makiage makeup brand and SpoiledChild skincare segment showed strong double-digit momentum in online channels, underscoring the platform’s ability to scale across multiple beauty categories.

What caught Wall Street’s attention wasn’t just top-line growth. Oddity Tech’s gross margin improved to 71.6% from 69.9% year-over-year, indicating operational efficiency gains. More impressively, adjusted net income jumped 26% to $25 million, translating to $0.40 per share—comfortably above the $0.35 estimate analysts had penciled in.

CEO Oran Holtzman highlighted the consistency: “We delivered strong results that once again exceeded guidance across revenue, profit, and earnings per share.” This track record of beating expectations matters in a market that often punishes guidance misses.

Management Raises the Bar

The confidence didn’t end with Q3 results. Oddity Tech’s leadership team lifted its full-year guidance, now projecting net revenue between $806 million and $809 million—representing 24-25% growth compared to prior forecasts. The company also increased its adjusted earnings per share guidance to $2.10-$2.12 range, up from $2.06-$2.09.

These upward revisions suggest management’s conviction about Q4 demand trends, particularly given early sales indicators.

Methodiq: The Next Growth Catalyst

Beyond the quarterly beat, Oddity Tech made strategic noise with its Methodiq launch—a telehealth platform targeting dermatology solutions. The platform addresses consumer pain points in treating acne, hyperpigmentation, and eczema through customized treatments and technology integration.

Holtzman framed the initiative as transformative: “Our goal with Methodiq is to reshape medical care with precise treatments and pioneering technology.” If successful, this telehealth vertical could become a meaningful revenue stream, diversifying Oddity Tech beyond traditional e-commerce beauty channels and tapping into the expanding direct-to-consumer healthcare trend.