Shares of Oddity Tech (ODD +26.53%) absolutely skyrocketed on Wednesday. The Israel-based maker of data-driven beauty products reported earnings early this morning, narrowly exceeding Wall Street's estimates. The stock closed 26.5% higher, having soared as much as 41.6% just after the market open.
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A 25% sales drop and a 26.5% stock pop
Those jumps are not typos or miscalculations, but I was also serious about the narrow surprises. Oddity Tech's Q2 2026 sales fell 25% year over year, landing at $181 million. Earnings per share dropped from $0.92 to $0.20. The average analyst targets were $176.5 million and $0.19 per share, respectively. Furthermore, management offered its first revenue guidance for the 2026 fiscal year, targeting a year-over-year drop of approximately 19%.
Oddity Tech's mellow report sparked an odd market reaction. Investors focused on solid results for the SpoiledChild anti-aging products and the Methodiq telehealth service, while the Il Makiage makeup division is working through algorithm shifts with a key marketing partner.
NASDAQ: ODD
Key Data Points
The bull case and the catch
To be fair, the bright spots were brilliant. The SpoiledChild brand is on track to reach nearly $350 million in total sales in 2026, 35% above the previous year. The Methodiq line is just a few months old, but it is tracking ahead of SpoiledChild's early results. And the Il Makiage issues are slowly resolving, setting the company up for stronger results in 2027 and beyond.
But this is an odd duck on Wall Street. Oddity Tech sells cosmetics the way a software company sells software, and it owns a Boston biotech lab to make the ingredients. And it runs sales the way Lemonade sells insurance: through an online quiz to define your beauty needs. There are also echoes of Stitch Fix's try-before-you-buy tactics.
Results are lumpy, the stock is volatile, and some 23% of its shares are sold short. And even after Wednesday's 26.5% gain, it's still down 74% over the last 52 weeks. This jump is more of a rebound than a victory march.
Oddity Tech is an incredibly interesting business, but it runs a fragile marketing strategy. Every brand, including the healthy ones, depends on the same paid social funnel, and one algorithm change took first orders down by 40%. I don't mind watching this turnaround story from the sidelines.
