ODDITY TECH LTD-CL A (NASDAQ:ODD) reported its second-quarter earnings for 2025, delivering revenue and earnings per share (EPS) that exceeded analyst expectations. However, despite the beat, the stock faced a sharp decline in after-hours trading, dropping over 13%.
Earnings vs. Estimates
- Revenue: The company posted Q2 revenue of $241.1 million, slightly above the consensus estimate of $240.8 million, representing a 25% year-over-year increase.
- EPS: Reported EPS came in at $0.92, surpassing the estimated $0.88.
- Profitability: Adjusted EBITDA stood at $70 million, while net income reached $49 million, reinforcing the company’s ability to maintain strong margins.
Despite the positive results, the market reaction suggests investor concerns, possibly tied to broader macroeconomic conditions, valuation levels, or forward-looking uncertainties not fully addressed in the report.
Full-Year and Q3 Outlook vs. Analyst Expectations
The company raised its full-year outlook, though specific numerical guidance was not detailed in the provided press release. Analysts currently project:
- Full-year 2025 revenue: $805.3 million
- Full-year 2025 EPS: $2.05
- Q3 2025 revenue estimate: $144.8 million
- Q3 2025 EPS estimate: $0.32
If ODDITY’s raised guidance aligns significantly above these figures, the after-hours sell-off could reflect profit-taking or skepticism about sustainability. If the outlook was less aggressive than hoped, it may explain the negative reaction.
Key Takeaways from the Press Release
- CEO Oran Holtzman emphasized continued momentum, citing growth across revenue, profit, and EPS.
- The company is reinvesting in technology, ODDITY Labs, and new brand development.
- Strong profitability suggests efficient scaling, but the market may be questioning growth sustainability or competitive pressures.
Market Performance Context
- After-hours: -13.6% (sharp decline post-earnings)
- Recent trends: The stock had been relatively flat over the past month (-5.6%), with minimal movement in the last two weeks (+2.9%).
The disconnect between solid earnings and negative price action highlights that markets often trade on expectations rather than backward-looking results. Investors may be reassessing growth premiums or awaiting clearer signals on future profitability.
For more detailed earnings estimates and historical performance, see ODDITY’s earnings and estimates page.
Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.
